Recession or not , these smart business owners understand the value of giving.
I've gone to the same mechanic for 15 years. Never mind that his shop is in London and I live in Waterloo. For anything except basic oil changes, I'll happily drive an hour for competent, honest and fair-priced service. Lou Fatibene, the owner of Dundas Automotive Repair, really knows how to treat his customers right.
I think one of the reasons I trust Lou's car repair recommendations is that I've lost count of the number of times he's actually counselled me NOT to spend more money on certain car repairs - the same repairs that my local oil-changing lube shop routinely pitches to me in a tediously predictable up-sell. Lou has no problem telling me when these so-called "maintenance" fixes aren't necessary and says he'll let me know when/if they are. A bit counter-intuitive, perhaps, to any business owner in sales, but most commendable. Lou's rationale is he's just too busy servicing actual problems on his customers' vehicles to manufacture make-work projects for imaginary ones!
I remember dragging my 15-month-old daughter into Lou's shop years ago and plunking her on the sales counter while we settled a bill. Lou, a 30-something bachelor back then, took that in stride and now shakes his head in amazement when I report that my daughter is 12-years-old and about 5' 8"!
The other day, I drove in to see Lou because my brakes "sounded funny" - that's the best description I could give the poor man! Lou ended up having to change all four of the corroding rotors. He also threw in four new brake pads and one hour of labour for free. That kind of generosity is hard to find these days and it saved me at least a couple of hundred bucks!
Lou didn't have to throw in the freebies. I'm a loyal customer. I know my mechanic doesn't take my business for granted, but he understands that I'll continue to trust him with my car as long as I believe he provides good service. Trust is earned over time. Maybe that's why people from Toronto, Sarnia and Windsor gladly drive to London to see him.
My husband happened to be with me the last time my car was at Lou's shop. So while it was being repaired, we decided to go to a local restaurant for lunch. After we ordered, we waited about 15 minutes before a well-dressed man approached us. Identifying himself as the restaurant manager, he began apologizing profusely. Apparently, he had just intercepted my lunch plate on its way from the kitchen. He explained that he really thought the grilled shrimp looked a bit too charred and if it were his lunch, he'd prefer the shrimp to be done "just right." Would it be O.K. if the dish took another 30 seconds to appear?
I should have exclaimed, "Thirty more seconds!" But I didn't. I was charmed.
I was actually kind of bemused that this restaurant manager had cared enough about his customer's satisfaction to fix the quality of his product before he received any complaints at all. Wow! As a satisfied customer, I am happy to recommend Milestones restaurant at London's Masonville mall to anyone who would enjoy a fantastic grilled seafood salad.
Both of these businesses have discovered how to delight their customers. They both follow the principles of the gift economy. They are willing to offer something for nothing to keep their customers happy. In true "Golden Rule" fashion, they go as far as to imagine how they would want to be treated and then treat their customers in that manner - whether this means throwing in free brake pads and labour or recreating a grilled shrimp lunch entrée.
If your business hasn't realized the value of the gift economy, maybe you're missing out. We live in a world where more and more experts are offering their expertise for free -- whether they are scientists publishing research papers, programmers offering open source software, or bloggers sharing their unique knowledge. Why do this when there is no apparent pay-back? Because over time, when you offer something to someone without expecting reciprocation, you build up goodwill and enhance your brand or your personal reputation.
A great reputation usually translates into more loyal repeat customers and, ultimately, more sales. I'd love to hear about ways in which your business delights your customers by following the principles of the gift economy. During recessionary times, we could all use a gift. What can you give away today?
Photo Credit: MyEyeSees
Feel free to contact me directly if your business would like an internet marketing consultation. For more online marketing tips and strategies, follow me on Twitter.
4 Comments
Great message Sarah...I haven't heard the term Gift Economy before, but it certainly resonates with the concept of providing superior customer service. Purchases are typically not made because of a product unless it's niche - purchases are made because of the relationship with the individuals who are selling/promoting the product for sale.If you have a good experience you're likely to recommend or repeat the establishment or brand when appropriately prompted. Have a poor experience and you're more likely to provide negative comments and discredit others from purchasing without solicitation. Today's pace is so fast and basic customer service - let alone live customer service - is so hard to come by. Businesses in today's economy certainly have a great opportunity to delight customers by creating Moments of Magic that will go far beyond the initial purchase...it is difficult to place an ROI, but with effective referral tracking and measurement of repeat business...the results can be incrementally measured - for the positive.
Thank you for your kind comments, Yvette. As you said, more companies would benefit from creating those "magical moments" which elevate their routine customer service protocol into opportunities to truly delight their customers. Loyal customers who are offered appropriate "gifts" will feel more appreciated, and newer customers are more likely to be retained. Following the principles of the gift economy can only improve a business' ROI over time as more customers refer their products or services to others.
I learned recently that B2B buyers function much like consumer buyers -- they toggle between web research to identify suppliers and word-of-mouth recommendations. In the end, their corporate buying decisions are not only based purely on cold rational facts such as price, capabilities, delivery or quality, but on a myriad of very human factors such as how emotionally connected they feel to a company. This customer loyalty is grounded in positive past experiences with that company and it needs to be reinforced constantly. It takes so much more in resources to gain a new customer than retain an existing one. There lies the golden opportunity for smart suppliers to offer customers "gifts" which delight them every time and keep them coming back for more.
Sarah
Good article. I think there is a difference between an expert offering some of their intellectual capital via some sort of media, and a service provider being able to show they have provided something extra in the context of a transaction. You described a few transactions where something else was added (tangibly) at no charge. These kind of situations create delight, and the best customer service relationships provide delightful moments along the way (even when the bar of service has been set pretty high already). I suppose the trick is to build trust and rapport, and then at the certain moments of truth make an offer in such a way the person receiving it can see that it is extra and special. I guess this is all to say the gift economy (as you described it) should remain alive and well as part of anyone's customer intimacy strategy.
Thanks again for a thought provoking article.
ps any comments about the Cowan blog and its value would be appreciated
Glad you liked the post, Greg. Thanks very much for your comments. You're right -- there is a difference between the gift of intellectual capital vs. a tangible gift of goods or a service. Ultimately, however, whatever form the "gift" takes, if it is meaningful to the recipient -- i.e. your customer, then it will go a long way towards cementing their loyalty to your company and enticing them to engage with you or your brand. Too often marketers miss this by offering "freebies" or specials that have no relevance or value to their customers. I believe marketers who are agile enough to authentically capture moments when they can delight their customers are the ones to emulate.
Would you like to comment?
You must be a member. Sign In if you are already a member.