Conventional wisdom can be misleading. The pursuit of loyal, repeat customers has long been an important business objective. After all, research shows that it is cheaper and easier to retain a customer than to acquire a new one. Conventional wisdom also indicates that loyal customers account for a disproportionately high percentage of revenue and profit.
Despite the value of loyal customers, they are often ignored by businesses, viewed as cash cows who will continue to generate predictable revenue forever.
But are there limits to the loyalty of those stable, long-time customers? Might some price difference, some new product, some special feature put that loyalty to the test? What is the tipping point that puts a business at risk of losing a supposedly loyal customer . . . or opens the opportunity to lure one away?
Don't be misled and mistake inertia for loyalty. Every customer has a trigger for which they will switch to a competitor. By understanding how consumers make purchase decisions, we can identify those triggers — that tipping point — that could either cost you a customer or gain you one.