Category Archives: customer loyalty

Everyone has a story

Posted on February 6, 2023 by davetuchler
Everyone has a story

We at The Armchair MBA are very aware that the person you may see simply as a revenue-generating customer is actually a human being with a unique history, identity, and set of hopes and challenges. Just like you.

This past Saturday we were humbled by the courage and determination of a customer. We only learned her backstory after completing a consultation and sale (about 1 hour).

As described on her website: “Andrea Lytle Peet was diagnosed with ALS in 2014 at the age of 33. In eight months, she went from completing a 70.3-mile half Ironman triathlon to walking with a cane.

Remarkably, she has continued to participate in races on her recumbent trike. In May 2022, She became the first person with ALS to do a marathon in all 50 states!“

ALS diagoses typically are accompanied by a 2-5 year life expectancy. Andrea has passed year 8, is not passively accepting her situation but is attacking it full throttle, and has raised over $1 million for ALS research.

A documentary about her story ‘Go On, Be Brave‘, will debut at the Santa Barbara International Film Festival next week (and will be shown at the Durham Theater in NC in June).

Check out the trailer: https://vimeo.com/727898354

Always remember that the person on the other end of the transaction has a story – – just like you.

Advertisement

2 Comments

Posted in customer loyalty, Customer satisfaction, Social Media and tagged , , , , , . Bookmark the permalink.

What 3 years in the wheelchair business can teach you about your customers

Posted on August 1, 2022 by davetuchler
What 3 years in the wheelchair business can teach you about your customers

Today we mark our 3rd anniversary since we took a career left turn from corporate marketing and opened a business serving the disabled – our name is Step Ahead Mobility.  We’ve served over 1300 customers since we opened in 2019.

In that time we’ve learned a ton about the industry, but also about customers – and a lot of it applies to any industry.

We’re not really about just wheelchairs. 

Our mission is to help people improve their independence – whether it’s a power wheelchair to get around the house, a lift recliner to for those who can’t otherwise get out of a chair, to a hospital bed for hospice care, to a cool shouldn’t-be-this-fast mobility scooter for people who just aren’t able to walk very far on their own. 

Refused to give a thumbs-up

Our customers are disproportionately older, but we’ve also had pediatric customers undergoing brain cancer treatment, weekend warriors who have blown out their Achilles doing Crossfit, former HS quarterbacks who had a disabling stroke in their 40s, and otherwise very healthy young customers recovering from cosmetic or reconstructive surgery.  We serve a lot of veterans (including WW2), a fair number of amputees, and people suffering from degenerative conditions such as MS, MD, Parkinson’s, etc.

Sounds depressing, right?  Couldn’t be further from the truth.  While we got into this business for strategic market reasons (demographic trends, recession- and Amazon-resistant), the biggest plus by far has been having the ability to directly impact the lives of others.

And while we help others, it’s more than made up for by what we’ve learned from them.

Here are a few observations:

  • Listen to the customer!  We have a strict rule to never recommend anything before hearing from the customer what their needs are.  Sometimes they come in convinced they need A, but they really need B.  Our job is to get them what they need, not necessarily what we want to sell. 
  • Our success depends on trust.  Our customers are often faced with an unexpected challenge, when they’ve been perfectly healthy all their lives.  Sometimes the customer is the adult child of an older parent, sometimes it is the parent of a grown adult child.  They need solutions quickly in an area they are unfamiliar and uncomfortable with.  Like a good car mechanic, they need to have complete faith that you are working on their behalf, with integrity.
  • We try to see our customers at their best – – not just how they appear today.  While they may not be as able to communicate as they used to, the majority of our customers are smart and thoughtful, and want to be treated that way. The stooped 85-year old man was a hero in military service; the frail woman was a striking ballerina.  The woman who can’t speak clearly was a popular philosophy professor.  The little quiet guy with the walker was a CEO.  This is part of their self-image; and this is how we try to see them.  Treating our customers with dignity is absolutely essential – -always. 
102 year old dancer – – then and now
https://seeitlive.co/102-year-old-sees-herself-dancing/
D-Day heroes – then and now
https://www.bbc.com/news/uk-england-cornwall-39922912
  • Play the long game.  We sometimes have hour-long consultations with walk-in customers about the best solution to a challenge they’re facing, only to have them walk out without buying anything.  But we feel that by providing good information and building trust, they may return later – -and this has proven to be true many times.
  • You don’t know the customer’s story – so don’t judge.  Yes, they may be in a wheelchair or have a walker or be severely overweight or be cranky or impatient – – but chances are they’re dealing with something you’re glad you don’t have to deal with.  So be patient.
  • Never underestimate the strength of everyday people.  We are amazed and humbled by the incredible quiet love and courage of loved ones and caregivers – – whether it’s a husband’s patience in taking care of a severely disabled wife, to a daughter uncomplainingly caring for both her kids and her parents, to a mom dedicating her life to an adult child who cannot communicate.  These people are true everyday heroes, and they are all around us.
  • Customers don’t want to be serious all the time.  Without question, every single person who contacts us would rather be doing something else, and many are dealing with something serious.  You get to be very good at consoling in this business. But they’ve got enough stress already – a little humor can provide a welcome break. In our case, our slightly creepy mannequin carries our ‘think positive’ slogan, as well as an ever-changing quote to hopefully bring a grin – which it usually does. We want our customer experiences to be as positive as possible. Just be thoughtful as to what’s appropriate to each situation.
Think Positive!

