Wrong End of the Telescope

Some time ago I overheard a coffee shop owner talking about a recent change he had made in his business. He cancelled his shop's loyalty card program. It was a very simple program which rewarded regualr customers. After purchasing ten coffees the customer got one free. His reason for cancelling was that he realized that he was giving free coffee to regular customers that would have paid for anyway. He saw all of the free coffee as lost revenue. This is looking though the wrong end of the telescope. Businesses that focus on their needs at the expense of the customer don't do as well as businesses that focus on the customer. In retail your best customers must be as important as best friends. Don't think of this situation as giving up revenue, you are saying a small thank you to someone that is important to your business.

Got Clipped

I recently got a hair cut at a shop that I have never been to before. This event prompts two thoughts. First, a look at one cause of people choosing a new sevice provider and second, I'll discuss what was a very poor result.

People may choose a new hair salon, new dry cleaner, or new pharmacy when there is a significant change in their lives. No matter how good you are you will loose some great customers when they move homes or jobs, which are the most common examples of significant change. As a business owner keep in mind that there are always great customers that are looking for someone new to cut their hair, clean their clothes or fill a perscription Put yourself in a position to win your unfair share of these people. How to do that is a whole other topic.

In terms of the "poor result" let me say that I was very clear what I wanted and the barber indicated that he understood and then cut my hair the way I'm sure he cuts every one of his customers. It was not even close to my liking. Listening to customers should be the easiest thing for a business. When a customer gives instructions on how they want things done they are committed to a purchase. Give them what they want and they leave happy and will hopefully return in future and recommend you to their friends. Beyond being easy, it really should be a fundemental part of the businesses.