I lament at how companies focus so much energy and money in attracting new customers and not half the fervour in retaining, and dare I say, pleasing those they already have. Promotions and goodies are lavished on the latest conquests while loyalty is taken for granted. Banks, telecommunications companies, magazine publishers and satellite TV service providers continue to do it.

Recently, a phone banking staff from my bank informed me that she was no longer empowered to deal with FD (fixed deposit) rates. She told me to go to a bank branch or my bank branch if I wanted a preferential rate. She added that it would be quicker if I went to my branch. Really? Quicker how and quicker for whom? Not for me certainly, as I would have to drive, brave traffic, park, take a number, and wait for my turn to meet the branch manager versus speaking to her or a staff on the telephone.

Another thing. When my bank has a promotion for special FD rates, I am not allowed to re-deposit money from my matured fixed term account to enjoy the better rates. I would have thought because my money is faithfully and loyally sitting in the same bank it would be instantly welcomed. Not the case. I was so flabbergasted that I migrated to another bank, only to find it too only accepted new funds to qualify for a higher FD rate.

Banks seem willing to have funds leave their vaults instead of offering promotional rates to their existing customers, which they should and can so easily do, as a way of thanking customers for their loyalty and support.

Marketing and management gurus state that the cost of retaining a customer against acquiring a new customer is almost always much less. Acquiring a new customer can cost five times more than retaining an existing customer [1]. The Customer Service Institute says that 65% of a company’s business comes from existing customers [2]. I also read that apparently, the first rule of any business is to retain customers and build a loyal relationship with them, and thereby avoid customer acquisition costs [3].

The strange perspective companies have on customer loyalty was reinforced by an email to my query from my ex-Pay TV service provider. In summary, the email said its promotional offer was not for loyal customers but for those who no longer are. It was such a gem that I kept it for my intermittent amusement. Yes, amusement not annoyance. It was just too funny.

“Reference is made to your email with regard to the above account. Please be informed that the campaign is only eligible to the targeted customer to win-back those who have terminated their subscription voluntarily and bring them back onto the platform In addition, the offer is strictly for re-connection. Any existing active account will not entitle (sic) for the offer. We hope the above clarifies. Should you need further assistance, please email us. We appreciate the opportunity to be of service to you.” (SERIOUSLY?)

I have had unfriendly customer service with insurance companies that don’t bother responding to queries; airlines that constantly announce membership benefits but take unusually long to revert, if at all, and grudgingly agree to a refund after a long-drawn battle, and online retailers that are less than helpful in marketing their wares. I wonder to what extent these unsatisfactory services are influenced by top-down customer relations policies, Key Performance Indicators (KPIs), training, supervision, execution, and empowerment of staff.

On the other hand, my experience with owner-owned companies with smaller number of employees have been much better, especially of late. My husband and I undertook a mid-range renovation of our condo that involved dealing with a number of smaller contractors. A few of them, we have worked with before and a few others, not at all. We had a few vis-à-vis [4] or face-to-face communication. We discussed, deliberated and negotiated, and our requests were met and implemented efficiently because they were able to use their discretion and authority. And, there was a sense of goodwill in their actions. I am not sure if we were just fortunate but these companies will deservedly get our recommendation, continued business and customer loyalty.