Our loyalty programs have to vary at least as much as our customers
Words customers want to hear... from Groove

The customer experience of abandonment cuts both ways.

One of my most memorably bad experiences was in the service area of a car dealership. I was clearly not of the recognized regular customers. And I arrived in a bad mood, as a consequence of some problem with my car. The service manager punished me by overlooking me for all the other customers in the area. There was no queueing system that might have protected my turn.  IStock_000020658318XSmall

As I stood there and stewed, I had plenty of time to consider what I had done to contribute to the situation and how I wish things had been handled differently. If any of the personnel has made eye contact and said, 'you're having a rough morning,' I would have relaxed. If they knew I needed to wait they could have directed me to a place to sit and told me how long to expect to wait. None of that happened, and I never returned after that first experience. 

Customers do NOT want to school your employees. If we already have a great deal of loyalty, we may go to the trouble of asking or mentioning unfair treatment. Confrontations are draining, and if we don't have an investment to protect, why should we bother? It's your business, after all. 

LoyaltyOne: Dysfunctional customer experiences risk billions in retail losses, 2015-Jun-1 [emphasis added]

It may seem counterintuitive, but retailers should welcome the irate shopper who vents her frustration in an animated scene on the sales floor. That’s because it’s the mistreated customer who walks out the door in a silent huff who places the most revenue at risk, according to a collaborative study of dysfunctional retail touch points conducted by LoyaltyOne and Verde Group with Professor of Marketing and Psychology, Dr. Deborah Small, at the Wharton School of the University of Pennsylvania.

The March 2015 survey shows that approximately half of 2,500 U.S. consumers polled reported experiencing a problem on their last shopping trip. Of those customers, 81% decided not to contact the retailer about the issue. Among these silent shoppers, 32% said they were unlikely to recommend the retailer to friends and family, putting these shoppers at-risk of decreasing their spend with the retailer.

By comparison, the study shows that shoppers who did notify retailers of their poor experience and had their problem completely resolved were 84% less likely than silent shoppers to be at risk of decreasing their spend.

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