Companies struggle to get a clear view of customer satisfaction and loyalty because these programs are usually managed separately. By integrating them, not only can companies accurately judge customer opinion, but they will also be better able to act on those opinions and build a cadre of loyal customers and advocates. This ITSMA Special Report highlights how best-practice companies take a unified, global approach to customer satisfaction management and loyalty programs. Many have developed a customer experience center of expertise to ensure that programs are coordinated globally and executed consistently at the local level. The report also defines what a customer loyalty program is, identifies the organizational structure companies need to develop a comprehensiv program, and outlines the key elements in designing a process and program for a a holistic customer experience.

1. SPECIAL REPORT
How to Build Successful
Customer Satisfaction
and Loyalty Programs
That Drive Growth
By Julie Schwartz
Companies struggle to get a clear view of
customer satisfaction and loyalty because these
programs are usually managed separately.
By integrating them, not only can companies
accurately judge customer opinion, but they will
also be better able to act on those opinions and
build a cadre of loyal customers and advocates.
Abbreviated Summary | October 2012
Note: ThisAbbreviated summary highlights some
of the significant findings from How to Build
Successful Customer Satisf action and Loyalty
Programs That Drive Growth.A more in-depth
analysis can be found in the full report.

2. Take a HolisticApproach
to Managing the Customer
Experience
Every B2B company can point to some big successes A holistic approach to a customer loyalty and
in building strong after-sales relationships with satisfaction program requires:
customers. But not enough companies take a broad • A well-defined organization structure
view of the customer relationship and create an
• Chief Customer Officer
integrated approach that begins the moment a
• Customer Experience Center of Expertise
customer first engages with the company and extends
• A rigorous process and program design
post-sale to the point when that customer becomes a
faithful advocate and perhaps even a partner in
Listening Acting Evaluating
co-developing new solutions.
©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth

3. Organizational Structure:
Bring Programs T ogether
In most companies, customer satisfaction and loyalty Here’s how you bring your programs
together:
programs are not managed at a high-enough level, which
leads to the silo problem because those who manage 2. Create a center
1. Appoint a Chief
them have neither the seniority nor the leadership skills Customer Officer. of expertise to
to work across programs. Companies will never bring all the
be able to manage different programs
ITSMA research finds that companies invest a lot in every touch point together.
of the customer Centralization will enable
service delivery but don’t pay enough attention to other process and experience
experience
pieces of customer service. These uncoordinated touch holistically unless sharing to improve
points result in an inconsistent customer experience and a senior-level existing programs,
executive is in charge as well as ensure the
fragmented customer satisfaction and loyalty efforts that effectiveness of
of the end-to-end
never rise to a strategic level. customer experience. new ones.
©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth

4. Organizational Structure:
Centralize Oversight
When measuring customer satisfaction and loyalty, it’s When you end up with little fiefdoms all doing things
easy to game the system. Another important role of the autonomously, employees are not being held to the
center of expertise is to act as referee over the same standard across the company. And that means
programs, ensuring that all areas of the company it’s impossible to establish a meaningful benchmark
play by the same rules when it comes to the high- for improvement. If measurement—and
stakes issues of loyalty and satisfaction. interpretation of the results—is not consistent,
companies lose the programs’ value.
©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth

5. Listening: Gather Data and
ChooseApproach
The tendency in many companies is to equate the Things to keep in mind:
customer satisfaction survey with the overall program;
1. Customer information integrity.
however, the survey is just part of the customer
satisfaction and loyalty program. Further, the survey Without data integrity, companies cannot measure
should not be the sole customer listening post. satisfaction or loyalty consistently or effectively.
2. Choose the best approach for
your business.
You can conduct surveys on a project or transactional
basis, a relationship basis, or both, depending on
what makes the most sense for your business model.
©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth

6. Listening: Gather Feedback
What exactly should companies be measuring when they ask With the increasing proliferation of channels,
customers to participate in satisfaction and loyalty programs? surveys are not enough. Other customer listening
ITSMA recommends that companies create a customer loyalty posts include:
index that incorporates three broad measures: • Customer service hotline
1 2 3 • Customer visits
Satisfaction Loyalty Advocacy • Online communities
• Social media
• Customer councils/advisory
boards
• Face-to-face individual
customer interviews
• Customer reviews
Note: The Net Promoter Score is based on the model described in Fred Reichheld’s book,
The Ultimate Question (2007). Average B2B NPS = 24; best-in-class NPS > 50.
http://www.netpromoter.com/netpromoter_community/blogs/conference_sf_2009/2009/01/27/b2b
©2012, ITSMA | How to Build Successful Customer Satisfaction and
-and-nps-a-match-made-in-heaven
Loyalty Programs That Drive Growth

7. Acting: TakeAction with
All Customers
How a company responds to Integrating Customer Satisfaction and Loyalty Programs Creates a
Continuous Feedback Loop of Information and Action
customer feedback says a lot
about the importance it places on Client Services Strategic/Operational Changes
Feedback Provider • Advocacy Program
customer relationships.
Action • Reference Program
Companies that promptly take Promoters
End of Project Customer Engagement Activities
action in response to both • Account Based Marketing
• Client Councils/Advisory Boards
positive and negative • Conduct • Thought Leadership Activities
surveys • Special Events/Briefings
feedback have made a Transactional • Monitor all • Collaborative Development/Beta
customer- Projects
commitment to improve the listening Passives
• Recreation and Social Activities
posts
customer experience. However, • Capture • Online Communities
client- • Key Executive Relationship
responding customer by customer Annual initiated Program
feedback
is not enough. Some feedback
Detractors
needs to be addressed on a more Remediation
Actions
strategic, company-wide level. Ongoing
©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth

8. Acting: Take a Programmatic
Approach to Customer
Engagement
Customer engagement, which strengthens ITSMA has created a framework, consisting of
relationships and builds loyalty with key stakeholders 6 elements, to help companies create more
at existing customer accounts, is most successful effective customer engagement programs.
when managed programmatically—not as ad hoc,
one-off activities.
©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth

9. Evaluating: Measure to Prove
and Improve the Program
As with any business activity, it is important to Keep these in mind when coming up with and
measure results to know what’s working and what measuring evaluation metrics:
isn’t, as well as to communicate the value. In other • Measure results at three levels
words, we measure to both prove and improve
• overall program
the results delivered by the program.
• individual activity
Using baselines is a powerful way to demonstrate
• specific accounts
the value of the customer satisfaction and loyalty
program. Showing the value of these programs • Measure your listening program,
helps executives understand their importance, not just customers’ responses
resulting in continued support and funding. • Tailor results reporting to the target
audience
©2012, ITSMA | How to Build Successful Customer Satisfaction and Loyalty Programs That Drive Growth

10. Learn More For more information on how to build a
best-in-class customer satisfaction
and loyalty program,
buy the ITSMA Special Report
How to Build Successful Customer
Satisfaction and Loyalty Programs
That Drive Growth.