Forget about sophisticated Customer Satisfaction Surveys, because the answer to this one question tells how well your organization is performing in the most important areas. This theory is possibly more relevant to Mallorca than most markets, due to clear channels of communications and distinctive target groups. This results in customer loyalty based not only on repeat business but also on recommendations to others.
There is a large expatriate community living in Mallorca who relies on family and friends for information, particularly when they first arrive on the island. The recommendations these people receive are based on their advisors’ experience firsthand or what they have heard from their network of contacts.
Target markets in Mallorca are clearly defined homogenous groups based on nationality, spoken languages, class po-sition, wealth, profession, and hobbies/interests. For this reason information passes more rapidly and the impact is greater. This can be positive or negative for an organization, depending on the information exchanged.
What do your customers tell their friends about you? Find out by asking them! But concentrate only on the enthusiastic customers, because not only will they return and buy your products or services again, they will also recommend your company to their friends.
Loyalty and Growth
What is the definition of a loyal customer? Loyalty is the willingness of someone – a customer, an employee, or a friend – to make an investment or personal sacrifice in order to strengthen a relationship. One of the clearest indications of a loyal customer is recommending a company to their friends or family. When customers act as references, they do more than indicate that they were satisfied, they go one step further by putting their own reputation on the line, hence making a personal sacrifice.
It is possible to predict your company’s future growth based on the tendency of loyal customers to bring in new customers at no charge to your business. Gaining customers in this way means you avoid the costs of acquiring each new client through advertising and other promotional activities. As a result the most profitable growth for a company may lay in its ability to get its loyal customers to become, in effect, its marketing department. The government of the Balearics has gone one step further by using high profile, enthusiastic, loyal customers of the island such as Michael Douglas and Claudia Schiffer to put their reputations on the line and support the campaign to promote Mallorca internationally.
The goal of rebranding or repositioning Mallorca as an attractive destination for high quality tourists is the primary objective. The outcome of this campaign may be largely determined by how well Michael Douglas and Claudia Schiffer are regarded as credible role models or recommenders for the target market. In our view it is a very effective marketing strategy and we look forward to the growing number of quality tourists to the island. The many organizations like abc-mallorca that are seeking to provide quality services to this expanding market will need to ensure that their customers’ experiences exceed normal expectations and thereby collectively support the repositioning of Mallorca as a high quality tourist destination.