A friend of mine stopped by a Mega Holiday convenience store today to gas up her car. When she went into the store to pay, she spotted a cartload of fresh buns being put on display. Since these were her favorite buns, she reached for a package. “No, don’t take one of these, yet,” the guy putting out the buns exclaimed. “I haven’t checked them in. Come back later.”
Pulling back her hand, she turned toward the checkout, waited in line, paid for the gas, and walked toward the door. As she exited, she noticed the guy standing near the door with a surprised look on his face, likely because she did not have the buns in hand. She almost stopped and informed him that his statement had lost a sale, but then she thought, “Why bother?”
When she related this incident to me, I had three thoughts. First of all, why did the guy even take the buns to the display area before checking them in? That was just not smart. As a matter of procedure, merchandise should always be checked in away from customers. If that is not possible and a customer attempts to pick up an item, then the response on the part of the person stocking ought to be cheerfully to hand one to the customer. Never, ever should a person stocking tell a customer to wait to purchase. The result of that directive will be to lose a sale, just as what happened in this case. Very rarely will customers return, especially in a convenience store where customers are in a rush.
My second thought was “How many sales has this store lost due to customers being told not to buy at this time but to come back later?” No one knows, and there is no way to tell. We know the store lost one. I think that is too many. I also suspect that there are many more. Checking in merchandise on the floor is a pattern of behavior. With that pattern, the possibility of encountering customers who want the merchandise is great. With that happening in a convenience store where customers are hurried leads me to believe that this has happened many times.
Finally, I wondered how many customers had exited the store dissatisfied with their experience as my friend did? Mega works hard to get customers. I’m certain that management does not want any customers upset because they couldn’t make a purchase. What a foolish reason to upset a customer.
How can this be corrected?
Management would be wise to set the policy that I suggested, which is not to have items checked in on the floor. If that cannot be avoided and a customer wants an item, instruct the person checking in the item always to hand one gladly to the customer and make note of it on the paperwork. That puts the customer first. That makes a sale. That keeps a customer happy.
How do your employees handle a situation such as this?
Showing posts with label customer retention. Show all posts
Showing posts with label customer retention. Show all posts
Friday, July 2, 2010
Monday, June 14, 2010
Seven Minutes
As I walked up to my customer’s desk last Friday, the first words out of my mouth were an apology. “I hope that you don’t mind my causal dress. After we talk, I’m headed to XYZ nursery to buy my tomato plants for this season.”
Gesturing away the apology, she replied, “Your dress is no problem.” She hesitated and then added, “I don’t go to that nursery anymore. We had a problem out there last year.”
“Really? What happened?”
“My ten-year-old son really loves plants, and he wanted to go out there last year to get some to put out in the yard. As soon as I could after work, we drove out there. We had barely walked in the door when an employee approached us and said, ‘You have seven minutes until we close.’ I thought, ‘That’s a poor welcome.’ But that wasn’t all. A few steps later, another employee walked up to us and said, ‘You have five minutes until we close.’ No offer to help. No what are you looking for? Just a warning. I was quite surprised and very irritated by this behavior. However, we quickly grabbed a couple of plants that my son wanted and went to check out. The person who checked us out had a name tag on that said manager, so I related how two employees had approached us and given us warnings of the nursery’s closing time. I expected him to apologize, but what he said shocked me. ‘That’s what they are supposed to do,’ he replied. ‘Tell you that the store is about to close.’ As we walked out the door, I explained to my son that this is not the way to treat customers. I am thrilled to say that my son understood. He gets it; he really does.”
I, too, was shocked. “Wow! That’s not smart. Well, I don’t do a great deal of business with them. I buy my tomato plants there every year because I like their selection and the plants seem healthy, but I am amazed that any small business would treat their customers that way.” I paused. “Although, thinking about it, they don’t market to get more of my business so maybe this is not all that surprising.”
