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Uncover Silent Concerns - 8/5/25


One of the customer service statistics we have quoted many times over the years is:  For every complaint you do hear, there could be 26 other customer issues that you don’t hear. And when we bring up that statistic, we bring it up because we want to make sure companies Read more

Talk Yourself Up to Take Down Their Anxiety - 7/29/25


I believe that most customer service people are pretty humble, so I’m not asking you to lose your humility.  But I do have one ask of you… When that customer is anxious or nervous, when they fear the future because the future is unknown or it could be laced with Read more

Use Little Acts to Make a Big Impact - 7/22/25


A WOW Experience is not always one instance, one act that blows away the customer.  It’s not always an over-the-top-the-employee-saved-the-day act of brilliance.  Sometimes a WOW is the sum total of a series of little things that others don’t do – those actions that differentiate you from others.  The Read more

Avoid Some Stress by Addressing Issues Quickly - 7/15/25


It’s good customer service to resolve issues quickly.  The customer sees the light at the end of the tunnel.  They more quickly bring their anxiety and stress, their negative emotions down.  And they more quickly get to a solution. But this tip is not about them.  This tip is about Read more

Better Customer Service through Better Teamwork - 7/8/25


We spend so much time talking about what great customer service looks like in those 1-on-1 Moments of Truth, that we often neglect to discuss what goes on inside the company that leads to those great moments.  We’ve talked about customer handoffs within an organization, but what does a Read more

Highlight the Hidden Value - 7/1/25


Marketing campaigns often highlight a particular product and ALL the features and extras that the customer will receive… “For 3 low, low payments of only $39.99, you not only get these world-renowned chef knives, but you can also get this free laser-etched spatula!  AND THAT’S NOT ALL!  We will also Read more

Don’t Harp on the Customer’s Mistake - 6/24/25


Seth’s daughter, Sarah, had missed some swim classes, and Seth remembered that the aquatics center had several make-up classes available late in the summer.  So Seth pulled up the class schedule on his phone, found one that worked on his and Sarah’s schedules, and planned to attend a session Read more

Create Customers for Life - 6/17/25


Veronica has gone to the same automotive service shop for at least 20 years.  She bought a new car about a year ago, and this is the third car she’s brought to the shop instead of taking her car to the dealer where she bought it.  She’s had three Read more

Don’t Turn the Customer into the QA Department - 6/10/25


Roberta received a form with information filled in by the company after her conversation with the account rep.  Roberta just needed to review the information, fill in some of the blanks, sign it, and resend it in order to set up a new account. She noticed that the effective date Read more

Imitate to Improve - 6/3/25


Oscar Wilde said that “Imitation is the sincerest form of flattery.”  Now this doesn’t mean that plagiarism is the sincerest form of flattery.  Nor does it mean that great impersonators such as Rich Little, Dana Carvey, or Frank Caliendo are always offering flattering portrayals of those that they imitate. Wilde’s 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/