Less than 4% of companies rated “very strong” for loyalty
18-industry survey by Temkin Group
Only seven out of 206 US companies surveyed earned “very strong” ratings for customer loyalty in new research from the Temkin Group.
The research, based on the answers of 10,000 consumers, found that only Sam’s Club, Aldi, USAA, Publix, credit unions, Amazon.com, and H.E.B had strong levels of loyalty. At the other end of the spectrum, 37 companies earned “very weak” loyalty ratings.
The research examines consumer loyalty to companies across 18 industries: Airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, TV service providers, and wireless carriers.
Grocery chains, retailers, and fast food chains are the top three industries, earning an average rating of “strong.” At the bottom of the ratings, TV service providers and Internet service providers earned an average rating of “very weak.” Credit card issuers and banks show up in six of the bottom nine spots in the ratings.
“Our research shows that loyalty is up for grabs across many industries,” states Bruce Temkin, author of the report and Managing Partner of Temkin Group.
The ratings examine three components of loyalty:
– Likelihood of consumers to recommend companies
– Reluctance of consumers to switch business away from companies
– Willingness to consumers to purchase additional products and services from companies
The research also examines how individual companies are rated relative to their industry peers. USAA has the highest level of loyalty in three industries, outpacing banking and credit card averages by more than 26 percentage points and insurers by 17 points. Nine other companies have double-digit loyalty leads over their industry averages: credit unions (banking), Southwest Airlines (airlines), PNC (banking), TriCare (health plans), Apple (computer makers), American Express (credit cards), Sam’s Club (retail), Charles Schwab (investments), and Hampton Inn (hotels).
Nine companies are 15 or more percentage points below their industry loyalty average: DHL (parcel delivery), RadioShack (retail), Citibank (banking), 21st Century (insurance), Bank of America (banking), Days Inn (hotels), HSBC (banking), E*TRADE (investments), Charter Communications (TV service).
The research also analyzes the changes in ratings between 2011 and 2012. Computer makers, banks, insurance carriers, and TV service providers made the largest year-over-year gains, while three industries had declines: retailers, airlines, and hotel chains. Led by three banks – PNC, USAA, and credit unions – 19 companies show some improvement since last year. Kohl’s and Hyatt had the only double-digit declines.