Loyal Customer - Invisible Assets

The truth is, loyal customers are the unsung heroes of every successful business. They’re the ones who drive repeat business, referrals, and positive word-of-mouth. They’re the ones who provide a steady stream of revenue and help us weather the storms of market volatility. And yet, despite their immense value, they remain invisible on our financial statements.

But what’s even more frustrating is diluting the concept of “customer” by applying it to internal stakeholders. I’m not a fan of the term “internal customers” - it feels like a cop-out, a way to avoid truly understanding the needs and pain points of the people we’re actually serving. Our colleagues are important, but they’re not customers. Let’s not confuse the two.

And to make matters worse, many companies seem more interested in wooing new customers with discounts and offers than in retaining loyal ones who have been with them all along. It’s a short-sighted strategy that prioritizes short-term gains over long-term relationships.

• Why do strangers get discounts, while loyal customers are left to pay full price?

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It’s a great way to drive churn and undermine the very relationships that are most valuable to every business.

So, let’s challenge the status quo and start thinking about our customers in a new way:

• Let’s recognize the value of loyal customers and start measuring it.

• Let’s reward loyalty and prioritize the relationships that matter most.

• Let’s keep our language precise: our customers are those outside our organization who are willing to pay for the value we create.

• Value those who have already paid more than those who might.

Per Lindsedt

#researchanddevelopment #productdevelopment #innovation #customervalue #AI #leadership

Loyal customers are every successful company’s biggest asset, but they are invisible on the balance sheet.