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Tuesday, March 26, 2013

Low Customer Retention? Maybe You’re Just Selling Mulch

Written by  Duane Bailey

I buy landscaping mulch every year. I’ve been buying it from the same local nonprofit now for several years…until this year, when they were unable to supply me. So I took my business elsewhere. Another “customer for life” gone forever.

Mulch is a commodity. I can get it anywhere at the same price. Regardless of where I purchase it, the product and the price are the same. Delivery to my driveway on the 3rd Saturday in March is free. And the one thing that bound me to my former supplier – the relationship I once had – had grown distant.

The decision to go elsewhere was an easy one.  It wasn’t hard to find another supplier. I wrote a check and walked across the street to my neighbor’s house to drop it off. On Saturday, while I was away, my order was delivered and stacked on the sidewalk beyond my driveway. My expectations were exceeded. In years past, my other supplier would stack the bags in my driveway, which required my having to move them to the sidewalk in order to access my garage.


Later that afternoon, as I went out and began moving the bags to the area of the yard where they would be emptied, my neighbor’s SUV pulled into the driveway. Five guys from the delivery crew – all friends of mine – got out and began moving the bags to the rear of the yard. We laughed and we joked. Although I wasn’t looking for help, they insisted. Again, my expectations were exceeded. I knew then I had found a new that I am hoping to stay with for years to come. 

I share this story because it highlights the importance of differentiation in selling a commoditized, low-interest product. Marketers who succeed in retaining customers for life are the ones who consistently deliver and who find unique ways to differentiate their customer experience.  Nurturing customer relationships and exceeding customer expectations are two of the best ways to accomplish this.

Think about your products and how they are positioned in the market. Are you just selling mulch?

For more on customer retention and ways to differentiate your customer experience, please see:
• Are Your Customers Looking for a Better Deal?
• Anticipating Needs Is the Key to Customer Retention
• “You’re Going to Like the Way You Look…”

Duane Bailey

Duane Bailey

Duane Bailey is a regular contributor to The Chief Storyteller® online conversation. He has helped organizations of all sizes drive growth in revenues and market share through the development and delivery of key business messages that resonate with target audiences. He holds an MBA in International Business and a BS in Marketing. He brings 28 years of experience in marketing communications and high technology sales.

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