Customer loyalty as a profitable success factor

Many organizations are currently facing a major challenge. Declining profits are becoming increasingly common. So how do you secure your future revenue? Investing in customer loyalty and retention is one way to create more certainty in the medium term. But how do you approach this effectively?

Understand the difference between satisfied and loyal customers

Satisfied customers are essential for any organization. Satisfaction arises when the quality of your product and service matches the expectations customers have.

If you want loyal customers, the challenge is to take them beyond satisfaction. A satisfied customer is not necessarily loyal. A very satisfied customer usually is — and that level of satisfaction is a key condition for loyalty. When you begin working on loyalty, the first step is to understand whether your customers are loyal now. A widely used way to measure this is the NPS question.

Exceptions to the rule

There are situations where satisfaction does not influence loyalty at all. Think of the tax authority, to which we are all “loyal” by obligation. Or preferred suppliers whose services we are required to use. Or a supermarket that happens to be nearby. Even in monopolistic or “forced loyalty” situations, maintaining a strong relationship with customers remains important. Dissatisfaction creates openings for new competitors or changes in regulation.

Why customer loyalty matters

Loyalty directly impacts the financial performance of your organization. While revenue and profit reflect past results, loyalty predicts the future. It indicates what your future financial performance may look like. Loyal customers are therefore extremely valuable.

How to make customers more loyal?

There are broadly two types of loyalty you can influence: emotional loyalty & rational loyalty.

Emotional loyalty

When you exceed customer expectations, they often reward you with their loyalty. They feel emotionally connected to your organization. This kind of loyalty cannot be bought — it requires long-term investment. Emotional loyalty is created through brand experience, dialogue, meaningful interactions, trust, appreciation, and satisfaction. It does not develop overnight, but grows gradually over time.

Rational loyalty

Many organizations try to retain customers by binding them in practical or financial ways. In these cases, customers benefit from staying — or simply have no alternative. Examples include loyalty programs, product tie-ins like Nespresso cups or Apple hardware–dependent apps, or discounts that grow with the duration of the customer relationship, such as no-claim bonuses in car insurance.

Which form of loyalty is most effective for your organization depends on your strategy, culture, and customer groups.

How customer loyalty is created

The short answer: by investing in sustainable customer relationships. That investment only makes sense when it creates a win–win situation for both your organization and the customer. If either side sees too little benefit, the relationship will never become truly loyal. This is why it’s essential to continue delivering real, lasting value.

Start building loyalty

For many of our clients customer survey is the starting point for a positive shift toward more customer focus. By measuring how customers experience value, they gain insight into how to increase it. A professional customer survey often already boosts loyalty, simply because it shows genuine, personal attention. But the real difference comes afterward: when you take action based on their feedback. That is when customers feel truly heard and valued.