The Last Word: Customer Solutions Profit Ideas

Retail monitoring agencies are predicting that “free shipping” could disappear due to raising fuel costs and negative impact of the economy on retailers overall.

Unfortunately, “free shipping” has become a crutch for companies who didn’t build broader loyalty with their customers. Free shipping is the equivalent of “two for one” and other coupon offers which have plagued industries for decades.

When industries introduce promotional offers to drive consumers, and ultimate sales, they are creating a relationship dependent upon this specific financial commitment. To become dependent upon a financially-based offer in order to drive market share and sales, is shortsighted and destructive to the overall company brand and customer relationship.

All too often these are tactics by companies who have lost sight of the deeper and more lasting customer experience management – particularly as it relates to customer service skills that attract trial and build loyalty.

The pizza industry has been plagued with this situation – now dependent on offers of “two for one,” “fast delivery” and “free add on products” they have become a low-loyalty, coupon-dependent industry – consumers will buy from the company with the best offer, at the time.

Unfortunately, we are in an economic period where price will become a key driver in consumer purchase decision making. The companies who spent time building high service standards and consistently delivered high quality customer experiences will not have to be as aggressive with the price-based offers.

Customers will remember the value of the service and the difference it meant. These companies will keep a larger share of their customer base and will most likely be the ones to manage through this economic period with relevant and meaningful offers that don’t undercut their margins completely.

If you’d like to learn more about how a golf management company with over 15,000 employees operating on 300 courses used customer experience management tactics to “drive” up their customer satisfaction levels check our case study: Improved Customer Service & Relationship Profitability. It’s a quick read and you just might get some ideas you can use.