Shep Hyken's Blog, page 211
May 6, 2015
Another Way to Differentiate Your Company from your Competition
Customer RelationshipsIf you’ve followed my work, you may know one of my favorite questions to ask clients is: Why should I do business with you instead of your competition?
This is all about what makes you different. We look for compelling features, qualities or services that the competition can’t duplicate. For example, one of my clients is a healthcare system and they have a cardiac program that no other hospital offers in the area. They are also faith based, and that is especially important to certain patients and their families who practice that particular faith. When it comes to both these features, other hospitals in the area can’t compete.
However, there is another way to differentiate yourself. Make use of the connections or relationships you have to people or other resources that your competitors might not have access to. And, making them available to your customers may be the value-added benefit that separates you from your competitors.
It could be the services you offer. For example, my financial advisor has on-staff lawyers and CPAs to help me when I have questions about estate planning, taxes and more. That’s not typical at most other financial service firms. Note the word “most.” There may be a few other firms that can offer the same services, but most do not. I enjoy doing business with my advisor for a number of reasons. First, I like him and his ability to manage my finances. Second, which is a bonus, he gives me access to industry experts when I need them.
It could be the people you know. I work with a travel agent who has been in business for many years and has connections to some people that work at the different airlines. One day it looked like I might miss a connecting flight. The next flight was sold out. If I didn’t get on that one I was not going to make it home that night. But one call to my agent made the difference. He quickly got in touch with one of his contacts at the airline, and somehow a seat opened up for me. By the way, when I asked him how he did it, he said, “I just called one of my friends at the airline.”
One of my clients has regularly scheduled customer events – at least once a quarter – where they provide “access” to the company’s leadership team and business experts that the customer might not normally get to interact and network with. It’s just one of the ways that this client is able to differentiate itself from the competition while offering a value-added experience to their customers.
Who do you know? What resources do you have a connection with? What relationships with customers and potential customers might be enhanced if they knew who you knew and could connect them with? Identify advantages you and your company have that could be of benefit to your customers.
Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com. For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com. Follow on Twitter: @Hyken
(Copyright © MMXV, Shep Hyken)
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May 4, 2015
5 Top Customer Service Articles for the Week of May 4, 2015
Each week I read a number of customer service articles from various online resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.
Customer Service Is the Heart of Marketing and Business (Infographic) by Lisa Teore
(The Customer Edge) Customers, now more than ever, had a loud megaphone and thus the power to immediately impact revenue, and in a big way.
My Comment: This article reminds us that there is a connection between customer service and marketing. And in some cases, they are one and the same. The line that stands out most for me is: “…with continually mounting competitive pressures, CEOs are focusing on the strategic value of customer service. They realize that goodwill is the only asset that cannot be undercut.”
Want to Know the Top CX Trends? [Infographic] by Lori Alcala
(CMSWire) A new customer experience trends report and infographic released by InMoment reveals that while customers do appreciate the personalized touches that brands create for them, they are much more interested in providing value back to the company.
My Comment: Some of customer experience is common sense, that isn’t always so common. This article and infographic has some common sense ideas, backed up with a little data that supports some of the latest trends in CX.
What Game of Thrones Can Teach You About Customer Service Manuel Grenacher
(LinkedIn) When a company has spent time, money, and resources growing from a small fledgling business to a successful company, it’s certain they’ll run into obstacles along their journey.
My Comment: I’ve never watched the popular TV series “Game of Thrones,” but that doesn’t mean that I can’t learn from the customer service lessons shared in this entertaining article. If you are a fan of the show, I know you’ll love the ideas presented. If you’re like me who has never seen the show, suspend belief and just enjoy.
10 lessons every entrepreneur should learn about customer service by Sujan Patel
(GetApp) Someone once said that sales without customer service is like stuffing money into a pocket full of holes. I couldn’t agree more. From my own experience, I’ve been able to grow my company’s conversions by 250%, just by talking to my customers. Undoubtedly, understanding customer service can make you better at business. With that in mind, here are 10 customer service lessons every entrepreneur should learn.
