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.