A Walk Through The Market
 We all know that business is about attracting and keeping customers. In fact, you probably wonder why
I keep going on about the importance of retaining customers. A walk through the market might explain
why.
I have been a customer of State insurance for 26 years. A couple of weeks ago I got four letters,
via an agent whose agency they terminated three years ago, to say they would not be renewing these policies
because they have replaced them with better policies. They asked me to ring their 0800 number and “have
as much information as possible” if I would like a quote on the new policies. I rang, waited,
finally got through only to find they could not recognise the policy numbers they had given me. It took
four calls and three days to sort it out.
If State was serious about retaining its customers, it would have sent the quote for each of the new
policies with information about the new benefits and costs and then said if you would like us to transfer
you to the new policies, you need do nothing. It seems to me State is prepared to risk losing a customer
of 26 years by making it very difficult to continue doing business with them.
I have been a customer of American Express for 19 years. I recently received a statement saying my
account was overdue and my card suspended until I paid up. The enclosed statement showed they had not
credited my account with a payment of nearly $3,000. I rang the 0800 number and explained this, giving
the exact details of my bank account, the cheque number, the date the cheque was written and the date
it cleared my account. “Can you send us a copy of the your bank account statement and the cheque
stub?” was the response. Not, “Gee, we are really sorry,” or even, “There appears
to have been a mistake we’ll look into it,” just a request the customer does more work even
though the mistake was theirs.
Of course, I told the woman I would not be faxing through my bank statement as it is confidential
and they did not need the check stub as I had given them all the information that was on the stub. I
asked if she believed me when I said I had made the payment. She said she did, so I said you do not
need anything else, do you? “Our policy says we have to have the bank statement and cheque stub
so they probably won’t investigate this matter if you don’t send them in,” she replied.
I think she was right because a week later I got a letter telling me my account was overdue and asking
me to pay up. There was no mention of my phone call or alleged payment. When this gets sorted out I
will cut up my gold card and send it back to them.
I have been a customer of TNT Couriers for over 5 years. Last week I rang to extend my account to
cover international shipments. I was told a salesperson would call me back. They never did. This morning
I tried to book a collection. I was on hold for nearly 15 minutes. When I had made the booking I asked
what the delay was. “It seems there is nobody on the phones in Auckland,” said the woman, “and
I’m the only person in Christchurch.” Does that sound to you like the management of TNT
is particularly worried about keeping their customers?
Last month, I bought something from Lifesense, a new health food store that has just opened in the
mall where I live. “Would you like to join our loyalty programme?” asked the young girl. “You
will get $5 off your next purchase,” she added, giving me a coupon that said as much. I joined.
On Saturday, I went into the store to make another purchase, told her I was in the loyalty programme
and presented my coupon. She could not find my name in the system and phoned the manager. Eventually
she gave the phone to me and the manager explained that I cannot get the discount until I have a voucher
that comes in the post. She said it takes two to four weeks for that to happen. I explained that nobody
had told me that when they invited me to join the programme, it had been more than four weeks since
I joined and I had made a special trip to this store to make my purchase. “You have two choices,” I
told the manager. “Honour the promise you made when I joined and keep me as a customer or I will
go somewhere else.”
“You’ll have to wait for the voucher in the post. If you want to go somewhere else that’s
fine,” she said. So I did.
What disturbs me most about these experiences is that the New Zealand CEO of State, American Express,
TNT and the Lifesense franchise are probably convinced their companies are doing a fine job of looking
after their customers. In their delusional state, they do not realise their policies, processes, and
behaviour of both managers and staff are driving away their customers.
You cannot do anything about the way those companies are run, of course, but you can make sure organisation
is giving your customers the kind of experience that will keep them coming back not enrage them.
Customers are an asset and should be maintained just like any other asset because they are worth money.
Bad customer experiences are costly. Not only do they drive customers away but disgruntled customers
work hard to damage your reputation in the marketplace. Put yourself in your customers’ shoes
and review your policies, weeding out those that work against your customers. Have another look at your
processes and improve those that make it difficult for your customers to do business with you. Teach
your staff to behave properly. Doing these things is not just your job. It is your future.
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