—> One of our favorite customers, Mr. Moses, came in looking for a fancy walker. He was “98 years old; going to be 99 in 2 months”. WW2 vet. Armed with a pile of printouts about specific models and pricing. He asked about all the details and then said, “what’s the warranty”? He thought about that for a few seconds, then said “never mind”. <—

Leave a comment

Posted in customer loyalty, Customer satisfaction, Retailing and tagged , , , , , , , , , , , , . Bookmark the permalink.

I BEGGED to be cancelled, and failed. Where did I go wrong?

Posted on August 23, 2020 by davetuchler

Lots of people are getting cancelled these days. For most of them, it wasn’t something they wanted.

Cancel guy

I, on the other hand, wanted desperately to be cancelled, and my best efforts yielded exactly no results.  It left me somewhere in between ticked off and sad; call it pissappointed.  My story is below, in blue.

We are referring, of course, to subscription auto-renewals (aka ‘evergreen clause’ or ‘negative option clause’, or in the words of one congressman, ‘zombie contracts’).

Auto-renewal practices are a critical way of sustaining revenue, but if done too aggressively, there are potential huge costs in losing customer goodwill and provoking litigation.

https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/02/27/didnt-see-that-renewal-notice-some-states-are-trying-to-help

auto-renew cycle

One survey found that 59% of consumers had been auto-renewed in one way or another without their informed consent, at an average cost of $186.  https://www.nclnet.org/ftc_autorenew

This is often related to free trials with a commitment buried in the fine print, but it’s not always the case, as I experienced.

section-free-trial-mobile

Auto-renew allows companies to lock in revenue, often without the consumer even noticing. And they rely heavily on this practice; you will have to pry a company’s cold, dead hands off your money (usually with a lawyer’s help) before you get anything back.

Turns out I’m not the only one who’s been disappointed.

As a result, a lot of states are working on legislation to control abuse of the auto-renew, led by California’s Auto-Renewal Law (ARL), which took effect July 1, 2018 and prohibits automatic renewal of subscription or service fees without first presenting consumers with certain terms, and obtaining their affirmative consent.

The questions here:

  • What is the moral obligation to inform customers before they are going to be charged?
  • Is the retention of some proportion of ticked-off customers worth the blowback when they tell their friends/colleagues about it?
  • What actions can you take as a marketer or as a consumer, to avoid the need for litigation?

My story:

  • April 2018 – signed up for one year of online survey company’s premium package to support consulting work.  Not aware of any auto-renew commitment.
  • April 2019 – found out my credit card was automatically charged for another year.  Still used the service so no big deal; still, irritating to get neither a heads-up nor a confirmation that a charge was made.
  • March 2020 – didn’t need service anymore.  Through my account portal, cancelled and switched off auto-renew a month before renewal (on advice of the company).
  • May 2020 – surprised to find that I’d been auto-billed again, despite cancelling.   No email notice.
    • Emailed company: ‘must have been a mistake; don’t need it anymore, please reverse charges, thank you’.
    • Company responds that a) their records show that auto-renew was reinstated on my account (which it definitely wasn’t!)  b) you are ineligible for an exception because it renewed over a month ago  c) we cannot give full or partial refund.  d) you should know this; it was in our T&C when you signed up (you noob).
    • Increasingly animated emails from me met with consistently anodyne ‘geez, we’re real sorry, you messed up, we can’t do anything about it’ responses.
    • Stopped payment on credit card; company now has cover and responds with: “Although our system showed that you re-instated your subscription, from your words, I know this was a mistake and clearly a human error.  Even if I could make an exception for you, because a dispute has been filed with the card issuer or bank, we can’t take any action on the account.”
    • Thankfully, the charge was ultimately reversed. 

