How to Build and Sustain Customer Loyalty in a Competitive Furniture Market
- Posted on
- by Jack Young
Table of Contents
How to Build Customer Loyalty - Key Takeaways
- Customer Loyalty is Earned, Not Given: Simply providing good service is not enough; businesses must continually engage with customers and demonstrate value to foster loyalty.
- Small Efforts Can Make a Big Impact: Simple, low-cost actions like personalised emails or thank-you notes can significantly enhance the post-purchase experience and encourage repeat business.
- The Importance of After-Sales Experience: The post-purchase phase significantly impacts customer loyalty. A positive after-sales experience can strengthen the relationship and counterbalance any negative experiences during the sale.
- Emotional Connections Matter: Brands that resonate emotionally with customers through shared values or storytelling can create deeper loyalty.
- Consistency is Key: Consistent engagement through personalised communications and valuable content helps keep the brand top-of-mind, creating long-term relationships.
- Utilise Customer Feedback: Actively seeking feedback improves customer service and makes customers feel valued.
- Balancing Short-Term Gains with Long-Term Strategy: While cash flow is the lifeblood of your business, integrating customer-centric strategies can lead to sustainable growth without sacrificing customer trust.
Why Customers aren’t loyal
Image: Screenshot of Google Search Results for Loyalty
You’ve probably thought at some point that customer loyalty does not exist anymore or has drastically decreased over the years. Loyalty has indeed decreased from the good old days.
One major problem may be the oversaturated furniture market. Many new businesses are entering the market, most selling the same product as other established furniture retailers, creating me-too businesses, which puts the buying power in the customer’s hands.
Loyalty isn’t a given in an industry where competitor comparison is just a click away. So, why should the customer stay loyal to you when there are so many options? Options where a better deal could be had.
Instead of asking why customers aren’t loyal, it may be more insightful and beneficial to ask if the customer has any reason to be loyal to your furniture business.
Why “Good” Customer Service Does Not Ensure Loyalty
We first must address the misconception of loyalty, which is that good customer service and a single sale are enough to ensure loyalty.
Loyalty in business-to-consumer (B2C) relationships is no different from loyalty in personal relationships—there must be a reason for it. After meeting someone for the first time and they buy you a drink, would you say you are loyal to them?
“Good is the enemy of great”
“Good” is the baseline, not a differentiator. It would be reasonable to say that service is a differentiator, and it can be. However, friendly staff and “good” service are expected. You need them to be considered, but they are not a reason for loyalty.
Customer Loyalty Is Based on a Relationship, Not a Transaction
A sale is a transaction between two parties where a value exchange occurs. The customer values your product, and you value the money they have in exchange for the product. However, it is not this simple if you want to foster loyalty.
Loyalty is built upon a continuous, long-term relationship of transactions. The relationship is built upon each time, giving the customer a reason to choose you over a competitor.
Image: Chart taken from Yotpo. How many purchases does it take to be brand loyal?
Would you be loyal to the person who bought you that drink and never contacted you again? No, you would need to meet or speak with them a few times to see who they are and what they are about because you probably wouldn’t want to spend time with someone who doesn’t share the same outlook as you.
Yet after purchasing a piece of furniture, the sale is done, and the customer often doesn’t hear from the business again. There are no follow-ups unless it’s a sales promotion.
Even if customers find you on social media and follow you, they’re often bombarded with promotional content rather than helpful advice or entertainment.
Yes, you should post promotional content. However, it must be done sparingly compared to other value-building posts, entertainment, or educational posts. The 80/20 rule is often a great starting point: post 80% valued content and 20% promotional content.
But pure promotional content is one-sided. Loyalty isn’t.
Failure to provide an experience or show genuine interest in the customer’s needs makes switching to competitors easier because there is no switching cost. When you provide only a simple transaction, the customer has nothing to lose by going somewhere else and everything to gain.
The 80/20 rule, also known as the Pareto Principle, suggests that roughly 80% of outcomes come from 20% of efforts. In marketing, 80% of your results—like customer engagement or sales—likely stem from 20% of your marketing activities. Applying this to content, it’s recommended that 80% of your communication focuses on providing value—through education, entertainment, or helpful tips—while only 20% should be promotional. This helps build trust and loyalty by focusing on the customer’s needs rather than constantly pushing sales.
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How to Improve Customer Loyalty with Value
Supplying a product is only part of the overall value you can create for the customer.
