In a world driven by algorithms and digital tools, it’s easy to assume that the most successful businesses rely on technology. But what if the real secret to customer loyalty lies elsewhere? Consider the small, traditional vendors in India who retain loyal customers without the aid of mobile apps, AI recommendations, or sophisticated CRM systems. Their approach offers lessons even the biggest tech companies can learn from.
“Sir, I got some fresh spinach for you today. You had asked for it last week. You should take it. Also, take some coconut. Pongal is tomorrow, so you will need it. I also got the first batch of mangoes from my farm. Try them and tell me how they are when we meet next week,” the vegetable vendor told me during his weekly visits to the courtyard in front of my apartment block.
“Mohan sir, here’s your usual coffee – strong and no sugar. Srivatsan sir, light decoction and one spoon of sugar for you. Deshpande uncle, here’s your strong coffee, two sugars,” said the woman at the tiny coffee shop on the street corner where my father met his friends every weekend.
“No problem, madam. Give the remaining amount next time. Take this flower for your hair before you go inside. This is free,” said the woman selling flowers at the temple where my mother went every week.
These stories may seem simple, but they reveal a powerful truth about the value of personal connection. Each vendor demonstrated remarkable customer service—remembering preferences, anticipating needs, and building genuine relationships—all without the assistance of technology.
More Than Just Transactions: The Power of Social Hubs
Yuval Noah Harari, in his book Sapiens, notes that while modern technologies connect people across the globe, digital communication often lacks the depth of face-to-face interactions. Despite being more connected than ever, many people experience social isolation and loneliness.
Streetside vendors and traditional businesses offer an antidote to this. They serve as social hubs where conversations often go beyond simple business transactions. It’s not uncommon to see customers and shopkeepers chatting about family updates, festivals, or local events. These interactions foster a sense of belonging, making customers feel valued and understood.
This social connection also gives vendors a competitive edge, particularly in business clusters where similar businesses offer nearly identical products at comparable prices. Hotelling’s Law of Spatial Competition states that in such markets, differentiation becomes difficult. Yet, these vendors set themselves apart not through discounts or faster delivery, but through familiarity, trust, and relationships.
A Personal Experience: When Relationships Matter Most
Growing up, I experienced firsthand the value of this connection. One evening, when my grandfather became dizzy and fell during his walk, the owner of a nearby grocery store noticed him, quickly called for help, and brought him safely home. My grandfather didn’t have a smartphone or any emergency contact information on him. In that moment, the relationship we had built through regular visits to the store proved invaluable in a deeply meaningful way.
This emotional aspect of human connection is often overlooked in today’s digital landscape. Yet it remains a powerful force that influences customer loyalty and well-being.
Consistency, Reliability, and the Path of Least Effort
In 1949, Harvard linguistics professor George Kingsley Zipf introduced the Principle of Least Effort, which suggests that human behaviour is driven by the desire to minimize effort while maximizing benefit. Psychologist Barry Schwartz expanded on this with his concept of the Paradox of Choice, explaining how too many options can lead to decision fatigue and regret.
Traditional vendors excel at reducing this cognitive burden. By consistently delivering reliable services, they build credibility as a trustworthy brand and simplify decision-making. Customers can rely on past experiences and familiar patterns to make choices without the mental strain that often comes with endless online options.
Additionally, the predictability of their services allows vendors to efficiently anticipate demand and manage supply. This operational stability enables them to run profitable businesses, in stark contrast to many e-commerce platforms that often incur significant losses.
Ola Electric’s dramatic plunge in EV market share—from 52% in April 2024 to just 19% by year-end—tells a cautionary tale. As established players like Tata and Bajaj gained ground with reliable products and robust after-sales support, Ola grappled with malfunctioning vehicles and subpar customer service, leaving consumers with little reason to stay loyal (Source: The Morning Context – Ola Electric shareholders and Bhavish Aggarwal need a miracle)
True Entrepreneurship, No Degrees Required
The core objective of any business is to offer sustainable, profitable services for long-term growth. Traditional business owners exemplify entrepreneurship in its purest form. They may not headline conferences or hold MBAs from prestigious institutions, but they consistently demonstrate resilience, adaptability, and deep customer understanding. Tech giants might have the tools, but these local entrepreneurs have something far more valuable—the human touch. Perhaps it’s time the digital world took a lesson from the streets.
Brand Compass 