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Is there a strategy for customer loyalty?

December 3, 2013 by Mike Wittenstein — Customer Experience and Service Designer, Storyminers

We often think of customer loyalty as something that the customer does or is responsible for to the business. But, real loyalty begins when the business is faithful to the commitments it makes to the customer.

The dictionary defines loyalty as faithful adherence to "something" or faithfulness to commitments or obligations. Look at the second definition for loyalty, "faithfulness to commitments or obligations," and apply this idea to your business. Let's even call it a strategy. This strategy says that your business is going to uphold its end of the bargain by honoring commitments to customers.

With that thought in mind the term "customer loyalty" implies that your business is actually going to show loyalty to its customers. It is interesting to think that if you look at the situation from that perspective, your business’ faithfulness to commitments or obligations will in turn produce exactly what you are looking for from your customers. Try not showing that type of loyalty to your customers and all the reward cards and point systems in the world will not gain your business loyalty from its’ customers.

What happens when a business faithfully rises up to the commitments and promises that it sets before it’s customers?

It builds trust. Trust eventually builds a solid relationship. Voila, customers are now loyal to your business! No cards to keep up with, no points to tally, and a lot less customer service. Everyone is happy with less customer service.

True loyalty must be earned. Every day.

Loyalty comes from doing the hard work of making a business better in the customer’s eyes. The best strategy for customer loyalty is to focus on creating as much value for the customer as possible. Trust is valuable.

The only strategy for winning customer loyalty is to focus first on the customer and let the loyalty just happen. When it does, it’s more natural, more credible, longer lasting and (listen up bean counters!) more profitable. If your focus has been on the balance sheet in an effort to increase profitability, it is time to shift your focus.

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