One step makes all the difference
March 21st, 2006
I was in a potential partner meeting this morning with Geno talking about building customer loyalty and customer experiences, when one of the attendees shared this story:
I was in Home Depot this weekend buying a $700 set of patio furniture for my deck. When I was arranging delivery, the clerk said, “We’ll be happy to deliver that for you on the day you’ve requested. But you need to know that our deliverymen don’t take the furniture up any stairs. Are there any stairs that they will have to walk up?”
Customer: “Well, there’s one step between the ground and my deck.”
Clerk: “If there are stairs, then we’ll have to charge you an extra delivery fee.”
Customer: “But there’s only one step.”
Clerk; “I’m sorry, sir. That’s our policy.”
Customer: “Are you willing to lose a $700 sale because of one step?”
(30 seconds of silence.)
Clerk: “I’m sorry, sir. That’s our policy.”
Customer leaves.
Un-freakin-believable. Seven-hundred dollars gone because of an inane policy, a clerk who doesn’t care and one step. So who’s fault is it? The clerk’s for not caring? Home Depot’s for an unreasonable policy with no compromises?
Bad word of mouth is powerful. But so is a positive customer experience and especially companies who engage their customers to help them fix the problem.
Other posts by Spike.
Evan says:
“I’ll get the tip, don’t worry about it.”
“I’ll pick you up at the airport… If I was in the same situation I know you’d do the same for me.”
These are the types of little things that normal humans do for each other and, oddly, big companies often don’t or can’t. Individuals unconsiously keep a running total of micro-debts in their heads. “The Smith’s sent us a christmas card last year, add them to our list.” It’s automatic. There’s an excellent lecture available at audible.com that discusses this topic in some depth.
I imagine this positive WOM you speak of operates much the same way.
Let’s pretend: Home Depot ignores the policy and manages to tackle that one mountain of a step. Joe Customer, sensing a favor was done, tells his neighbors what a pleasure it was to get his patio furniture. Several people within earshot decide to buy their new furniture there. Bingo, the Depot gets an enormous return on the investment of just 8.5 inches.
In a sense, the Home Depot example is more than them loosing out on a mere $700 it’s them loosing an element of being human. They shouldn’t suprised when people walk out the door because who wants to do business with a robot? Robots can’t deal with gray areas and the world is gray.
You can tell when a company goes from innovative up-and-comer to staunchy old and corporate by how they handle gray areas. Of course, you have to draw the line somewhere and that’s why I’d simply not offer “free” delivery at all. The Home Depot policy makers should all read this and get on the cluetrain.
March 21st, 2006 at 3:11 pm