This is a great example of how bad word of mouth gets started. I noticed that my reaction to her story was to feel apologetic about doing business with the nursery. In my reply to her, I emphasized that I only bought my tomato plants there, and then I began to think less well of the nursery. Her intent in telling me the story was not to dissuade me from going there, but simply to relate to me, who am always interested in customer service examples, what had happened to her and her son. In fact, she ended our conversation on the subject by saying that “We’re not going back there for a year or two.”
While I’m certain that she does not tell this story to everyone she knows, the fact that the story exists to tell gives an opportunity for bad word of mouth which the management could have avoided. We all have encountered situations when we could not satisfy the customer which resulted in bad word of mouth. However, there are situations such as this which we can control.
You see, how employees act is a result of management. Management sets the tone and gives the example of how customers are treated. In this instance, the employees’ actions came directly from the manager, as he himself stated. I know why he instructed employees to get customers out of the nursery so that they could close on time, and so do you. He was focused on sticking to his scheduled labor dollars by adhering to hours and not paying extra labor or overtime. In other words, keeping expenses in line was a higher priority than generating revenue.
If he wanted to generate revenue, he would welcome those arriving toward closing. Rather than instructing them in how many minutes they had to shop, he could have an employee offer to assist them in finding the plants that they had in mind. With this assistance, the employee could maximize how much is sold and move the customer along toward the completion of the sale. This could all be done in a very helpful, unhurried manner which would accomplish getting the nursery closed as soon as possible but still getting as much business from the customer as possible.
Think about it. She and her son probably would have purchased several more plants had they had assistance, don’t you think? I do. As it was, I’m certain that they felt pressured to find something, pick it up, and get out of there. When they walked out the door with their purchase, they felt so upset about their treatment that they had a bad feeling and were not interested in returning soon, which makes this also an example of bad customer service.
Leaving your customer with a bad feeling which can spawn bad word of mouth is bad for your business. In addition to being bad customer service, it also offers no opportunity for customer development. Through his directives on store closing, this manager put his business in a negative position with this customer. Although she says that they may return in a year or two, I wonder if that will happen. In that two years, she and her son will likely find another business from which to purchase plants, and that business likely will be much more customer-focused.
Take a look at your employees. How have you instructed them to handle customers at closing time?
Gesturing away the apology, she replied, “Your dress is no problem.” She hesitated and then added, “I don’t go to that nursery anymore. We had a problem out there last year.”
“Really? What happened?”
“My ten-year-old son really loves plants, and he wanted to go out there last year to get some to put out in the yard. As soon as I could after work, we drove out there. We had barely walked in the door when an employee approached us and said, ‘You have seven minutes until we close.’ I thought, ‘That’s a poor welcome.’ But that wasn’t all. A few steps later, another employee walked up to us and said, ‘You have five minutes until we close.’ No offer to help. No what are you looking for? Just a warning. I was quite surprised and very irritated by this behavior. However, we quickly grabbed a couple of plants that my son wanted and went to check out. The person who checked us out had a name tag on that said manager, so I related how two employees had approached us and given us warnings of the nursery’s closing time. I expected him to apologize, but what he said shocked me. ‘That’s what they are supposed to do,’ he replied. ‘Tell you that the store is about to close.’ As we walked out the door, I explained to my son that this is not the way to treat customers. I am thrilled to say that my son understood. He gets it; he really does.”
I, too, was shocked. “Wow! That’s not smart. Well, I don’t do a great deal of business with them. I buy my tomato plants there every year because I like their selection and the plants seem healthy, but I am amazed that any small business would treat their customers that way.” I paused. “Although, thinking about it, they don’t market to get more of my business so maybe this is not all that surprising.”
This is a great example of how bad word of mouth gets started. I noticed that my reaction to her story was to feel apologetic about doing business with the nursery. In my reply to her, I emphasized that I only bought my tomato plants there, and then I began to think less well of the nursery. Her intent in telling me the story was not to dissuade me from going there, but simply to relate to me, who am always interested in customer service examples, what had happened to her and her son. In fact, she ended our conversation on the subject by saying that “We’re not going back there for a year or two.”
