Lessons from Verizon's convenience fee furore: Sales culture v customer cultureby
Lior Arussy looks at what the reaction to Verizon's convenience fee tells us about the difference between sales culture and customer culture.
- What were they thinking when they came up with this unjustified fee to begin with?
- What were they thinking when they tried to institute this a fee after the embarrassment suffered by Bank of America – which was forced to cancel a similar fee of $5 for debit card usage after 300,000 angry customers signed a petition against it? (Bank of America issued a similar statement reinforcing their commitment to their customers…)
- What were they thinking the customer response to the fee would be in today’s era of social media and web sites such as change.org?
- What were they thinking when they put this carefully crafted reversal statement out there – that we are all stupid people and will buy into it?
- Preferences towards their brand
- Premium price
- Portion of budget
- Permanence of the relationship
- Promotion to other customers
- Portion of Budget: 73% would expand their purchases with a vendor by 10+% if the customer experience was superior
- Permanence: 70% of loyal customers state that they plan to remain with a vendor for ten years or more whereas only 24% of disloyal customers expect to remain with a vendor for ten years or more. In contrast, 35% of disloyal customers expect to leave a vendor within a year versus fewer than 1% of loyal customers.
- Promotion: 58% said they would recommend companies that deliver superior customer experiences to others
- Premium Price: 55% of loyal customers are willing to pay a premium price of 5% or more for the experience they receive versus only 14% of disloyal customers. In contrast, 52% of disloyal customers expect a discount of 5% or more to continue doing business with a vendor while only 12% of loyal customers demand discounts of 5% or more.
Lior Arussy is the president of Strativity Group a global customer experience research and consulting firm. Arussy is the author of five books including Customer Experience Strategy – The Complete Guide From Innovation To Execution (4i, 2010). Follow Lior on Twitter @LiorStrativity