Custo/member loyalty. It seems so logical and obvious to a company’s success, you’d think that more would have embraced this basic concept by now. Sure, most (if not all) companies and associations claim they are customer-centric, but then they do crazy things like shoo them off like flies. The problem seems to stem from a very NOW-concentrated thinking process: got to make those quotas NOW, need to balance the financials NOW, need to bring in more custo/members NOW…

Christopher Carfi at the Social Customer Manifesto highlights FC’s Chuck Salter and his recent experience with Ameritrade. Seems Ameritrade is playing the “jilted girlfriend” with its custo/members by charging a termination fee to those who want out of the relationship. Sound like a familiar tactic in your other custo/member interactions? While banks and wireless providers are the most notorious, associations are just as susceptible of doing this by charging reinstatement fees to lapsed members. Why? Is the thinking that if you make it inconvenient to leave, custo/members will just stick around?

There seem to be two particular problems with this type of strategy:

1. The focus isn’t on learning and building a better tomorrow. Why not try to figure out why Chuck is leaving? What can be improved? Who knows and Ameritrade doesn’t really seem to care. When bottom lines become more important than custo/member relationships, you effectively one of your most vital assets at risk.
2. Why use a stick when a carrot will do better? Why make it punishment to leave when it can be a delight to stay? For associations, could you give your custo/members a reward for renewing early? For companies, could you give your custo/member a discount for loyally buying from you?

Let’s just listen and learn for a change. Isn’t that the foundation for a better relationship, anyway?