But it was LOTS of effort, and let’s just say it won’t help their Net Promoter Score if I am asked for my opinion.

online-reviews

————————————————————————————

This is a big, popular, generally well-regarded company and they’re clearly taking all steps possible to maximize revenue retention.  How many other companies are using the same tactics?

Disable auto-renew

Well, in the last few years, over 100 companies have been sued for deceptive auto-renewals, including those shown below (spawning a cottage industry of how to disable auto-renew):

Screen Shot 2020-08-23 at 8.25.16 PM

Sirius XM

Noom

Angie’s List

Dropbox

Spotify

Hulu auto-renew

 

 

 

 

Hulu

SeaWorld

Birchbox

LifeLock

AAA

Blizzard Entertainment (World of Warcraft)

Gunthy-Renker (Proactiv skin products)

Apple-Music-Auto-Renewal1

Apple

eHarmony.com

Tinder

Blue Apron

Cancel-McAfee-Subscription

 

 

 

 

 

McAfee

Ancestry.com

New York Times

Consumer Reports

WalMart’s Beauty Box

It is no secret that a renewal is way more profitable than acquiring a new customer, and the fight for customers is fierce, so the focus on retention is understandable.

Retention-844x422

But at some point the negative impact of heavy-handed tactics, in terms of brand goodwill and image (not to mention litigation costs), could overwhelm the benefit.

My advice:

IF YOU’RE A MARKETER OF SUBSCRIPTION PRODUCTS OR SERVICES:

  • Become familiar with, and follow, California’s ARL; it looks to be the standard going forward
  • Offer in-between solutions that give the customer relief, but keeps them in the fold and positive.  (Example: when I tried to cancel my Audible subscription when my commute was drastically shortened, they offered a deal of $10/year to retain the books I already had, rather than losing everything.  That was a good solution for me.)

ec4fd5905c6732f9-800x386

IF YOU’RE A CONSUMER:

  • Read the fine print on everything you sign up for, and keep careful records
  • If you want to downgrade your level, challenge the company to provide a better option.  Frequently they’ll do anything possible to keep you.
  • Certain apps like TRIM https://www.asktrim.com/ automatically detect recurring charges on your credit cards; they can help identify needless renewals and help with cancellations

Loyal customers

IF YOU’VE READ THIS FAR:

  • Thanks for your patience and loyalty. You have automatically been renewed to follow The Armchair MBA for another 5 years.  You have no opt-out before that time.

1 Comment

Posted in customer loyalty, Customer satisfaction, Marketing and Media, Marketing Strategy, Retailing, Social Media, Technology and tagged , , , , , , , , , , , , , . Bookmark the permalink.

The Perfect Storm, Part 2. Fixing “Pale, Stale and Male”

Posted on February 22, 2019 by davetuchler
  • The mood at last week’s Miami Boat Show was sunny, like the weather.  Enthusiastic shoppers, lots of shiny new boats, and based on conversations with manufacturers, not enough new boats to meet demand.

Miami Show Crowd

However, as previously posted, some clouds on the horizon foreshadow the powerboat industry’s vulnerability in a way that will redefine the landscape over the next 10 years.

  • The core buyer base is aging. The 55-60 year old buyer base (let’s generalize and call them Boomers), are committed and usually repeat buyers.  And they look a lot alike  (in the words of one industry executive: “pale, stale and male”).
    But there aren’t enough younger first-time buyers (generalized as Millennials) to replace their unit or dollar sales.  Over the last 15+ years, the share of new boats sold to first-time buyers has dropped dramatically.
    It’s the same old dudes buying more boats.
  • Recession bites. The next recession, like the last one, will flood the market with used boats when owners sell, crushing new boat sales – – a sales circuit-breaker if enough Boomer owners exit the market permanently.  Remember, older buyers generally buy the more expensive boats.

Older fisherman

Typical core new boat buyer

This post tries to explain why there are not enough younger boat buyers, and offers some ideas of what can be done to prepare for the future.  While a bit longer than my typical post, there are lots of pictures, so please read on.

