How often have you bought a product out of habit? Or because the costs of switching (filling out lots of forms, dealing with annoying reps who try and talk you out of it, searching for an alternative, etc.) seemed too high?
As Gary Hamel pointed out recently to the banking industry, this form of inertia is too often mistaken for customer loyalty. He added that the Internet makes comparison and ultimately switching easier. (Hat tip to Netbanker)
How happy are your customers with you? Are they truly loyal or simply complacent?
If you want to find out, might I suggest asking them? And if you don't like the answer, fixing the situation ASAP?
One of my favorite models for making sure your customers love you is from Fred Reichheld, a veteran Bain & Co. consultant and author of the recent book The Ultimate Question. The Ultimate Question is:
"Would you recommend us?"
Inc. Magazine (another favorite) recently profiled his approach.
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