loyalty program | Customer Service Solutions, Inc.

The Secret Sauce for Great Customer Service - 3/26/24


I was working with the League Office for a major American sport several years back, and one of the executives asked me to describe our Secret Sauce that helped our clients improve the fan experience and customer retention.  I gave him a sense of what makes us unique and Read more

The Miracle of an Apology - 3/19/24


Unfortunate but true story… The manager basically lost his mind.  He terminated his employee on the spot.  She had told the customer that there was going to be a delay in the shipment.  The employee called up the customer ahead of time to let the customer know what was about Read more

It’s Not About the 5-Minute Wait - 3/12/24


Robert went into his supervisor’s office to update her on a situation at the payment desk.  Robert said that a customer was about fourth or fifth in line, waiting to be served, and the customer was complaining loudly about the wait.  He was there to make a property tax Read more

Lessons from the Greats - 3/5/24


I was recently facilitating a workshop on the customer experience, and I made the point that it’s usually beneficial to look at your personal life for great experiences; identify what really resonates with you in a positive way in order to uncover ideas to improve your own customer service. So, Read more

The Empathy Roadmap - 2/27/24


For some people, empathy comes naturally.  There’s an innate desire to learn about the other person and to sincerely convey that sense of interest and caring.  But for many of us, sometimes it helps to have a communication plan.  It helps to know what to do in order to Read more

“You’re the Boss” - 2/20/24


Terrence is excellent at what he does.  From a technical standpoint, he knows how to keep the facility clean.  He’s the lead custodian, and he knows that keeping things straight does not necessarily mean keeping things sanitary.  He knows what chemicals to use and not to use, how to Read more

Customer Understanding Leads to Relationship Growth - 2/13/24


We’ve worked with educational organizations at all grade levels over the years.  One special and unique characteristic about the staff who work in these organizations is that there’s a clear intent to know about the students as individuals, to focus on them rather than purely focusing on what’s delivered Read more

Define Customer Service Success Differently - 2/6/24


When I’m watching television, listening to the radio, or listening to a podcast, it’s always interesting when the topic moves to the question:  How can you be a success?  The speakers often discuss the process of becoming a success with the assumption that people believe success is defined by Read more

Care Enough to Give Them a Heads Up - 1/30/24


Nothing bad at all might happen.  Every day in the office could seem like every other day.  Sights and sounds and smells might continue to be the same.  But we have a lot of construction going on around our offices, and the building manager knows the type of work Read more

Be Better than AI Customer Service - 1/23/24


There was a recent CBS Sunday Morning Show story called: How artificial intelligence is revamping customer call centers. The journalist described how artificial intelligence is being used in customer service, and he noted the millions of pieces of information that can be processed in a matter of seconds. There are clear Read more

Be Less Sexy to Build More Customer Loyalty

Posted on 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 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/