Customer acquisition and retention is not about price wars.

Vaishali James March 10, 2022

We stepped in, unannounced. The General Manager did a double-take when he saw us and recognized us in spite of the masks and in spite of seeing us after more than 5 years. He gives us bear hugs, seats us, and fires away orders to his staff in absolute perfection - “Masala Chai (Indian milk tea brewed with spices) for the lady and French Press Coffee for the gentleman,” he says as he walks into the kitchen. He steps out shortly with a batch of freshly baked signature chocolate cookies that we both love. Such small but important details were remembered, by a man we’d met only once earlier. But that one time left such an impact on us, we keep going back there as often as we can. This was our 7th visit over a few years. No, this is not a stand-alone restaurant. Nor is it a restaurant in a city hotel. This is one of the many unforgettable experiences we’ve had with the Taj Safaris. I should point out that these are top of line wildlife safari experiences in India and come at a premium. Yet, every time we have had the opportunity, we have stayed with them. Clearly, for the experience the lodge offered. The wildlife on a wildlife safari holiday was incidental. That for you is the power of experience. Apple, Disneyland, and Emirates come to mind when I think of other similar powerful brands from different industries. What’s common between them all? They are all top of the line in their industry. They are one of the ‘go-to’ brands. Oh, they are also among the top when it comes to price as well. Right? Read on. Remember the time iPhone 13 was launched? Customers started queuing up from 7 pm the previous day, for the next day's 8 am launch. Some of them were seen with sleeping bags while some of them were ready to rough it out through the night, telling people that it was worth the effort. Some of them flew in from across the continent as well! Now, iPhone 13 is certainly not cheap. And yet, this is the effort customers put in to lay their hands on one. When you’re planning a long-haul trip by air, you want to make sure you do so in comfort; you want to make sure that you or your loved ones are taken care of well. All this, regardless of the cost. Top the mind recall in such situations is Emirates. Is this just the power of the brand? Or is there something more? Let’s assume it was just the brand. This could have perhaps resulted in a one-time purchase. What happens then? How long and how far would the brand carry the customer through? Not too far and certainly not to a repeat purchase over and over. So, what is it then? It is all about the experience the brand offers. Don’t get me wrong. I’m not saying the brand is not important. It absolutely is. What I am also saying is that what goes into the brand is as important. In the case of Taj Safaris, it is about the hospitality experience; in the case of iPhone, it’s the UI / UX and in the case of Emirates, the service experience. This is all about branding the experience, so your customers can experience the brand! And when customers are willing (and will pay) to pay top dollar for the experience – you know you have customers for life. It sounds very simple. It is anything but that. Whether it’s a product or a service brand, the only thing that will differentiate you from competition is the experience your brand leaves the customer with. So, ensure that you focus on the following:

Design and deliver a customer experience that aligns with the brand promise.

Emirates says Fly Better. Imagine if the ground experience, the in-flight experience was anything but that. And it gets you comparing this with a budget airline and thinking to yourself that that was a better experience. The iPhone is advertised as the world’s most powerful personal device. Now imagine if you needed another device to get your drawings done or if the UI was so unfriendly that you opt for something else cause you don’t have the time or patience to understand the UI. That’s one too many customers lost right there. So, everything that enables a customer to fly better or then, make the iPhone the most powerful personal device has to be thought through and delivered. Else, the promise and the experience will be in conflict with each other – a clear recipe for customer churn.

Reverse weave the experience into the promise.

There could be service/product components that grab the attention of your customers. Reverse weave that experience into the promise. For example, when House Keeping staff is so detail oriented that four years later, they remember pillow, towel preferences and remember that you don’t want air freshener sprayed in your room – it is certainly worth incorporating into the experience you offer. (This by the way is how the House Keeping staff are at The Taj Safaris property at Panna, a city in Madhya Pradesh, India).

Ensure that the experience across geographies, touchpoints, and staff is consistent.

If you want to sustain a competitive advantage and retain customers, just designing and delivering an exceptional experience is not sufficient. You need to deliver it consistently, year after year across geographies and channels to a point where it becomes synonymous with your brand. Even after that, care has to be taken that there is no dilution whatsoever, cause one moment of slack and competition that’s nipping at your heels, will use it to their advantage. Customers will always have a choice, that’s the reality of the world we live in today. But when customers choose your product/service over that of competition, this in spite of the fact that you are not the cheapest in the business, you know you have them for life. So, go out there and build an experience that customers choose to pay more for. Focus on the experience; the moolah will automatically follow.

Vaishali James

Ex-Chief Marketing Officer

OpenTap

Marketing, Digital & PR Committee

Chennai Chapter

Leveraging over 23 years of experience in brand management and customer experience, she leads various marketing operations and devises new strategies to increase the company’s market presence.

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Customer acquisition and retention is not about price wars.

Vaishali James

Ex-Chief Marketing Officer

Marketing, Digital & PR Committee

Chennai Chapter

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