While I’m certain that she does not tell this story to everyone she knows, the fact that the story exists to tell gives an opportunity for bad word of mouth which the management could have avoided. We all have encountered situations when we could not satisfy the customer which resulted in bad word of mouth. However, there are situations such as this which we can control.
You see, how employees act is a result of management. Management sets the tone and gives the example of how customers are treated. In this instance, the employees’ actions came directly from the manager, as he himself stated. I know why he instructed employees to get customers out of the nursery so that they could close on time, and so do you. He was focused on sticking to his scheduled labor dollars by adhering to hours and not paying extra labor or overtime. In other words, keeping expenses in line was a higher priority than generating revenue.
If he wanted to generate revenue, he would welcome those arriving toward closing. Rather than instructing them in how many minutes they had to shop, he could have an employee offer to assist them in finding the plants that they had in mind. With this assistance, the employee could maximize how much is sold and move the customer along toward the completion of the sale. This could all be done in a very helpful, unhurried manner which would accomplish getting the nursery closed as soon as possible but still getting as much business from the customer as possible.
Think about it. She and her son probably would have purchased several more plants had they had assistance, don’t you think? I do. As it was, I’m certain that they felt pressured to find something, pick it up, and get out of there. When they walked out the door with their purchase, they felt so upset about their treatment that they had a bad feeling and were not interested in returning soon, which makes this also an example of bad customer service.
Leaving your customer with a bad feeling which can spawn bad word of mouth is bad for your business. In addition to being bad customer service, it also offers no opportunity for customer development. Through his directives on store closing, this manager put his business in a negative position with this customer. Although she says that they may return in a year or two, I wonder if that will happen. In that two years, she and her son will likely find another business from which to purchase plants, and that business likely will be much more customer-focused.
Take a look at your employees. How have you instructed them to handle customers at closing time?
Friday, May 14, 2010
An Invitation from Ernie
As I pulled the last cookie from the Sandies package, I noticed a small plastic sleeve underneath. “Hmm.. What’s this?” I halfway said out loud.
Ripping open the sleeve, I found a folded tan piece of paper inside addressed “To All Cookie Lovers” with a return address of Ernie Keebler, The Hollow Tree, and a “Treemail” stamp. Intrigued, I unfolded the tri-folded paper to read this message:
Greetings,
Thank you for choosing our cookies. We hope you enjoy every bite!
We’ve recently created a new way to stay in touch with our human friends called “Treemail” messages. We’d love to occasionally share news, recipes, and even ways to save. All you have to do is sign up at Keebler.com.
We make our cookies with care, passion, and Elfin ingenuity. I hope they make your day just a little bit sweeter.
Warmest wishes,
Ernie Keebler
I was impressed. First of all, as a marketer, I appreciated the writing of the message which reflected the elfin personality. It was fun! After all, how many companies can offer “Treemail” messages? Whether you are a kid or an adult, that type of message makes you smile.
Further, the message was written as a personal thank you. Even though this was mass-produced and included in every cookie package, I felt that Ernie was speaking directly to me and truly cared that I enjoyed every bite. Notice that he also took the opportunity to let me know that they made their cookies with “care, passion, and Elfin ingenuity,” which reinforced the persona again.
What impressed me the most, however, was the offer. Ernie wanted me to receive “Treemail” messages or e-mails. In return for giving my e-mail, he told me exactly what I would get and why I should do it. I will get information, news, and recipes. In addition, I could save money. That is a good reason; it’s an excellent answer to “What’s in it for me?”
Not answering that question is the biggest mistake businesses make when asking for e-mails. They don’t give customers a reason to sign up. They also don’t tell what customers will receive by giving an e-mail or becoming a fan on Facebook. The lack of “What’s in it for me?” is a big reason why customers don’t offer an e-mail.
Take a look at your requests for customers’ e-mails. Are you letting them know “What’s in it for me?”
