McKinsey & Co. published an interesting article on experiential loyalty and the effect of "delight" for customers. The report covers: the definition of 'customer delight', economic impact, drivers of delight, sustainable delight: aspects, and strategic implementation strategies.
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McKinsey & Company.Ankit Bisht, Sangeeth Ram and Kashiff Munawar of McKinsey & Co. published an interesting article on experiential loyalty and effect of “delight” for customers.
Read the full article here.
Key Takeaways:
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Customer Delight Defined: Delight is an emotional response characterized by joy and surprise, resulting from unexpected and extraordinary experiences. It differs from satisfaction, which is a rational reaction based on expectations being met or exceeded.
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Economic Impact: Research shows that delight significantly impacts business metrics like referrals, retention, and revenue, particularly when combined with customer satisfaction. Companies that prioritize delight outperform competitors in NPS, revenue, and shareholder returns.
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Drivers of Delight: Delight is often triggered by service excellence (genuine, human interactions) and product innovation (unexpected sensory experiences). Personalized gestures and proactive service recovery are key drivers.
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Sustainable Delight: Advances in technology and data analytics enable companies to deliver personalized, delightful experiences cost-effectively. A structured approach involving measurement, design, and delivery of delight can lead to long-term customer loyalty and business growth.
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Strategic Implementation: Companies can create a “delight engine” by measuring delight, designing emotion-provoking experiences, and using data and AI to deliver personalized interventions at the right moments. This approach can sustain customer delight while maximizing ROI.
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Source: McKinsey & Co.
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