In today’s hyper-competitive market, the alignment between what your business promises and the performance that it delivers is not just a matter of integrity; it’s a cornerstone of customer experience and loyalty.
I highlight the criticality of this congruence in my book “ICONIC.” When a business’s marketing claims do not match the customer experience, it leads to a trust deficit, adversely affecting its reputation and bottom line. And, let’s face it, in most organizations, the people making the promise are seldom the ones who have to deliver the performance for your customers.
Your goal in 2024 should be to make certain that your promises and performances are in perfect alignment.
The Promise-Performance Gap
The promise-performance gap emerges when there’s a disconnect between the expectations set by marketing and the actual customer experience. This discrepancy can be particularly damaging. A study by PwC found that 73% of consumers cite customer experience as a significant factor in their purchasing decisions, but only 49% of U.S. consumers say companies provide a good customer experience. This gap indicates a widespread issue in businesses failing to live up to their marketed promises.
Impact on Customer Loyalty
Loyalty is earned when a business consistently meets or exceeds the expectations it has set. According to Accenture, 52% of consumers have switched providers due to poor customer service, highlighting the direct impact on customer retention. When the experience falls short of the marketing hype, customers feel misled, leading to dissatisfaction and churn. Everyone spending money with your business has the right to receive an Ultimate Customer Experience. ®
Brand Reputation and Word of Mouth
In the digital age, word of mouth travels fast. A survey by BrightLocal revealed that 87% of consumers read online reviews for local businesses in 2020, up from 81% in 2019. Negative experiences, especially when they contradict marketing claims, can quickly escalate into a crisis through online reviews and social media, affecting potential customers’ perceptions.
The cost of not aligning promises with performance is not just in lost customers but also in the additional effort required to regain trust. Harvard Business Review notes that acquiring a new customer can be anywhere from 5 to 25 times more expensive than retaining an existing one. This cost becomes exponentially higher when businesses must invest in damage control and rebuilding their reputation.
Best Practices for Alignment
1. Understand Customer Expectations: Regularly gather customer feedback to understand their expectations. This information should guide marketing messages to ensure they’re realistic and achievable.
2. Internal Alignment: Make certain that all divisions, particularly marketing and operations, are in sync. The promises made in marketing campaigns should be well understood and executable by the teams responsible for delivering the customer experience.
3. Regular Training: Employees should be regularly trained not just on their job functions but also on the brand’s values and promises. This ensures that everyone is equipped to deliver on those promises consistently.
4. Monitor and Adapt: Continuously monitor customer feedback and market trends. Be ready to adapt both your marketing messages and operational strategies to stay relevant and true to your promises.
The congruence between promise and performance stands at the core of customer trust and loyalty.
In an era where customers have endless options, the businesses that create distinction are those that understand and implement this congruence in every aspect of their operations.
By aligning marketing promises with customer experience, you will not only foster loyalty but also build a sustainable model for long-term success.
You can become ICONIC in 2024!
