CUSTOMER SERVICE THAT ASTONISHES focuses on the critical role of employee engagement and exceptional customer service as a competitive advantage in the business landscape.

Great customer service built on a foundation of high employee engagement isn't a revolutionary concept. More companies are recognizing just how important a deliberate and intentional customer-focused culture is, but few companies do it well.

Monday, June 16, 2008

When a discount offer does more damage than good

As a subscriber to the Mirvish series, I received an email today, inviting me to a special presentation to meet the final 10 contestants for the title role of Maria in their upcoming production. I expect the purpose of this offer was to add value to my subscription and make me feel like an insider -- hence increasing my loyalty and emotional connection to the Mirvish company. This sounds like a good idea.

However, added at the end of the email was the following message. REMINDER: Order extra tickets for The Sound of Music at 15% off of the regular price before they go on public sale tomorrow. Call 416-593-4225 or 1-800-771-3933.

This sounded like a good idea so I called to book an extra ticket to take my young daughter. However, when told the final price I was told that the 15% discount was only available on certain performances -- the performance that I already had my 2 subscription tickets for was not included.

When I questioned this in the context of the actual message in the email, which communicated no such conditions, I was told that this was a reminder of a previous email and in that original email they had explained the offer was only available to certain performances.

My option was to trade my existing 2 tickets (5th row, 2nd Friday night of the run) for another mid-week night later in the run.

Now as a subscriber for almost 15 years, this treatment didn't make me feel like an insider. In fact, I was more disappointed about the outcome than if I hadn't been made the offer at all. I paid the full price, but with a bad feeling about how I had been treated. The onus was put on me to track the offer through multiple emnails to ensure I knew the deatils of the offer.

Clearly when the Mirvish team was crafting this offer they were not thinking from their customer point of view, but were simply looking for a means to sell more tickets.

Net outcome, I now have less loyalty, because they have not demonstrated loyalty to me, their long-term customer. Further, when presented with the problem, they made no real effort to recuperate when I highlighted the disconnect between their messaging and their rules.

So be careful when making an offer to an existing customer (or any customer). Make sure you are looking at the offering from their perspective, not just your own. Treat them like gold, since it cost 5 times more to get a new customer than keep a old customer.

Cheers!

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