Can Customer Loyalty Hurt Your Business ? Yes

For years companies have worked hard to establish customer loyalty programs, grow their loyal customer base and measure customer loyalty as a sign of business health.  When many people think of ‘loyalty’, they think of their pet dog.  “Fido” is always there, no matter how bad a day has been, no matter if you stepped on his tail, no matter if you forgot to walk him that day.  At the end of the day, he will curl up at your feet.  That is loyalty.  Now think about this:  “Fido” has two masters in the house.  He is loyal to both but if he had to make a choice between one or the other he would probably go to the one who fed him, walked him and nurtured him.  His tail would wag harder and faster for that person!

So, in business, why do we put so much energy into measuring loyalty if it can be ripped away by another company who is willing to invest and nurture the customer better than we can?  We shouldn’t!  A loyal customer is someone who buys our solutions/products on an ongoing basis.  But, if they are not cared for, they will eventually leave.  When you have a loyal customer, that should be the time that you say, how can I invest more in this customer and delight them to the point they are an ADVOCATE.  This is where time/money invested in a customer and an advocate program can really pay off.  ADVOCATES are Emotionally Invested Loyal Customers!  They don’t just use the solution/product.  They LOVE it.  They Talk about it.  And, ultimately, they SELL it for you!

The bottom line is if you continue to measure customer loyalty in a vacuum, you will lose customers.  If you focus on growing advocacy, you will grow your customer base.  It is that simple!