The path to true loyalty: Love your customers!

Loyalty towards Customers

Loyal customers and long-term business relationships are the goal of every entrepreneurial activity. Because when goods and services become increasingly similar, loyalty is the deciding factor in the purchasing decision. So how can companies achieve a deep loyalty from their customers? - Certainly not through coercive contracts or discount promotions. While long contract durations may offer twelve months of planning security, they do not create an emotional attachment to the company. And coupon systems may be a good thing for customers who are already enthusiastic. But if I have to wait too long for my coffee at Coffee Shop X, I won't buy it there even if the eleventh one is free. Discount offers, price reductions, and discounts may stimulate a one-time purchase. However, loyalty is not built this way. Because if a customer is won over only by the price, they will lose that customer for the same reason. The path to loyal customers does not lead through meaningless standardized processes, sophisticated systems - and not even through digital services. The path to true loyalty always leads through genuine humanity and warmth. These arise only in personal contact and especially with the decision and the unconditional desire to care for and inspire people. No machine or internet user interface can replace that. And: Loyalty takes time to grow. It cannot be bought or forced - just like love. That's why customer retention is much more important here than acquiring new customers.

More Time for Regular Customers

According to a study by the management consulting firm McKinsey, on average, a measly 12 percent of sales costs are allocated to customer retention. 33 percent is invested in advertising, and the majority, namely 55 percent (!), goes into acquiring new customers. And the consulting firm Simon-Kucher found out: Energy providers spend 78 euros per customer on acquiring new customers, but only 35 euros on customer retention measures. What a discrepancy! Because the golden rule for more customer loyalty is: Love your customers! Love them and show it to them! What could this look like in practice? Here are a few examples from the catering and hotel industry:

1. Listen and Give Joy

During one of my many hotel stays, I once jokingly asked the staff member knocking on my door: "You must be bringing me flowers, right?" - "Unfortunately not, Mr. Rath, just a fax. Here you go." The next day, I found another fax in my room - with a fresh bouquet of flowers next to it. A small note said, "This time with flowers." That's how customer loyalty works!

2. People are not Numbers

Prison inmates are often referred to by numbers instead of names; the same goes for participants in research studies. Customers do not want that. They want to be addressed by their name. And also introduce themselves with it. The best example: At the hotel breakfast, the staff at the entrance usually ask for the room number. But how much more heartfelt would it be to ask for the name instead and then respond, "Thank you, Mr. Meier, enjoy your breakfast and have a pleasant day!"?

3. VIP Status for Everyone

Those who feel valued will also show appreciation towards the company. During one of my trips, I saw a sign in the hotel restaurant with the following text: "For questions, requests, or suggestions, send an SMS directly to the hotel manager at xxxx." This way, every guest feels like a VIP. There are many other good examples of how close human contact generates loyalty - and makes a difference. However a company approaches it, the most important thing is genuine love for the customer. Not artificial or trained, but real and authentic. People can feel this difference. In the end, the companies with the most loyal customers are those that pay attention to such talents already in the employee selection process - and promote them accordingly in training and in everyday work.   Carsten K. Rath