“Important account information enclosed.”
That’s what it says on the envelope I get from a major bank every few weeks (whose credit card I have). Of course, it’s never that important. In fact, it’s always some of those credit-card balance transfer checks.
So, actually, not important at all.
But some percentage of customers use those checks. The bank makes good money on the fees. The VP in charge gets praise. Looks like a successful program.
But there’s no spreadsheet that tracks things like slowly eroding trust in a brand.
This one promotion seems successful — but they have no idea how much money they are losing because millions of customers stopped opening their direct mail. How many people don’t trust the brand because they’ve been tricked (lied to?) about “important information” five or six times a year? How many bank accounts not opened, mortgages not applied for, car loans taken elsewhere, business accounts moved away?
Stop and look at all your communications with customers and prospects. Are isolated programs that appear successful actually undermining company-wide growth? Do the positive numbers on a small program outweigh damage across a brand? Are you rewarding behavior that is killing your company?
We see it all the time: airline bag fees, end-of-year over-aggressive email promotions, addiction to discounting at retail that kills online sales, late fees that drive away loyal customers.