Ripping open the sleeve, I found a folded tan piece of paper inside addressed “To All Cookie Lovers” with a return address of Ernie Keebler, The Hollow Tree, and a “Treemail” stamp. Intrigued, I unfolded the tri-folded paper to read this message:
Greetings,
Thank you for choosing our cookies. We hope you enjoy every bite!
We’ve recently created a new way to stay in touch with our human friends called “Treemail” messages. We’d love to occasionally share news, recipes, and even ways to save. All you have to do is sign up at Keebler.com.
We make our cookies with care, passion, and Elfin ingenuity. I hope they make your day just a little bit sweeter.
Warmest wishes,
Ernie Keebler
I was impressed. First of all, as a marketer, I appreciated the writing of the message which reflected the elfin personality. It was fun! After all, how many companies can offer “Treemail” messages? Whether you are a kid or an adult, that type of message makes you smile.
Further, the message was written as a personal thank you. Even though this was mass-produced and included in every cookie package, I felt that Ernie was speaking directly to me and truly cared that I enjoyed every bite. Notice that he also took the opportunity to let me know that they made their cookies with “care, passion, and Elfin ingenuity,” which reinforced the persona again.
What impressed me the most, however, was the offer. Ernie wanted me to receive “Treemail” messages or e-mails. In return for giving my e-mail, he told me exactly what I would get and why I should do it. I will get information, news, and recipes. In addition, I could save money. That is a good reason; it’s an excellent answer to “What’s in it for me?”
Not answering that question is the biggest mistake businesses make when asking for e-mails. They don’t give customers a reason to sign up. They also don’t tell what customers will receive by giving an e-mail or becoming a fan on Facebook. The lack of “What’s in it for me?” is a big reason why customers don’t offer an e-mail.
Take a look at your requests for customers’ e-mails. Are you letting them know “What’s in it for me?”
Thursday, May 6, 2010
A Foolish Customer Program
When I was a kid, I loved Mallo Cups. My siblings and I consumed more of them than I care to admit, and we religiously collected the “Mallo Cup Play Money” on the cards inside each one. Most had five or ten points. Sometimes we stumbled across a one. Rarely, we discovered a 50 or 100, which always was very exciting!
My roommate recently began buying Mallo Cups and enjoying them again as she had when she was young. Yesterday, she handed me a “Play Money Card” from the one that she was eating and asked me what to do with it. “Can you recycle this?”
I reverted back to being a collector of Mallo Cup Money and recoiled at the thought of tossing away any of it. As I looked at the card, I realized that it appeared identical to those I collected many years ago. I peered at it closely, reading the fine print. Collect 500 points, send them in, and receive $1 rebate check. “One dollar,” I thought, “for 500? Are they kidding? Who would save that many, put them together into an envelope, and apply a $.44 stamp to receive one dollar?”
Are today’s Mallo Cup eaters that foolish?
I can’t answer that question. However, I can tell you that Boyer’s marketing is foolish. The company has trashed a program which encouraged repeat purchases and rewarded profitable customers. Think about it. If the average Mallo Cup Money card from a purchase is ten points, you must purchase fifty Mallo Cups to reach 500 points. If the average is five points, you must buy one hundred to reach 500. If a customer bought fifty to one hundred of your product, wouldn’t you reward them with more than a buck?
Oh, that’s right; there‘s more. You also can save additional points for valuable prizes. Send in for your prize catalog to the above address.
Send in for a catalog? Why not go online? Today, why not have a Web site or Facebook page that involves Mallo Cup customers with Boyer? In what century does Boyer dwell?
Perhaps the last century. These cards looked just the same as those that I collected as a kid with one exception. Those that I collected offered free product sent to your door when 500 points were reached. That program truly rewarded its customers, and that kept us buying Mallo Cups.
Take a lesson from Boyer. If you offer your customers a rewards program, make it worth their time to participate. Tie their reward to enjoying more of what your business offers.
My roommate recently began buying Mallo Cups and enjoying them again as she had when she was young. Yesterday, she handed me a “Play Money Card” from the one that she was eating and asked me what to do with it. “Can you recycle this?”