My Comment: Another great article! Ten lessons in customer service for entrepreneurs. Why not big business as well. These are the basics of good customer service that should be practiced by everyone – in any size organization.
Here’s How to Gather Quality Customer Feedback by Mike Shoultz
(Digital Spark) Here are some useful thoughts from customer insight analysis we have found and use with our clients. They should provide useful stimulus for defining tactics with your customers.
My Comment: Love this article about gathering feedback. Sometimes we get bad info from our customers – or we misunderstand them. The opening quote by Henry Ford, which happens to be one of my favorites (“If I’d asked my customers what they wanted, they would have told me a faster horse.”) grabbed my attention. Then there is a list of insights worth considering. Great information here!
Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken
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May 1, 2015
Guest Blog: Why is text messaging suddenly a part of the customer service conversation?
This week on our Friends on Friday guest blog post, my colleague John Huehn writes about the use of text messaging as a customer service platform. I think he is spot on, especially if my daughter is any indication of the future of texting! – Shep Hyken
All of a sudden, in the past 12 months, text messaging has become an important part of the omni-channel customer service discussion. It’s been 22 years since the first text message was sent, so why are we just now beginning to look at text as a viable customer service channel? Like a young adult who’s finally graduated college, texting has just now come of age as a very important sales and service channel. Its maturity is a culmination of the proliferation of smartphones, the rationalization of wireless pricing, the normalization of social media and the rise of the millennial power consumer.
Texting is easier today than it has ever been. Don’t you remember hitting the “2” button on your phone three times just to get the letter “c”? That was the norm for texting until the launch of the first iPhone in 2007. The innovation of touch screen texting really aided in the popularity of text as a mainstream form of communication. However, at the same time the iPhone was launching, social media was also just beginning to pick up steam. Because of the public nature of complaints on social media, companies felt the need to respond to customers via the various platforms. As a result, texting was skipped over as a customer service platform. Instead we saw offerings progress from phone, email and chat to social media.
That’s not the case we’re seeing anymore. The sheen of social as a new channel has worn off, and now companies are looking for other platforms to reach their customers. The great thing about texting is you don’t need data to text and you don’t need to download an app. Texting is a feature that’s built into every phone and furthermore, unlimited texting plans are now the norm. Gone are the days of paying per text message or 100 text message a month plans. No, unlimited texting is now one of those things that most service providers throw in with even the most basic smart phone data plans.
A recent report from Ericson Mobility projected that by 2020, 90 percent of the world’s population over 6 years old will have a mobile phone. That means basically everyone who’s old enough to read will have a phone in their hands in the next 5 years. Therefore, you can reach almost every person in the world via text message.
In our increasingly digital world, people have become accustomed to getting things “on-demand” and quickly. While no one actually wants to be on hold with customer service representatives for hours, new research shows that consumers’ patience is actually getting shorter. Over the last 10 years, the consumers have lowered their tolerance of waiting times from 10 days to just 10 minutes. That doesn’t allow you, as a brand, to waste any time in addressing their concerns immediately.
The traditional call center model ties up customer service reps to dealing with only one person at a time. With SMS, you can have discussions going on with multiple customers at the same time and not sacrifice quality of service. What’s more than that, an astonishing 98 percent of all SMS messages are read within minutes of them being received, so conversations and problems can be quickly solved without the slow back and forth of email. Additionally, the privacy of a text message has huge appeal to both businesses and consumers. Ask yourself: if given the option, would you rather publicly tweet question to your bank or privately text them? I don’t have the stats, but I know which one I’d choose.
Now, let’s talk about millennials. 2015 is the year they’re officially projected to surpass the Baby Boomers as the United States’ largest living generation, and they’re continuing to grow even more as young immigrants expand their rank. As the present and future customer for businesses, what makes millennials happy will make you happy—and millennials love to text. On average, they send and receive more than 3,800 text messages a month.
