In the drive to increase sales, profits and efficiency, companies can lose sight of what matters most—their loyal customers. Brand advocates represent more than just repeat sales, they deliver immense value throughout an entire organization. In this latest installment from my Umbrella Collection stories, the value of loyal customers is realized through the eyes of Joe, the main character in The Boomerang and the Killer Stick. I invite you to  reach out if you have feedback or would like us to add any colleagues to our mailing list.

In The Boomerang and the Killer Stick, Joe realizes in his drive to increase sales and profits, he has lost sight of his loyal customers. With a little help from an unusual visitor, he regains his focus on the customer and sees incredible results. Here are some of the lessons learned in our story:

The more a company understands its loyal customers, the better chance it retains them and finds more just like them. Companies can become lost in focusing on internal processes and programs. Taking time to understand customers and treating them as individuals builds loyalty and all the benefits that come with it. In our story, Joe and his team learned to better serve customers by forming a customer advisory council.

 

The value of loyal customers is much more than their last purchase. The smart brand that focuses on retaining them will see the “boomerang effect” of increased profit, morale and growth. Successful businesses realize that loyal customers represent repeat purchases, additional sales, service opportunities and referrals. It makes good business sense to focus on them when you consider it can be anywhere from 5–25 times more expensive to acquire new customers than it is to keep existing ones. 

 

High customer retention is positively felt throughout an organization—bolstering morale and employee retention. Customer loyalty doesn’t only affect sales and profits; it goes deeper, impacting employees, sales networks, and suppliers. Seeing your brand’s value through the eyes of loyal customers inspires all those who represent it and provides meaning and significance to their roles as they see the impact their work has on the lives of customers. 

I hope you take a moment to read The Boomerang and the Killer Stick. Its message is powerful and inspiring. And please feel free to reach out and share any comments you have.

Please Answer One Short Question

Would you say your company is focused first on its loyal customers?

YES | NO


Barry LaBov is founder and CEO of LABOV Marketing Communications and Training. He is a two-time Ernst & Young Entrepreneur of the Year recipient and author of numerous business books, including the upcoming book The Power of Differentiation. Since 1981, LABOV has differentiated and launched products and brands around the world.