There’s rarely enough conversation about the function of word of mouth and it’s relationship to customer loyalty. But there’s even less talk about the customer experience and customer loyalty. If you watched the video of word of mouth ideas I posted earlier this week, you may have noticed a common thread: the customer experience. I’ve created a diagram so you can visually see the relationship between word of mouth and customer loyalty.
The idea is to create a remarkable customer experience first, which earns you both loyalty and word of mouth. The number one factor in creating customer loyalty is the experience customers have with your business. Word of mouth is very important in new customer acquisition. It may create trial, but word of mouth by itself does not create customer loyalty.
The customer experience dynamic is the engine that gets new customers in your door and then keeps them there longer.