Boater_Age_NMMA

Source: NMMA

Following our Miami visit we circled back to get input from senior leaders representing manufacturers, dealers, Freedom Boat Club (the leader in this segment) and the NMMA, the leading trade association.

The upshot:  the core appeal of powerboating is not going anywhere, but the industry will need structural changes to address some fairly major challenges to sustain health (read: sales) over the long term.

And the current pace of innovation is not enough to drive the changes necessary.  Disruptive innovation is needed in everything from boat design, mode of power, sales/distribution channels to marketing.  This is not about reducing price or offering new colors or more horsepower.

Disruptors transform the way a basic demand is delivered.  Myopia has led to the downfall of many former market leaders.

  • Home Video: Blockbuster (VHS/DVD) yields to Netflix (streaming)
  • Personal photography: Kodak (film) yields to digital / smartphones
  • Books: Borders (bricks & mortar) yields to Amazon (online)

Based on appearances, the powerboat industry seems headed this direction – – focused on maximizing revenue with the current model (largely fiberglass gas-powered outboard boats sold through dealers).

There are signs that disruptors are at work — but there is a long way to go.

Buying Cycle - Boating

To explain where the industry has been and where it needs to go, we compared the buying process of legacy (Boomer) core buyers with considerations of potential Millennial buyers, in a 4-step process.

INTERESTEXPERIENCEPURCHASEHABIT

So what are some paths to long-term growth? 

Here are some ways the industry can take action (with some examples):

  • Before addressing new buyers, the industry must keep current owners around as long as possible.
    Slow down defections – – aggressively court current owners and build relationships through CRM, owner events and personal outreach – build loyalty and maybe get another purchase

To encourage Millennial first-time buyers:

INTEREST

  • Accelerate development of more agreeable, alternative power sources:
    • GM’s experimental marine division, Forward Marine, introduced a 100% battery-powered boat. With a max speed of 20mph and a range of 1 hour at that speed, it’s not ready for prime time yet, and won’t get you many dates, but this is the direction some of the industry will go.  Think Tesla.  Maybe a hybrid as well.

GM Boat

GM Forward Marine prototype

  • Indmar just introduced EcoBoost, the marine version of Ford’s EcoTec engine – gets the same horsepower and torque with 4 cylinders as a typical V-8. More environmentally friendly.

    EcoBoost

    Indmar EcoBoost

  • Torqeedo is an established German company offering quiet, efficient electric motors. Due to relatively low gas prices and a maximum of 100 hp, growth is slow but it is steady.  They’re getting traction.

Torqeedo

Torqeedo Deep Blue 80R

  • BlueGas Marine has developed economical natural gas power for boats. Traction is difficult for the above reasons as well as infrastructure (need the gas equivalent of charging stations), but the equation can change quickly if oil prices spike.

More aggressive marketing

  • Cross-market! Boating should not just be for insiders anymore!  Visibility must be increased by pursuing prospects with related affinities:  skiing, hiking, etc.  Not just a booth at the boat show.
  • Be more inclusive, diverse and experiential. Feature a range of age, ethnicity, interests.  Leverage social media to reach prospects beyond the familiar core demographics.

700-00039414

Wakesurf photo

 

  • Innovate beyond current offerings – materials, design, features
    • New boaters don’t have the burden of tradition and will likely be more open to unconventional but more functional approaches (after all, someone had to buy the first Prius)
    • RIBs – Rigid Inflatable Boats (Axopar, Technohull) offer more efficient performance using different hull design and materials. They are really cool, perform great, look different, and that’s ok.

Technohull

Technohull (top); AxoparAxopar

  • Powered catamarans look different but offer advantages of smooth ride and more space

EXPERIENCE

Leverage technology to reduce fear as a barrier to purchase

  • Self-docking boats will be available in 2020
  • On-board digital video tutorials can provide much more effective learning than paper manuals

  • Controls are shifting from analog to digital, to mimic/integrate with smartphones

 

 

OWNERSHIP

  • Offer more versatile/multi-use boats at attractive price points – not single purpose (e.g. fishing) but can handle a variety of activities on any given day (analog: SUVs), making purchase more acceptable
    • Sea-Doo introduced a jet ski that converts to a fishing craft – – and it starts at $15k

 

 

  • Yamaha’s 2018 Boat of the Year (the FSH 210) is an affordable, do-it-all boat that is an excellent choice for first-time boaters.

