Why Loyal Customers Leave and How to Retain Them
Posted: Wed Jan 29, 2025 6:36 am
Many business owners and managers try to retain customers with loyalty programs, 24-hour delivery, and constant discounts. But even the most loyal users can eventually leave for competitors, because it is not customers who make sales, but fans.
Let's talk about how loyalty works, what it gives to business, and how to turn ordinary customers into devoted fans.
This article can not only be read, but also listened to in the new Megaplan uae whatsapp list podcast . We launched the podcast "Sounds like a plan" to talk about how entrepreneurs and managers can be more efficient, manage a team and business, and grow revenue and metrics. Listen to our podcast on Yandex Music and Apple Podcasts . Don't forget to like and subscribe - this will help it grow!
What is loyalty
Loyal customers are not those who have bought from you two or three times. Such users may buy from you now because it is profitable for them or you have great discounts, and then go to a competitor for the same discounts and offers. True loyal customers are fans who always come back to you instead of going to competitors, even if they are cheaper.
It is known that attracting a new user is more expensive than returning an old one. After all, someone who has already bought from you is familiar with your products and has the necessary motivation: if he bought your product, it means he had a need. In theory, such a user can come back later, or he can go to competitors if you do not pay attention to retention. Just think about it, 67% of users are willing to pay more simply for a good customer experience. Loyal customers are more likely to recommend products and services to others and are less sensitive to price increases.
Loyalty is a huge market advantage that helps you build a viable business and generate revenue consistently without investing huge amounts of money in marketing. Yes, you can constantly look for new users, but you are constantly chasing new ones, losing the old ones. At some point, the new audience will be exhausted, and then you will have to start retaining the old one.
But it is also important to be able to maintain this loyalty, because as soon as you relax, competitors enter the race. And in this way, you can lose even the most loyal .
Think of yourself and a store you used to go to regularly. Think back to the days when you loved that place. Now, for some reason, you don’t go there anymore, or you go there much less often. Maybe you had a bad experience, or maybe your tastes have changed. Maybe that place isn’t as cool for you anymore. Our loyalty fades gradually, and we can’t always understand why.
How Perception Affects Sales
How Perception Affects Sales
Intuitively, we feel that we are helping the person who uses our product, which means that he will come back again. In reality, customers may love your product, but most will not stay with you forever. And all because it is not enough to make a cool product that meets the needs of customers. This is a fight for the customer not at the product level, but at the level of perception.
Nobel laureate in economics and supporter of behavioral economics Daniel Kahneman wrote in his book Thinking, Fast and Slow that we have two systems of thinking - "fast" and "slow". "Fast" thinking is emotional and works automatically, and it is precisely because of it that we do things that we often regret or make unplanned purchases. This is because fast thinking is based on our feelings. But slow thinking requires mental effort and does not just turn on.
Daniel Kahneman also wrote that we have a division of brands into "main" and "others". The main brand can be in different areas. For example, there is the main building materials store that comes to mind when you are doing repairs in your apartment. And there are the others that you remember later.
We at Megaplan recently conducted a mini-experiment, asking colleagues to name the brands of cars that came to mind first. Then we asked them why they named these brands, and they answered that they named the ones they liked more. I think if you know anything about cars, you've already remembered your favorite brand, or even model.
Let's talk about how loyalty works, what it gives to business, and how to turn ordinary customers into devoted fans.
This article can not only be read, but also listened to in the new Megaplan uae whatsapp list podcast . We launched the podcast "Sounds like a plan" to talk about how entrepreneurs and managers can be more efficient, manage a team and business, and grow revenue and metrics. Listen to our podcast on Yandex Music and Apple Podcasts . Don't forget to like and subscribe - this will help it grow!
What is loyalty
Loyal customers are not those who have bought from you two or three times. Such users may buy from you now because it is profitable for them or you have great discounts, and then go to a competitor for the same discounts and offers. True loyal customers are fans who always come back to you instead of going to competitors, even if they are cheaper.
It is known that attracting a new user is more expensive than returning an old one. After all, someone who has already bought from you is familiar with your products and has the necessary motivation: if he bought your product, it means he had a need. In theory, such a user can come back later, or he can go to competitors if you do not pay attention to retention. Just think about it, 67% of users are willing to pay more simply for a good customer experience. Loyal customers are more likely to recommend products and services to others and are less sensitive to price increases.
Loyalty is a huge market advantage that helps you build a viable business and generate revenue consistently without investing huge amounts of money in marketing. Yes, you can constantly look for new users, but you are constantly chasing new ones, losing the old ones. At some point, the new audience will be exhausted, and then you will have to start retaining the old one.
But it is also important to be able to maintain this loyalty, because as soon as you relax, competitors enter the race. And in this way, you can lose even the most loyal .
Think of yourself and a store you used to go to regularly. Think back to the days when you loved that place. Now, for some reason, you don’t go there anymore, or you go there much less often. Maybe you had a bad experience, or maybe your tastes have changed. Maybe that place isn’t as cool for you anymore. Our loyalty fades gradually, and we can’t always understand why.
How Perception Affects Sales
How Perception Affects Sales
Intuitively, we feel that we are helping the person who uses our product, which means that he will come back again. In reality, customers may love your product, but most will not stay with you forever. And all because it is not enough to make a cool product that meets the needs of customers. This is a fight for the customer not at the product level, but at the level of perception.
Nobel laureate in economics and supporter of behavioral economics Daniel Kahneman wrote in his book Thinking, Fast and Slow that we have two systems of thinking - "fast" and "slow". "Fast" thinking is emotional and works automatically, and it is precisely because of it that we do things that we often regret or make unplanned purchases. This is because fast thinking is based on our feelings. But slow thinking requires mental effort and does not just turn on.
Daniel Kahneman also wrote that we have a division of brands into "main" and "others". The main brand can be in different areas. For example, there is the main building materials store that comes to mind when you are doing repairs in your apartment. And there are the others that you remember later.
We at Megaplan recently conducted a mini-experiment, asking colleagues to name the brands of cars that came to mind first. Then we asked them why they named these brands, and they answered that they named the ones they liked more. I think if you know anything about cars, you've already remembered your favorite brand, or even model.