This week I was talking to a businessman in the industrial automation sector and in the conversation he commented on the brands of equipment he preferred, in his words:
"There's a brand of sensors and equipment that's very good, they're always trying to sell it to us, but I prefer to buy another brand, because they have better service, better support, it seems easier to buy and if there's a problem, it's easier to solve..."
I then reflected on this view of his in relation to a survey I saw recently that shows that brands that invest only in the short term, lose value in the long term.
In our friend's case, brand 1 is good, has a good product, but only cares about the sale, not about building a long-term relationship. So it sold a few times, but it doesn't sell any more and ends up with a high churn rate (customers stop buying). His story is not an isolated case: research shows that even 86% of customers would leave a brand after just two bad experiences (Zendesk).
The biggest problems with investing only in the short term are:
- It only attracts the customer who buys "because it's cheap", and you know, that customer is never a good customer. The irony is that while the company focuses on the low price, 86% of buyers say they are willing to pay more for a great customer experience (PwC).
- This means that if you only invest in paid traffic, for example, and Meta and Google raise the price of ad placements, you have to pay to keep up. In this case your sale is in the hands of another company that has no commitment to you.
- It doesn't build customer loyalty, because your customer will never defend your brand, they don't understand why buying from you is better and they don't have a reason to recommend you either. This represents a huge cost, since loyal customers are 5 times more likely to repurchase and 4 times more likely to recommend the brand to others (Qualtrics XM Institute).
In these cases, it applies to any market segment: a company that behaves like one more, or follows what others do "because everyone else is doing it", will be left behind.
The path to exploiting the potential of the customer-based market is not always easy, but it exists and we can apply it.
In order to find the ideal path for brands, I usually go to a few points that aren't always easy to visualize:
- What is purpose of your brand?
- What the image your brand conveys for the people who buy from you?
- There is alignment between purpose and image what are you going through?
- What actions should be taken to deliver the clarity for the customer?
Building the Bridge Between Purpose and Customer
Answering these questions is the first step towards transforming the way your brand is perceived. O "purpose" is not just a nice phrase for the company website; is the guide for all actions. It defines why the company exists, beyond simply selling products or services. In fact, 64% of consumers say that they maintain a relationship with a brand mainly because they share the same values (Harvard Business Review).
When a brand has a clear purposeIt's also known as "making the engineer's life easier with support that solves problems in minutes", all decisions are filtered through this lens. Customer service ceases to be a cost and becomes an essential part of the product. The buying experience, technical support and even the way the salesperson approaches the customer are a direct reflection of this purpose.
The preferred brand of the entrepreneur I mentioned at the beginning probably doesn't think: "We need good support to retain customers". Instead, it thinks: "Our purpose is to be our customer's most trusted partner, and that means being there when they need us most". Good support is a consequence of the purpose, not the end goal.
The value of trust and relationships
Investing in purpose and customer experience creates a very valuable asset: trust. A customer who trusts your brand won't leave over a small price difference. They know that if something goes wrong, you'll be there to fix it. They become advocates of your brand, referring you to others and defending their choice.
This loyalty is what effectively reduces churn. The customer isn't just buying a product; they're buying peace of mind, partnership and the certainty that they've made the best choice. They stop being a number on the sales sheet and become part of a community that believes in the same thing as your brand.
Conclusion: Purpose as a Long-Term Strategy
Ultimately, the difference between a brand that survives and one that thrives lies in its vision. Brands that focus only on the short-term transaction are building their business on unstable ground, vulnerable to market changes and price competition.
On the other hand, brands that build their value from a clear purpose and translate it into every point of contact with the customer are creating a solid and lasting foundation. The importance of this is undeniable, since for 91% of customers, the experience is as important as the price or quality of the product (Forrester). The financial impact is direct: an increase of just 5% in customer retention can mean an increase of 25% to 95% in profits (Bain & Company).
Reducing churn is not about retention tactics or discounts for those who threaten to leave. It's about giving your customers such a strong reason to stay that the idea of going elsewhere doesn't even cross their minds. And that reason is your purpose, lived and delivered in every interaction.
How to Start Now: A Practical Checklist
Reflecting on purpose is inspiring, but real change happens in practice. Use these 3 steps as a starting point to align your brand and start building long-term value:
- Talk to your best customers. Ask them: "Apart from our product/service, why do you choose to do business with us?". The answers may reveal perceptions of value that you hadn't even imagined.
- Audit a point of contact. Choose a single customer interaction with your company (the first contact with a salesperson, the payment process, a call to support) and analyze it: does this experience reflect what we want to be as a brand? Is it easy, pleasant and does it solve the customer's problem?
- Define an immediate improvement action. Based on what you've learned, choose a single thing you can improve next week. It could be rewriting a standard email, training the team in a new approach or simplifying a form. Small, consistent actions generate big results.
Build a Brand that Inspires Loyalty
Transforming the perception of your brand and strengthening the relationship with your customers is a strategic journey. Often, an outside look is all that's needed to connect the dots and chart a clear path.
If you feel that your company has the potential to go further, but you don't know where to start, let's talk. Our job is to help brands discover their purpose and turn it into experiences that generate value, trust and, of course, loyal customers.
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