Tag Archives: Customer retention

Mistakes Were Made

Foodie Friday, and I’ll bet that a number of you will be going out this weekend. We’ve all had the problem of placing a food or drink order and what you ordered isn’t what you get. It’s really a problem when you’ve ordered delivery. What’s more frustrating than your vegetarian pizza showing up with pepperoni or your steamed dumplings arriving fried?

Mistakes happen. I used to run an online store that fulfilled tens of thousands of orders each year. Mathematically speaking, if we performed perfectly 99.9% of the time, there are still 100 screwed up orders out of every 100,000 (and we did way more orders than that). What I used to ask my folks was to listen to the customer (and put aside their heated and often unpleasant language), apologize for the problem (even if we didn’t cause it), and solve it. Maybe they clicked on a wrong key or maybe our inventory system didn’t react in real time, telling them that something was in stock when it wasn’t. It doesn’t matter. They are customers, and it’s easier to retain a customer than it is to find a new one.

Let’s go back to our delivery example (since today is food-related!). Suppose the cook forgot to pack the drinks ordered with the pizza. How can you catch this before the customer even knows there’s an issue? Make every person in the chain responsible for checking the order. Does it match the ticket? As an aside, I always ask the restaurant to read me back my order when I place it and I’m always surprised when they don’t ask to do that themselves. If the ticket isn’t right, no matter what steps are taken along the way, the order is wrong.

But let’s suppose there is a failure and the food goes out without the sodas. When the customer asks where they are, you have a few options. Send out a second delivery person (if you have one), make a second trip (if you don’t), or empower the delivery person to hit a store near the customer and buy what’s missing. My guess is that this is the fattest, least expensive solution since it minimizes the time to correct the mistake. Another option when the customer calls to complain might be to credit back the missing items as well as some or all of what was delivered. The reality is if they care enough to call you need to care enough to keep them.

Any business is a team effort. No one can think, much less say, it’s not my job to take responsibility for making a customer happy. Whether you’re a food business or not, read back what a customer is asking. Say something if the order is right but something seems off (“oh, you DON’T want chocolate on the pizza, you want chocolate cake!”). Most importantly, be prepared for mistakes. They’re going to happen. The real challenge, beyond preventing them as best you can, is making a customer happy when they occur. How are you doing with that?

Leave a comment

Filed under food, Thinking Aloud

Retraining For Retaining

As usual, I have golf on the brain this morning. It’s probably because I’m in the midst of planning the annual soiree to Myrtle Beach that has been the highlight of my year for the last 23. I’ve written about how it’s my annual Board Of Advisors meeting and I highly recommend a similar trip – whether golf-related or not – to each of you.

With this much golf on my brain, I got to thinking about what’s going on in the golf world these days. As it turns out, it has a lot to do with what’s going on in nearly every business. If you have read anything at all about the golf industry over the last few years, you keep reading about the need to grow the game. According to the latest from the National Golf Foundation, interest in playing the game continues to grow but actual on-course participation has been flat at best. Much ink has been spilled over the need to make the game more accessible, lower the cost and speed up play so that new people will become regular participants. I suspect your business spends some time thinking about how to attract new customers too.

What some folks in the golf industry are beginning to realize is that they don’t spend enough time on customer retention rather than customer capture. You might have heard (you certainly could have read it on this screed!) that it costs five times more to get a new customer than to retain an old one. Why not focus on something that is 80% less expensive?

Let me put it in golf terms and I think you’ll see the parallels. If you go to some courses, particularly the high-end courses, you’re often treated like they’re doing you a favor for letting you play. It’s almost like the customer is a distraction rather than the sole reason for the business to exist. The course does nothing to help speed up play. If conditions are poor (shabby greens, standing water in fairways, etc.), that’s never said before you pay or even acknowledged after your round is done. How about stating that you’re sorry for the course not being in top shape and offering to buy a drink or lunch at the end of the round? How about a coupon to come back at half price when the course is in better condition?

You’d be shocked if you encountered some of the rude employees I’ve met in my years of golfing. There clearly hasn’t been an emphasis on customer service at some places. Instead, the emphasis is on holding their hands out for a tip. All they want to do in the shop is to sell you overpriced shirts, hats, and balls with their logo on it. None of that aids customer retention.

What they – and you – need to be asking yourself is what can I do to improve the customer experience? How can I get this customer to come back? Little things go a long way – it can be as simple as a towel on a cart or ice in the cooler or enough sand to fix divots. I’m sure you can think of little amenities you can offer – it can be as simple as a bottle of water on a hot day to customers entering your store or a personalized thank you note for a past purchase. What are the things that will help retention?

Leave a comment

Filed under Consulting, Helpful Hints

Open Your Ears

First things first: I swear this post isn’t about golf.ClickZ

I recently joined a new golf club. What has impressed me so far has been the proactive customer service.  After almost every round I receive a quick (5 questions) survey about my experience at the club that day. Was the course in good shape? The food ok? Any staff issues? I also received a survey last week since it was the end of a half-year. That was a more in-depth questionnaire (but not burdensome). I know, by the way, that these are being read because I made a comment on one of them and the club GM sought me out to answer it in person after my next round. I’ll admit that this is an extreme and I can see where it might be annoying for many consumers to have a follow-up post-mortem after each interaction.

I’ll also admit that I’m baffled by the companies that ignore the basic customer feedback mechanisms they already have in place. Name a business without a Twitter account or a Facebook page or at least a website with a “contact us” button. Pretty hard to do. Yet studies show that 45% of consumers will abandon a purchase if they can’t get answers to their questions. They use social channels to get them and yet businesses keep ignoring them. At least a third of these interactions go unanswered.

So in the words of the Jerky Boys, open your ears, jackass. As you can see in the graphic from ClickZ, the differences in long-term results for a business are very tied to how that business services its customers. Negative experiences have ripples as dissatisfied folks tell their friends, post reviews, and go elsewhere. If they’re doing so via social channels, and most are, then isn’t it incumbent upon every business to listen and react? Especially to the customers who come to you for a response first?

Leave a comment

Filed under digital media, Huh?