I reverted back to being a collector of Mallo Cup Money and recoiled at the thought of tossing away any of it. As I looked at the card, I realized that it appeared identical to those I collected many years ago. I peered at it closely, reading the fine print. Collect 500 points, send them in, and receive $1 rebate check. “One dollar,” I thought, “for 500? Are they kidding? Who would save that many, put them together into an envelope, and apply a $.44 stamp to receive one dollar?”
Are today’s Mallo Cup eaters that foolish?
I can’t answer that question. However, I can tell you that Boyer’s marketing is foolish. The company has trashed a program which encouraged repeat purchases and rewarded profitable customers. Think about it. If the average Mallo Cup Money card from a purchase is ten points, you must purchase fifty Mallo Cups to reach 500 points. If the average is five points, you must buy one hundred to reach 500. If a customer bought fifty to one hundred of your product, wouldn’t you reward them with more than a buck?
Oh, that’s right; there‘s more. You also can save additional points for valuable prizes. Send in for your prize catalog to the above address.
Send in for a catalog? Why not go online? Today, why not have a Web site or Facebook page that involves Mallo Cup customers with Boyer? In what century does Boyer dwell?
Perhaps the last century. These cards looked just the same as those that I collected as a kid with one exception. Those that I collected offered free product sent to your door when 500 points were reached. That program truly rewarded its customers, and that kept us buying Mallo Cups.
Take a lesson from Boyer. If you offer your customers a rewards program, make it worth their time to participate. Tie their reward to enjoying more of what your business offers.
Monday, April 19, 2010
Overnight Success?
Last night I watched Carrie Underwood win entertainer of the year at the Academy of Country Music Awards for the second consecutive year. As she excitedly accepted the award and gave thanks to all, I thought about how few of the American Idol graduates have truly “made it.” She is the top one. For all the hype and attention Idol receives, its winners, mostly, are not even one-hit wonders.
Why?
Many cynics may answer that fame is fleeting or that the attention span of the average American is short. While both may be true, I don’t think that either apply to this situation. The answer lies with all the other winners last night who were not contestants on Idol. Although they may suddenly appear on the national scene, they are not overnight successes. No, they have been performing for years, building a fan base. Successful performers do more than thank their fans. They interact with them. They talk to them. They sign autographs. They wade into the audience during the performance and do meet and greets after. They tweet their fans and have a MySpace or Facebook page.
As a back stage coordinator for Country Fest and Rock Fest for a couple of years, I witnessed this process first hand. An artist who was just getting his start at the time, Jonny Lang, sticks out in my mind. After his performance, the autograph line was so long that finding its end was difficult. That didn’t bother Jonny. He stood in the booth, talked to the fans, had his picture taken hundreds, if not thousands of times, and signed until the last fan was satisfied. In fact, the next act almost finished before he was done. From my perspective, he and his management were very easy to coordinate.
I can’t say that for everyone. There were some big names who were very difficult. You’d be surprised at the acts which made me cut the line and disappoint fans. I did not like doing that. Turning away a customer goes against my grain.
For those of you who are thinking, “There is more to success than pleasing the fans such as good tunes and new stuff,” I agree. However, giving fans attention increases their connection with the artist and that builds loyalty. Loyal fans play well-loved tunes longer and more patiently wait for new ones. Shania Twain is an excellent example of an artist who has loyal fans. Although she has not had a new album in years, her fan base is eagerly awaiting one. Her appearance on Idol this year was highly watched, prompting the producers to invite her back for next season. Just like Shania, the other winners last night have spent years building that fan base at every performance they give.
As business people, we would be wise to take that same attitude with each customer. View each customer not as a single transaction, but as a life-time customer. Even if what you sell is only purchased once in a lifetime, customers talk to other potential customers. Word of mouth is powerful marketing. Encourage customers to say positive comments about your business. Give each customer the attention that you give your biggest customer. Treat each customer as critical to the health of your business.
