How to Put Loyalty at Risk
I
am a loyal customer. My suppliers help me build my business
and enjoy my busy life. I recommend them enthusiastically
to others, buy from them repeatedly and rarely challenge
them on price. But there comes a point…
Every month I ship packages to customers around the
world. My courier company had a ‘bonus program’
to encourage and reward customer loyalty. Two years
ago the program offered a cash discount for volume shipping.
Last year the program was changed to provide shopping
and dining vouchers instead of discounts. A new approach
– fair enough.
At the end of the year I was clearing out files and
realized I had never received a single dining or shopping
voucher. I contacted the courier company and was told,
‘Since you already get a special corporate rate,
you are no longer eligible for the bonus.’
That was odd. The company never mentioned this when
they first changed the terms of the program. In fact,
they had sent me a detailed letter describing the new
program benefits, and promised to send me a monthly
statement.
Then the representative said, ‘But if you like,
your shipping volume is high enough to that we can increase
your corporate discount rate from 26% to 40%.’
That was odd, too. My shipping volume has been fairly
consistent for several years. Now very curious, I asked,
‘When did I qualify for a 40% discount rate?’
The representative studied my account and replied, ‘About
two years ago.’
That was more than odd; that was upsetting. For two
years I had qualified for a lower shipping rate, but
the courier company never told me. Then they disqualified
me from their new bonus program, and never informed
me.
I said to the representative: ‘My loyalty to your
company is at risk. You folks need to do some recovery,
and fast.’
The representative’s response has been gradual
and measured. There has been no surge of beneficial
activity, no act of generosity or special gesture, no
personalized effort to reclaim lost goodwill. I asked
twice in writing for the name and e-mail address of
the General Manager. My requests have been ignored.
If you were me, what would your reaction be? Here’s
mine: I opened a new account with their competition.
Key Learning Point
Your loyal customers
deserve your best available deals and discounts. Don't
ever take them for granted. You may think you can charge
them more for a while, and only change later `if they
find out'. But there's a problem with that approach: when
they do find out, they may not want to be your customer
any more.
Furthermore, if something happens and your loyal customer
feels burned, abused or taken for granted, you'd better
hustle to set things right! Just `fixing the problem'
won't be enough. You need to take fast action and great
care of the person who feels the problem.
Action Steps
Do a rigorous review
of your special pricing, packages and promotions. Make
sure you offer your best customers the best you have to
offer.
Review your service recovery plans, policies and implementation.
Loyal customers are worth retaining. Short-term costs,
effort or embarrassment are a small price to pay for long-term
purchases, profits and support.
Next Article in Customer Service Recovery >>
It Was an Accident (Now What Should You Do?)
First Article in Customer Service Standards >>
Get Yourself Spring-Loaded
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Ron Kaufman is an internationally acclaimed customer service training educator for quality service.
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