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Rethinking Customer Loyalty

I’m paraphrasing any number of management gurus here:

If you want to be good enough, focus on shoring up your weaknesses. If you want to be extraordinary, forget your weaknesses and focus on building up your strengths.

The idea was proposed in the context of how to become extraordinary at whatever it is you do, and in the context of how to evaluate your performance at work.

But why do we not apply the same principle to the corporation and what it does for its customers?

Most of us are – or at least we claim to be – obsessed with customer satisfaction and loyalty. We want our customers to love us and to keep coming back.

So we ask, generally in a survey. Every time a customer wants to leave us (you’re lucky if you’re in a renewal or subscription-based business – your customers have to tell you they want to leave) we ask “Why?” and we learn something about what we’ve done wrong (or what our competition has done right).

Some companies go so far as to try to keep a customer from leaving (think telephone carriers and credit card issuers). I’m sure you’ve had the experience of trying to cancel your service and being sent to the “retention department” who then tries, essentially, to bribe you to stay – and take an offer attractive enough to put up with whatever they did that caused you to want to leave in the first place.

What if, instead of working to fix all the reasons customers left us, we worked on doing even more of what made customers stay?

If you already do that, congratulations. You probably have raving fans for customer. If you don’t, then it’s time to get started.

Start by asking your most loyal (not your biggest, your most loyal) customers why they stick around and keep coming back. I’m pretty sure the reasons will look very little like the reasons other customers leave.

Then ask a group of your customers who are not all that loyal,  but seem to stick around (or come back now and then) anyway: Why are they not all that loyal (probably the same reasons others leave) and why do they come back (probably the same reasons your most loyal customers stay).

Now comes the hard work: Focus on getting better at your strengths. Strengths are the reasons your most loyal customers stay.

Figure out what you are doing right in every single aspect of how you relate to your most loyal customers and do more of it. Refine it, improve it and make it the best in the business, bar none.

And forget about your weaknesses. Weaknesses are the reasons those customers hate you and don’t want to do business with you any more.

Yes, you will find that more unhappy customers will come out of the woodwork. They’ll complain, wondering why you don’t seem to want their business any more.

In fact, you don’t. You cannot be all things to all people, so be what you are good at being and stop trying to be what you are not (feel free to insert your own rant about authenticity here). Letting a group of customers (read: paying customers) go can be scary, but the focus and the new customers you gain will be worth it.

Doing this will also help you define what type of customer is good for your business and what type isn’t. It will give you a different (you might find, better) way to segment your market, and you’ll find that the core of your new segment is much more profitable than the old, less appropriate, segments.

And you’ll find that you end up not only with customers who are more loyal, but they’ll all tell their friends (and colleagues) and you’ll probably end up with even more customers who become just as loyal.

And your (new) customers will become your raving fans.

One thought on “Rethinking Customer Loyalty

  1. You speak the truth Jeff! Being proactive is actually cheaper and easier than being reactive after the damage is done. But it has to start with leadership that supports the concept.

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