From lock-in to lock-out: using design to create fiercely loyal customers

Focusing on distinctive solutions, emotional connections, and favourable economics allows companies to maximise customer loyalty and lock out competitors. The evidence is that traditional methods of creating loyalty, such as rewards and contracts, are easily copied and therefore less effective; customers avoid being locked in by them. The aim is have customers who are completely satisfied, through better understanding of their needs and distinctive offerings. Wal-Mart and Apple are examples of companies that take this approach. The former has favourable economics in the form of consistently low prices, plus emotional connection in the form of simple signage and merchandising and expressed core values of economy. Apple's name for customer loyalty derives from its distinctive solutions like the easy to use iTunes/iPod system, and it has strengthened its emotional connections with such products over the years. Companies should not depend on standalone programmes but develop an integrated approach which is linked to understanding the profitability of various consumer segments.