  • Don’t require purchase to participate
    • Freedom Boat Club is a franchisor with 178 locations, with a model based on eliminating some key barriers to purchase (includes lessons, takes care of maintenance and insurance). The goal – make participation frictionless.
    • Members pay a monthly fee for unlimited access to a variety of boats in a huge number of locations, rather than committing 6-figures for a single boat.

FBC logo

  • Other similar models such as peer-to-peer rental, fractional use, etc. will undoubtedly increase as there is less reliance on solely purchase
  • More fully integrate the internet in the shopping/buying process – as in the auto industry, reduce reliance on aggressive final-mile dealer salespeople.

HABIT

No surprises!

  • Full transparency in the sales process, specifically costs/ obligations of ownership
  • Continuous on-boarding/learning  from the dealer, not just 2 hours when the boat is picked up
  • Aggressively encourage new boater networking to share tips, experiences, and create peer communities
  • Mentoring programs linking experienced boaters with new boaters.  Older boaters would love to pass along insights; a no-judgment setting makes it a win-win.

Mentor

These are just a few things the industry can do to mitigate unavoidable changes.  It will take foresight, patience, and investment – – and may not pay off immediately.

lots-of-boaters.jpg

But an industry that proactively and creatively adapts to the needs of new boaters with great product and a great experience, will be much more successful than what we currently seem to have – – an industry that asks potential new buyers to adapt to the way things have been.

1 Comment

Posted in Branding, customer loyalty, Marketing Strategy, New Products, Product Management, Trade Shows and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Why Online Reviews Haven’t Totally Replaced Word of Mouth (yet)

Posted on January 31, 2019 by davetuchler

First recorded word of mouth reco:

Caveman Danook: “Good rock”

Caveman Gok: “Need rock like Danook rock”

danook-larson

Direct, personal, effective.  The best type of recommendation.

Fast forward a few millennia – – millions of shopping decisions are routinely made based on star ratings or online reviews – from total strangers.

In other words, online reviews are often less credible sources than Caveman Gok had.

amazon5-star

While technology has provided lots of review resources (e.g. Yelp, Glassdoor, Amazon Stars), it has not yet figured out how to protect the integrity of these reviews – – thus making them not totally dependable.

And consumers are increasingly realizing this.

At the end of the day, a personal reco from someone you know may still be your best bet.

Consider these news stories from just the last few weeks:

Joanna Stern – WSJ
Is it Really Five Stars – How to Spot Fake Amazon 5-Star Reviews

“I visited a Facebook group called “Amazon Reviews” and was promised a full refund on a $44 Amazon purchase of a pet fountain if I did the following on the mega-retailer’s site:
1. Write a positive review. 2. Post my photos of the product. 3. Rate it five stars.
Not only is this ethically problematic, it is also against Amazon and Facebook user policies.”

There are 4 types of reviews mentioned in the article:
1. Legit reviews – you bought it, you review it, good or bad.
2. Vine reviews – incentivized reviews for prolific reviewers. Objectivity not guaranteed.
3. Incentivized reviews (like the pet fountain above). Objectivity clearly suspect.
4. Fake reviews – often from Asian click farms. Totally bogus – often products reviewed are not even remotely what is listed.
Not exactly encouraging.

——————-

Rolfe Winkler and Andrea Fuller – WSJ
How Companies Secretly Boost Their Glassdoor Ratings

To allegedly combat the bias for negative reviews on sites like Glassdoor, some companies are apparently gently encouraging (and in some cases providing incentives) for employees to leave positive reviews.

“Last summer, employees of Guaranteed Rate Inc. posted a stream of negative reviews about the mortgage broker on Glassdoor, a company-ratings website.
– “An American sweatshop,” read a one-star review in June. “Worst company I ever worked for,” read another in July. The company’s rating on Glassdoor, which is determined by employee feedback, fell to 2.6 stars out of 5.
– Concerned that negative reviews could hurt recruiting, Guaranteed Rate CEO Victor Ciardelli instructed his team to enlist employees likely to post positive reviews, said a person familiar with his instructions. In September and October these employees flooded Glassdoor with hundreds of five-star ratings. The company rating now sits at 4.1.”

———-

One study estimates that while 88% of consumers put their trust in online reviews, at least 20% of them are in reality fake (the reviews, not the consumers).