In truth, they are.
Why?
Many cynics may answer that fame is fleeting or that the attention span of the average American is short. While both may be true, I don’t think that either apply to this situation. The answer lies with all the other winners last night who were not contestants on Idol. Although they may suddenly appear on the national scene, they are not overnight successes. No, they have been performing for years, building a fan base. Successful performers do more than thank their fans. They interact with them. They talk to them. They sign autographs. They wade into the audience during the performance and do meet and greets after. They tweet their fans and have a MySpace or Facebook page.
As a back stage coordinator for Country Fest and Rock Fest for a couple of years, I witnessed this process first hand. An artist who was just getting his start at the time, Jonny Lang, sticks out in my mind. After his performance, the autograph line was so long that finding its end was difficult. That didn’t bother Jonny. He stood in the booth, talked to the fans, had his picture taken hundreds, if not thousands of times, and signed until the last fan was satisfied. In fact, the next act almost finished before he was done. From my perspective, he and his management were very easy to coordinate.
I can’t say that for everyone. There were some big names who were very difficult. You’d be surprised at the acts which made me cut the line and disappoint fans. I did not like doing that. Turning away a customer goes against my grain.
For those of you who are thinking, “There is more to success than pleasing the fans such as good tunes and new stuff,” I agree. However, giving fans attention increases their connection with the artist and that builds loyalty. Loyal fans play well-loved tunes longer and more patiently wait for new ones. Shania Twain is an excellent example of an artist who has loyal fans. Although she has not had a new album in years, her fan base is eagerly awaiting one. Her appearance on Idol this year was highly watched, prompting the producers to invite her back for next season. Just like Shania, the other winners last night have spent years building that fan base at every performance they give.
As business people, we would be wise to take that same attitude with each customer. View each customer not as a single transaction, but as a life-time customer. Even if what you sell is only purchased once in a lifetime, customers talk to other potential customers. Word of mouth is powerful marketing. Encourage customers to say positive comments about your business. Give each customer the attention that you give your biggest customer. Treat each customer as critical to the health of your business.
In truth, they are.
Monday, April 12, 2010
Tell Me About It
As I was finalizing my purchase at Office Max last week, the assistant manager came over, extended his hand, and introduced himself. "Hi, I'm Brian, the assistant manager. I see that you are a Max Perks member."
I mumbled an affirmative.
"We are making a point to talk to all Max Perks members," he continued. "Do you have any questions?"
My standard response of "No" slid out of my mouth, and I turned toward the door. "Wait a minute," I thought. "What do I mean that I don't have any questions? Yes, I do. A couple of days ago I was wondering how Max Perks worked."
Turning back, I caught Brian's attention. "On second thought, I do have a question. Just how do Max Perks work?"
"For every dollar that you spend, you accumulate points. Those points are dollars that you may apply toward your purchase. The points are only available for ninety days, and then they disappear, so you need to use them fast."
"I never understood that."
"We discovered that many Max Perks members are in the same boat. That's why as managers we are making a point to meet every Max Perk member and answer questions. The other day we had a member who had ninety dollars in points. He was glad to understand the program and use the points because they were about to expire."
"Wow! I bet he was happy! Talking to customers is a good idea. As a marketer, I applaud that you are taking this step to teach your customers about your program."
Like most customers, I had been offered to sign up for the Max Perks program one day when I was checking out at Office Max. Every checkout person had been taught to ask, "Want to sign up for our Max Perks program? It'll save you money."
In a situation such as that, I find the easy answer to be "Sure."
Therefore, I was signed up, told to go online, and instructed to register there. Of course, as soon as I left the store I forgot all about doing that or, for that matter, the Max Perks program until the next time that I checked out at Office Max. "Are you a Max Perks member?" the checkout person inquired.
"Oh, yeah," I stumbled, "but I don't have my card with me."
"That's okay," replied the checkout person, "just give me your phone number, and I will apply this purchase to your Max Perks account."
