Loyalty is a commendable quality and we all like being recognized for our loyalty. That’s why I was pleased when I called my home heating oil company and was thanked for being a loyal customer for 23 years. Being a proponent of customer service, I was impressed that they had a CSM system that highlighted customer loyalty. Unfortunately, for this company, recognizing customer loyalty was where customer service began and ended.
For 23 years I purchased my heating oil from Petro Oil. During that time, as oil prices skyrocketed, they went from providing free oil burner service to charging $305.00. I complained, they held firm and I chose to remain a client. And then, as anyone who heats their home with oil will know, there was the introduction of “locking in” prices based on current oil prices. This was a tiresome exercise, but soon became an industry norm. Every year a Petro rep would call and the negotiation would begin. Assuming that the pricing was uniform throughout the industry, I chose not to shop around; it was easier to just remain a loyal customer. After all, Petro’s oil delivery and service had been consistent.
Two weeks ago I answered a knock on my door and was greeted by a young salesman from a competing oil company. He offered me a locked in price of $2.79 along with a service plan that was one third the price that I was currently paying. Since I wasn’t sure if $2.79 was a competitive price I asked him if he would give me a few days to compare. Being a good salesperson he drew up a contract and advised me that I had three days to make my decision. Well, I called Petro and asked to speak with a pricing advisor; I was told someone would call back. Someone did call back….a day later. Here’s how the conversation went:
Petro pricing advisor (PA): “Well first Mr. McConnell I want to thank you for being a loyal Petro customer for over 23 years. How can I assist you?”
Me: “Thank you for recognizing my loyalty. I’m sure you have preferred pricing for loyal clients, so tell me, what is your current “locked-in” price?”
PA: “We have a very favorable price today, it’s $3.58.”
Me: “$3.58? That’s not acceptable.”
PA: “Well if you look at current pricing you’ll see that $3.58 is a very good price.”
Me: “I’m looking at the current pricing on a contract from your competitor and they’re offering me $2.79 along with a service contract that’s $200.00 less than yours.”
PA: “Let me guess…” she then hissed the competitor’s name through clenched teeth.
Me: “You really shouldn’t disparage your competition; your tone is not acceptable. I’m asking you to provide me with a fair price. You thanked me for 23 years of loyalty and then insulted me with a price that is .80 cents per gallon more than your competitor. You should really be looking for ways to correct this situation and you’re not going to accomplish that by trying to diminish your competitor.”
PA: “I can have you speak with a supervisor and they can explain our pricing policy to you.”
Me: “No, I’d prefer that you speak with your supervisors and explain the situation. It’s up to you and your supervisors to keep me as a customer. Call me back by the end of the day and let me know what you can do.”
I did receive a call later that day from the same Petro pricing advisor. The price was now $2.99 and they could provide me with a lower quality maintenance program for only $100.00. When I informed her that that still wasn’t acceptable she seemed flabbergasted. “Well, what do you want?”
“What I want is to remain a Petro customer. Talk to your supervisors and provide me with a solution that will keep me as a customer. WOW me. I’m not WOWed with a price that remains .20 cents higher than your competitor’s and I don’t want a lower quality maintenance plan. I have one more day before I have to commit to your competitor’s contract. Please get back to me with your best deal.”
Well, I guess they couldn’t come up with a better deal, because I never heard back from Petro.
How’s does your company treat long-standing customers? Do you take them for granted, or do you reward them with pricing and service efficiencies? Always remember that your client’s perception is their reality and their reality is your brand.
When a customer shows loyalty, they are often putting their trust in your hands. They are assuming that you will put their best interests first. In the event that a long-standing customer feels taken advantage of, it’s imperative that you restore their trust immediately; it’s not the time to negotiate. Do everything in your power to WOW that customer. Provide them with a credit for any perceived over-charge, lower their price, provide an upgrade. Do anything you can to change their perception. People buy emotional states and you most definitely do not want to leave a long-term client feeling as if they’ve been taken advantage of; that’s an emotional state that will have a resounding effect on your business and your reputation.
Take time over the next few days to make sure that you are recognizing your long-standing customers with loyalty of your own. Never confuse your customer’s loyalty with gullibility. Loyalty equals trust, live up to and exceed your client’s trust, along with their expectations.
Oh, and one more thing: should you go through the expense of purchasing a CSM software package and it provides pop-up windows that highlight important customer facts such as “years of service”, make sure your Customer Service team doesn’t use this information to patronize your clients. This information should be used to strengthen, not damage, the relationship. Thanking your clients for their loyalty will never be a substitute for actually creating a superior customer experience.