All signs point to current and future generations wanting to get more immediate responses from customer service representatives. More importantly, they don’t want to waste any of their own time trying to get help. The time has come for businesses to adapt and meet customers where they’re at and where they’d like to be served.
John Huehn is In the Chat’s founder and CEO. Recognizing that the future of customer service will go beyond the traditional contact centre tools, John established In the Chat to deliver the next generation of customer service and help companies better serve their customers through social media.
For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com. Read Shep’s latest Forbes Article:
How To Keep Those Bad Stories From Leaving The Starting Gate
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April 29, 2015
Proactive and Anticipatory Customer Service: Do and Know Before Your Customer Does
Customer-FocusedIn the past I’ve written about proactive customer service. The example I always like to use is when a server in a restaurant notices that the guest’s water glass is about half full, the server refills the glass before the guest drinks it all and has to ask for more. Being proactive raises the perceived value of what you offer. Your customers feel you’ve really are paying attention and focused on them and their needs.
Recently, I’ve seen a phrase that I believe takes things a step further: anticipatory customer service. It’s a step above proactive customer service, but there’s a gray area between the two. Being proactive is noticing something and responding to it—like refilling a glass of water that’s half full. Anticipatory customer service, however, is about being one step ahead. It’s intuitive. It’s not just noticing something. It’s anticipating something. For example, you call a customer and he responds by saying, “I was just getting ready to call you.” In other words, you were one step ahead.
When I was a teenager, I had a thriving birthday party magic show business. My dad used to tell me that I always had to be at least 20 minutes early for the party. He said that the parents would start looking at their watches about 10 to 15 minutes before the party was about to start, and if I wasn’t there, they would start to worry I wouldn’t show up at all. It didn’t matter that I knew that I would be on time. It was about them. So, anticipating that they might start looking at their watch 15 minutes ahead of the show, I made sure I was always there at least 20 minutes before the party started.
Anticipating your customer’s needs is like a game of chess. The best players don’t just think of the very next move they have to make. They visualize what the next four or five moves are going to be, anticipating how their opponent will react to each move. Similarly, you should always try to be at least one or two moves ahead of your customers, anticipating what they might want or need.
Anticipatory customer service is about being in tune with your customer, getting them what they need before they ask for it – or even before they know to ask for it. It shows that you are customer-focused and strive to deliver an amazing customer experience.
You should always try to be at least one or two moves ahead of your customers anticipating what they might want or need. Click To Tweet
Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com. For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com. Follow on Twitter: @Hyken
(Copyright © MMXV, Shep Hyken)
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April 27, 2015
5 Top Customer Service Articles for the Week of April 27, 2015
Each week I read a number of customer service articles from various online resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.
Questions to Ask Yourself During Customer Loyalty Month by Infinit Contact
(Infinit Contact) It’s April and it’s Customer Loyalty Month once again. This just simply means that we should take the time to remember our customers and show them some love. We should likewise look into our customer loyalty strategies and determine if they’re working to our advantage or not.
My Comment: Just a few days left in April, which is Customer Loyalty Month. This is another great article with some great questions to self-assess if you’re doing what’s necessary that makes customers want to come back to you again and again.
Think Small to Win Customer Loyalty by Jason Wesbecher
(Entrepreneur) People gravitate toward companies because of their products and leave them because of their service.
My Comment: The impact to big business losing one customer may not seem as significant compared to smaller business losing a customer, but that doesn’t mean either business shouldn’t focus on customer retention. The Fred Reicheld statistic reminds of the power of a small increase in loyalty and the big impact it can have on the bottom line.
Don’t Ignore These Three Customer Journey Experiences by Ernan Roman
(B2Community) While there are many stages in the customer journey, following are three critical opportunities that emerged from our research.