———-

As time goes on, consumers will judge online reviews with an increasing dose of skepticism, until AI figures out a way to effectively and convincingly screen out reviews that are just not legit.  It’s complicated (see example from the Boston Globe).

reviews-big

So what can a marketer do to encourage the most credible endorsements of their products —  enthusiastic, personal word of mouth recommendations?

chewy

Here are 3 examples, 2 of which involve reaching out and delighting the customer such that they take some sort of action that could influence others:

  • Chewy.com. Over the Holidays we received a mystery package that it turns out was sent by Chewy.com, and included an ink-on-canvas portrait of our dog, and a very enthusiastic hand-written card that said “Surprise!  We hope you and your furbaby enjoy the portrait.  Remember we’re open 24/7.  Call us anytime, we’d love to hear from you!”  So cool.
    –  Yes, this cost $, but they got it back in multiples from the number of people we told about it or who saw our social media posts.  (Not to mention the fact that we’re just a little more likely to continue buying from them ourselves.)yeti
  • YETI.  To become an object of their affection, we merely had to go to the trouble of registering online for a gift we received – – a thermo mug, not one of their over-the-top coolers.
    Shortly thereafter we received a thank you card with several YETI stickers, some of which of course will end up in a visible place, thereby providing a passive reinforcement of the brand to others.
  • Nextdoor.  A bit different from the ‘delight’ category is the true word-of-mouth category, represented by the neighborhood network Nextdoor, which is an avenue for sponsored ads in addition to personal recommendations.  The credibility factor is high.nextdoor
    There are lots of other ways to engender a personal relationship and loyalty well beyond what stars on a review can do.
  • Customer Support that has a personal touch and continuity – so the customer feels a connection with the help desk person (chat, email or phone)
  • Personalized customer outreach (email or snail mail) not asking for anything, just staying in touch and inviting the recipient to provide any feedback they may have.
  • (Making great products and backing them up doesn’t hurt, either).

Random acts of kindness may be seen as an incremental cost, but the personal connection can not only encourage current customers to be loyal, it can encourage them to tell others about their great experience.  And that’s the name of the game.

Just keep in mind: WWDD?

Leave a comment

Posted in Branding, customer loyalty, Customer satisfaction, Marketing Strategy, Social Media and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

CRM for the Holidays… don’t try this at home!

Posted on December 10, 2018 by davetuchler

In the spastic miasma of acrimony that is apparently the new normal, one looks back fondly to Holidays past, the one time during the year where it would be possible to unplug, have a holiday movie on the TV in the background, and read cards with personal greetings from friends, with updates on what happened over the last year.

bigstock-Reading-A-Card-6013986sm

Holiday Card

More ambitious senders might include a copy of a family portrait, often taken at a tool and underwear retailer called Sears.  If particularly well-organized, they would manage to get the cards to arrive by Christmas, maybe even a week early.

Sears Holiday

It was exciting to find these hand-addressed, slightly plump cards in the mail, and display them together as a visual totem of amity.  Yes, those were the good old ancient pre-Netflix days.

Addressed CardCards displayed

As holiday activity and accompanying stress levels continued to increase, some people turned to electronic greetings or stopped altogether, but cards remained for many an annual tradition they just couldn’t bear to discontinue.
Over time, the holiday card seemingly lost its soul, with a personal message replaced by an enclosed dossier of achievements of truly exceptional people (“Timmy was accepted into the ultra-selective XYZ Day Camp…”).
Cards became less reaching out to you, more about ‘let’s talk about me’.

Obnoxious letter

Finalist in Most Obnoxious Holiday Letter Competition

Ultimately, obligation overwhelmed the pleasure of friendships as the driving force behind the sending of holiday cards.

Pretentious Card 1

Today, if you can actually find any holiday cards hidden within an endless swamp of catalogs, what you’ll see has become quite different.  These cards, often custom-made for the occasion, are on high quality stock, with stunning retouched photography of a perfect family and a printed identifying caption, maybe addressed with printed labels or even faux calligraphy.  They are beautiful.  And they are coming in hot, ahead of schedule.

Business Holiday Card

Accountants.  Not grammarians.

(Businesses, on the other hand, have kept the same printed card M.O. for decades – often using the exact same printed cards).

There is a name for this perfection:  it’s called Customer Relationship Management.  CRM is an automated way for businesses to keep in touch with their customers, in the interest of maintaining relationships.  CRM uses something called Mass Customization – – the automatic inclusion of your name in a mass mailing – – you get these all the time and are no doubt moved near tears by the thoughtfulness of Credit Card Company X to think of you and include your very own name!

