Sub-Dollar Client Acquisition and Retention

It’s not uncommon for me to pick up “what to dos” and “what not to dos” from other industries as I push forward with my own projects.  Here’s 2 examples I learned from while at lunch at one of my favorite spots here south of Salt Lake City.

Groupon is the rage, and there is a “me too” website run locally that offers a typical e-commerce approach to the Groupon model.  You go to their site, plug in your zip and you’re presented with a catalog of local deals.  I’m often taking clients and co-workers to lunch, so when I see a favorite restaurant listed in the daily deal email they send me, I’ll usually give the deal a look.  If the deal includes a 50% discount, the $20 for $10 deal, etc., I almost always buy the maximum amount available to me.  Less than double my money, I will almost always pass.

Just such a deal came through for a local burger joint.  I bought my max of 3 and they arrived a few days later.  Feeling hunger pangs and some burger craving I piled the crew in the car and headed over to the restaurant for some lunch.  Upon arriving I saw a sign in the window that read, “Lunch Special $5.99 for double combo!”  I decided I’d take that deal and headed to the register.

We all ordered.  Of course the total was slightly more than the value of my coupon so I also handed over my debit card.  The cashier, who for all appearances acted like the manager of the place, took my coupon and then told me, “You can’t use this with the lunch special.”

“I can’t?” I replied.

“No, you’ll have to pay full-price for the double combo to use this.”

Sticking out my hand I responded, “Just put the whole thing on the card.”  As he gave me back the coupon I asked, “… so what can I use this on?” fighting back the stomach-turning feeling of knowing I’d bought 3 coupons, not just one.

“You can use it on a double combo, just not the lunch special double combo price.”

Quite embarassed, I took my receipt and retreated to my table to await the preparation of my order that I was now wishing had been the single combo, or just a drink, as the whole awkward situation caused me to lose my appetite… for 3 minutes.

I looked up at their menu and saw the regular, non lunch special price of the double combo.

$6.50…

$6.50…

Whether this manager was the owner, or just a hired hand (I suspect the latter), the policy of this restaurant, which is a very common policy, was to not allow a customer to combine discount offers.  I get that.

What I don’t get is this.  You are a brand new restaurant in the area.  You’ve blown big bucks to build out the location and furnish it.  It’s clear you don’t have a marketing budget.  (Sorry, the black tape pricing adjustments on your menu give your budget numbers away.)  Yet, you’re willing to embarrass a customer who is already in your store over 51 cents, risking the loss of my business?  Sure the place is new, but it’s also empty everytime I go in there.  Folks, eat the bloody $0.51 in favor of the repeat business.  It’s loss leader marketing 101.

All was not lost for them that trip.  The food was great.  As we were eating, an older gentlemen wearing the logo of the restaurant stopped by our table and asked how the food was.  We told him it was great.  I’d regained my appetite by now.  He then handed us coupons offering some great promotions for our return trip.  That short conversation repaired the client relationship enough for me to plan on a follow up experience with them.  I had 2 more coupons afterall.

Yet, the damage had been done.  I wondered to myself, 2 visits later as I came back with coupon #2 whether I would be confronted at the register by the same manager about my ability to take advantage of the offer a second time, or if there was a one coupon per customer rule.

Is it worth a few cents to add strife to a client relationship?  I argue that will cost you incalculable multiples of repeat business.  Add in costs of acquiring customers… you see how the numbers can add up quickly.  Patience, understanding, and working with people will build more than customer loyalty, it leads to a trust that will have your customers calling you and only you as their need for your services increases.  It leads to customers that share your name whenever their contacts, clients, friends and family mention they’re in need of services you provide.  It adds up to more than the 10% the burger guy just can’t bear to give up.