August 15th, 2005

Hello!

Superb customer service is key to make loyal advocates out of your customers.

In this issue:

1. Should you Spoil your Customers?
2. CustomerServicePoint.com Info

Should you Spoil your Customers?

I added it to my list of favorite quotes, not necessarily because I fully agree with it (in fact, I don't fully agree), but because it's a thought provoking quote.

Spoiling the customer does sound like "extreme customer service" and that's what I like about this. It puts the customers needs, and more importantly, wants central. Just thinking about how you can spoil a customer so they become highly dependent can be a an interesting exercise.

We can see real life examples of this at work all around us. More and more, it seems that children are living longer with their parents. Personally I know of examples of 30+ year adults still living with their parents. They may or may not be difficult, demanding & unreasonable, but undoubtedly they are highly dependent.

In fact, William H. Gates III, billionaire extra-ordinaire, allegedly still lived with his parents after making his first billion.

So, as a strategy to build on ongoing, strong relationship, this seems to be a very powerful one.

And if you have unlimited means to spoil your customers I support this. But, most businesses don't have unlimited funds for spoiling the customers. At least, it doesn't show in the wages paid for customer service personnel... ;-)

I'd like to bring some nuance in this:

Treat all customers better than your biggest competitors,
Pamper your good customers, and
Spoil your very best customers!

No need to treat all your customers like kings and queens. Actually, good business demands that you make choices...

So think about it: who are your best customers? (Do take lifetime value into account. A customer spending $1000, but just once, can be less valuable than a customer spending $20 a 100 times). Who are your good customers? Where do you draw the line?

What would it mean to spoil this customer? Is it little things like giving them a call on their birthday, or do you need a bigger budget? What difference do you make between pampering and spoiling?

And most importantly: will they really stay committed to your business, or will they switch within a heartbeat if your competitor starts to spoil them just a little bit more?

Because:

If you are spoiling your customers, great! But do think about this: are you bribing them to be a "friend", or are you earning their loyalty every single day?

Thanks for this quote, Dick! It sure helps to think about what customer service should be all about!

All the best,

Marjan Steneker http://www.customerservicepoint.com/

CustomerServicePoint.com Info

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Customer Servings is the e-zine for www.customerservicepoint.com, your resource on improving customer service. The newsletter is sent at irregular intervals.

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If you have any suggestions for subjects you would like to see in future issues, or have comments in general on Customer Servings or Customer Service Point, please contact me.

I welcome your remarks!

(C) 2005, Marjan Steneker