Every purchase since, my conversation with the checkout person has been identical.
This is a classic case of creating a customer rewards program, working out every detail, printing the materials, setting up the online access, promoting it through the checkouts, and forgetting to tell the customer about it. It's easy to get a customer to sign up for a program which supposedly saves the customer money. However, it's difficult to get a customer to take time to learn more about a program which seems like it has more in it for the business than for the customer. People are just too busy to take the time. In addition, many of us, myself included, are somewhat inundated with customer programs, all of which have a purpose of increased customer frequency and most of which seem to want more business without first asking the customer what would encourage him or her to do more business with that company. Not only are we not told about the program, we are not asked about it in advance, either.
If you have a customer rewards program or are thinking of implementing one, first ask your customers what they want in a rewards program. Compile your findings and use them when creating and launching the program. Then tell your customers about the program so that they understand it. When you do, your program will be much more successful. Best of all, your customer will understand what’s in it for him or her and actively use the program.
That will accomplish your goal of increased customer frequency.
I mumbled an affirmative.
"We are making a point to talk to all Max Perks members," he continued. "Do you have any questions?"
My standard response of "No" slid out of my mouth, and I turned toward the door. "Wait a minute," I thought. "What do I mean that I don't have any questions? Yes, I do. A couple of days ago I was wondering how Max Perks worked."
Turning back, I caught Brian's attention. "On second thought, I do have a question. Just how do Max Perks work?"
"For every dollar that you spend, you accumulate points. Those points are dollars that you may apply toward your purchase. The points are only available for ninety days, and then they disappear, so you need to use them fast."
"I never understood that."
"We discovered that many Max Perks members are in the same boat. That's why as managers we are making a point to meet every Max Perk member and answer questions. The other day we had a member who had ninety dollars in points. He was glad to understand the program and use the points because they were about to expire."
"Wow! I bet he was happy! Talking to customers is a good idea. As a marketer, I applaud that you are taking this step to teach your customers about your program."
Like most customers, I had been offered to sign up for the Max Perks program one day when I was checking out at Office Max. Every checkout person had been taught to ask, "Want to sign up for our Max Perks program? It'll save you money."
In a situation such as that, I find the easy answer to be "Sure."
Therefore, I was signed up, told to go online, and instructed to register there. Of course, as soon as I left the store I forgot all about doing that or, for that matter, the Max Perks program until the next time that I checked out at Office Max. "Are you a Max Perks member?" the checkout person inquired.
"Oh, yeah," I stumbled, "but I don't have my card with me."
"That's okay," replied the checkout person, "just give me your phone number, and I will apply this purchase to your Max Perks account."
Every purchase since, my conversation with the checkout person has been identical.
This is a classic case of creating a customer rewards program, working out every detail, printing the materials, setting up the online access, promoting it through the checkouts, and forgetting to tell the customer about it. It's easy to get a customer to sign up for a program which supposedly saves the customer money. However, it's difficult to get a customer to take time to learn more about a program which seems like it has more in it for the business than for the customer. People are just too busy to take the time. In addition, many of us, myself included, are somewhat inundated with customer programs, all of which have a purpose of increased customer frequency and most of which seem to want more business without first asking the customer what would encourage him or her to do more business with that company. Not only are we not told about the program, we are not asked about it in advance, either.
If you have a customer rewards program or are thinking of implementing one, first ask your customers what they want in a rewards program. Compile your findings and use them when creating and launching the program. Then tell your customers about the program so that they understand it. When you do, your program will be much more successful. Best of all, your customer will understand what’s in it for him or her and actively use the program.
That will accomplish your goal of increased customer frequency.
Friday, October 2, 2009
A New Twist
“I am furious that I get treated differently as a regular customer than a new customer does,” complained my client. “I thought that my business meant more to that firm. I guess that I am just another number to them.”
Looking me in the eye, he spit out, “A new customer gets a lower price than me, and I have been doing business with that firm for several years! I can’t believe it!”
