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Winning customer loyalty in the new Age of Wow

According to Gallup research, shoppers who were emotionally connected to a supermarket spent 46% more over a one-month period than shoppers who were satisfied but lacked an emotional bond with the store

Q: There has been a lot of talk about the "wow" factor lately. It looks like many companies are now trying to wow their customers to win their loyalty and expand their business.

A: Wow is becoming the buzzword of the day. We are now approaching "the age of wow," in which the general focus of management is going to shift again. Remember, we used to read in marketing textbooks that the focus of management has shifted over time from production (until the 1950s) to sales (1950s-1960s) to satisfying customers' needs through marketing (1970s-2000s). The new, fourth business paradigm is just emerging. The most successful businesses now go beyond the mere "satisfaction of customers' needs." They go the extra mile – they "wow" their customers. They make them excited and enthusiastic about their product or service.

Q: Define wow?

A: Like humour, wow is a psychological phenomenon, which makes it difficult to define or quantify. If frustration is defined as "a (negative) gap between reality and expectations," we believe that "wow" is completely opposite: a positive difference between what you get and what you expect.

Q: Does wow pay?

A: We believe so. According to Gallup research, shoppers who were emotionally connected to a supermarket spent 46% more over a one-month period than shoppers who were satisfied but lacked an emotional bond with the store. Ivan Surjanovic and Tomislav Sudarevic's research pointed out that the "admired" companies were more profitable: the 17 selected companies from Fortune magazine's world's most admired list had a return on investment of 7.12%, which is significantly higher than Fortune 500's average of 3.8%. The research, done by Rajendra Sisodia, David Wolf and Jag Seth, even suggested that "firms of endearment" were not only profitable, but also spent less on marketing.

Q: What is the best way for Business in Vancouver readers to wow their customers?

A: Here is the secret of wow: First, try to thoroughly understand your customers' real expectations. Second, surprise and delight them by giving them more or by being better and faster than expected.

Q: How can technology help to create wow?

A: Thanks to technology, word of mouth is "on steroids" in today's age (see also our column on viral marketing: "Best ways for business to harness the accelerated word-of-mouth momentum of viral marketing" – BIV issue 1224; April 9-15 ). Technology not only spreads the news about your great product or service faster, but it can also help you create the wow factor. Use whatever technology you can, be it a better CRM or social media tools such as Twitter, LinkedIn, Facebook, Google Plus or Pinterest, to connect with your customers better and to really engage in a discussion with them. According to AdAge.com, "one of the greatest secret weapons a chief marketer can have is a strong relationship with the chief information officer."

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