When it comes to solving problems with customers, special treatment often works far better than money. Let me give you an example: A senior vice-president of a bank for whom I was doing some consulting came to me one day crying the blues. His concern was that some of the competing banks had decided to aggressively go after some of the large depositors who did business with his branch banks located in several wealthy retirement communities.
The way in which these competing banks were trying to lure these wealthy customers away was by offering them significantly higher interest rates if they would switch banks. The senior vice-president went on to say he felt that the only way he could hang onto these very important customers was to match or beat the higher rates being offered by his competitors. He was reluctant to do this, however, because it would be expensive and it would probably trigger a price war that would eventually result in none of the competitors making any money.
I suggested that if he didn’t want to lose these valuable customers, he’d have to give them a reason to stay. I went on to tell him that matching the competition on interest was one way to do this, but it was probably not getting at the real reason these people were leaving. I pointed out that a very important need of elderly wealthy people was to be treated in special ways that singled them out as being wealthy. I further suggested that, given their ages, probably all of these people had more than enough money to last them for the rest of their lives, so a few dollars more was not likely to be a long-term motivator of their behavior.
I suggested that he focus his efforts on giving these wealthy depositors some very special attention and basically ignore the interest rate increases being offered by the competition. What we eventually came up was with a program to organize gala events for these wealthy depositors on a quarterly basis – elegant afternoon tea parties, for example. These parties were announced to the targeted customers using engraved invitations. The tea and hors d’oeuvres were served with fine china and silver. In addition, the president of the bank and several of the officers were on hand at each of these events to mingle with the guests.
These events have been a smashing success. Instead of losing any of these elderly wealthy customers, the bank actually began to attract new customers as the result of referrals from people who had attended some of the parties. This was truly Win-Win in action: the customers got what they wanted – special treatment that appealed to their self-interest and the senior vice-president got what he wanted, in that he was able to hang onto these customers without having to match the interest rates being offered by the competition. Furthermore, the cost of the parties was insignificant compared to the cost of meeting the competition’s higher interest rates.
A Mexican restaurant in my neighborhood, called Mi Amigo’s is a master at giving special treatment to the customers who really count. The management realizes that children often have a strong influence on where the family is going to dine-especially during the week. The management also realizes that what really influences the children’s decision is not so much the food, although the food has to be acceptable to them, but any special treatment that is directed specifically at them. Thus, when the meal is ended, the management takes some extra steps to make sure that the children remember their dining experience at Mi Amigo’s in a very positive way. First, when the waitress brings the check, she also brings a delicious chocolate mint candy for everyone at the table. This is the highlight of the children’s evening and they are all smiles. But there’s more to come. On the way out, the hostess is holding a large basket filled with lollipops and each child is allowed to reach in and choose the lollipop he or she wants.
As inexpensive and mundane as these little gestures may seem, they are incredibly effective. Whenever Mom and Dad are too tired to cook dinner and the decision is made to eat out, the first thing out of the children’s mouths is, “Let’s go to Mi Amigo’s!” I can assure you that these management gestures work on other families besides ours. Whenever you arrive at Mi Amigo’s after 6:00 p.m., you can bet there will be a line, but it’s a line most kids don’t mind waiting in.
Ross R. Reck, Ph.D.
Author of The X-Factor: Getting
Extraordinary Results From Ordinary People