Consider your total offering, as shown in the image above. The product is the centre, and you can add value before and after the purchase. Value at these stages can multiply the positive effects or positively impact other areas in which the customer has received less than “good” service during the process.
Below, we discuss areas before and after the product where you can add value. This is not a comprehensive list, and you do not have to implement all of them to add value. Find areas you can implement into your business with relative ease, make them as effective as possible, and then move on to areas requiring more time, money, or effort.
You will notice that email has been mentioned more than a few times. Email is a powerhouse marketing channel at all stages of the buyer journey, but especially for building post-purchase loyalty. However, please ensure you have customer consent to send emails beyond transactional order confirmation/invoice emails.
How to Add Value to the Customer Before the Product
If you want to know how offering coffee can enhance the customer’s experience and increase sales, see our article, Can Coffee Really Increase Furniture Sales?
Brand Story & Identity
Furniture is, by nature, a functional item. It is generally bought to do a job, store plates, or be used for sleeping or sitting. Rarely considered, though, is the emotional connection to the product and, in the case of loyalty, the emotional connection to your business.
Whether sustainability, craftsmanship, or supporting local communities (product and brand differentiation), customers are more likely to connect emotionally with brands that stand for something beyond selling products, helping customers align their purchases with personal values.
Does your business show its brand identity in communications? Is there a clear purpose that resonates with the customer?
When communicating who you are, ensure that all touchpoints (social media, email, website, etc.) consistently reflect the brand values and message. Consistent storytelling builds familiarity and trust, helping the customer feel connected even before a purchase is made.
Personalisation
Use data to understand customer preferences and serve them personalised content based on their needs or interests. This might include product recommendations, blog posts, or tips that solve specific problems.
Provide content that adds value without being overtly sales-focused. For instance, sharing guides on interior design trends or tips on how to maximise space in a home helps the customer solve problems before they even think about purchasing.
To help you do this effectively, perform keyword research and understand the intent of the search.
Engagement & Community Building
Respond to customer comments, questions, or posts to create genuine conversations. This builds a sense of community and connection to your brand and suggests that you are always interested in what customers say.
Offering blog posts, videos, or live events that teach customers about your product category, materials, or use cases builds trust and credibility.
Educating customers can help them feel more confident in their purchase decisions before they buy and reinforces that purchasing from you was the right thing to do.
A “Will-It-Fit” guide is a valuable tool for both you and your customers, and it’s quickly becoming standard in the furniture industry. Use your experience to guide the customer through common areas to measure to ensure their new bedroom or sofa will fit into the room they bought it for. Make the guide downloadable and printable so customers can easily fill it out.
You could even create a version with tips on measuring car spaces for customers who plan to collect their furniture. We have not seen this for any business yet.
These guides can significantly reduce post-purchase disappointment and awkward conversations about returning items that don’t fit.
Go to Google and type in “will it fit furniture guide” to get inspiration.
After the Customer Sees (or Buys) the Product
Post-Purchase Support & Communication
The focus is usually on convincing customers to choose your product over others before and during the sale. However, loyalty can be built after the sale when customers see how well your business supports them in using and enjoying the product.
Initial Post-Purchase Emails
Send a personalised email thanking the customer for their purchase. You can remind them again of the lead times, the best contact information to enquire for an update, and what will happen when the product arrives.
Delivery or Collection
When contacting the customer to say that their order has arrived, explain the procedure for either collection or delivery and provide helpful tips to make collections or deliveries go as smoothly as possible for them and you. For example, send them delivery guides recommending removing all furniture, shoes, or rugs that may slip underfoot. Include links to how-to videos, setup guides, or product care tips related to their order.
Post Delivery or Collection
Check in with the customer after the product has been delivered and ask if everything is satisfactory. Tell them again how to open and move the extending table they bought, and give them links to the care guides you have on your website.
After the purchase, customers might have concerns, questions, or uncertainties about the product (e.g., product setup, care tips). Without a follow-up email, reassurance, or offer of support, these concerns can lead to frustration. A simple “hope everything is okay” email or tips on using the product can dramatically change their perception of the experience.
Yes, they may tell you that the product isn’t working or damaged, and they weren’t going to call, but because you got in touch, they thought they would mention it.
However, would you not want the opportunity to resolve an issue to save the possibility of future business and good word of mouth, even if it eroded the margins on that sale?
