The larger a company's market share, greater is the risk that it will take its customers for granted - HBS terms it as the “Dominance Trap.
A Bain survey revealed 80% companies believe that they deliver superior customer experience while when their customers were surveyed, only 8% agreed.
As profits increase, management begins confusing customer profitability with customer loyalty, not realizing that the most lucrative buyers may also be the angriest and most alienated. Traditional market research approach may also lead the firm to view customers as statistics, supplanting CSAT figures as proxy for actual customer behavior. Managers can become so focused on the data and metrics that they stop hearing the real voices of their customers.
It is easy to believe that you are keeping customers happy but to actually get customer devotion is the real challenge.
NB: If you want to copy this, please acknowledge my blog as source! [Sunil Seth; Tweet @sunilseth]
