Posted by Deborah Chaddock Brown on May 27, 2009 under Customer Moments | 
Last week I talked about my favorite grocery store and their new fuel program in the post Is Acme Measuring Customer Service. Thought I’d follow up with a few new developments:
1. I went grocery shopping again yesterday (because it seems there is always something we need to purchase) and I asked the cashier what kind of feedback she was experiencing with the new fuel program. “Customers are upset,” she told me. They don’t understand how it works. I jokingly said “Well, it makes sense that you would get all of the flak considering you are the one who developed the program.” She looked at me for a beat and then burst out laughing. “Yeah, that’s right – it was all my doing.”
- When we develop a new program that affects our customers – do we consider the fact that it will be the hourly employees that will have to explain, defend or take the guff for the change?
- What training do we provide to help our hourly employees deal with the questions and concerns of a new program?
- Do we ask the opinion of our hourly employees before we make a major change that will affect both the customers and the front line staff? I’m just asking.
2. Last night I was talking to my best friend and we were comparing the price of milk and who had the best price (with growing male teens we both go through a lot of milk) and I asked what she thought of the new fuel program. She is also a fan of Acme. “I can’t figure it out,” she said. I explained that I had finally learned that you only get fuel points/cents when you purchase one of the private label items that Acme sells – and not on all of those. She said “I have 20 cents accumulated.” I explained that her benefit was not 20 cents per gallon – but merely 20 cents. “Oh – guess it will take a long time for it to mean anything to me.”
So where is the value in the program? I guess the lesson we can learn is this:
- When making a change or developing a new program/service – we need to ask the opinion of our front line staff and our valued customers. Whether we use what they say or not – we may be surprised by what we learn.
- We need to develop and provide training to help our associates adequately understand the “why” behind the change and how to effectively communicate the new program to customers. Also how to answer questions without referring them to a wordy brochure or a 1-800 – number.
- We need to make sure the program we are providing offers a value that the customer sees as important. We may develop a program so that we can be competitive – but if the program doesn’t appear to offer a value to our customers we might as well not even bother.
Posted by Deborah Chaddock Brown on May 13, 2009 under Customer Moments |
The game is afoot in the grocery store business. For the better part of three years Giant Eagle has been building business loyalty by offering consumers a 10 cent a gallon gas discount for every $50 spent when you buy gas at one of their approved stations. Easy. Spend $50 get 10 cents off every gallon of gas the next time you fill up!
As gas prices rose over the past few years, so did their sales. Whether you liked shopping at Giant Eagle or not – and frankly – I don’t – you couldn’t help but choose Giant Eagle because saving money on gas was just too easy. You can buy gift certificates and also earn gas perks. When my dishwasher and dryer went on the fritz, I bought gift certificates at Giant Eagle for Sears and Best Buy and my gas savings rose to $3.00 a gallon. Almost a free tank of gas at the time!
So it wasn’t surprising to learn that competitor Acme decided to get in the gas game.
When Giant Eagle started their program – if you had a Giant Eagle discount card – you were automatically enrolled. The bottom of each receipt totaled the amount you saved during that day of shopping as well as a total so far that you’d accumulated. Easy. I don’t have to do anything except look at the bottom of my receipt.
Yesterday I shopped at Acme – my preferred store. I was pleased to see that the gas program had begun. Clearly they desired to build customer loyalty. When I got my receipt from the cashier I looked at the bottom to see what I’d earned. Wait – it is different. I’d earned 60 cents. How is that possible? I only spent $80?
“I’ve earned 60 cents?” I ask.
“Only if you’ve signed up for the program.” she explained.
“Sign up – aren’t I just in the program – I’ve been a card holding member for years.” Remember me – your biggest grocery store shopping fan?
“Nope – you have to go to that guy over there. He’ll sign you up.”
Why do I get a tense feeling in my gut? I’m on a tight schedule. I don’t have time for an extra step. This isn’t easy. But I don’t want to walk away from 60 cents.
So I stand in line and as I wait I start to hear about their customer loyalty gas program.
I’ll earn money on SOME of the products I purchase. There isn’t a rolling total on my receipt. The only way to check my customer loyalty gas balance is by calling a number on the back of this new card I have to carry. If I have accumulated $10 in gas credits I pump that amount and then have to start all over with another credit card if my car requires more than $10 in gas.
How is this a customer loyalty program that is easy for the customer? As far as I can see – Acme realized they needed to do something but rather than create a program similar to the one Giant Eagle has successfully educated consumers with – they have developed a customer retention strategy that is so complex and convoluted that rather than creating customer loyalty – I’m ticked off.
I shouldn’t have to work that hard. I wonder how Acme is measuring customer satisfaction? Did they bring customers into the room when they developed this program?
I now have to remember how two totally different programs work. I have to carry additional cards. I have to make a phone call instead of simply looking at my receipt.
So I wonder two things:
1. Do you make your customers work for your customer loyalty programs or do you make it easy?
2. When did we (or maybe it’s just me) become so intolerant as a consumer? When I learned how complex the Acme customer loyalty program was – I actually got a little snippy with the sales guy and negatively compared his program to the Giant Eagle program. Now, I know the guy that signed me up didn’t develop the program, but sadly, he got the brunt of my disgust.
Does your customer loyalty program create disgust in the minds of your consumer? If so – I gotta believe it is the wrong customer retention strategy.
What do you think? Am I just being too picky?
If a competitor has a program that works – do you create something totally different or make a modified version of the same program for your customers? Isn’t imitation the sincerest form of flattery?
