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November 12, 2014

Segment Your Service Experiences!

Customers aren't always right and they certainly aren’t equal, but…customers are always paying the bills! I am stuck by two groups of business leaders - those who treat customers as an after thought to profits or products and those that treat every…

Customers aren't always right and they certainly aren’t equal, but…customers are always paying the bills! I am stuck by two groups of business leaders - those who treat customers as an after thought to profits or products and those that treat every customer equally. I have always ascribed to Peter Drucker’s adage that we are not in business to create a profit but rather to “create a customer.” It is through customers that profits come! That said, profits come differently from varied customer segments. High volume customers keep a business afloat and it is wise to position your services and people to assure the loyalty of that customer segment. While low volume customers should receive a positive and respectful service experience, segmented service delivery reflects good stewardship of your service delivery resources. Let’s assume you could segment your customer base into low frequency/spend, medium frequency/spend, and high frequency/spend. It is reasonable to offer service to the low group that is quality but more generic, to the medium group services that are more customized, and to the high group experiences that are more personalized. Collecting data on your customers purchase relationship with your brand guides you in how much you can invest in augmented services and even service recovery. While Thomas Jefferson wrote that all men are created equal in the context of the Declaration of Independence, when it comes to customer experience creation some customers are more equal than others…all, however, should be treated with respect and excellence.

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Joseph Michelli

Joseph Michelli, Ph.D., is a Certified Speaking Professional and #1 New York Times bestselling author whose books are drawn from his work inside Starbucks, The Ritz-Carlton, Mercedes-Benz, Airbnb, and Zappos. His new book, Get Me a Person, releases December 8. Signed, personalized copies available now. He helps leadership teams design human-centered, technology-aided experiences that build loyalty and referrals. Start a conversation about your team.

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