You are objection handling when you help the customer resolve their post-purchase issues. The customer now knows they can rely on you if anything goes wrong, increasing customer loyalty, which is worth more to your business than the cost of fixing the problem.
Feedback & Involvement
Ask for feedback not just on the product but on the entire customer journey. Show customers you’re interested in improving their experience, not just gathering reviews. The Net Promoter Score can be a simple, beneficial way to collect customer feedback.
Consider including customers in future product development. For example, allow loyal customers to vote on new designs, colours, or product features. This involvement makes them feel valued and gives you first-hand data on what your customers are looking for.
Net Promoter Score (NPS) is a popular metric that measures customer loyalty and satisfaction by asking customers how likely they are to recommend a company, product, or service to others. Respondents answer on a scale from 0 to 10, with scores categorising them as Promoters (9-10), Passives (7-8), or Detractors (0-6). The NPS is calculated by subtracting the percentage of Detractors from the rate of Promoters, providing an overall score that indicates how well a company is performing. It’s a simple yet powerful tool for gauging long-term customer sentiment.
Ongoing Engagement
Throughout the year, send or post helpful content that relates to how the customer can optimise their use of the product (e.g., “How to Prepare Your Furniture for Winter” or “Easy Summer Styling Ideas for Your Home”). Keep customers engaged through exclusive offers or content. Offer early access to new products or invite them to special events, whether online or in-store.
Continue engaging customers on social media with more than just promotional posts. Encourage customers to share their experiences, show how they use your products and offer occasional spotlights on customer creativity or satisfaction.
Send special messages on the anniversary of their first purchase or other milestones, offering personalised discounts or simply thanking them for their loyalty.
Why After-Sales Is Arguably More Important
The End is What Stays with Customers
A customer’s last impression of a company or brand is often their strongest memory. A well-crafted post-sale experience creates brand advocates who will tell others about their pleasurable experience and defend you when others do not speak as fondly about their experience.
If the after-sales experience is positive through follow-up support, helpful content, or personalised engagement, customers are more likely to feel satisfied that they have purchased from the right company, which increases the chance of repeat purchases and positive word of mouth.
On the other hand, if customers feel neglected after the purchase, it can undo all the goodwill built up during the sale.
A psychological heuristic called the peak-end rule may be the reason for the end being more memorable.
A heuristic is a mental shortcut or rule of thumb that helps people make quick decisions and solve problems without a detailed analysis. While heuristics are often efficient, they can sometimes lead to errors or biases because they simplify complex information. They are commonly used in everyday life, such as guessing the answer to a problem based on experience or using intuition to make choices when time or information is limited.
What is the Peak-end Rule?
Image: Jono Hey, Sketchplanations
According to the peak-end rule, originally called the peak-and-end rule, people judge an experience based mainly on how they felt during the peak (the most intense point) and the end rather than the overall experience, regardless of whether the customer experience is pleasant or unpleasant, the peak-end rule may apply.
The peak is not always the point of purchase. It could vary depending on the customer and their journey. It could either be the moment of purchase or the moment they discover the product that solves their pain point, depending on what triggers the most emotional intensity.
The “Peak-End Rule” was first notably discussed in the 1993 paper “Duration Neglect in Retrospective Evaluations of Affective Episodes” by Barbara L. Fredrickson and Daniel Kahneman. This study explored how people evaluate past experiences based on two key factors: the peak (the most intense moment) and the end (the final moments) while largely ignoring the duration of the experience. Their research demonstrated that people tend to judge an experience, whether positive or negative, based primarily on these moments rather than the entire length of the experience. This phenomenon is referred to as “duration neglect.”
Peak as the Point of Purchase:
For many customers, the peak could be the moment they buy or put a deposit down on the piece of furniture. This is often when excitement is at its highest. The customer feels satisfaction or relief from finally deciding and purchasing what they need.
Peak as the Moment of Discovery:
For other customers, the peak could be earlier in the process, for example, when they discover the product that solves their problem. This is especially true when:
- The solution is unexpected or long sought after. If a customer has been struggling with a particular pain point for some time, discovering the right product can feel like a breakthrough moment.
- The Product Aligns with Their Values or Lifestyle: When a customer finds a product that not only meets their practical needs but also aligns with their values, for example, sustainability and ethical sourcing, this can create a sense of connection and excitement even before the purchase.
