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Use AI to Improve Your Performance - 7/23/24


Many companies are integrating Artificial Intelligence (AI) into some aspect of their business.  This could greatly change how they operate, how they communicate with customers. This AI wave reminds me of a story from 20+ years ago when a stock brokerage firm launched a new website that greatly enhanced the Read more

The New Burger Experience - 7/16/24


Floyd loves a good hamburger. Any chance he gets to try a new spin on an old standby, he takes it. Recently, a burger joint opened near his house, and Floyd was very excited! It was owned by and named for a world-renowned chef, so it had to be Read more

Boost Customer Happiness - 7/9/24


There’s a cooking show that a friend of mine watches, and the premise is all about reverse engineering food.  They may take a Reese’s Peanut Butter Cup, analyze it, and determine the ingredients just by tasting it.  Then they figure out a recipe.  The cook will try to make Read more

Brainstorm to Better Yourself - 7/2/24


I’ve led enough sessions with clients on continuous improvement topics to have solid experience on how to lead ideation exercises, brainstorming to develop new ideas.  Oftentimes these sessions start with the right question; the first answers may not be the ultimate solution, but they can serve as a jumping Read more

The Power of the Pause - 6/25/24


When I’m facilitating a meeting, and it feels like it’s going off-track or the discussion is going a little longer than it should, I may say something like “let me pause the conversation so that…” or “let’s pause just for a minute and consider…” I don’t like the word STOP. Read more

Handle Interruptions Heroically - 6/18/24


In the middle of a project, Jimbo, the customer service team member, had to stop what he was doing because he received an e-mail from a customer complaining about their experience at a recent event. Later that day, Jimbo was asked by his boss to put everything on hold for Read more

From Employees to Teammates: The Shift - 6/11/24


Be a great teammate. Be a good team player. We’re all part of the team. We’re no longer employees, we’re team members! The phrase “Team” is used in describing co-workers so much more than it was used years ago.  Then, we would be talking about employees, talking about staff, talking Read more

Nurture New Relationships - 6/4/24


Freddie was a new business owner in town.  He was launching a franchise, had acquired some funding from a local bank, and was in search of staff who cared about customer service. All the while, he was in the process of renovating a storefront for his business, so he was Read more

There’s Positivity in Patience - 5/28/24


The employee at the financial services firm was working with a new client on a relatively simple loan.  The documentation was about as clear as it could get to the employee, but the customer had lots of questions.  The employee calmly, clearly, and specifically answered each question.  The meeting Read more

The Goal – A Great Experience - 5/21/24


The following is a narrative of a great experience (people, process, service, facility) at a minor league sporting event – key points that could apply to any business are in bold… Mark and I pulled into the parking lot, excited about the game.  The Slapshots had been on a roll 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/