By Sumiit Zawar

I often remember the days of my childhood when we had limited options – whether it was choosing a soda, buying a television, or even choosing a local grocery store. There wasn’t much to compare or bargain with. The brands that caught our imagination early on stayed with us. Loyalty was simple, almost instinctive. Fast forward to today, and we live in an era where customers are “spoilt for choice”. Nowhere is this truer than in Indiawhere the landscape has completely changed.

Today’s Indian customer is keenly aware of their choices, which has made them increasingly demanding. The era of blind brand loyalty is over. The customer quickly switches if a better offer or more convenient service is found elsewhere. And this phenomenon presents a particular challenge for brands trying to build long-term loyalty in an increasingly crowded and competitive environment market.

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The spoiled Indian customer

Indian consumers today have access to a dizzying array of products and services, from global brands to local ones startupseveryone is competing for attention. Every customer interaction is now a battlefield, and the pampered customer holds the power.

Imagine walking into a supermarket with a list of things to buy. You find yourself surrounded by an overwhelming amount of choices for every product on your list. From toothpaste to smartphones, the options are endless. This is the reality of the modern Indian customer. With the proliferation of brands and the advent of e-commerce, customers are no longer bound by geographical limitations or brand loyalty. They are spoiled for choice, and this abundance has made them more demanding than ever.

For example in online travel industryplatforms like MakeMyTrip, Cleartrip and EaseMyTrip offer a host of discounts and cashback offers. Customers routinely open multiple apps to check for the best deal before booking a flight, hotel or vacation package. The experience is no longer about brand loyalty; it’s about finding who can offer the cheapest or most convenient solution for that particular trip.

A large number of brands, new and established, are engaged in one-upmanship for customer attention in online marketplaces that directly impact profitability. That leads to a price war or a higher CAC. A new trend that has started in the Indian D2C space is brands referring customers to their own platforms and websites. However, this has its own challenges.

Acquisition cost: Skyrocket

One of the most dramatic changes we’ve seen in recent years is the cost of acquiring a new customer. Marketing budgets that once covered an entire year’s activity now barely get us through a few months. Paid media campaigns, influencer marketing, content strategies, SEO – everything has become more expensive as the competition gets tougher. And yet, the return on investment for many of these efforts shrinks because the pampered customer does not remain loyal.

The challenge is more than just attracting customers; it’s about keeping them. A 2022 report by Bain & Company on India’s digital commerce landscape noted that acquiring a new customer can cost up to five times more than retaining an existing one. Also, as e-commerce booms in India, more brands are entering the market, driving up the cost of paid advertising and customer acquisition. But despite the increased spending, customers don’t always stick around long enough to make these investments worthwhile.

Build brand loyalty in the age of the spoiled customer

This challenge requires brands to rethink their approach. The pampered Indian customer may be hard to retain, but they are not impossible to win over. What is required is a change in the way we collaborate with them.

1. Hyperpersonalization: In a sea of ​​sameness, personalization can make a big difference. Customers want to feel that brands understand them, their preferences and their pain points. Hyper-personalized messages, offers, and experiences show the customer that you treat them not just like another record in your CRM, but as an individual.

2. Seamless omnichannel experiences: Indian customers expect brands to meet them where they are, be it on WhatsApp, social media, email or even SMS. A seamless omnichannel experience means that regardless of the platform, the brand delivers the same level of service and personalization. For example, starting a customer service conversation on WhatsApp and continuing it by voice without having to repeat the issue is the kind of fluid experience that delights customers and builds loyalty.

3. Emotional connections: Loyalty programs or discounts are good, but they are not enough to make customers stay. The emotional connection a brand builds with its audience is much more lasting. Brands that successfully communicate their values, purpose and story create a resonance that goes beyond just the product or service. Consider how brands like Tanishq and Manyavar have embedded themselves in Indian culture and created an emotional pull that is hard to ignore.

Conversation channels to the rescue

So how do we keep this personal touch, scale it up and ensure our customers feel engaged? This is where conversation channels come in.

Imagine having a one-on-one conversation with each individual customer, understanding their needs, preferences and concerns. Impossible in scale, right? No longer. Conversational channels like WhatsApp Business, RCS and chatbots are changing the way brands interact with customers. These platforms allow brands to have real-time personal conversations with their audience, offering instant responses, solving problems and even making product recommendations based on their past behavior.

These channels not only facilitate communication; they create commitment. A brand that engages a customer in meaningful dialogue—whether through a chatbot that answers a simple question or a human agent who steps in when things get complicated—will undoubtedly leave a lasting impression.

The role of AI in customer engagement

AI-powered tools are reshaping customer engagement by providing deep insights into customer behavior. Through machine learning, brands can analyze customer interactions and predict future needs. AI can help deliver hyper-personalized experiences, whether it’s suggesting the next best product or providing fast customer support.

Powered by AI, chatbots already handle a significant portion of customer service issues, allowing brands to scale their operations while maintaining a high level of personalization. These bots are no longer the clunky, unhelpful tools they once were. Today’s AI chatbots understand context, tone, and even complex questions, allowing them to provide customers with accurate, relevant information. Additionally, the ability to integrate AI across conversation channels ensures that the customer’s experience remains consistent, regardless of the platform they use.

The Future of Loyalty in India

So, where does this leave us? The Indian customer is more empowered than ever, but they are also more willing to listen – if you speak their language, understand their needs and meet them where they are. Gone are the days of brand loyalty driven solely by product superiority. Today’s customers demand convenience, personalization and emotional connection. And the brands that can stand out will not only capture their attention but also their loyalty.

The curious case of the spoiled customer presents both challenges and opportunities for brands. While the increasing demands and lack of loyalty can be daunting, they also drive brands to innovate and improve. By focusing on exceptional customer experiences, offering value beyond price, and leveraging conversational channels and AI, brands can navigate this complex landscape and build lasting customer loyalty.

The spoiled customer is here to stay, and it’s up to us as brands to adapt or be left behind.

The author is a marketing manager, Route Mobile Limited. (The views expressed are the author’s own and not necessarily those of financialexpress.com)