Page 269 - (DK) The Business Book

SUCCESSFUL SELLING 267

the business. Making your and win their loyalty. For founder
customers love you therefore hinges Tony Hsieh the call center is not a
on both the quality of the product running cost, but an opportunity
or service and the benefits for the to market. Call center employees do
customer in remaining loyal to a not read from scripts—they seek to
particular brand or company, The customer can fire you make an emotional connection with
whether that’s for convenience, by simply deciding to do customers. Their reputation for
a bargain, or a feel-good factor. business elsewhere. going out of their way for customers
Michael Bergdahl is now enshrined as part of the
Cultivating loyalty US director for people, Wal-Mart brand. Simple tactics such as
Pioneered by the airline industry (1954–) sending goods ahead of schedule,
with its frequent-flyer programs, and a 365-day returns period, have
the idea of loyalty programs is helped to build a repeat purchase
especially important to retailers. rate reported at about 75 percent.
A successful loyalty program will CEO of Amazon Jeff Bezos
not only offer customers a “money- paved the way for the development
back” type of incentive, but will of customer satisfaction in the
also enable the business to gather of points, they receive “Nordstrom digital era. Bezos was able to
data about customer preferences, Notes,” which can be redeemed overcome some of the potential
spending habits, favored brands, against future purchases. Many stumbling blocks of Internet
and reaction to promotions. other stores around the world run retailing, such as customers not
Retailers use this data to make similar loyalty programs. being able to touch the products
decisions about what products to and having to wait for delivery, since
stock. Through its loyalty program, Online challenges its customer service includes next-
US department store Nordstrom Retailers who exist online potentially day delivery and free returns. The
records the size and color have more to gain from loyal company has consistently ranked at
preferences of customers, as well customers, but first they have to the top of the American Customer
as birthdays, anniversary dates, overcome the lack of an immediate Satisfaction Index. As Bezos
and other personal information. It emotional connection provided by asserts, “If you make customers
offers “Fashion Rewards”—points the ambiance of a physical store. unhappy in the physical world, they
earned for every dollar spent with For example, Zappos, the online might each tell six friends. If you
its store card. When a customer shoe seller, uses its call center to make customers unhappy on the
has accumulated a certain number forge relationships with customers Internet, they can each tell 6,000.” ■

Is the customer always right?

Department store owners Harry However, since the 1990s,
Gordon Selfridge (1857–1947), marketers have adopted a more
who founded Selfridges in discriminating approach to
London in 1909, and Marshall customers in the belief that the
Field (1834–1906), who in 1865 customer is not always right.
started the store bearing his Each customer can be
name in Chicago, are both measured by their individual
credited with coining the phrase, return on investment (ROI)
“the customer is always right,” or lifetime value, allowing
which has come to mean that it customer-service efforts to focus
is cheaper to retain a customer on the more profitable patrons.
Customer loyalty and store cards than find a new one. In an era of Using ROI, some businesses
encourage repeat purchase of products overblown product claims it was differentiate between customers
and also provide businesses with the an approach designed to attract who are always right and those
opportunity to gather data about their the burgeoning middle classes. who are not worth listening to.
customers’ shopping habits.