My Comment: This article shows the strong link between sales and service. As a customer thinks about buying from you, makes the purchase and then self-confirms that they made the right choice to do business with you, it’s the combination of good salesmanship and customer service that wins the customer over long-term.
Big business leaves an opening a truck could drive through by Todd Gurley
(redbirdagents.com) Delivering an excellent customer experience has always been hard. It’s 50% “touch” and 50% “feel”, but we never know which half is which.
My Comment: The statistic in this article may show that big business is having a hard time delivering a great customer service experience, which can give the advantage to a small/independent business, who can offer more personalized service. I can see the other side of the coin, too. Maybe a “big business” can learn to think small – at least as it applies to giving the customer a more personal level of service.
What Do Your Employees Know About Customer Experience? by Annette Franz
(CX Journey) I’ve been talking about the importance of employees to the customer experience since my days at J.D. Power and Associates 20 years ago; sadly, in the heat of customer experience design efforts, employees are still forgotten.
My Comment: How important are employees to the customer experience? As this article states: Without employees you have no customer experience. That is why some companies focus on the employee first, which leads to employees creating the best customer experience they can. Herb Kelleher, former CEO of Southwest Airlines, comes to mind. His belief was to take care of employees first. If you have happy and fulfilled employees, they will take care of the passengers. When the passengers are happy, they fly again. That makes the stockholders happy. So, why don’t more companies focus on their employees first? (Rhetorical question!)
Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken
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April 24, 2015
Guest Blog: The “Individual” Imperative – How Marketing & Customer Experience Are Converging To Better Serve Customers
This week on our Friends on Friday guest blog post, my colleague Cory Munchbach writes about the move from personalization to individualization of the customer experience. I like the idea of taking the personalized experience to the next level. – Shep Hyken
An eConsultancy research study released this week revealed that 4 out of 5 consumers feel brands don’t know them as an individual – yet almost 90 percent of marketers agree that personalizing the customer experience is critical to success. So what is going on here?
The bar for “personalization” is depressingly low when it comes to what brands profess to offer – a scary proposition given how important personalization is to CX. In fact, according to Forrester data, 68 percent of US and UK consumers expect the information they give an organization in one place to be available in another. Simply including a person’s name on the screen or changing out a hero banner isn’t anywhere close to the level of personalization that consumers seek, whether it’s fondly from their local coffee shop, automatically from digital-first companies like FitBit or Netflix or more traditional but deeply customer obsessed companies such as USAA, Costco and Nordstrom. Most brands struggle to do more than the basics and end up providing what one of our customers refers to as a “groundhog day” experience – the same thing over and over without actual recognition and response to that person’s needs and intent.
What today’s consumer demands is a focus on them as an individual and all the richness of that unique person’s activity and context rather than a reliance on static, backward-looking consumer personas or segments. This is a move from personalization as we know it to something more rigorous and effective: individualization. No one department or discipline can be accountable for it; rather, the two groups with the most explicit and direct connection with the customer – marketing and customer experience – need to lead and evangelize on behalf of the entire firm.
Forrester defines individualized experiences as “Experiences that use customer data to structure interaction, functionality and content around the needs of individual customers.” Masters of individualization recognize individuals across channels, devices and sessions. They engage on the consumer’s time-table in response to the user’s activity by capturing that data, analyzing it to optimize the best response and serving that out through the appropriate touch point – immediately. These companies know that their consumers deserve to be treated singularly however, wherever and whenever they engage. To truly meet consumer expectations with a relevant, differentiated experience means moving from the basics of personalization to the discipline of individualization.
This is not an easy call to action solved by technology, a re-organization or a change in how these teams are incented to perform or where resources are spent. It’s all that and then some: a fundamental re-assessment of the business objectives and strategy relative to the individual. In order to be more proactive and relevant continuously throughout all interactions, companies have to change their standard operating procedures beginning with how they define their unique version of a customer’s experience. From there, all business units and departments can craft their own charters that translate the overarching experience into function-specific strategies. It is only based on this foundational work that decisions about the right people, processes and technology can be made.
