{"id":1429,"date":"2009-08-22T05:29:00","date_gmt":"2009-08-22T12:29:00","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=1429"},"modified":"2014-10-21T20:08:45","modified_gmt":"2014-10-22T01:08:45","slug":"goodbye-customer-loyalty-costs-complexity-and-recovery","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/goodbye-customer-loyalty-costs-complexity-and-recovery\/1429\/","title":{"rendered":"Goodbye Customer: Customer Retention Programs and Win Back Initiatives"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Goodbye Customer.<\/p>\n<p>There are <a title=\"why customers leave\" href=\"https:\/\/staging.opexlearning.com\/resources\/root-causes-of-lost-business-relationships\/5411\/\">reasons customers leave<\/a>. That is sometimes what we say, without knowing the full costs and burden that proposition means on the business. What we fail to acknowledge is the most effective customer retention programs <a title=\"delight the customer through simple acts\" href=\"https:\/\/staging.opexlearning.com\/resources\/customer-loyalty-and-customer-satisfaction\/792\/\">produce excellent customer experiences<\/a> in the first place.<\/p>\n<p>Ironically, businesses are often unaware that their actions are pushing the customer away while at the same time trying to recover and retain them through expensive customer retention programs.\u00a0 Metaphorically, this is like pushing the customer away and pulling the customer back &#8212; at the same time.\u00a0 It is no wonder that customers have had enough.<\/p>\n<blockquote><p>Businesses push the customer away and pull the customer back &#8212; at the same time!<\/p><\/blockquote>\n<p>Awareness is the missing piece.\u00a0 Shmula.com has developed a simple framework that can serve as a helpful model for the true costs to the business and the burden on the customer &#8212; because of our push\/pull activities.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-4462 aligncenter\" title=\"abilla-shmula-customer-recovery-function\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/abilla-shmula-customer-recovery-function.jpg\" alt=\"loyalty customer win back function\" width=\"887\" height=\"668\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/abilla-shmula-customer-recovery-function.jpg 887w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/abilla-shmula-customer-recovery-function-600x452.jpg 600w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/abilla-shmula-customer-recovery-function-300x225.jpg 300w\" sizes=\"(max-width: 887px) 100vw, 887px\" \/><\/p>\n<p>The function above attempts to highlight the relationship between costs, complexity, loyalty, customer touches or interactions, and recovery.<\/p>\n<p>Our example shows an interaction between a customer and a website, but it could be an interaction between customer and anything: a device, a brick-and-mortar store, or any other business.<\/p>\n<ol>\n<li>Customer interacts with a company website for commerce<\/li>\n<li>Customer has a a question or problem, she searched the Help Pages or engages in some site self-help<\/li>\n<li>Customer has not resolved her concern, so she engages the live chat service<\/li>\n<li>Customer orders item, maybe.\u00a0 At some point, Customer has another concern, causing her to call the company<\/li>\n<li>Customer interacts with Intravoice Response System (IVR), a form of automated self-help<\/li>\n<li>Customer maybe interacts with a human<\/li>\n<li>More Customer Interaction. . .<\/li>\n<\/ol>\n<div align=\"center\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4461 alignnone\" style=\"margin: 5px;\" title=\"shmula-goodbye\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/shmula-goodbye-199x300.jpg\" alt=\"\" width=\"199\" height=\"300\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/shmula-goodbye-199x300.jpg 199w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/shmula-goodbye-600x902.jpg 600w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2009\/08\/shmula-goodbye.jpg 681w\" sizes=\"(max-width: 199px) 100vw, 199px\" \/><\/div>\n<p>At each point above, there is an opportunity for Customer retention and recovery, but there is a cost.\u00a0 Indeed, the Recovery Curve is such that the costs of recovery increases as there are more interactions, while at the same time decreasing customer loyalty.<\/p>\n<h2>The Goal is to Reduce Interaction<\/h2>\n<p>Aza Raskin, the Head of User Experience at Mozilla Labs<sup class='footnote'><a href='#fn-1429-1' id='fnref-1429-1' onclick='return fdfootnote_show(1429)'>1<\/a><\/sup>, and a good friend of shmula.com, has <a title=\"shmula.com, aza raskin\" href=\"https:\/\/staging.opexlearning.com\/resources\/aza-raskin-on-google-search-results\/441\/\">said<\/a>:<\/p>\n<blockquote><p>the fundamental goal of interaction designers is to reduce interaction<\/p><\/blockquote>\n<p>From a customer&#8217;s perspective, they want to find something to buy, buy it, and move on.