04-29-2007, 11:22 AM
Quote: Even with a great brand that has a strong following, you have to constantly monitor customer satisfaction because loyalty can't be taken for granted. What could this coffee shop have done differently, even if we assume they needed to raise their prices?
Ask your best customers for their input. No one wants to pay more for products or services they buy regularly, but you can address that if you get feedback upfront. It doesn't appear this café did any sort of focus groups or used a customer advisory board at all. It's amazing what you can learn by simply talking to your customers, explaining the situation, then problem solving together on creative ways to address the situation.
Test each variable separately so you know which levers have the most impact and why. Most people don't like to change their habits in any way. If you alter a lot of things simultaneously, it's hard to know which changes are good or helpful and which ones your customers are resisting or avoiding. Was it the price increase, the elimination of the loyalty card, the donation to the charity, or the fact that another coffee shop in the neighborhood closed around the same time and a different, less-hip clientele started to hang out there? Or was it something else that started to negatively impact the customer experience? It'll be hard to untangle at this point...
full article: http://www.entrepreneur.com/worklife/wor...77000.html