Customer Experience Insights: 5 Lessons from Costco’s Success
/Are you ready for Christmas or Hanukkah (or both!)? Have you finished your shopping, finalized your travel plans, or decided on your holiday meals? If you're like me, this season turns you into a customer more often than usual.
From gift-buying to planning gatherings, I've been spending extra time shopping, dining out, and interacting with businesses. It’s made me pay closer attention to the customer experience everywhere I go. It was the topic of last week’s AI Roundtable, too, where we explored how AI technology can enhance customer interactions. And, it’s something Costco’s leaders shed light on during their recent earnings call.
With all that, the customer experience has been top-of-mind for me.
As you gear up for 2025, here are some takeaways from Costco’s strategy that might inspire how you think about your own customers:
1. Value is Non-Negotiable
Costco understands that in times of economic uncertainty, customers are hyper-focused on value. They responded by lowering prices on some key items, even in an inflationary market. Leaders can take note: delivering value—whether through pricing, added benefits, or standout service—keeps customers loyal even in challenging times.
2. Adapt to Customer Behavior
As customers shifted their spending to essentials and away from discretionary items, Costco adjusted its inventory to align with these changes. They also leaned into trends like more home dining, promoting products that support this lifestyle. The lesson? Watch for shifts in your customers’ priorities and adapt quickly.
3. Listen and Act on Feedback
Costco takes customer feedback seriously, using it to refine products, promotions, and services. For your business, inviting and acting on customer input not only helps you improve but also shows customers you value their opinions.
4. Build Long-Term Loyalty
Costco’s membership model ensures a steady stream of loyal customers who see ongoing value. Whether through loyalty programs or consistent service excellence, think about how you can foster long-term relationships with your customers in 2025.
5. Elevate the In-Person Experience
While e-commerce remains a priority, Costco noted that in-store traffic is thriving, too. They’ve focused on staffing and layouts to make shopping as efficient and enjoyable as possible. Leaders can apply this principle to physical or virtual customer interactions: make the experience seamless, pleasant, and worth their time.
As we head into 2025, the way you think about and serve your customers will have a direct impact on your success.
Costco’s example is a great reminder that understanding, adapting to, and delighting your customers isn’t just good for them—it’s essential for your business growth too.
As we think about creating exceptional customer experiences in 2025, I’m excited to share the new Customer Journey Guide. This guide is designed to help you map every step of your customer’s experience—from their first interaction to long-term loyalty—so you can deliver value, adapt to their changing needs, and build meaningful relationships.