\u00a0 Indeed, proponents of Lean Thinking would clearly agree and so would the customer.<\/p>\n<p>From the perspective of Lean Thinking, we think of Reducing Interaction as the reducing &#8220;non-value added activities&#8221; &#8212; activities that the customer would <a title=\"shmula.com, 7 wastes of lean\" href=\"https:\/\/staging.opexlearning.com\/resources\/process-bloat-a-hidden-indigestion\/1322\/\">consider waste<\/a>.<\/p>\n<h2>When There is Added Interaction<\/h2>\n<p>If there has to be a recovery activity, then the quality of that recovery activity must have the goal of increasing Loyalty.\u00a0 Doing this has a three-fold purpose:<\/p>\n<ol>\n<li>The sooner the business can resolve a customer concern, the better<\/li>\n<li>If (1) is satisfied, it prevents further unnecessary interactions, prevents further costs, and preserves or increases loyalty<\/li>\n<li>If (2) is satisfied, then this could potentially mean incremental revenue in the future from a repeat customer<\/li>\n<\/ol>\n<h2>A Case Study<\/h2>\n<p>Amazon.com clearly subscribes to the &#8220;Reduce Interaction&#8221; mantra.\u00a0 I can share many stories, but I won&#8217;t to preserve confidentiality.\u00a0 Zappos.com, on the other hand, has taken a stance on the &#8220;When there is Added Interaction&#8221; front by making Service a key differentiator and it has clearly helped them win market share.\u00a0 Now, both <a title=\"amazon.com and zappos.com are one big family\" href=\"https:\/\/staging.opexlearning.com\/resources\/amazon-and-zappos-sitting-in-a-tree\/1375\/\">Amazon.com and Zappos.com are one big family<\/a>.<\/p>\n<h2><span style=\"color: #000000;\">Another Case Study<\/span><\/h2>\n<p><a title=\"shmula.com, home depot, twitter, i hate home depot\" href=\"https:\/\/staging.opexlearning.com\/resources\/customer-service-a-chance-for-redemption\/1260\/\">My experience at Home Depot<\/a> has gained some popularity and will now be part of an upcoming book &#8212; details later.\u00a0 In that experience, I sent a tweet explaining my recent experience at Home Depot.\u00a0 That tweet quickly made its way to Facebook and the rest of Twitter.\u00a0 Home Depot communicated with me via their resident Twitter-er and then things ended there, without resolution.\u00a0 Clearly not a closed-loop feedback.<\/p>\n<p>Home Depot has a call center, thousands of customer service representatives, and now a team of Twitter agents that monitor social media channels.\u00a0 When things don&#8217;t go well, costs grows and loyalty decreases.\u00a0 The framework above clearly describes my experience and the experience of most customers.<\/p>\n<h2>Reminder<\/h2>\n<p>Companies often speak in terms of Features, Shiny Objects, and the like.\u00a0 Companies often call this &#8220;Innovation&#8221; or some other <a title=\"shmula.com, jargon monoxide\" href=\"https:\/\/staging.opexlearning.com\/resources\/how-to-be-a-human\/1039\/\">buzz word<\/a>.\u00a0 From a customer&#8217;s perspective, their mental model is this:<\/p>\n<blockquote><p>I won&#8217;t really remember your features or their details, but I&#8217;ll remember how I felt; I&#8217;ll remember my experience &#8212; both the good and the bad.<\/p><\/blockquote>\n<p>So, let&#8217;s design our products, services, and our business on behalf of the customer.\u00a0 Many people and businesses forget this simple fact; let&#8217;s get grounded in the customer &#8212; that is good for the customer and good for business.<\/p>\n<div class='footnotes' id='footnotes-1429'>\n<div class='footnotedivider'><\/div>\n<ol>\n<li id='fn-1429-1'> Aza Raskin is the son of Jef Raskin, the inventor or the Macintosh.\u00a0 Aza is the Head of User Experience at Mozilla Labs.\u00a0 Aza has been interviewed by shmula.com and <a title=\"shmula.com, aza raskin\" href=\"https:\/\/staging.opexlearning.com\/resources\/humane-interface-ask-aza-raskin-anything\/408\/\">that interview can be found here<\/a>. <span class='footnotereverse'><a href='#fnref-1429-1'>&#8617;<\/a><\/span><\/li>\n<\/ol>\n<\/div>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Goodbye Customer. There are reasons customers leave. That is sometimes what we say, without knowing the full costs and burden that proposition means on the business. What we fail to acknowledge is the most effective customer retention programs produce excellent customer experiences in the first place. Ironically, businesses are often unaware that their actions are [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":4461,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[664],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Goodbye Customer: Customer Retention Programs and Win Back Initiatives<\/title>\n<meta name=\"description\" content=\"Article describes customer retention programs between customer loyalty, costs, 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