Surface Ripples

Improving Customer Loyalty

Would you recommend a customer did not buy your company’s product or service if you felt it wasn’t in their best interest?

The UK has seen its share of companies being forced to compensate customers after being found guilty of mis-selling (Payment Protection Insurance being the latest example). In most cases, staff are under pressure to sell products to generate revenues and are given high targets. If bonuses (or the future of your job) are linked to how much you sell, the temptation to sell to anyone whether the product suits them or not is there and you will find ways of justifying the sale. The banks have proved this, to the cost of taxpayers in the UK, Europe and the USA.

Occasionally, you meet someone who recommends you don’t take their product or service. Such people are rare, but I recently had an encounter with a member of the Customer Service Team of one of America’s largest companies. I had some questions about a piece of software that I wanted to download and emailed the company. They arranged for a representative in the USA to call me (in the UK) at a time that suited me. The rep called on time, and I was able to ask all my questions. As we came to an end, the rep advised me to wait a couple of weeks to download so that any “bugs” could be discovered and ironed out.

No doubt Head Office would cringe at such “irresponsible” behaviour, thinking that not only would it result in a lost sale, but also customer suspicion that their product wasn’t robust. These are usually the ones who are most out of touch with the customer and whose focus is short-term profit against long-term customer loyalty. Yes, you can find new customers, but how much does it cost to find new ones as opposed to retaining existing ones?

My reaction? I felt more loyalty to the company because someone was looking out for my interests rather than those of some faceless corporation. They’re looking long-term to keep my business over the next 5 – 10 years. Too many focus on the next 5 – 10 months when bonuses have been paid, annual results announced, and (maybe) they have moved to another department and so won’t face the consequences of their mis-selling.

The power of the internet now enables unhappy customers to reach out to millions to warn them of sharp practices at companies who place revenues before retaining customers and reputation. Combined with sharp journalism and people being willing to “go public”, hiding devious sales practices is rapidly becoming a thing of the past.

I have spent more than half my life working in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy and work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.

Labels: Customer Care, Selling, Strategy

posted by William Martin @ 16:46