- Content or Marketing Initiates the Peak: If a business creates content or marketing materials that address a customer’s pain points, this may create a memorable emotional high.
The peak-end rule suggests that the end of an experience is what people remember more strongly, so if the after-sales experience is neglected or negative, it can leave a lasting bad impression and cancel out the positive feelings from the sale itself.
This makes the post-sale phase one of the most essential parts of the sale process for long-term customer loyalty, potentially more so than the pre-purchase or purchase phases. The end can make up for parts of the process that are less than positive.
However, while the end can soften the impact of a negative peak, there might be situations where the peak itself is so overwhelmingly negative that no positive end can fully correct it. Breaches of trust, significant product flaws, or terrible customer service can lead to irreparable damage, even if you try to compensate. In these cases, loyalty recovery might be impossible or require far more than just a voucher or an apology.
Loyalty Building During Low Sale Periods
“50% of the consumers surveyed in our study report feeling pessimistic about the economy. Yet more than six in 10 (63%) say they will pay more to shop with the brands they’re loyal to.” – The Drum
During economic downturns or quiet periods, your furniture business may need immediate revenue to aid cash flow. While cash flow problems are real, these periods can pressure you to focus on short-term gains over long-term strategies like customer loyalty.
Focusing solely on short-term financial goals can lead to desperation tactics that alienate customers, such as steep discounts that hurt brand perception or cutting corners on product quality. While these might bring in quick cash, they can erode brand perception, trust and loyalty, creating more significant problems down the road.
It’s important to acknowledge that cash flow challenges exist, but the long-term vision for customer loyalty should still be considered. Balancing both is the key.
Short-Term Wins While Building Long-Term Relationships
Customer-centric strategies don’t have to be mutually exclusive with quick, revenue-driving strategies. Businesses can implement quick wins to generate revenue while laying the groundwork for long-term loyalty.
For Example, offering limited-time promotions or discounts can bring in immediate sales, but adding a personalised follow-up or offering tips on product use can foster a longer relationship with those same customers. In this way, businesses balance their need for short-term income while investing in the future.
The Cost of Ignoring Customers
The cost of acquiring new customers is typically much higher than retaining existing ones. Focusing solely on immediate profits and ignoring the customer experience may lead to high churn rates, meaning businesses are constantly spending more on customer acquisition without seeing a return in the form of repeat business.
A high churn rate could be fatal for businesses in survival mode. On the other hand, nurturing relationships with current customers, even in small, inexpensive ways, can help increase repeat purchases, reducing the pressure to constantly acquire new customers.
With the right balance of short-term wins and incremental, low-cost loyalty-building efforts, businesses can generate revenue now while laying the foundation of sustainable growth. Ignoring customer loyalty altogether may solve short-term problems but create bigger issues in the future.
Personal Story Time
While writing this article, I had the “pleasure” of dealing with a new garage. I won’t bore you with all the details, but after 7 hours of no contact and then phoning for an update, I was told, “It is just going in now”… after 7 hours! Not to worry, though, they promptly sent me an invoice within 30 minutes of the call. It was sent via text.
It was double the amount I was expecting. No explanation of why the work needed to be done, except the fear factor of MOT failure, written in bold. (By explanation, I mean why the parts may have failed and how I could possibly drive differently to cause less wear on these parts, which is more valuable to me as a customer.) The system I had to use to view the invoice was terrible. I approved the work, as the switching cost of taking it to another garage was more painful than paying the bill at this stage.
Then I got a text the next day to say it was ready. Fantastic!
However, once home, I found out they hadn’t stamped the service book.
Now, am I likely to use that garage again? No, probably not.
VS.
Also, while writing the article, I ordered new brushes for a mitre saw. The branded brushes had been out of stock for months, so I used a company selling aftermarket brushes.
After ordering from them, I received an email addressed to me by name, stating the delivery time again, the address to which it would be sent, and that it was Royal Mail 48 postage. They said to reach out and told me where to contact them if I had issues. Attached was an invoice and the email finished off thanking me for buying from them. That was at 3 p.m.
The next day, I had them by noon. They had sent them out by 24-hour delivery, not 48. The package had another invoice thanking me for my purchase and again, where to reach out with any issues.
Now, provided the product lasts a reasonable amount of time (very subjective, I know), I would use them again without hesitation.
I experienced these two real-world examples within days of each other. One cost 230x more than the other, yet I received a better experience with the brushes.
