 Customer
Discrimination? We do it All the Time!
A
Financial Times editor in London asked my opinion
about systems that automatically route customers to
higher or lower levels of service based on the loyalty
and profitability of the customer. This happens every day with gold and platinum customers
enjoying faster telephone service and shorter lines
while everyone else waits and waits.
‘Isn’t this a case of customer discrimination?’
he asked, hoping for a hot topic and response.
My answer was decidedly cool: ‘Of course this
is customer discrimination. And it is totally appropriate.
After all, customers do this with companies all the
time.’
The editor was confused until I explained further.
Customers are constantly choosing which companies to
patronize, how frequently and with what amount of their
available budgets. Companies must do the same: choose
which customers to serve, how quickly and with what
amount of their available budget.
In both directions, the intention is the same. Customers
spend more where they perceive they are getting better
service and value. Companies invest more where they
see they can obtain better value and long-term ‘service’
(loyalty) from their customers.
When the matching is done right, it’s a win-win
situation for both parties. Customers are given an incentive
to consolidate their spending, patronage and loyalty
behavior with those companies that ‘treat them
right’. And companies have an incentive to increase
their service and special recognition for customers
who ‘treat them right’ with their buying
and referral decisions.
What about those who complain and say, ‘All companies
should give all customers the same service level regardless
of how much a customer spends’? To this simplistic
and righteous view I reply, ‘Wake up and enter
the real world. As a customer you insist on your right
to choose who to patronize, right? Companies should
also have the right to choose which customers they want
to attract, retain, cultivate and appreciate.’
Note: This principle
may not apply to government services, charitable organizations
or companies in a monopoly situation. In these instances,
a more uniform level of service may be appropriate.
Key
Learning Point
Partnership
in business is a two-way street. If you are a customer
and want more service from the companies you choose, give
them more of your purchases, budget, frequency, constructive
input and quality referrals. If you are a company and
want more profitable business from the customers you choose,
give those customers more of your time, speed, improved
systems, well-trained people and other special attention.
Action Steps
As a customer, consolidate
your purchasing behavior to reward those companies that
serve you well. Don’t expect great service if you
are not going to be a great customer. For companies, decide
which customers you want coming back again and again.
Focus your improvements on serving them better over time.
Keep your minimum standards up, but save your highest
levels of service for those who give you the highest levels
of their business.
Next Article in Customer Service Partners >>
Don't Fire Your Customers! Try Upgrading Them First
First Article in Customer Service Perception Points >>
You Have Leverage. Use it
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Ron Kaufman is an internationally acclaimed customer service training educator for quality service.
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