Few companies earned true loyalty in 2010
Very few companies in the US earned strong customer loyalty in 2010, with Amazon.com, Kohl's and Costco coming out on top, according to a survey of 6,000 consumers concerning their interactions with 143 large companies.
In the cross-industry Loyalty Ratings Report by Temkin Group, only 24 companies - representing a mere 17% of the total group examined - earned a "strong" or "very strong" loyalty rating from customers.
"Loyalty is a critical asset that companies regularly squander. It's time for firms to better understand and deliver on the needs and desires of their customers," said Bruce Temkin, managing partner for the Temkin Group. "These results suggest that customers and their disposable income are still up for grabs."
The research analysed consumer feedback based on three elements of loyalty: repurchasing (how likely are they to buy something else from the company), switching (how likely are they to switch their business away from the company), and recommending (how likely are they to recommend the company to a friend or relative).
The top twenty firms in the 2010 Loyalty Ratings were as follows:
- Amazon.com
- Kohl's
- Costco
- Lowe's
- Sam's Club
- USAA
- BJ's Wholesale Club
- Target
- JCPenney
- Walgreens
- eBay
- Old Navy
- Home Depot
- Wal-Mart
- Macy's
- Rite Aid
- CVS
- Barnes & Noble
- Southwest Airlines
- Vanguard
Among the report's other key findings:
- Retailers took 18 out of the top 20 positions in the ratings, with the only non-retailers in the top 20 being USAA (insurance) and Vanguard (investments).
- Twelve companies had ratings that were at least 10 points higher than the average in their industry, including USAA, TriCare, Southwest Airlines, Regions, and Medicare.
- At the lower end of the loyalty spectrum, Radio Shack (retailers), Super 8 (hotel chains), and Gap (retailers) led 18 companies with loyalty scores at least 10 points below their industry averages.
- Led by Costco and Amazon.com, 36 companies had "very strong" ratings for consumers that are likely to recommend them to friends and colleagues.
- Three of the country's television service providers (Comcast, Charter Communications, and Time Warner) were in the bottom five in the ratings overall.
- Retailers had the highest average loyalty ratings for repurchasing and recommending, while investment firms had the highest ratings for switching.
- While no companies had "very strong" ratings for customers that are reluctant to switch, TriCare and USAA led the five companies that had a "strong" rating in this area.
- When it comes to having customers who are likely to purchase something else from them, Amazon.com and Old Navy led the 21 companies with "very strong" loyalty ratings in this area.
The full report is available for purchase (from the Temkin Group web site - click here (US$195 at the time of publishing).
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