People are now basically adapting CRM for their personal cards.  (“It’s Holiday Card time – – grab the ‘friend’ spreadsheet, upload a photo and let’s check that box and go to Cancun!”)

The problem is that CRM is great for businesses, not so much for actual friends.
While the gesture is admirable, spectacular production values are just no match for a heartfelt greeting – – a personal touch lets the recipient instantly know that they’re not just on your holiday contact list.

Handwriting

If the message is business focused, perhaps to let a coworker or client know you’re thinking of them (in an appropriate way of course), some nice holiday greetings can be found here.

And if you still appreciate the spirit of sending personal cards to friends, we salute you.  And for those fellow scramblers whose cards are not yet out the door, try these humble curmudgeonly tips to help bring back some of the joyful connections of the Holidays (adding these steps will of course put even more pressure on you, but isn’t stress what the holidays are about?):

  • For the friends you actually care about, consider putting some actual ink on the cards – – even if just to write your name.  Typeset names on cards look a lot like “From the offices of…”
  • Deflate the humble-brag notes. Facebook built a multi-billion-dollar business by creating a platform for family highlight reels.  We’ve known for years that your Timmy is special and we naturally extend our deep admiration to you.  But that turf is now taken and your news is old!

Most importantly, above everything else, please please please – no glitter!

JFK signature

1958 – guess who?

1 Comment

Posted in customer loyalty, Customer satisfaction and tagged , , , , , , , , . Bookmark the permalink.

Is This Any Way to Treat a High Value Customer? Ask My Mother.

Posted on May 19, 2018 by davetuchler

Do You Know Your Most Valuable Customers?  Do they know that you love them?

ecommercecrm

It’s 10 times harder to get a new customer than to keep an existing one.  Loyal customers are more profitable and have the highest Lifetime Customer Value. They love your company already.  They have already been acquired, qualified and taken through the funnel – – you have them where you want them!

So why, with today’s sophisticated customer management systems, are loyal repeat customers too often just an afterthought?  Or missed entirely?

In today’s post we will try to demonstrate that marketers must make extra effort to identify and appreciate these great customers.

Customer Relationship Management (CRM) data-based systems have given marketers the illusion that they not only know everything about their customers, but that their email outreach perfectly motivates everyone.  This is not always the case.  They don’t always get it right.  Customer targeting algorithms written too narrowly can miss the bigger picture.

Case in point: my very own Mom.

  • Mom’s primary indulgence is periodically taking her 5 kids and their families (20-25 people total) to an all-inclusive resort. Club Med has been the most frequent (but not exclusive) beneficiary. (Yes, I chose my mother extremely well). Her aggregate investment is well into 6 figures over the past 20+ years she’s been doing this.

ClubMed1

In the case of Club Med, the algorithm failed.  They were focused on the last 3 years only.  And they completely missed the fact that she’s a long-time customer who brings a group. Mom turns out to be a mere Turquoise!  A rookie in their eyes!

ClubMed2

ClubMed3

———

ClubMed6

  • Mom selects the location, makes the reservations and all expenses go through her. She has 99% of the decision-making power on where we go. She should be a Big Kahuna to Club Med. They should make sure she’s happy, show their appreciation, and make every effort to acknowledge her loyalty.

ClubMed5

————-

ClubMed4

  • Yet Club Med scores loyalty on a per-person visit basis over the last 3 years. So despite influencing a lot of spending, Mom is classified as entry-level Turquoise, with the same status as a 10-year old who goes along with her parents. There is no acknowledgement at the corporate level, and none at the local Club level – – no one has told them who this is. No bottle of wine or fruit in the room. No upgrade. No ‘thank you for your continued loyalty’. Nothing.

ClubMed7

  • Small victory!  But it took a lot of effort.  Shouldn’t have to.
  • What defines your best customers? Longevity? Frequency? Cumulative $ spent?  Early adopters of new products?  This is really important to figure out.

Club Med of course doesn’t want to ignore their best customers. It’s just that their system isn’t set up to recognize them all the time.  To their credit, they handled my email rant with grace – – and came through in the end.

ClubMed8

ClubMed9

——–

So figure out who your best customers are and take care of them!

Right after you take care of your mother.

 

1 Comment

Posted in customer loyalty, Customer satisfaction, Marketing Strategy, Product Management, Retailing and tagged , , , , , , , , , , . Bookmark the permalink.