83 Businesses That Solved Everyday Problems With Surprisingly Simple And Genius Ideas

Having loyal customers as opposed to wishy-washy flip-flopping ones is a no-brainer. It makes good business sense to offer quality goods and services.

When consumers are happy, they view a particular brand more favorably, leading to more profit and a more stable future for the business. It’s a win-win for everyone.

According to recent research conducted by Capital One Shopping, a mere 5% increase in customer loyalty increases profits by a huge amount, from 25% to 95%.

Based on the findings of the survey, the majority of retail business comes from loyal customers, clocking in at 65%.

Meanwhile, those loyal customers, who are responsible for two-thirds of retail business, actually spend a whopping 67% more on an average purchase than new customers.

As per the study, 73% of Americans are loyal to at least one brand. Moreover, 68% of consumers claim brand loyalty.

If you look at the average American consumer, they are enrolled in a huge number of loyalty programs. 17 of them in fact. They have a 51% active participation rate.

That being said, 75% of global consumers noted that being offered a loyalty program with better rewards would make them switch brands.

Capital One Shopping notes that loyal customers are worth around 2.5 times more revenue than new or future customers. Moreover, brand loyalty drives corporate returns that are significantly (120%) above average.

Over a 10-year period, loyal customers boost shareholder returns anywhere between 2 and 5 times.

In the United States alone, brand loyalty affects the retail banking industry the most, increasing corporate growth 290% above the industry average.

The main factors that drive brand loyalty, from biggest to smallest, include:

1. Shared values
2. Good customer service
3. Product options and availability
4. Strong data privacy practices
5. Understanding and caring for their customers
6. Trustworthiness and transparency
7. Quality products
8. Taking a public stance on social issues

According to the Harvard Business Review, there is a vast difference between companies that prioritize customer loyalty and those that don’t. Good managers focus on creating and keeping customers in the long-term. However, despite understanding this, most managers don’t embody this principle.

“Under relentless earnings pressure, they often feel cornered, obliged to produce quick profits by compromising product quality, trimming services, imposing onerous fees, and otherwise shortchanging their customers. This short-termism erodes loyalty, reducing the value customers create for the firm.”

HBR points out that loyalty-leading companies create systems for measuring customer value.

What’s more, they invest in the “necessary enabling technology,” use design thinking methods to build loyalty, organize the business around customer needs, and engage everyone in the transformation, from the employees and board members to the investors.

Underpinning everything, you need transparency and a culture of reliable disclosure.

“It’s easy to blame companies’ short- termism on shareholder pressure and a bias toward quarterly financial reporting. But managers share the blame when they fail to educate investors about the customer value their company creates or when they resort to quick profits instead of investing in long-term customer loyalty.”

Loyal customers lead to better growth, profitability, and shareholder returns.

Meanwhile, all organizational stakeholders benefit from this. “Customers will experience products and services that make their lives easier, richer, and more enjoyable. Employees will reap the benefits of making customers’ lives better. Management and investors will see increasing profits and shareholder value. And society will enjoy the economic growth that derives from innovation and investment.”

Drop by the comments to share your thoughts once you’ve looked through this list and upvoted your favorite pics.

Which of these good design decisions impressed you the most, and why? Meanwhile, what are some great business ideas that you’ve seen implemented in your daily life?

What are some brands that you genuinely believe care about the customer more than profit?