It’s been a while since I’ve written one of these, but a recent experience gave me a timely reminder of how easy it is for businesses to get it wrong, and how costly that can be. So I’m back, and today I want to talk about something that affects every business, whether you’re B2B or B2C: customer loyalty.
"What makes a customer loyal?"
It’s a question we’ve all asked at some point, whether you’re running a global business, managing a local service, or simply trying to keep your client base engaged in a competitive market. For me, the answer came sharply into focus thanks to a recent experience with something as mundane as an insurance renewal.
Now, I’m not naming names, but I suspect many of you will have had a similar experience.
The renewal notice came through and, unsurprisingly, the premium had crept up. In fact, "crept" is too generous a word. This was a hike. Out of curiosity, I did a quick check of comparable products on the market and, lo and behold, I found plenty that were significantly cheaper. Same cover, lower cost.
The provider proudly claimed everything could be done via their app. Easy, convenient, modern. Except it wasn’t. After several attempts to cancel digitally, it became clear I’d have to speak to someone. Cue the usual process: press 1 for this, press 2 for that, hold music, generic assurances that “your call is important to us,” and eventually, finally, a real person.
That’s when things got interesting.
Despite the fact that nothing about my circumstances had changed, I was suddenly offered a re-quote. And this re-quote came in at 19% cheaper than my original renewal.
Nineteen percent. Just like that.
Now, let me be clear. I didn’t want the cheapest deal. I was more than happy to stay if the price had been fair from the start. But at this point, they’d lost me. Not because of the price, but because of the principle. If that better price was available all along, why didn’t they just offer it? Why did I have to go through the cancellation process, waste time on the phone, and effectively threaten to leave in order to be treated fairly?
That’s not loyalty. That’s brinkmanship.
So, I cancelled. And I won’t be going back anytime soon.
The cost to them? A customer lost. Multiply that by thousands or tens of thousands and you begin to see the problem. High churn means higher costs, and those costs get passed back to customers, fuelling the same cycle all over again.
It doesn’t have to be this way.
Customer loyalty isn’t a mystery. We all know what good service looks like because we’re customers too. The companies that get it right don’t rely on gimmicks or last-minute discounting tactics. They do the basics brilliantly.
They’re consistent.
They show that they care.
They get it right the first time.
They offer fair, competitive pricing. Not necessarily the lowest, but reasonable and transparent.
And crucially, they align with what their customers value. Not just in words, but in action.
Trust isn’t built through a flashy user interface or a well-written renewal letter. It’s built when a business shows that it values your time, your intelligence, and your loyalty before you start looking elsewhere.
If you’re leading a business, ask yourself: "Are we making it easy for people to stay with us, or giving them every reason to leave?"
Because the cost of disloyalty isn’t just lost revenue. It’s lost trust. And that’s a much harder thing to earn back.
