The Three Keys to Customer Satisfaction and Loyalty

by | Leadership, Organizations

I was recently going through a drive-thru at a restaurant when I made an observation about exceptional customer service. I’ve addressed this topic before on an episode of the Leader Fluent Podcast where I shared insights on How to Create Stellar Customer Service. And in a previous article, I talked about How the Ritz Carlton Delivers Exceptional Customer Service. But as I sat in the drive-thru that day, I boiled the customer experience down to the three most foundational ingredients. These are not new, but I’ve tried to articulate them in a fresh and easy-to-remember way.

When these three key ingredients are in place, customer satisfaction soars. Conversely, when one of these ingredients is missing, the customer experience suffers, as does customer satisfaction and loyalty. While these three elements are highly visible in a fast-food experience (which I’ll use as an illustration through this article), they can be applied to nearly any customer experience, and to nearly any industry. What are the keys to creating satisfied and loyal customers? 

1. Product: Is the Product Quality Excellent? 

No matter what product you purchase—whether a hamburger at a restaurant or a computer at a tech store, whether a used car or a new home—every customer wants to know that the product they’re purchasing exhibits quality. Nobody likes to buy junk. A quality product is excellent when it…

  • Solves a Problem – Every excellent product solves a problem. We expect food products to solve our hunger, we expect cars to solve our transportation needs, and we expect phones to solve our communication challenges. Failure to do so is a product fail at the most basic level. 
  • Delivers on its Promise – Most products make specific promises about how your life will be better if you make the purchase. Excellent products don’t just make a promise, they consistently deliver on it, whether it’s the promise to satisfy your tastebuds, increase productivity, or enrich your life in a meaningful way. Breaking product promises ultimately breaks customer trust. 
  • Is Fairly Priced – People are willing to shell out hard earned money for a product—often, lots of money—but if they feel like they’re overspending, they’ll deem the product, “a rip off.” The product doesn’t have to be underpriced to be excellent, nor should it be overpriced. You have to search for the pricing sweet spot. You can almost always increase the price if your product consistently exceeds a customer’s expectations. 
  • Provides an Enjoyable Experience – Finally, an excellent product is accompanied by an experience that is truly enjoyable. This is especially true in service industries where the product is the service (such as hotels, government services, or nonprofit services). Providing an enjoyable experience creates positive memories, along with the likelihood of repeat business. 

2. Process: Is the Delivery System Efficient?

When it comes to customers, expectations are increasing while patience is decreasing. You can have a great product, but if it takes forever to get it, people will leave in frustration (and likely post a bad review). So, what does an effective process do? How do you know when your delivery system is efficient? A good SYSTEM will Save You… 

  • Stress – First, a good system reduces stress (for the employee and the customer). The best way to reduce stress is to make sure the system is simple. Remove the “complicated and cumbersome” from the process and people will start to smile. 
  • Time – Second, a good system saves you time. It doesn’t add to the length of the experience but instead speeds it up. It’s quick. It requires as few steps as possible, and if multiple steps are involved, the transitions are seamless, intuitive, and easy to follow.
  • Energy – Third, a good system requires less energy. It’s automated as much as possible, and the energy load is significantly less. 
  • Money – Finally, a good system saves you money. It might require money on the front end to set up the system, but if it’s the right system, it will make you more money on the back end. 

A couple of years ago I heard about a great new sandwich being offered at a fast-food restaurant. It was all the rave, so I thought I’d try it. After sitting in a drive-thru line for over an hour (no joke), I was impressed with the product but completely unimpressed with the process. Needless to say, I haven’t been back. The broken delivery system has kept me away from the great product. 

3. People: Is the Customer Service Exceptional? 

Satisfied customers experience exceptional service from the organization’s people. Simply put, the interaction customers have with employees is first class. It’s respectful in every way, and it’s truly customer centric. Exceptional customer service is: 

  • Friendly – With great customer service, the employee smiles, cares, and is fully engaged with their customer. When you interact with them, they don’t seem bothered by your presence. Quite the opposite…they are glad to see you and glad to help, and do so with a great attitude. 
  • Knowledgeable – Employees should always know more about their product than the customer does. They should be able to answer questions, facilitate a product demo, and know the details about costs, warranties, benefits, and more. Associates can’t sell what they don’t understand. 
  • Responsive – Next, exceptional customer service is responsive to the needs of the customer. They help customers solve their problems by recommending the right product, removing barriers that are causing frustration, and addressing immediate concerns. In an age of instant everything, responsive service doesn’t leave the customer waiting or wondering. They don’t stand in endless lines or get transferred six times before their problem is solved. 
  • Professional – Finally, exceptional customer service is professional. It acts in a way that exudes proficiency, expertise, skill, and creates a positive first impression. An employee that’s professional is dressed appropriately (regardless of the industry), is clean and well-groomed, maintains eye-contact, and creates confidence in the customer. 

The people side of customer satisfaction is huge. There’s a restaurant with a drive-thru a few minutes from my house that has great food (the product is good), and they are consistently efficient (their process is down to a science). In fact, I’m often amazed at their speed of service. But the “people” side of the business is lacking. 

In fact, I’m amazed at the number of times I’ve gone through a drive-thru and the person at the counter didn’t say a word to me…not a single word. I handed them my credit card, they handed me the food, and nothing was ever said. One time the person never even looked at me. They stuck their arm out the window until they could feel my credit card, processed the card, and then handed me the food and my receipt…with their back turned to me the entire time. 

Product, Process, and People…the three essentials to satisfied customers. What about you? Is your product quality excellent? Do you have processes that smoothly deliver your product with efficiency? And are the people who work with you modeling exceptional customer service? All three are critical to create satisfied and loyal customers. 

Stephen Blandino

Stephen Blandino

Pastor | Author | Coach | Podcaster

Leaders today are frustrated by a lack of clarity, ineffective systems, dysfunctional teams, and unhealthy cultures. I speak, coach, and write to help motivated pastors and leaders gain clarity, build high-performing teams, and maximize organizational health.

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