AI Side Effect: Fading Customer Loyalty

By: Dean April 24, 2024 no comments

AI Side Effect: Fading Customer Loyalty

Old thinking: Our unique value propositions and messaging set us apart from competitors.

New thinking: AI can replicate anything for our competitors, we need to show our UVP not tell! How can we create surprising, memorable experiences at every customer touchpoint? How can we frequently over-deliver value to build lasting customer loyalty that drives sustainable growth?

→ Remember that childhood lemonade stand?

The one with the cool poster promising “the best darn lemonade in town”? Customers wanting more…that’s the dream, right? Standing out from the crowd.

But…what if a competitor showed up offering the same drink flavor with an awesome bouncing castle (free to play/freemium) alongside your stand? Suddenly, your “best darn lemonade” becomes just another drink.

Here’s the truth

Unique value propositions and messaging are losing their edge, as crucial as they are.

Why?

“The best” can easily be copied! This is the reality of AI-driven competition.

↳ Most companies are getting stuck in a “lemonade stand” mentality. For competitors, AI simplifies replication and quickly enhances it, making “the best (technology, product or messaging)” a diluted claim. Products start to blur together, unique value proposition fades fast and once bold messaging becomes all too familiar.

→ Customers today crave new experiences and ongoing value at every customer touchpoint! Showing your value proposition in a surprising, memorable way and consistently is the new currency for brand loyalty.

You need to add the human element of genuine connection, empathy, and creativity by:

1. Moving beyond the “lemonade stand” mentality:
↳ What unexpected delight can you offer your customers? How can you solve their problems in a way that sparks conversation and ignites brand loyalty? Don’t just tell them you’re better, show them.

2. Over-delivering on your promises:
↳ Don’t just meet expectations at every touchpoint, shatter them with genuine delight and add creative experiences to the mix.

3. Re-inventing yourself – Think Chupa Chups:
↳ Even in saturated markets, Chupa Chups lollipops faced a challenge: too much sugar is bad for your teeth. Their solution? A brilliant ad using ants to showcase their “sugar-free” option. This “surprising approach” demonstrated their value proposition in a memorable way and overdelivering with the widest collection of flavors and healthier options.

Interestingly…

→ Not all brands need to have a unique value proposition, but they can offer extreme value.

→ Not all brands need to have bold messaging, but they can build stronger relationships with their customers.

The key is winning hearts in today’s fast AI-driven world. Showing your value proposition in a surprising, memorable way REPEATEDLY at every touchpoint isn’t a magic trick, it’s an essential strategy.