Customer Satisfaction is Just Average: Why Customer Appreciation Must Be Your Focus

In today’s rapidly evolving market, businesses are facing a new reality: optimising customer service and experience is no longer optional—it’s essential for survival. The companies that thrive, especially in the post-COVID world, are those that have secured unshakeable customer loyalty. But loyalty is no longer sustained by customer satisfaction alone. A new measure of success has emerged, one that businesses must embrace to remain competitive: Customer Appreciation.

The Limitations of Customer Satisfaction

For years, customer satisfaction has been the go-to metric for businesses aiming to maintain loyalty. However, satisfaction merely reflects whether a business has met the basic expectations of customers—providing the product or service they paid for. It’s a process-driven measure that speaks to availability, delivery, price, and convenience. While important, these factors are no longer enough to cultivate lasting customer relationships in a marketplace where the rules have changed, possibly for good.

Why Customer Appreciation is the Key to Lasting Loyalty

The real differentiator in today’s business landscape is customer appreciation. Where satisfaction measures whether a business has met expectations, appreciation reflects the emotional connection customers feel towards a brand from exceeding expectations. This emotional connection is built on trust, friendliness, understanding, and communication—elements that are much harder for competitors to replicate.

If your business is not remarkable, it’s not memorable . And if customers don’t remember you, then you're not relevant you have to invest more resources to bring them back. The secret to driving repeat business, optimising margins, and reducing acquisition costs lies in making your business appreciated, not just satisfactory. Businesses that foster appreciation create a heart connection with their customers—a higher level of emotional attachment that keeps them coming back.

Appreciation vs. Satisfaction: A Critical Distinction

• Satisfaction is process-driven and tied to fulfilling basic expectations. Competitors can easily match this.
• Appreciation is culture-driven and unique to your business. It’s much harder for others to imitate because it’s built on how your customers feel about their experiences with you.

Businesses that focus on appreciation cultivate loyalty because people are loyal to those who make them feel valued, supported, and understood. In the post-pandemic era, this emotional bond is more crucial than ever. It keeps customers from falling into the “price trap” where decisions are based solely on cost rather than connection.

Measuring Customer Appreciation

To achieve customer appreciation, businesses must foster a culture that prioritises it and understands what appreciation uniquely means for their customer base. This isn’t something that can be assumed or dictated internally. It must be defined by the market—your customers determine what makes your business appreciable.

The benefits of focusing on appreciation are immense:

• Repeat Business: 91% assurance with appreciation compared to 48% with satisfaction.
• Referrals: A 6-to-1 ratio with appreciation, versus 1-to-1 with satisfaction.
• Value for Money: Appreciation is tied to experience, whereas satisfaction focuses on price.
• Wallet Share: Appreciation leads to exclusive loyalty, while satisfaction invites price comparisons.

The Hidden Benefit

An often-overlooked advantage of achieving customer appreciation is the positive impact on your team. When customers appreciate your business, they treat you with respect and care, creating a supportive relationship that enhances morale. Your customers become your advocates, helping ensure your success in difficult times because they genuinely want your business to thrive.

The Path to Market Dominance

The companies that lead their markets have one key trait: a relentless drive to enhance every aspect of their business. They aren’t satisfied with meeting the status quo; they strive for greatness by cultivating appreciation. This desire to excel is the secret weapon that separates them from competitors. It’s not luck—it’s a carefully engineered process designed to create profound results.

Customer appreciation is relevant to every business, regardless of size or industry. Whether you’re a small business, a franchise, or a large corporation, appreciation is the strategy that will drive you to greatness. As the saying goes,

“Being cheap won’t make you great, but being the greatest will make you cheap.”

To achieve true success, businesses must shift their focus from merely satisfying customers to deeply appreciating them. This cultural shift will create lasting loyalty, optimise your business operations, and elevate your #1Reputation to new heights.

Darrell Hardidge?is a strategy expert in building a #1Reputation and CEO of customer experience research company Saguity. Working with businesses on mastering customer appreciation and optimising service standards. He’s the author of The Client Revolution, the best seller The 10 Commandments of Client Appreciation, and soon to be released his new book #1Reputation.