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Article Loyalty Execution

When the Team Doesn't Understanding The Business Model

Every company has it’s challenges getting buy-in across the entire team. Whether it’s their attitude or a management fault, the problem can be insidious — affecting the success of all your programs.

The most troubling cases at a lot of companies is that many team members don’t even understand exactly how their company makes money. That often relates heavily to pricing, rewards redemption and other revenue decisions that get made to support the overall strategy of business.

Exceptional Offers, Ordinary Treatment

We’ve all, from time to time, taken advantage of special offers from companies — and sometimes they’re absolutely exceptional deals. The problem is sometimes the staff which is providing the service treats customers who get a great deal like they’re second-class customers.

Aside from the bad feelings it gives to customers who are not breaking any rules, it flies in the face of the goals of the company in providing that special pricing. Sometimes, they’re loss leaders, other times loyalty program rewards or event things like GroupOn offers.

The real problem here is that misaligned team members are undermining the business model of the company. Whether it’s a way to increase load factor on a flight or quiet restaurant night, getting new customers to try your restaurant or addressing a business problem like relocating an RV after a 1 way rental, it’s often not clear to employees why the same product or service is being sold for vastly different prices.

It takes a highly motivated staff member to deliver great customer experience, so when you’ve got something that undermines their belief that the customer ‘deserves’ great service, it can hinder them entirely.

So how do you solve this problem?

At the root. your core training needs to include a deep understanding of how your business makes money. It goes beyond simply a product focused discussion and it needs to extend to special pricing offers and segment based special offers. Your team needs to understand why a GroupOn customer is important — even if they are not profitable at that moment.

To extend the point even further, by treating a GroupOn customer badly (or even less that perfectly), your team members can sometimes reinforce the low pricing — by making the customer question whether the service will ever be worth ‘normal’ pricing. It comes back to the biggest problem that businesses with promotional offers like GroupOn — convincing customers that the same product is worth a much higher price the 2nd or 3rd time.

May 18, 2014  

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