The imperative to master individualization will only grow along with the different ways by which a person can engage with a company or brand. Wearables and the Internet of Things (IoT) put potential interactions in much closer proximity to the consumer. If you think a person gets frustrated with a poor website experience, imagine how quickly they’ll disconnect if the interactions on their wrist or in-home devices aren’t exactly what they want or need. What IoT demands of companies is to stop thinking in terms of their own agendas and instead think in terms of experiences.
Do you have what it takes to accept the individualization imperative?
Cory Munchbach is the director of product marketing at BlueConic where she is responsible for guiding the company’s product vision and messaging to deliver the best results for clients. Prior to joining BlueConic, Cory was an analyst on the customer insights practice at Forrester Research, covering the intersection of marketing strategy and technology and an expert in the marketing technology landscape.
For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com. Read Shep’s latest Forbes Article:
Oldest Customer Service Complaint Discovered: A Lesson from Ancient Babylon
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April 22, 2015
Trust is Essential, In Business and Life
Trust in BusinessWe trust the people we do business with. We trust that when we go to the grocery store to get bread, milk, meat and more, the store will be well stocked and the food will be fresh. We trust when we go to a restaurant we’re going to get good customer service and the food will be prepared properly – and safely. We trust when we order merchandise from Amazon.com, or any other retailer, the merchandise will show up in just a few days. They even tell us when to expect it to arrive.
The word trust in business is huge. In the examples just mentioned, it is assumed; a given. But, in some areas of business, trust must be earned. Customer service is one of those areas, where trust is earned with consistency and, eventually, predictability.
Customer service is one of those areas, where trust is earned with consistency and, eventually, predictability.Click To Tweet
It’s the same for any business, for virtually any product or service. Trust is not only for consumers of a retail store, the guests of a restaurant, or the business customer of a manufacturer. Trust is an essential ingredient in virtually every type of business transaction.
Then there is trust inside the business itself. A server at a restaurant trusts that the kitchen will do its job to get the food out in a timely fashion. The executive that is going to the airport to catch his or her flight trusts that the assistant made the appropriate travel arrangements. As consumers, employers, and employees, we have to trust every day. We trust people. We trust the process.
I recently took a vacation and went on what I call A Day of Adventure. I bungee-jumped, para-glided and went on a high-speed boat ride. My trust for others was at its highest level. I trusted that the young man wrapping my ankles to the bungee-cord would make sure the cord didn’t slip off as I plunged toward the river fifteen stories below. I trusted the guide who I was connected to as we para-glided off of a mountain would get us back to earth safely. I trusted the pilot of our jet boat knew just how fast we could go as we went into a turn to avoid crashing into the walls of a cavern. I trusted each and every one of these people with my life.
Everywhere we turn, we trust. It’s unavoidable. From something as simple as going to the grocery store to the surgery team that is performing an open-heart procedure, we are forced to give in to trust.
And, we are obligated to reciprocate. The moment you wake up, you are obligated to create trust. It is expected you will show up on time for work, pay your bills on time, show up to your dentist appointment on time. You get the idea.
To bring this to a focus back to business, create trust and your customers trust you. Make the experience consistent and predictable. Customers who trust the experience, and like it, are likely to come back. They are likely to spend more and more likely to recommend you to their friends and colleagues. Trust me. It’s true.
Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken
(Copyright © MMXV, Shep Hyken)
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April 20, 2015
5 Top Customer Service Articles for the Week of April 20, 2015
Each week I read a number of customer service articles from various online resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.
Customer Loyalty Depends on the Word “WHY” by Kristina Evey
(Kristina Evey) Many people assume that customer loyalty and customer satisfaction is based on asking one very important question – What is the likelihood of you referring others to do business with us?
