Why customer loyalty matters!

Marketers are acutely aware that retaining customers is paramount to the success of any business.  It makes sense, reduces cost, promotes loyalty and ensures customers talk about you in the best possible light.

I was amazed that a major mobile phone operator, Vodafone doesn’t have this policy in place.

I have been a customer of Vodafone for years, business and personal.  I was alarmed to see that my usual mobile phone charges had doubled overnight!   After trying to navigate Vodafone’s voice recognition system, I eventually spoke to an adviser and was told my contract had ended!  No email, no text or any other communication to let me know that my contract was up for renewal.  The operator told me I should have checked my bills every month to keep an eye out when my contract was about to expire!  They had simply put me on the higher tariff and charged double what I would usually pay.  I was informed that it was not Vodafone’s policy to alert customers when their contract was about to expire!!!

I questioned this ludicrous policy as it made no sense at all.  Why wouldn’t Vodafone contact its customers and offer a new contract, at the very least let them know Vodafone wants to keep you as a customer!  This is usual practice when taking out any type of contract such as insurance.

Vodafone offered me another contract but refused to remove the overcharge.  Why would I want to stay with an organisation that doesn’t care about its customers?  What was more alarming is how many vulnerable and old people have been effectively ripped off by Vodafone’s policy?

I’ve since moved away from Vodafone and signed up with another provider who have offered that same deal for 50% less and thrown in a £50 gift card!

The above is symptomatic of organisations who see customers as a transactional exchange.  Their focus is to sell products to as many customers as possible in a short time frame, often using incentives and buzz words.  They are failing to consider their own long-term goals and profit margins.  Organisations who adopt a relationship marketing approach,  taking time to build bonds with their customers and encourage loyalty, understanding the concept of customer lifetime value and see the benefits In the long term with happy returning customers boosting their profits!

At London Marketing Set (LMS) we aim to keep our students…. for life!  We give them a great experience, care for their wellbeing and encourage them to reach their potential.  This ensures that, sometimes a few years down the line, they will return to us for their next level of professional qualification.  As a thank you we offer our students a generous 20% discount on further accredited courses booked with us.

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