Conditional Loyalty

In a report published recently in the Harvard Business Review, Karen Fraser reveals that customer loyalty may be more tenuous than previously believed. In a study that underscores consumers’ increased concern over ethical, environmental and related issues in corporate life, up to 8% of ‘satisfied’ customers expressed dissatisfaction with the company or product, or both.

This dissonance is powerful, and therefore word-of-mouth marketing efforts could be compromised. 44% of conflicted consumers speak about their concerns with others, of which 33% negatively portrayed the company or brand.

The silver lining? Uncovering these customers among new markets and competitors is a ready-made opportunity for companies that invest enough time and consideration in evaluating the market.