A significant number of small businesses in Singapore are struggling in 2025, a year marked by a sluggish economy and global uncertainties. Amidst the ongoing global trade tensions and political uncertainties, businesses are faced with declining revenue on the one hand and rising costs on the other hand.
To mitigate this situation, SMEs spend a considerable amount of money to acquire new customers. However, many end up losing these new customers after only one transaction. Given today’s cautious consumer behaviour, it may be more prudent for SMEs to shift from the “hunting” (Acquisition) mindset to the “Farming” (Retention) mindset. In this article, we explore the “why” and “how” SMEs can turn their customer loyalty to fuel revenue growth.
SME owners need to understand that customer loyalty isn’t a “nice-to-have” but a critical asset for financial survival in Singapore’s highly competitive and high-cost business landscape. Here are a few reasons why customer loyalty should never be undervalued:
It is important for SMEs to focus on customer retention as it is crucial for profitability. However, having a balanced approach that considers both acquisition and retention is essential for sustainable growth in the long run. If you are wondering how you should build customer loyalty, let us start with the three pillars of revenue-generating loyalty.
Pillar A: Customer Service as the New Marketing
The consumers in Singapore have high expectations and are digitally savvy. Many consider their customer experience as important as the product experience. They are also quick to share their experiences via reviews online or on social media platforms. In a competitive environment where product quality may come across as being similar, factors such as customer service become the deciding factor in securing consumer loyalty. The positive reviews will also contribute to the acquisition of new customers.
To succeed in this pillar, your frontline customer service staff needs to be equipped with the knowledge and skill sets to create and maintain customer experiences that are not only pleasant but also help foster a sense of trust and loyalty to your brand or company. Consider sending your customer service manager and staff to our 2-day workshop on building customer loyalty. Contact us at +65 6604 6330 or Email us at llearning@arkgroup.com.sg to sign up.
Pillar B: Smart Loyalty Programs
Customer loyalty programmes that are rewarding and simple can be very effective in customer retention as well as drive seasonal promotions to loyalty programme members. Avoid complex point systems and offer straightforward value in the form of cashback or members’ discounts. Make the experience personal by offering special privileges during their birthday month to make members feel special.
These types of loyalty programmes have proven to be very effective in the F&B sector. For example, restaurants offer members’ discounted prices to encourage recurring dining and free giveaways during their birthday month to make them feel cherished.
Pillar C: Referral Programmes
Your loyal customers can be your best sales team. Consumers trust the recommendations of their peers more than ads or even online reviews. Create a “Double-sided Reward” that benefits both the referrer and the referred person when the referred person accepts the offer. The entire referral and reward process or mechanism should be simple and seamless via mobile devices.
With these three pillars in place, you are in a good position to turn customer loyalty into new revenue growth in 2026. However, beyond looking at short-term revenue gain, for sustainable long-term profitability, it is essential to transform your company into an organisation that champions service excellence.
ARK Leadership & Learning Can Equip Your Staff With The Necessary Skill Sets to Build Customer Loyalty.
We have the expertise to help you your managers improve your organisation’s service excellence – our consultants have over 20 years of experience in the field
of human resource and training management to assist our clients in building a robust team for the future. Contact us at +65 6604 6330 or Email us at
llearning@arkgroup.com.sg for a discussion on your business’s needs
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