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Plenty of good brands have high customer satisfaction ratings but that’s not always enough. It’s the customers who also form an emotional connection with the brand who are 25-100% more valuable in terms of revenue and profitability.
One study looked at 39 well-known brands and compared the number of customers who considered them a good brand to the number who felt an emotional connection. The striking result is that even good brands aren’t always connecting emotionally with their customers.
Brands like Coca-Cola, Nike and Starbucks whose heavy investment in advertising and customer experiences have gotten them good brand ratings still fall short of their smaller rivals whose customers are more emotionally connected. And the most ubiquitous brands such as Walmart, McDonald’s and Facebook ranked among the lowest in the study.
Variations within industries can be dramatic.
Ratings within the insurance industry are quite similar but superstars within the airline industry and financial services have found ways to soar above the competition by translating their strong brand image into a real emotional connection.
It isn’t all about the price either.
Although BMW and Tiffany ranked highest on the list, brands don’t need to be upscale to have strong emotional connections. A company’s job isn’t done when customers are simply satisfied. Even good customers can become better customers if you can find a way to make it personal.
Harvard Business Review: What Matters More Than Customer Satisfaction