At its most basic level, it is the purpose of a business to create customers by offering them a solution that they want based on the values they hold. That's why the most successful businesses understand what their customers value and figure out how to fulfill those values.
In times of scarcity – usually early in the product life-cycle – consumers are willing to accept a basic product or service and are willing to bear numerous “costs” or inconveniences of doing business. These costs are often perceived as negatives, such as high price, limited availability, long waiting times, limited options, poor instructions, buggy software, design flaws, poor customer support, etc.
Over time, consumer expectations change, and through a combination of rising consumer expectations and producer innovation to win market share, the definition of what is an acceptable basic product changes. A lot of inconveniences or oversights that were tolerated at the initial product launch are no longer acceptable to consumers.
As product quality and prices from competing suppliers converge in relative terms over time, consumers bring secondary considerations into their decision-making process based on the degree to which businesses (or brands) can satisfy their emotional needs. Different segments value different things, but the components of service quality excellence rank high on the list after product quality and reliability.
Businesses succeed in earning customer loyalty to the degree that they incorporate the customer’s hierarchy of needs into the total business processes, and remove all manner of dissatisfiers to fully serve the materialistic and emotional needs of customers. As Jesper Kunde writes in his book “Unique: Now or Never,” the best companies have figured out how to stand out in the market by offering something so individually attractive and so valued that it transcends being merely a product. These brands have found a formula for offering customers a unique value experience in the market place that transcends the product and the brand, and through careful attention to multiple dimensions of value creation, earn customer loyalty. Such companies or brands become indispensable to their customer base by offering and delivering unique value. Kunde calls this ‘value positioning.’
True customer loyalty is earned when a business offers an integrated bundle of values that serve every aspect of the customer’s desires and for which the customer actively supports, contributes to, and perceives to be unique in the market place. This goes beyond product satisfaction and brand preference, to personal emotional engagement, commitment, enthusiasm, and advocacy.
Very few leading executives possess the commitment and drive to achieve this level of loyalty from their customers. These executives have to be committed to serving customers as if it was their religion. That is why real customer loyalty is so rare. Very few entrepreneurs and executives have the commitment, passion and drive to create such rare and monumental organizations. Walt Disney and Steve Jobs are two entrepreneurial geniuses that come to mind as examples to study and follow.
I encourage you to read Jesper Kunde's two books, Corporate Religion, and Unique Now... or Never. There is an interview with Mr. Kunde at Tom Peters' site: http://www.tompeters.com/cool_friends/content.php?note=005901.php
