I was chatting with my brother yesterday and an interesting question popped up. How much does customer loyalty matter in this day and age?

The trigger came from an experience he recently had with MakeMyTrip, a travel booking platform he has been using for years. He flies frequently between Bombay and Bangalore and books his tickets on MMT. Yet, he recently discovered, the flight rates he was shown on his device were always 20–30% higher than on his friends’ (infrequent fliers) for the same routes and dates.

“Because they know I will take this trip no matter what, they are charging me higher for it! As a regular customer of MMT, I feel betrayed, even cheated, by the way their algorithm works.” he told me.

It seems to me that most new-age Indian brands are talking about growth numbers and an expanding user base. But few seem to be saying anything about retaining their old customers. Few seem to set any store by a customer’s lifetime value. And hardly anyone is saying that they are building businesses that will last. ‘Long term’ today seems to be no more than 5 years. Brand loyalty as a concept seems to be a white elephant for most young Indian companies.

As a customer, I would say there are mainly 2 reasons why I would keep going back to a brand. One, I believe that the product or service they provide is unique and something I cannot find elsewhere. Its possession might make me feel a certain way or signify a status symbol. I would put Apple in this bucket — an iCustomer will remain one for life, no matter the array of other tempting options available. In a slightly convoluted way, I believe Indigo is also up here. Because of their reputation for on-time, no-hassle flights, they are preferred over other Indian airlines despite the fact that they are absolutely no-frills and offer no loyalty programs.

The second reason to stick to a brand is that it makes me feel special, welcome. I love it that when Uber rolled out Premier or tested their new Ride Passes in my city, I was among the first asked to try them out. All regular customers start to believe this after a certain point in time — that they are entitled to such privileges, for “bringing my business to you”. From asking your neighboring vegetable cart vendor to throw in an extra handful of chillies to demanding a better package from your mobile service provider because you’ve been with them for years. In fact, one of Airtel’s recent ad campaigns revolved around this very thought: how does your service provider reward your loyalty?

There are many ways to do this. One, of course, is to reward loyalty with points that customers can redeem the next time they shop. Almost all e-commerce companies and banks/credit card providers do this. While this is a transactional way of driving repeats, it can be highly effective in a country like India where most buying decisions are affected by the availability of good deals. It also makes sense for businesses who see regular repeat purchases.

The second way to build loyalty is by making it easier for your customers to buy from you each time. To me, BigBasket does a good job of this. Their Smart Basket keeps track of the groceries I order regularly and prompts me to add items I may have forgotten. I find these features immensely useful because they make my life simpler. Another way they have won my loyalty is by showing that they trust me. I was not at home when the BB team delivered one of my early orders. Though it was a large value order (above Rs.2000), they left it with my security guard, added a credit note against my name, and asked me pay for it the next time I shopped with them — thus ensuring that I would, again and again. Spas and salon chains also tend to do this really well — sneaking you in first ahead of other appointments if you are a regular, ensuring that a service staff you prefer to work with is available when you go in, and so on.

The third way is possibly the most nuanced but perhaps also the most effective in the long term. This involves understanding how your customers think and behave, and anticipating their needs. In a way, small or local businesses or ones with a more personal connect are able to do this better. They observe little things about you, remember them, and use them next time to make you feel welcome.

At Kapoor’s Cafe in Whitefield, a Punjabi dhaba-style restaurant we frequent, the staff quickly realized that we do not eat raw onions, always order the same four dishes, and prefer to read in silence instead of talking. We look forward to our visits now because the ordering process is so much smoother and we are not interrupted during the meal.

But given the kind of personal information that is captured and tracked digitally today, I believe larger businesses can do this just as well. My husband regularly uses Google Calendar to keep track of his appointments but even he was delighted when Calendar reminded us yesterday that if we had to make it to our 3.30 appointment in Indiranagar, we must leave from MG Road no later than 2.59. Unsolicited? Yes. Useful? Definitely!

I often research potential travel destinations and create wishlist trips on Tripadvisor. Wouldn’t it be amazing if TA would remind me in May that I’d better start booking my Bali tickets because the high season starts in July? And perhaps offer me a lucrative deal for this? Or for Swiggy to ask me on Friday evening if I am in the mood (once again) for pizza. By getting into my head and anticipating what I want or like, they would be forging a bond with me.

I actually think it is impossible for businesses to retain clients if they don’t put a premium on customer loyalty and actively work towards building it. Because if brands think short-term, so will customers. Without the little touches that will keep them committed to your brand, they will move on without a second thought to the next one on the block with a shinier ad or a better deal.