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Manage New Customer Expectations - 8/11/26


The fan had never been to a motorsports event before, but they had been to concerts.  They had been to big conferences.  At those other events, they could park right next to the venue, many of the activities were indoors, and weather was a non-issue.  So, they were not Read more

Complement Empathy with Action - 8/4/26


A man falls into a hole, and he can’t get out.  He starts yelling for help, and a doctor walks by and looks down the hole.  The man in the hole yells to the doctor “Please help me.  I’ve fallen into this hole!”  And the doctor takes out a Read more

My 8-Minute Visit at the DMV- 7/28/26


I needed to get a Real ID, which in North Carolina facilitates airline travel and other identity verifications.  My wife suggested I go to one particular DMV that was a LONG way away from home, but where she had experienced great customer service.  I was lucky to find an Read more

When They Might Walk Out the Door…Permanently- 7/21/26


Have you ever had one of those conversations with the customer where they literally tell you they’re about to stop doing business with your company?  This is it.  They may bring up a competitor or found another way to get their need met, or they are just leaving. When we Read more

Transparency in Customer Service- 7/14/26


We’ve worked with a lot of clients in the local government sector, and many of these clients have Customer Service Standards and/or corporate values that include Transparency. Think about an old-fashioned transparency sheet, that malleable see-through page you put on an overhead projector.  You can see everything on one side Read more

See the Customer’s Journey from Their Perspective- 7/7/26


That customer is face-to-face with you right now, and you are fielding their questions or delivering your service to them.  And oftentimes and understandably, we are so immersed in the moment that we don’t think about what came before or think enough about what comes next. But in the life Read more

Gaining the Benefits of the Greeter- 6/30/26


Most likely, we’ve all entered some establishment – a retail store, restaurant, or service center - when there is a greeter at the door.  The most famous greeter position is probably the Walmart greeter.  I often thought that my father-in-law would have been a fantastic Walmart greeter, because he Read more

Seamlessness - Why the Customer Thanked You - 6/23/26


This doesn’t happen enough nowadays, but the employee received a long thank you e-mail from the customer.  A financial services account manager had taken care of the client during a period of time that was stressful for the customer. Life was unexpectedly changing quickly, and personal emotions, additional financial responsibilities, Read more

When to Avoid the Escalation - 6/16/26


The customer calls with a complaint, and the easy thing to do is to escalate it to your supervisor. That may also be the right thing to do, but how do you know when to avoid the escalation? Why You Would Escalate The first thing to consider is why you would Read more

Let’s be Clear on Clarity - 6/9/26


When trying to manage expectations, it’s vital to be clear with the customer.  But what specifically does it mean to be “clear?” Clarity is in the eyes and ears of the beholder, so what may be clear to one customer may be unclear to another.  However, there are some basic 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/