My Comment: I love the NPS concept and highly recommend it, but as this article points out, we should try to gather the “why” or reason behind the customer’s answer. It can be as easy as simply adding one question, making it a simple two question survey, and that question is just one word: Why?
That said, I like another question, which is this: If you can think of one thing to make the experience you have with us even better, what would it be? This is an especially important question to pose to your happy customers (your promoters), because if a number of your happy customers who already think you are great are offering similar suggestions, you have an opportunity to improve on greatness.
Identifying Opportunities For Awesome In Customer Service by Jenny Dempsy
(Communicate Better Blog) In customer service, we relational, positive folks have a magical way of spinning the negative situations into opportunities for improvement. And, we should be darn proud of this!
My Comment: There is a great concept packed into this small article: Opportunity for Awesome. Complaints are opportunities to rise to the occasion. But why wait for a complaint to be awesome. Every interaction you have is an Opportunity for Awesome – or as I like to say, an opportunity to create a Moment of Magic®!
Brands think they provide great customer experience, consumers disagree by Graham Charlton
(Econsultancy) When competitors with better prices are just a click away, customer experience (CX) is a key differentiator for brands.
My Comment: This article is spot-on. Many companies think they deliver great customer service or create a great customer experience, but unfortunately in many companies, the customers have a different opinion. It’s worth the effort to survey both the customers and the employees of a company – especially leadership – to see if the CSAT scores align. If not (and the customers scores are lower), there is work to do!
7 Ways You Can Earn Your Customer’s Loyalty by Jonha Revesencio
(Huffington Post) A way to boost loyalty is to build brand identity. The stronger a customer identifies with your brand, the stronger the loyalty will inevitably be. So just how do you build this type of customer loyalty? Here are a few tips from the experts to help you get started.
My Comment: Another great list of ways to create customer loyalty. I like this list because it ties marketing and customer service together. I do have an issue with number five, which is, “The Customer Is Always Right.” I understand the concept and agree with the spirit of it, but regardless of how you treat your customers, sometimes they aren’t right. But they are always the customer, so let them be wrong with dignity and respect. You can still have your customer focused guidelines for taking care of complaints, returns, etc. (and get that bump in sales as a result), but that doesn’t mean they are always right. Still, I love this article. Great ideas and advice!
Voice of the Customer – Great! But what is it? by Ian Williams
(The Customer Experience Blog) The term Voice of the Customer is widely spoken about in the Customer Experience world and, alongside Net Promoter Score, Customer Satisfaction and Customer Effort Score, is considered to be one of the most important research techniques/ metrics on offer to CX professionals. That being said, for a few different reasons, it is also arguably the most mysterious and misunderstood of all of the CX measurement techniques.
My Comment: I’ve worked with a lot of companies that use Voice of the Customer as a way to understand what a customer wants, needs, expects, etc. I always ask how they go about getting the Voice of the Customer, and find that there are many ways to skin this cat. This article gives a clear definition about the meaning of VOC, where it came from and how it’s used.
Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken
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April 17, 2015
Guest Blog: What is your problem?
This week on our Friends on Friday guest blog post, my colleague Ricky Nowak shares an experience about how customer service can be so different at similar businesses. I have always said that consistency is key to the customer experience and leads to loyalty. – Shep Hyken
It should not have been a problem. But it was.
It should have been easy. But it wasn’t.
What it became was a loss of business opportunity and brand reputation.
Why?
Because when a request to do small printing job ‘on the spot’ due to an urgent client request was made, the owner of a local printing franchise told me “This is fiddly–gonna take ages. It’s impossible today and the earliest is late tomorrow…(groan). And it’s not gonna be cheap.”
Now it was my turn to groan.
So off to OfficeWorks where I requested the same job.
The reply?
“No problems, and don’t worry about it being a big fiddly – we love to help customers. Busy now with commitments to other clients, but promise you that I will do it before I leave tonight and you can have it by 7.00am tomorrow when we open? Will that be ok?”
