In a study of major U.S. retail companies, Harris Interactive identified categories of customers, and found those who are “committed” to a business or brand – connected to it both rationally and emotionally – behaved in profitable ways, including spending more, making positive recommendations to others, and traveling out of their way to patronize it. In other words, actions that would be considered truly loyal. “Loyalty is the behavior, and commitment is the mindset behind it,” says Jim Heisler, Ph.D., senior vp, Stakeholder Relationship Consulting, Harris Interactive.

“People form a relationship with a brand or business, and that relationship has two dimensions,” explains Jim. “The first is rational. It’s based on doing the basic blocking and tackling – with restaurants, things like a good menu, competitive prices, cleanliness, nice atmosphere, and competent service. To the extent that those expectations are met, a customer will form a rational bond.” He cautions that delivering on these things alone will not capture the other – the emotional – dimension of a customer relationship. “Businesses are now working to tap into something we all know exists – emotional bonds.” Bob Thompson, ceo, CustomerThink Corp., agrees that meeting customer expectations is a key component of loyalty, but that if businesses function only on this level it is hard to create enduring loyalty. “Meeting the rational components of loyalty is essential, and it can give you a competitive advantage if you do it better than others, but there are probably lots of companies that deliver good alternatives in your area.”

What’s needed is for businesses to also connect emotionally with their customers. If achieving true loyalty or “commitment” requires more than satisfaction and enters into a realm of a deeper customer connection, then how do restaurants create those connections? “By the ‘emotional’ side of a customer relationship, I mean creating a sense of trust – something that has become a powerful concept in today’s economy.” Trust, Jim explains, is created when customers feel they are valued; that they are taken good care of, treated with respect – things that can be conveyed at every touch point with a customer…on the phone, entering and leaving the restaurant, throughout the dining experience.

“Regardless of the quality of their product,businesses whose customers are just satisfied, won’t see that translate into more market share or more profitability.” – Jim Heisler, Ph.D., senior vp, Stakeholder Relationship Consulting, Harris Interactive

“Knowing what makes customers loyal is why businesses succeed. It gets to the core of any business,” says Bob. “You have to step back and try to understand it. Monitor your guest experience; take the pulse.” He acknowledges that smaller companies don’t have the same budgets for research as big companies, but adds that going on gut instincts about why some customers are loyal is a mistake, too. “One of the misconceptions of the Customer Relationship Management movement is that it’s only for big companies who can afford the enterprise software, consultants, analytical tools,” he says. “But every business can think about its principles – building and tracking customer relationships. And, if they can’t operate with statistical rigor, they can take a simple and pure approach.” Bob says that any company, regardless of size, can pick up the phone, call their best customers and ask why those customers do business with them – what is it about what the company does that keeps them coming back. “Listen hard and take notes,” he advises. “To my mind, there’s no excuse for any business not to do at least that, and those who can afford to invest more in the process have no excuse not to. Do it yourself or hire people…but do it. Figure out why customers come to you and why they come back.” Regardless of how sophisticated the techniques may be, Jim underscores that measuring only if expectations were met is far too simplistic. “Most restaurant companies are practicing loyalty 2.0 in a world of loyalty 4.0,” he says. “They are measuring customer satisfaction, but as an indicator of customer affinity it’s a rearview mirror perspective. If customers were happy the last time they visited you, that’s good. But you don’t want them to think just about last time – it’s too transactional and says nothing about what they will do tomorrow. Even loyalty 3.0 – asking customers only how likely they are to recommend you to others and to continue purchasing from you – still measures only the rational dimension, according to Jim. “Pull the lens further away and find out if you are meeting customers’ needs, both rational and emotional,” he advises.