Customer loyalty: why it is so important

You do so much for your customers to bind them and gain their loyalty.

Being an “Experience Business” means putting customers first. But what happens when your customers, their needs and wishes change constantly? Digitalization is the driver of change – it empowers customers and gives them more choice than ever before. It follows that the concept of loyalty has also changed.

It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.

What customer loyalty is all about, how you measure customer loyalty, and what you can do to promote it, you read in this article.

Customer Loyalty: That's what it's about and how you get it

Customer loyalty, in the definition, is the result of a consistently positive emotional experience, a customer satisfaction based on physical attributes, and the perceived value of an experience that encompasses the product or service.

Companies can no longer rely solely on the strength of their products. True loyalty results from a comprehensive brand experience. First, companies need to create an experience. In November 2017, Adobe published a study entitled Reinventing Loyalty with the Goldsmiths University of London.

With customer loyalty to bigger revenues

First, you should be clear why loyalty in the course of customer loyalty is actually so crucial.

Today, almost every company is aware that winning new customers is often more expensive and more difficult than tying up an existing customer. Therefore, customer loyalty is a goal to be achieved. Here enormous sales potential is at stake. The fact is, however, that companies can only achieve this loyalty with great effort. Especially when companies are purely product-centric. In the future, products will become increasingly interchangeable, customers more critical and prices more comparable.

However, when companies manage to create customer engagement and make customers emotionally appealing, they can defy the ubiquitous price war and inspire customers.

Customer loyalty goes hand in hand with customer insights

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Benefits of a loyal customer

Loyal customers bring decisive advantages for you and your company, because they

  • have a pronounced payment history.
  • do not compare or do not actively search for alternative providers.
  • react less strongly to changing prices.
  • give intrinsic and often detailed feedback to your solutions.
  • are tolerant of problems such as Delivery delays.
  • like to test other products or services from your company.
  • are open-minded and positive about up- and cross-selling offers.
  • recommend as Brand Ambassador your products with colleagues, friends and acquaintances.

How you measure customer loyalty

Although CMOs have always understood the need to measure loyalty. But now it’s about a developing customer (both B2B and B2C). He wants his purchases to be almost self-fulfilling and to reflect his expectations.

According to Adobe’s Reinventing Loyalty study, 75 percent of the CMOs disagreed or abstained on whether or not their companies are well positioned for the new loyalty.

For a loyal relationship with your customers, your measurement system should show progress and identify necessary actions.

Net Promoter Score

One method is the Net Promoter Score, developed by economic strategist Fred Reichheld. This is based on the willingness of customers to recommend your solutions.

To do this, you proceed as follows:
First, you ask the customer for the basic readiness. On a scale of 0 to 10, he or she indicates the likelihood of recommending your business. Here you can see the three fundamentally different types of customer categories:

  • Promoters (9-10) fully intend to recommend your business. An example of promoters are Apple fans who are already staying in front of Apple stores to see the latest device the next morning. to hold an iPhone in your hands. Ask the promoters for what reason they named this probability value.
  • Passives (7-8) are satisfied with your business and solutions, but are not ambassadors for your brand. While they are not actively seeking alternatives, they are unlikely to resist recruiting a competitor. Ask the passives for specific optimizations that are missing, so they recommend you and your products and services.
  • Critics (6 or lower) will most likely not buy from you anymore. Instead of recommending you, they will speak rather negatively about your company and your solutions. Again, you should ask in the second step exactly what improvement options you can realize as a provider specifically.

Now calculate the net promoter score by taking the difference between the percentage of promoters and critics’ critics. You do not pay attention to the group of passives.

Example: If you have interviewed 1000 customers, of which 500 are promoters, 300 are passive and 200 are critics, your NPS® is +30.

How you can promote customer loyalty

A loyal customer relationship is created by exclusivity or individuality in the form of a personal customer approach. If your company offers no added value and can not emotionally appeal to your customers, then the only selling point is just the price. On the other hand, customers who touch and excite you are prepared to pay a higher price because they no longer want to miss the good feeling of buying your solution, whether it’s a product or a service.


Ask yourself: what does my company stand for, what is my unique selling proposition?



A good answer will satisfy the exclusivity needs of your customers. If they accept these added value, they also find it harder to compare with other companies and dealers.

This check is not a one-time task. Ask yourself this question again and again at regular intervals and so go with the needs and needs of your target group.

Bottom line

Customer loyalty is not a matter of course, but on the other hand not a rigid term in marketing. Bring the meaning of commitment and loyalty closer to your management and employees. Because with the right attitude and the reason behind it, you will succeed in achieving sustainable and long-lasting customer relationships.


About Me

As a founder and entrepreneur, I experience every day how important customer centricity is for companies.

Integrate the essential customer perspective into your product genesis and marketing processes. That puts horse powers on the street, until it runs.


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