Archive for August, 2009

Less of a Good Thing

August 12th, 2009 by Michael Baum | 2 Comments | Filed in CRM Basics, Customer loyalty, Human Factor

This past weekend I experience what I am afraid is becoming more of the norm. I have gone to this same bagel store for many years. I would get a toasted bagel with whitefish salad. I loved it because the salad had large pieces of whitefish perfectly blended with herbs and just the right amount of mayonnaise.

I guess due to a drop in business they changed the preparation of the salad. Now when you order it you get this pile of pureed slop on the bagel. Gone are the chunks of fresh whitefish. Gone is the right mix of mayonnaise and herbs. They are trying to take the same amount of fish and create a lot more salad from it. They added a lot more mayonnaise and put everything in a blender. But they thought giving more would make up for the near soup they put on the bagel.

It seems a lot of companies think that people would rather have more of a bad thing than less of a great thing. Is this true? I know I will never go back for that sandwich. I believe most people would be fine (or not even notice) a little less salad per serving. Getting so much more of something fair diminishes the quality and value we expect from American business. But worse than that for companies is that it erodes their customer loyalty. I will no longer go to the store and when the economy turns around again and they can go back to making the sandwich the way they always did, I will have found an alternative.

Customers understand the difficulties vendors are under. I don’t believe getting a few ounces less for the same price while this crisis’s is in place would be an issue. Organizations need to be very careful not to alienate their best customer base by implementing changes to save money. There are many ways to get to the numbers you need.

CRM is great for not only understanding your customers buying habits and key issues but a great way to communicate with them easily. Let your customers know beforehand the cost cutting changes you are putting in place that might affect them. Some might choose another alternative in the short run but will value your integrity and caring for them. As soon as you can provide the same level of service again they will be back. Mass mailings are an easy way to get the message out to individuals. They will be happy to know you are doing your part to stay in business and maintain profitability. They need you around.

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