Solving customer challenges is an essential but frequently overlooked tenet of customer loyalty.
Most loyalty programs focus on discounts that drive transactional engagements, but cultivating loyalty goes beyond a rewards program. Good experiences — and recovered experiences — keep customers coming back.
“Solving customer challenges is one of the most powerful drivers of loyalty because it shows customers that a brand sees them, hears them and, more importantly, is willing to take action to make their experience better,” said Patricia Camden, EY Americas’ loyalty leader.
Research shows that addressing customers’ issues with a brand’s service can increase customer satisfaction and loyalty toward that brand.
“People remember when a brand makes things right, makes their life easier or removes some sort of friction from the process,” Camden said.
That can help build trust and confidence, which are essential ingredients for long-term brand allegiance, experts said.
Solving problems cuts churn
Bad experiences cost companies return business.
More than half of customers’ poor experiences with brands result in customers cutting their spending, according to Qualtrics XM Institute. A Morning Consult survey found that one-quarter of consumers switch brands after just one bad experience.
Every customer challenge, therefore, is a loyalty-building opportunity.
Emotionally charged or high-stakes situations like rescheduling a trip because of a personal emergency are especially “powerful loyalty touchpoints” that can “strengthen the relationship or cause lasting harm,” said George Korizis, front office strategy and transformation leader at PwC.
“These moments become proof points to a consumer that a brand is dependable and customer-centric,” Camden said. “Solving the right problems in the right way is no longer optional. It’s a loyalty imperative.”
One of PwC’s financial services clients, for example, recently deployed AI-powered virtual agents to handle routine tasks and escalate complex issues, such as identity theft or large transaction disputes, to human agents, according to Korizis. The virtual agents improved resolution speed and satisfaction scores, but the escalated interactions “led to significantly higher net promoter scores and long-term customer retention” by creating trust, Korizis said.
Customers expect care, not perfection
Speed, empathy, transparency and overcommunication are the most critical aspects of understanding and addressing a customer’s issue, experts said.
But customers expect care, not perfection, according to Boomerang, a lost and found solution vendor, which specializes in addressing customer issues.
“Acknowledge their stress, keep them informed and solve the issue like it’s your own. Technology can help with automation, but the human element is irreplaceable,” the Boomerang spokesperson said.
Businesses should focus on delivering frictionless resolutions to their customers.
Implementing an omnichannel approach to solve customer problems can help ensure that a customer’s needs are met, regardless of how they initially contact a brand, said Chris Donato, president and chief revenue officer at Zendesk. It can also help brands get the most out of their human agents by freeing them up to deal with more complex or emotionally charged issues.
Effectively resolving customer challenges requires a thoughtful balance of responsiveness, personalization and consistent follow-through, Korizis said. Tools like real-time pulse surveys can help businesses identify service gaps, while “closing the loop after resolution reinforces trust” and shows customers that the company values them beyond a single transaction, Korizis said.
“Resolving an issue well is more than just great customer service, it’s a moment of truth,” Camden said. “It demonstrates that the customer truly matters, and that’s what creates loyalty.”
The problem and brand matter
Customer service strategies vary by issue and industry, experts said. In retail, for example, AI-powered self-service and other automated systems can help customers address most routine inquiries, such as real-time updates on an out-of-stock item or making a simple return.
However, customers often expect more personalized support for complex or emotionally charged concerns.
“In healthcare or financial services, a relatively small error, like a billing issue or a miscommunication, can feel deeply personal because it touches something essential,” Camden said.
In such instances, the resolution isn’t just about fixing the problem, “it’s about restoring trust in a brand that customers rely on for security and peace of mind,” Camden said. “The expectations are higher, and the consequences of getting it wrong are more lasting.”
The best-performing organizations align their service delivery with the emotional and practical needs of each moment, Korizis said.
Regardless of the industry or individual circumstances, brands must prioritize customer service to achieve sustainable, long-term growth. After all, customers’ problems are loyalty opportunities.
