Ipsos Ideas - Global Newsletter Vol. 3: The New Era of Customer Relationships

Customer Loyalty is Dead! Long Live Customer Loyalty!

Ipsos Ideas - Global Newsletter Vol. 3: The New Era of Customer Relationships

New York, NY -- As consumers wallets bulge with the evidence of the loyalty revolution era--heaps of plastic cards representing frequent flier points, VIP discounts, bonus plans, and membership rewards--many companies are disillusioned by the promises once held by Customer Relationship Management (CRM), writes customer loyalty and satisfaction expert Henri Wallard in his essay "The New Era of Customer Relationships." The advent of Customer Relationship Management generated huge excitement and considerable expectations that largely have been unfulfilled, according to Wallard, CEO of Ipsos Loyalty worldwide. The promise of one-to-one customer relationship management, buzz marketing, and internet-based personalised customer contacts prompted big spending but, for most, never realised bottom-line results. The new era of customer relationship management is a dual-faceted revolution involving firstly, the customer and secondly, the way to handle information collected by customers, writes Wallard. The essay appears in the new issue of Ipsos Ideas, the global newsletter published by the Ipsos Group. "Customer Relationship Management is a dynamic process, with customers who are active participants in the construction of the customer relationship," says Wallard, "The key to customer loyalty isn't data mining and warehousing; it's a continuous process of seduction!" Continuing on the theme of exceeding customer expectations, Timothy Keiningham, Doug Pruden, and Terry Vavra (all formerly of Marketing Metrics, which was acquired by Ipsos in 2003) highlight their approach to Customer Satisfaction Measurement (CSM) with the article "Beyond Mere Satisfaction: The Role of Customer Delight." Citing an "epidemic of ineffective customer satisfaction," the authors offer a pragmatic approach to customer satisfaction and retention based on a more effective analysis of satisfaction data. The approach stems from Vavra and Keiningham's successful book The Customer Delight Principle: Exceeding Customers' Expectations for Bottom Line Success. "Companies have been treating their customer satisfaction data as if the underlying relationships were completely linear, but nothing could be further from the truth!" says Vavra, Chairman Emeritus of Ipsos Loyalty and founder of Marketing Metrics, Inc. "Traditional analyses don't work because customer satisfaction data is really non-linear and asymmetric." Steve Messenger, Director of CRM Analytics at Ipsos Loyalty UK, contributes a case study that illustrates the effectiveness of this approach in his article "Helping to Step-Change CRM Effectiveness at Homebase." Ipsos Ideas is published five times a year in English, French, and Spanish. Current and past issues are available at www.ipsos.com/ideas , or by electronic subscription. For more information on this press release, please contact: Terry Vavra Chairman Emeritus, Ipsos Loyalty Paramus, NJ 201.599.0792 About Ipsos Loyalty Ipsos Loyalty has specialized teams in most of the world's major markets. Ipsos Loyalty offers a multinational reach with category specialization and qualitative as well as quantitative expertise. Ipsos researchers have constant access to our global Loyalty Leadership Team, which includes some of the world's most highly regarded thought leaders in the business of customer satisfaction and customer relationship management. And no matter the size or scope of the research project, clients are able to draw on the resources of the Ipsos global network of over 4,000 employees. Ipsos has been researching customer satisfaction for more than 25 years. To learn more, visit: www.ipsos-na.com/loyalty About Ipsos Ipsos is a leading global survey-based market research group, with revenues of 538.5 million euros in 2002. It offers a full suite of research services, guided by industry experts and bolstered by advanced analytics and methodologies in advertising, marketing, public opinion and customer loyalty research, as well as forecasting and modeling. Member companies also offer a full line of custom, syndicated, omnibus, panel, and online research products and services. To learn more, visit: www.ipsos.com Ipsos is listed on the Euronext Paris Premier Marchй, and is part of the SBF 120 and Next Prime Indices as well as eligible to the Deferred Settlement System (SRD). Euroclear code 7329, Reuters ISOS.LN, Bloomberg IPS FP

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