MN Fruit & Vegetable IPM News - Vol. 1, No. 9

As a quick review, we have made the case that the loyal customer segment of your business is a critical asset, and that dramatic increases in profits can come by increasing the retained customer category by a few percent. We spoke of some ways to increase the retained customer segment by giving them a memorable experience that they can tell their friends about, and that “word of mouth” continues to be an excellent marketing strategy. Further we said that one measure of whether you have succeeded at this is to ask the question “How likely is it that you would recommend our company to a friend or colleague?”

Harvey Thompson in his book “Who Stole My Customer” talks about the winning customer experience and then goes on to describe “Ten Myths about Your Customers”. I would like to discuss two.

One myth so stated is, “Our customers don’t want an apology; they only want some form of personal compensation or concession for mistakes.” With this as a belief, the business practice in some sectors has become to never admit mistakes or take responsibility because it would only encourage the customer to feel aggrieved.

My thought is that if a mistake has been made and it is yours admit it and apologize. Who’s perfect? There are bound to be mistakes. How they are handled can differentiate your service. It makes you human, and if mistakes are handled well they tend to increase loyalty. Is this true for your experience as a customer? Of course a good principle can always be poorly exploited, like the company that made mistakes on purpose and then called customers to apologize. This worked until the ruse was discovered. Needless to say this company suffered a bit in the integrity department and lost big time at the marketplace.

A second myth revolves around knowing what your customers want. The main point here is that things can change quickly these days. How fast are the attitudes and preferences of your clients changing? A system that maintains the flow of current information from your clients is critical. If you run a pick your own operation, have you seen more people coming to your place to get farm fresh produce but with no desire to pick themselves? Be careful not to get caught in the trap of I know what they want because this is what they wanted last year.

I wish you the best of luck in your efforts to build customer loyalty in your business. This segment adds value to your business, and perhaps just as importantly adds quality to your life as a business owner.

References and Recommended Reading

Thompson, Harvey, Who Stole My Customer?? – Winning Strategies for Creating and Sustaining Customer Loyalty. Pearson Education, Inc. 2004

Editor’s Note: Karl Foord, Ph.D., MBA, has considerable experience with horticultural crop production and marketing. This is part 4 of a series of Karl’s articles on marketing and business management that we believe will be useful to many of our readers, particularly fresh market growers. Please questions, or suggestions for future articles, to Karl at: foord001@umn.edu

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ACKNOWLEDGEMENTS

Co-Editors: Bill Hutchison, Department of Entomology, University of Minnesota, hutch002@umn.edu
Jeanne Ciborowski, Minnesota Department of Agriculture, Ag. Resources Division,jeanne.ciborowski@state.mn.us
Suzanne Wold-Burkness, Department of Entomology, University of Minnesota, woldx018@umn.edu

The Newsletter is published weekly from May through August, cooperatively, by the Minnesota Department of Agriculture (MDA) and the University of Minnesota (U of MN). Reports are posted on the U of MN and MDA web sites on Fridays. If you have suggestions and/or comments, please send your contributions by 4 p.m., Tuesday to Jeanne Ciborowski, 651-297-3217, jeanne.ciborowski@state.mn.us , MDA, 90 W. Plato Blvd., St. Paul, MN 55107-2094. You can access the Newsletter at the U of MN web site in htm. format at: www.vegedge.umn.edu/MNFruit&VegNews/mnindex.htm and at the MDA web site in pdf. format at: www.mda.state.mn.us/biocon/fruitreports/default.htm

Partial funding for this publication is provided through partnership agreements with the Minnesota Fruit and Vegetable Growers Association and the United States Department of Agriculture – Risk Management Agency (RMA) and the RMA Community Outreach and Assistance Partnership Program. These institutions are equal opportunity providers.

DISCLAIMER

References to products in this publication is not intended to be an endorsement to the exclusion of others which may have similar uses. Any person using products listed in this publication assumes full responsibility for their use in accordance with current manufacturer directions.

Last Revised July 12, 2004.
The University, including the Minnesota Extension Service, is an equal opportunity educator and employer. ©1999-2004 Minnesota Extension Service, University of Minnesota. All rights reserved. Contact copyright@extension.umn.edu for information on reproduction or use of this material.