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Acting on the Guiding Principles for Great Customer Service - 11/19/24


In last week’s tip, we shared 5 Guiding Principles for Great Customer Service.  This week, let’s address what “taking action” looks like on those key principles.  If last week was about what to do and WHY, this week is about the HOW. Engage with Interest: To engage with interest, proactively Read more

Guiding Principles for Great Customer Service - 11/12/24


It’s hard to know every procedure, every policy, every technique possible to handle every situation correctly.  After all, maybe our procedures are standard, but our customers are not.  Maybe our policies stay pretty consistent, but our customers’ needs and issues, their attitudes and actions can change from customer to Read more

From a Simple Question to an Exceptional Experience - 11/5/24


Phyllis loves her job.  It’s not just because she loves being a customer service representative, not just because she really likes her co-workers, and not just because she enjoys her company.  It’s because she really appreciates her customers, as well. A customer had ordered a register book off the company Read more

Fix One Problem without Creating Another - 10/29/24


If you’ve ever had an issue with your dishwasher, this will sound familiar.  I’ve dealt with so many dishwashers over the years, and they always seem to have some kind of an issue.  Maybe it’s because of the mix of water and technology, but for whatever reason, these never Read more

Delight Your Customers - 10/22/24


Buddy the Bug Man was different.  His company was new, and the only reason why Janet tried him out was that the service she had used for years just wasn’t working.  Whether it was mosquitoes in the yard, ants in the kitchen, or cockroaches flying through on their way Read more

A More Complete Definition of Responsiveness - 10/15/24


I was purchasing something recently that was being custom-developed.  At one point, the company’s employee and I had a good 20 e-mails going back and forth - 10 from each of us.  Unfortunately, I broke my own rule, and I did not pick up the phone after 2 or Read more

Have a Game Plan to Address Their Anxiety - 10/8/24


It seems like we all get deliveries - whether it is UPS, USPS, FedEx, Amazon, the local courier, or all the above.  We order.  They deliver.  Or do they? It’s times like these, when we’re expecting that package, that item that we’re looking forward to or need urgently or are Read more

How Persistence Saved the Day - 10/1/24


Sherrie saw the customer walk into her store holding his cell phone, and Sherrie immediately knew that was William.  She had spoken to William on the phone about an hour ago, he said he would be at Sherrie’s cell phone store in less than an hour, and there he Read more

Notice the Little Changes - 9/24/24


“My, how times have changed.” Yes, times have changed.  As a matter of fact, one of the biggest reasons why an organization’s customer service deteriorates is that times have changed…customers have changed…and the company has not… If we think about customer service delivery today v. decades ago, changes in technology alone Read more

Don’t Hurry…Be Quick - 9/17/24


No, this is not a take off on the Bobby McFerrin song:  Don’t Worry Be Happy. It’s actually a take off on the John Wooden quote:  Be quick, but don’t hurry. When I read Wooden’s book with this title, I liked the concept, and not just because John Wooden was a Read more

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Be Less Sexy to Build More Customer Loyalty

Posted on October 10, 2012 in Business Advice, Carolinas Please leave a comment

Loyalty – you get it from a dog by loving it, rescuing it from a shelter, or giving it a treat. Loyalty – you get it from employees by valuing them, being loyal to them, and building trust by doing what you said you’d do. Loyalty – you get it from a consumer by…what?

In the article Retail analysts: Do the math on loyalty cash, the discussion is about loyalty cards, or discounts on store credit cards, or credits that can be applied to the store. According to a Charlotte-based analyst, the reason to offer these types of rewards is evident – “The obvious benefit here for the retailer is the additional trip.”

So to answer the question above, loyalty – you get it from a consumer by…giving them a discount? Hmmm.

Not real creative stuff here; but the analysis that companies have to make before they embark on these “cash for the consumer” loyalty programs must be done by looking incrementally. What is the net increase in profitability through these programs? To calculate, you have to look at the revenue from the sale less the item’s cost (standard profit stuff) less the cost of the program. Then compare that to what the company would have generated in profit if it had done…I don’t know…nothing! Or maybe if it had improved between-sale communications with the client, or if it had improved customer service, or if it had improved service recovery processes, or if it had been more particular about what customer service-oriented characteristics it looks for in employees, or if it were better at motivating employees.

In other words, these types of loyalty programs should be a last resort. It’s like a price drop for a salesman to get a sale; it’s weak; it’s like having a sale but not wanting to call it a sale.

It might be harder and less sexy to improve performance, hiring practices, client relationship development, and customer service than to have a new cash-based loyalty program, but in the end customers evaluate businesses based on the Employee Attitudes, Service Processes, and Products/Services, and these loyalty programs often put too much focus on a small piece of the loyalty puzzle.

Sometimes it’s good to be less sexy to be more successful in building customer loyalty.

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/


Groupon Now Rewarding to Retain

Posted on October 5, 2011 in Business Advice, World of Customer Service 1 Comment

If you’ve used Groupon as a consumer, you understand that you get deep discounts (50%+) from local businesses. If you’re a business, you realize that that can drive lots of consumers to your business, but you’re only probably getting half of what the consumer pays Groupon; so you may only be receiving 25% of your normal payment.

So the only way that Groupon really works for a business is for that company to receive repeat business (at a higher per purchase level). So for Groupon to succeed, it’s all about their business clients retaining and growing business with those Groupon customers.

The theory for the business is they take a short-term loss on a consumer purchase to establish and grow a relationship with that consumer. The reality is often different, however. The business could be cannibalizing their own business by selling at discounted rates to existing customers. They could be involved with Groupon only to attract customers who buy purely on price (and a deeply discounted price at that!). So if the discount goes away, so will that customer.

To help its clients with retention, Groupon has created Groupon Rewards. They promote a “Hassle-Free Setup” followed by “Automatic Rewards” followed by “Customer Analytics.”

No, Groupon does not say that it is cutting its fees. It’s apparently proposing to manage a loyalty program for your business, where consumers get discounts once they’ve spent a certain amount. Not exactly leading edge stuff, but it does promote consumers buying before they get the discount.

So let’s focus on the broader lesson here. If you want to grow your business in a smart way, getting customers in your door (such as what Groupon has historically done) is only the start; long-term success is driven by retention and growth.

Interested in improving your company’s customer retention? Check out our Fast-Track Retention & Growth Assessment: http://www.cssamerica.com/cssfastrga.htm

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/