I was recently speaking to a class of entrepreneurs who were preparing to start their first business. It was an open discussion about customer service and I was the guest speaker. We were brainstorming about ways to build customer loyalty. The idea was put forward that they should seek to surprise the customer “in a good way”. This thinking is common among new business owners. It is a dangerous strategy and all too often has the opposite effect. Here is why it is hard to surprise a customer “in a good way”.
- Trust. Your customers come to you because they trust you. The fundamental basis for that trust is that you and your product are reliable. Or to put it another way they trust you because you are predictable. Nobody wants a $20 steak at McDonalds. It doesn’t matter which McDonalds you go to, the food always tastes exactly the same. As soon as you try to surprise your customer you are eroding their trust in you and your product. Instead, build trust by increasing anticipation. Send your customer a note that a gift is coming. Not only is this one more promise delivered, most times the pleasure of anticipation will be what your customer really remembers.
- We could do better, if we wanted to. Think about it. Your loyal customer has been a regular purchaser of your product. Then one day you decide to reward them for all their loyalty. You deliver a product that is twice as good as what they have been getting for the same price. And then you tell them that next month you will go back to delivering the same old product. What does that really tell the customer about how you value them? It may come across to them that you could do a better job every month if you really wanted to. Rather show your appreciation with something unrelated to your product.
- Unearned Praise. Have you ever had the experience of being publically applauded for something you did not do? If you have not you can imagine how embarrassing and disconcerting such an experience would be. When you surprise your customer, especially in front of their piers or employees, you may be recreating that experience. I know someone who walked away from a slot machine payout because the flashing lights and alarm brought too much attention. Most people do not like attention they do not think they have earned. Instead make sure your customer knows why they are being appreciated.
- Diminishing Returns and Cost. If you really want to surprise your clients, it makes sense to make it big. I am not talking about a new car big, I am talking about a gift basket big. But what about next time you want to surprise them? You end up going bigger. After the while your customers begin to see the surprise as a perk. Something they expect. Congratulations you have just created a very expensive rewards program. A rewards program should be logical, documented and most importantly budgeted.
Your customers deserve appreciation and a properly designed appreciation program can build a loyal customer base. Make sure that your appreciation has the desired effect. There are great ways to keep the WOW factor. Even an annual drawing for a cruise can excite your customers as long as it does not surprise or embarrass them. Take a minute to share in the comments how your vendors have successfully or not so successfully showed you their appreciation for your business.
