Not many of those of us in business would throw away a good 28 year relationship without thinking twice. Especially in this economy. Just to clarify, this is a very profitable customer, who pays their bill on time, has chosen you over others, even though you weren’t as convenient or there were others who were less expensive.
I was talking to a client the other day, and she seemed “down”, which is unusual for her. I asked her what was up, and she explained that she had just received a form letter from Diners Club (interesting side note, they were the first credit card) telling her that they were closing her account. She had never missed a payment, never been late. She had been, as many business owners are these days, experiencing some cash flow problems and had been late with other credit obligations.
My point is not that Diner’s didn’t have a right to close her account. The do. However, as a part of Citicorp, at one time the worlds largest financial institution, now a recipient of the TARP bail out funds, you would think they would have more sense! Credit cards are unsecured, and as such, there’s no collateral to back them up if things go bad.
Here’s a news flash for Diner’s — In order to be paid in tough times, you need to be on the top payee’s “good list”. The rent, car, power and phone all will be paid before you. If you really were worried about the customer’s ability to pay, you should have called her. Talked to her. Reduced her limit. Not just cut her off at the knees and tossed her out the door faster than Sandra Bullock tossed out Jessie James and his mistress!
Most reasonable people who are suffering cash-flow issues in this recession are living bill to bill. A little compassion, even a thank you for being a good customer for 28 years would have been nice, before you closed the account. There are so many ways this could have been accomplished with a better result for everyone concerned.
So, how do you treat a customer when you need to “fire” them? Will they walk away feeling OK about the relationship, or tell everyone how bad you are?
It’s no secret that Diner’s Club has been on the “For Sale” list from Citibank for years. They are one of the most expensive cards to hold, and I believe, soon will vanish from the card offerings. Certainly, they aren’t doing anything to promote goodwill. They managed to take a loyal customer and turn her into a “arch enemy” overnight. Congratulations, Jessie James, Tiger Woods, et. all should have taken the same tactic before they committed their transgressions!
Be sure to stop by our other web sites for additional information and ideas about building customer loyalty:
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