Should You take your Customer's loyalty and goals
Written by Hsen Snen on Jan.24 2022
Deliver more value by optimizing your customer experience. More value = higher prices.
Imagine that you’re walking down the street on a chilly day. You’ve been out for a couple of hours, and the tips of your fingers are getting a bit numb from the cold. “Man, I’d really love a hot cup of coffee,” you think to yourself. Great timing! As you turn the corner, you’re confronted by two coffee shops, right next door to each other.
The first shop — let’s call it Joe’s — is, let’s say, less than inviting. Old, yellowed Formica countertops with metal stools. Bare white walls. An uninterested employee in a stained apron behind the counter, silently taking new orders as if customers were intruding on his time. A sign that reads “Coffee – 99 Cents” hangs on the door.
The second cafe, however, is a bit different. Warm, cozy colors. Big, comfortable chairs with free wifi, and baristas that greet you with a smile and an eagerness to help. A regular coffee here will set you back at least $2. Which store would you walk into? This example isn’t fiction; it’s exactly how Starbucks made the world “okay” with paying double or triple (and in some cases even more) for a regular cup of coffee. They’re not necessarily offering a better hard product than Joe’s. Instead, they’ve reinvented the customer experience. In doing so, they’re no longer competing with Joe’s; the two businesses go after customers looking for entirely different things. And because of that, Starbucks can set prices in an entirely different bracket.
Does what you sell make your customer’s lives better? Does it help them?
And if not, are you working to make it so?
If your answer is yes (and I really hope it is), then it’s your job to make sure that you sell as much of it as possible. It’s in your — and your customers’ — best interest.
But what if there were a way to sell more without going out and finding new customers?
What if there were a way to make your existing customers crave doing more business with you?
Well, there is.
The Endowed Progress Effect :
When people feel they have made some progress towards a goal then they will become more committed towards continued effort towards achieving the goal.
Perception is critically important with this and the appearance of progress can have a strong effect whilst actual progress that is not recognized can be demotivating.
The corollary is that people who feel they are making little or no progress will be more likely to abandon efforts. As people get closer to the goal, their commitment is likely to deepen as they strive increasingly harder to achieve success.