Have you ever thought that saving a customer can be ten times more rewarding than finding a new one? This is what Seth Godin refers to as 'economics of loyalty', and here is why:
"The us/them mindset of most corporate customer service is simple:1. When you can, get it over with
2. If at all possible, evade responsibility?
Which means that when things go wrong, you’ll likely encounter a legalistic mentality that begins and ends with 'it’s out of our control'.
There’s an alternative.
Have you ever thought that saving a customer can be ten times more rewarding than finding a new one? This is what Seth Godin refers to as 'economics of loyalty', and here is why:
'The us/them mindset of most corporate customer service is simple:
1. When you can, get it over with
2. If at all possible, evade responsibility
Which means that when things go wrong, you’ll likely encounter a legalistic mentality that begins and ends with 'it’s out of our control'.
There’s an alternative.
'The us/them mindset of most corporate customer service is simple:
1. When you can, get it over with
2. If at all possible, evade responsibility
Which means that when things go wrong, you’ll likely encounter a legalistic mentality that begins and ends with 'it’s out of our control'.
There’s an alternative.
It begins with understanding the economics of loyalty. Saving a customer is ten times more efficient than finding a new one. If it costs an airline $1,000 of marketing and route development to acquire a first-class business traveller, it’s worth at least $10,000 in customer service to keep one.
And it continues with a simple tactic: Instead of defining the minimal legal requirement, outline the maximum possible action you could have taken.
Because the race doesn’t go to organizations that do the minimal legal requirement. The race goes to those that figure out what they could do. And do it.”
Just wondering, what would the ratio be if this economics of loyalty is applied to employees? What if the decision to keep a valued employee is ten times more rewarding than finding a new one?
And it continues with a simple tactic: Instead of defining the minimal legal requirement, outline the maximum possible action you could have taken.
Because the race doesn’t go to organizations that do the minimal legal requirement. The race goes to those that figure out what they could do. And do it.”
Just wondering, what would the ratio be if this economics of loyalty is applied to employees? What if the decision to keep a valued employee is ten times more rewarding than finding a new one?
This is the kind of insight that emerges from a context-specific Systemic Reality Check, where patterns of value, loss, and loyalty become visible, now increasingly supported by a customised use of ChatGPT-5 to become a part of my Astute Aviation Consulting offer.
