#147 The loyal customer
What is customer loyalty?
The simplest definition might be it’s defined as customers who purchase from you because they want to and not because they’re forced to via “lock in”, or compelled to via coupons or discounts.
Loyal customers want to spend time with your company and tell others about it.
If you did a thought experiment and wrote down every brand you’ve bought from in the last three months, how many of those purchases were made because you received a “deal” or had to because the pain of switching was too great?
My guess is, as is the case with me, most of these purchases were not made with companies you feel particularly loyal to. Why is that?
And what happens when macro forces like inflation and geo-politics meddles with our buying power? Customer loyalty is tested.
Looking at this through marketing glasses, is it worth the hard work of finding and earning the trust of customers so they can be loyal?
Continuing our thought experiment, the easy road suggests you can just buy customers, at least transactionally, instead of building a long-term relationship with those who want to be close to the brand. But is that what great companies do?
I don’t think so. Great companies understand that these relationships with customers, partners, employees and their local communities matter more than gimmicks and aggressive tactics. I love this quote from David Ogilvy that came to mind while thinking about customer loyalty this week.
Any damn fool can put on a deal, but it takes genius, faith, and perseverance to create a brand.
Until next time,
P.S. Practically helpful website: How to professionally say
P.S.S. Fun trip down memory lane: My90sTV
P.S.S.S. Enjoyable read for the curious: The Strange Business of Hole-in-One Insurance