In my recent blog about the Customer Experience snafu at Morton’s The Steakhouse I used the term ‘loyalty currency’. It is actually a term that I made up, so I wanted to write about what I mean when I say loyalty currency.
I actually got the idea from the Covey concept of emotional bank account. How by continuing to make deposits into that account, trust develops and counteracts any withdrawals that have been made in the past.
It is similar to loyalty currency– making deposits into your customers’ loyalty account so that you build up currency. Then, in the event that something goes wrong, you have that loyalty, that trust from your customers who you have treated well all along.
I completely understand that bad things happen to good companies. But the trick is to be a good company in the first place. You have to create and deliver a great customer experience every time.
Doing this creates Promoters – loyal customers who prefer to do business with you, tell their friends & family to do business with you and who will give you another chance should you mess up. Their loyalty account is full!
Not being dedicated to creating a great experience, creates Detractors - customers who are disenchanted with your company and not recommending you to anyone. If you mess up, they will leave and be very vocal about their dissatisfaction. There have been too many withdrawals in the past for your company to recover.
So in 2014, do two things:
1.Become dedicated to creating a great customer experience (making deposits into the loyalty account every time)
2. Have a plan for handling the exceptions (they will happen and if you handle it properly, it will not be a withdrawal)
I actually got the idea from the Covey concept of emotional bank account. How by continuing to make deposits into that account, trust develops and counteracts any withdrawals that have been made in the past.
It is similar to loyalty currency– making deposits into your customers’ loyalty account so that you build up currency. Then, in the event that something goes wrong, you have that loyalty, that trust from your customers who you have treated well all along.
I completely understand that bad things happen to good companies. But the trick is to be a good company in the first place. You have to create and deliver a great customer experience every time.
Doing this creates Promoters – loyal customers who prefer to do business with you, tell their friends & family to do business with you and who will give you another chance should you mess up. Their loyalty account is full!
Not being dedicated to creating a great experience, creates Detractors - customers who are disenchanted with your company and not recommending you to anyone. If you mess up, they will leave and be very vocal about their dissatisfaction. There have been too many withdrawals in the past for your company to recover.
So in 2014, do two things:
1.Become dedicated to creating a great customer experience (making deposits into the loyalty account every time)
2. Have a plan for handling the exceptions (they will happen and if you handle it properly, it will not be a withdrawal)