The Debate About Loyalty Continues
May 31, 2005 by Rick Segel
Filed under Advertising and Marketing, Retail Reference Library, Retailing is Selling
I didn’t expect that last week’s tip would stir up the interest it did. But it did. For those of you, who didn’t read last week’s tip; let me give you a brief synopsis. My contention is that loyalty, as we know it, is dying. There are many reasons why customers aren’t loyal and drift away. But even the customers that we consider to be loyal can be lost in an instant if we create an error or slip up. The true loyalty of staying with a store through thick or thin is becoming a rare commodity.
I gave the example of the spa company that I ordered a new cover from. We had 5 different delivery dates scheduled and each time the company didn’t show up. What made the matter worse was that we had to drive 1½ hours to be there to accept the delivery. Why would I be loyal to a company like that?
Well, I received some very interesting feedback from a number of readers. (Please keep up the feedback — it’s great!) The interesting thing about the feedback was that everyone who responded had almost the same reaction, which frankly is a point that I believe in and even teach. So with a little embarrassment, I tip my hat to my readers for reminding us that some of the closest customer relationships are born when things don’t go the way they are supposed to go or when we make a mistake.
People understand that we all make mistakes and will forgive us–especially when we first acknowledge the problem, take full blame for the mistake, are very apologetic, and offer some type of reward, allowance, or special benefit for our woes. An example is the restaurant that serves a bad meal and offers a free meal and gift certificate so that the customer will return. Customers will return to businesses that stand behind their product or service. And when we do this, we are actually building trust in the mind of the customer.
A mess up, error, or mistake is an opportunity to bond with your customer and show your sincerity and how important they are as a customer. So don’t run away from those situations. Celebrate them because you have an opportunity to get closer.
There is actually a theory that suggests evidence to this phenomenon. It is called the “Hero’s Journey.” It is a formula developed Joseph Campbell that is used in writing (most movie scripts are built around it) and makes sense out of the steps we take. The journey starts with a tragedy or situation that is wrong. First, the hero refuses to get involved. He finally gets involved, only to realize there is great danger (dealing with a disappointed, or let me say it “pissed off” customer, is great danger). The hero overcomes additional obstacles until the wrong is righted, everyone is happy, the villain loses, everyone loves the hero, and the hero is placed on an even higher pedestal. He has won their trust. (Sound familiar?)
We want the hero to appear. We hope our employees can be that hero. But when we demonstrate our sincerity and willingness to climb any mountain for our customers, they will forgive and will become loyal. So the next time you have to handle the irate customer, remember that you have the ability to become the hero.
As for my spa cover, we are still waiting for the cover and the hero to appear. This week they missed two more delivery promises but I also realized the owner is not aware of what is even happening. The employee seems to either be incompetent or is just covering up a bigger problem. Is there an opportunity for the hero to save the customer? Yes, but as each day goes by, the opportunity narrows that much more.
That is my last point. The longer a situation continues, the bigger the hero must be and the more you have to do to win that customer’s trust back. Correct it early or be prepared to be a super hero.
Thanks for the inspiration. You are the heroes.






Comments