Become an ex-customer and save!
hen my wife told me
she had gotten me a subscription to Glamour magazine, I
wasn’t really surprised. After all, I had used her name
when I subscribed to The Wall Street Journal, Field and Stream
and there was that subscription to Playboy that I wanted to
order anonymously.
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Dear Lolly McCrory,
As one of our preferred subscribers, we
want you to enjoy the convenience of smooth, uninterrupted
service, plus all the perks you deserve.
The accompanying order form offered:
“Savings worth 13 free issues. Enjoy 24 issues in all for
just $42. Save 55% off the $94.80 cover price.”
Fair enough? Not quite. On the same day
(Yes I said “the same day”) the renewal notice came
in the mail, the post office delivered the current issue of the
magazine. Spilling out of the magazine were pre-paid postcards
headlined: “Glamour. Just $1 an issue.”
To guarantee the insult to existing
customers, four more cards were stapled inside, saying:
“Just $1 an issue, 24 issues $24.”
So the existing subscriber, exercising her
position as “one of our preferred customers,” could
enjoy a special perk — paying $42 — while new
subscribers can get the magazine for $24. Gee, what a
thoughtful way of thanking loyal customers!
I’m sure all of you have had similar
experiences, dealing with businesses that place more value on
getting new customers than they do on keeping the ones they
already have.
Don’t let your desire to add new
customers alienate your existing ones. Because that is exactly
what happens when you try to offer a greater inducement to
“new customers only” then, “whatever
offer” or “no offer” to your current, loyal
customers. People who are already patronizing your business
will notice, or eventually find out, that they are not being
treated fairly and will realize the diminished value
you’ve placed on their patronage.
Why is it such a big deal for some
cleaners to reward their existing customers? After all, if they
don’t feel that they’re appreciated in your store,
they’ll take someone else up on their “new customer
only” offer, thus perpetuating the continual churn of
customers that so many cleaners think is the norm. They have
inadvertently contributed to their own customer churning and
never realized that this doesn’t have to be the case.
Everyone knows the number one reason customers leave you is
they don’t feel appreciated. In rough economic times like
these, it’s important to take pains not to self-destruct.
There are enough other forces out there
that are working against you. Don’t work against
yourself. Show all customers, even current ones, that you want
their business. Because, as Stan Golomb was fond of saying,
“A customer is not your customer once they leave the
store — they’re a free agent.” Too many
cleaners are giving attention to what might be, not what is.
That’s why customers keep turning over.
Magazine publishers aren’t the only
ones that fall into this “Customer Elimination”
trap. Take a look at the long-distance and cell phone service
providers. I’ve been a Sprint PCS customer for over five
years, so how do they show their appreciation? By spending
millions of dollars advertising special rates for new customers
only. The fine print always mentions, “contract
required.” You know why?
Because they’ll eventually come up
with a better deal for even more “new” customers.
It’s probably time for me to play the same game with them
that my wife plays with the publishers — every year or
two, when the contract expires, switch to another service
provider to take advantage of their “new customer”
offer.
The way I see it, if you’re not
going to be loyal to your customers, don’t expect them to
be loyal to you!
Dennis McCrory is president of The Golomb
Group Inc., a firm that designs marketing programs for
drycleaners. Contact him at The Golomb Group Inc., 7664 Plaza
Ct., Willowbrook, IL 60527 Tele: (800) 679-5856
E-mail: dennismccrory@golombgroup.com
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