Satisfaction is more transaction based and does not relate to real value or loyalty. A transactional relationship is one where the emphasis is on maximizing the efficiency and volume of individual sales rather than developing a real relationship with the buyer.
In a study conducted by Bain and Co it was shown that in business, between 60-80% of clients who defected to a competitor said they were satisfied or very satisfied on the survey just prior to their defection.
What businesses should be measuring and focusing on is client commitment and loyalty. And for that, they need to look at the relationships they have with their clients and how they can deliver value. Real value that is based on the advice they provide and which is in line with their business strategy and objectives and the real needs of their clients.
A 2012 report by the Financial Times in the UK captured the change needed by saying that professional service advisers needed to shift from being partner-centric technical experts to client-centric commercial advisers. Clients want a more strategic, commercial dialogue with their advisers, particularly in a more complex, uncertain and global business environment. Advisers already recognise that they need to develop a more commercial skill-set but many companies have been slow to adapt to fundamental shifts in client needs.
This has been reinforced in South Africa by the recent survey conducted by RAM in the marketing services sector, where it was found that middle management was lacking in terms of "thought leadership" and being a "valuable strategic partner to my business".
While this is a global issue, it has also been echoed by the Brand Marketing Council of South Africa's first Brand Marketing Barometer which indicated that "Brand Marketing should first and foremost understand its role in relation to the business strategy and ensure that all activities are clearly linked to business objectives and should show how they contribute to overall strategic intent ."
We have found that globally, most middle management professional service advisers in all business sectors are relatively short-term thinkers who are also fairly risk averse. As a result the conversations with clients tend to be about the challenge the client is currently facing and then they propose their solution. What is rare is a conversation about how that challenge fits into the whole scheme of things. How it impacts the vision and strategy of the business.
This needs to change and it is up to professional service providers to understand their clients' business in uncertain global markets. The cost of not delivering value with the relationships you enjoy is too great, which is why relationships must be value-driven from the perspective of the client and less transaction-driven from the perspective of the adviser.
Then and only then will you be able to have relationships that are not just based on satisfaction and open to defection, but based on commitment and loyalty.