His outburst reminded me of my days selling radio and television. As salespeople, we were given incentives to find new customers. In fact, doing so was an important part of our compensation and evaluation. Our incentives to the new customers were a variety of price drops, including production freebies.
Occasionally, a regular customer would find out about these incentives and have a similar reaction to that of my client. “Why can’t I get that package? I’ve done a great deal of business with your station.”
I never could come up with a good explanation, probably because I didn’t think that one existed. “That’s how station management set it up,” I usually mumbled, not liking to blame management but feeling that the truth was my only option.
We were never given incentives to retain customers. Station management expected that once a customer had spent money on a schedule the customer would repeat spending at that level year after year. The customer’s spending became a baseline from which to build more business with the customer. There was never a consideration that the customer would not spend or would spend less. Management seemed to think that the customer’s past level of spending was “due” the station. Any reduction was met with management’s distain and censure for the salesperson.
Many times regular customers did not get the attention that a new customer received because the new customer took more time. Since a salesperson only had so many hours to get a job done, we salespeople often compressed taking care of regular customers because our knowledge of them hastened the task.
In other words, familiarity bred neglect.
Our familiarity with a regular customer took that customer and his or her business for granted. Intentionally or not, we were forced to juggle our time, and the result hurt our regular customers. Most regular customers were not consciously aware of this neglect. Even those who discovered the special packages to new customers never understood the extent of our neglect. They did not know what they missed. They did not know what we could have offered them, what we could have done for them, and what more business they could have done with our station.
Neither did management.
Two of the most profitable ways to grow your business are to increase the frequency and amount of business that regular customers transact with your company. Getting new customers is the least profitable way to grow your business. Unfortunately, as my client at the beginning of this piece explained, the least profitable way to grow your business is the preferred method of most businesses.
I recommend a new twist on familiarity. Make familiarity breed profitability. Rather than taking regular customers for granted, see them as the way to grow your business profitably.
Do it today.
Looking me in the eye, he spit out, “A new customer gets a lower price than me, and I have been doing business with that firm for several years! I can’t believe it!”
His outburst reminded me of my days selling radio and television. As salespeople, we were given incentives to find new customers. In fact, doing so was an important part of our compensation and evaluation. Our incentives to the new customers were a variety of price drops, including production freebies.
Occasionally, a regular customer would find out about these incentives and have a similar reaction to that of my client. “Why can’t I get that package? I’ve done a great deal of business with your station.”
I never could come up with a good explanation, probably because I didn’t think that one existed. “That’s how station management set it up,” I usually mumbled, not liking to blame management but feeling that the truth was my only option.
We were never given incentives to retain customers. Station management expected that once a customer had spent money on a schedule the customer would repeat spending at that level year after year. The customer’s spending became a baseline from which to build more business with the customer. There was never a consideration that the customer would not spend or would spend less. Management seemed to think that the customer’s past level of spending was “due” the station. Any reduction was met with management’s distain and censure for the salesperson.
Many times regular customers did not get the attention that a new customer received because the new customer took more time. Since a salesperson only had so many hours to get a job done, we salespeople often compressed taking care of regular customers because our knowledge of them hastened the task.
In other words, familiarity bred neglect.
Our familiarity with a regular customer took that customer and his or her business for granted. Intentionally or not, we were forced to juggle our time, and the result hurt our regular customers. Most regular customers were not consciously aware of this neglect. Even those who discovered the special packages to new customers never understood the extent of our neglect. They did not know what they missed. They did not know what we could have offered them, what we could have done for them, and what more business they could have done with our station.
Neither did management.
Two of the most profitable ways to grow your business are to increase the frequency and amount of business that regular customers transact with your company. Getting new customers is the least profitable way to grow your business. Unfortunately, as my client at the beginning of this piece explained, the least profitable way to grow your business is the preferred method of most businesses.
I recommend a new twist on familiarity. Make familiarity breed profitability. Rather than taking regular customers for granted, see them as the way to grow your business profitably.
Do it today.
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