I was speaking to a lawyer about my recent appearances on CNBC, addressing customer service issues, and satisfaction guarantees came up as a topic.
I mentioned Costco, which used to offer an astounding guarantee enabling shoppers to return just about anything at any time for a complete refund.
(Recently, it curtailed its generosity. Electronics, for instance, can now be returned within 90 days of purchase.)
The attorney volunteered a story about a very successful guy who exchanged his TV’s at
Costco penalty-free every six months as improved models and better values hit the store.
The solon asked this guy about his motivation.
“You’re a successful guy, you’re no Bill Gates, I get that, but how can this be worth your time?”
The con man lit up like a kid who awoke to catch Santa coming down the chimney.
With a glint in his eye and a surge of barely contained enthusiasm, he confided:
“I enjoy the process!”
There are customers who, without a doubt, “game the system.”
They bend or exploit the rules to get the most they can get, even if their actions seem immoral or raise prices for everyone else.
Just the other day a story in The New York Times described airline frequent flyer freaks
that do nearly anything to amass miles. Their favorite ruse is to take the most indirect routes possible to their destinations.
So, a Seattle to San Antonio itinerary might involve stops in three or four airports in far-flung places. These airline gamers make sure to travel on those days or flights that contain the most bonus points.
There is a truism in psychology: “You get what you reward.”
Companies that reward people for returning items long after purchase dates will
get people to do that, and airlines will also attract hobbyists who will take off from their jobs at the mention of a triple-miles award.
The key question is whether these policies are effective, producing more profits than losses.
Are the costs worth the benefits?
In most cases the answer is, yes.
But it does hurt a bit when that con-man snatches the last available seat on a sold-out flight, the same flight you were hoping to catch!
Dr. Gary S. Goodman is the best-selling author of 12 books and more than a thousand articles. A frequent expert commentator on radio and TV, (See: http://www.cnbc.com/id/15840232?video=417455932#
) he is quoted often in prominent publications such as The Wall Street Journal and Business Week. President of Clientrelations.com and Customersatisfaction.com, his seminars and training programs are sponsored internationally and he is a top-rated faculty member at more than 40 universities. Dynamic and fun, Gary brings over two decades of management and consulting experience to the table, with the best academic credentials in the speaking and training industry. Holder of a Ph.D. from the Annenberg School For Communication at USC, an MBA from the Peter F. Drucker School of Management, and a J.D. degree from Loyola, his clients include several Fortune 1000 companies and successful family owned and operated firms. More than a “talking head,” Gary is a top mind that you’ll enjoy working with. He can be reached at gary@customersatisfaction.com
Article Source: http://EzineArticles.com/?expert=Dr._Gary_S._Goodman
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Client Rewards – Con-Man Exploits Customer Service Policies
I was speaking to a lawyer about my recent appearances on CNBC, addressing customer service issues, and satisfaction guarantees came up as a topic.
I mentioned Costco, which used to offer an astounding guarantee enabling shoppers to return just about anything at any time for a complete refund.
(Recently, it curtailed its generosity. Electronics, for instance, can now be returned within 90 days of purchase.)
The attorney volunteered a story about a very successful guy who exchanged his TV’s at
Costco penalty-free every six months as improved models and better values hit the store.
The solon asked this guy about his motivation.
“You’re a successful guy, you’re no Bill Gates, I get that, but how can this be worth your time?”
The con man lit up like a kid who awoke to catch Santa coming down the chimney.
With a glint in his eye and a surge of barely contained enthusiasm, he confided:
“I enjoy the process!”
There are customers who, without a doubt, “game the system.”
They bend or exploit the rules to get the most they can get, even if their actions seem immoral or raise prices for everyone else.
Just the other day a story in The New York Times described airline frequent flyer freaks
that do nearly anything to amass miles. Their favorite ruse is to take the most indirect routes possible to their destinations.
So, a Seattle to San Antonio itinerary might involve stops in three or four airports in far-flung places. These airline gamers make sure to travel on those days or flights that contain the most bonus points.
There is a truism in psychology: “You get what you reward.”
Companies that reward people for returning items long after purchase dates will
get people to do that, and airlines will also attract hobbyists who will take off from their jobs at the mention of a triple-miles award.
The key question is whether these policies are effective, producing more profits than losses.
Are the costs worth the benefits?
In most cases the answer is, yes.
But it does hurt a bit when that con-man snatches the last available seat on a sold-out flight, the same flight you were hoping to catch!
Dr. Gary S. Goodman is the best-selling author of 12 books and more than a thousand articles. A frequent expert commentator on radio and TV, (See: http://www.cnbc.com/id/15840232?video=417455932#
) he is quoted often in prominent publications such as The Wall Street Journal and Business Week. President of Clientrelations.com and Customersatisfaction.com, his seminars and training programs are sponsored internationally and he is a top-rated faculty member at more than 40 universities. Dynamic and fun, Gary brings over two decades of management and consulting experience to the table, with the best academic credentials in the speaking and training industry. Holder of a Ph.D. from the Annenberg School For Communication at USC, an MBA from the Peter F. Drucker School of Management, and a J.D. degree from Loyola, his clients include several Fortune 1000 companies and successful family owned and operated firms. More than a “talking head,” Gary is a top mind that you’ll enjoy working with. He can be reached at gary@customersatisfaction.com
Article Source: http://EzineArticles.com/?expert=Dr._Gary_S._Goodman