Do You Know When A Customer Should Be Back?
I received an urgent call from Office Depot regarding my account. It was our Account Manager who called – first time I had ever heard from him, and he wanted to know why I had not used our online account, or ordered since July, 2007.
I am sure that he is calling and anxious to get our account back. He said in his call that he wanted to know if I was just going into the store or using their competitor, but he was just checking in…
I want to remind you that I have a credit card from Office Depot, I participate with their loyalty program by using a special code when ordering for “cash back” AND in every catalog Office Depot gives away a gift with purchase. I make sure that my order meets the criteria and I get the gift EVERY TIME – including a miniture refrigerator, a portable television and a leather laptop bag. I have spent a lot of money with Office Depot – I am a PLATINUM member for an office supply company.
But here is the fatal flaw in Office Depot’s arcenal. They are staying in contact with me for new purchases by sending a catalog with a gift with purchase option every month. They even customize the front of the catalog to show My company’s Frequently Ordered Supplies so that we don’t have to search the sales, they have given me more gifts than the law allows however, it took them 6 months to realize that I was gone.
This should be something that triggers a HUGE red flag months ago. What about my loyalty purchases? How about the Credit Card? All of these are tactics to keep me tied to Office Depot and their supplies, Why go through so much stuff that costs money to keep me as a customer, however, miss the biggest opportunity of all by not sounding the alarm when I stopped using their service.
Part of your annual marketing plan, should include knowing when a customer should be back in your business, using your services again. Don’t forget the 3 R approach – Reactivate, Referral and Retention.
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Jim Spangler on June 14th, 2010
blog.themilliondollarequation.com’s done it again! Incredible read!