So, what is my problem?
Only that I didn’t go to OfficeWorks earlier and thought that customer service was easy.
No it’s hard, but when it delights and is made to look easy, you have an advocate and opportunities to continuously engage with the customer and their visible and invisible contacts.
Think about it. Every time a customer interacts with a provider they consciously and subconsciously experience a variety of emotions, memories and feelings which may have nothing to do with the product or service but can determine if they will return to your on or off line store or refer you on.
So, irrespective of whether these decisions are based on fact or perception they have, at the pointy end the potential to determine the future of a business by the click of a button and no longer the sound of footsteps walking out of a store.
It’s at the peril of businesses to ignore the experiences customers receive. A lack of time, awareness or inability to act intuitively on what they ‘sense’ is no longer an excuse or choice and will sabotage loyalty as well as brand reputation. Not a good option any way you look at it.
Customers want experiences more than they want explanations of ‘why not’ or “why bother”
Customers will be loyal as long as providers give service.
The question we need to keep asking is this.
“ Are we giving our customers a compelling enough reason to do business with us outside the product or service we provide?
If we give our customers the experience that shapes this reason, loyalty will not be forfeited for the next bright shiny object.
Ricky Nowak CSP is an Australian Speaker, Author and Leadership Facilitator who helps leaders connect and communicate to their people so their staff are hugely productive, happy and resourceful.
For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com. Read Shep’s latest Forbes Article:
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April 15, 2015
Gift with Purchase: True Customer Perk or Marketing Ploy?
Guest Experience
Have you ever been given a gift of appreciation from the place that you do business with? The other night I ate at a restaurant. Once we sat down, the server brought over champagne glasses for each of us. The server told us that they love to start every guest experience with a complimentary glass of champagne to toast the customer. This little perk was an unexpected, but greatly appreciated, gesture. Most of the time the only thing the server gives us at a restaurant is the menu. Not that there’s anything wrong with that. It’s just this restaurant bumped the guest experience up a notch and set the tone for the rest of the evening, which, by the way, was exceptional. And, at the end of the meal, they brought over a platter of wonderful chocolates, again, complimentary. A great way to end our experience.
What this restaurant did was no different than any other business that practices what is known in the retail industry as a gift with purchase. The concept is to reward the customer for their business. This isn’t a loyalty program, but a perk. And, it applies to every type of business – both B-2-C and B-2-B.
Some companies give different gifts based on the amount of money spent. For example, on occasion my wife will come home with some cosmetics. Because she spent a certain amount of money, they gave her a “gift,” which was several small bottles of their other products. Now, is this truly a gift or perk, or is this a marketing ploy?
I recently bought something through a website that offered free shipping on any order of $20 or more. Everything they sold was $9.95. I usually order two tubes of their product, which means I’m ten cents short of qualifying for free shipping. Is this their “gift” or perk for spending $20, or is their scheme to get me to buy a third tube of their product? Why don’t they just tell me to buy three and I get free shipping?
I’ve written something similar to this before about loyalty programs. When is a loyalty program not a loyalty program? When it’s really a marketing program. And, the concept of the gift with purchase can quickly fall into that category.
By the way, it doesn’t bother me that it’s a marketing program, just don’t tell me I get a free gift when I spend enough. Call it an incentive or some other similar term, but don’t tell me it’s a gift.
The restaurant example is perfect. They know I’m probably going to order dinner, but they don’t really know how much I’ll spend. And, regardless of how much I spend, I’m still getting the gifts. They do it for every customer. It’s part of the experience they create for every guest. Yes, I know I’m paying for it in some other fashion, but it’s a nice gift on behalf of the restaurant.
Done well, the concept of a gift with purchase works. Make it a perk – a true gift – and not an outright marketing scheme, and you’ll reap the rewards of happier customers, return customers and great word-of-mouth marketing.
Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken
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