Will Customers Give You a Second Chance?

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Customer Engagement
Customer Experience
Companies build trust and goodwill through positive customer experiences and delivering on their promises. They build something else, too: the likelihood that customers will forgive their mistakes and stick with them.

Companies build trust and goodwill through positive customer experiences and delivering on their promises. They build something else, too: the likelihood that customers will forgive their mistakes and stick with them.Temkin Group recently conducted its 2011 Temkin Forgiveness Rating study to determine consumers' likelihood to forgive top brands. As part of the study, a survey queried 6,000 consumers on how likely they were (on a scale of 1 to 7) to forgive a company after a poor customer experience. Temkin Group then ranked the more than 140 companies that were rated by at least 100 consumers. According to the report, less than 20 percent of those organizations garnered "strong" or "very strong" forgiveness ratings. From an industry perspective, credit card issuers and TV service provided ranked lowest in customer goodwill, while retailers ranked highest. The chart below shows the range of scores by industry.

From an individual company perspective, USAA has built up the most goodwill of any organization rated, leading the ratings in three industries: banking, credit cards, and insurance. Costco lead the field in retail, whiile Southwest was rated tops in the airline category; Hyatt was cited as the hotel brand consumers are most likely to forgive, Apple led the list of technology brands, and Sprint ranked highest among wireless providers.

Organizations leading the overall 2011 Temkin Forgiveness Rating include:

1. USAA - insurance
2. Costco - retailer
3. Amazon.com - retailer
4. Tricare - health plan
5. USAA - credit cards
6. Sam's Club - retailer
7. Target - retailer
8. Walgreen's - retailer
9. Southwest Airlines - airline
9. Lowe's - retailer

No company is perfect, so mistakes will happen. The question is whether your organization has built enough goodwill with customers to engenger forgiveness when poor customer experiences occur.

EXPERT OPINION
EXPERT OPINION