J. C. Penney uses questionable tactics to ‘reward’ loyal customers

by Kevin Stirtz on September 11, 2009 · 3 comments

in Improve Customer Service

I love it when a person honestly recognizes that I’m a loyal customer. And I look for nothing more than a thanks. Because loyalty is not about money. It’s about being in a relationship that works for both people, whether it’s business or personal.

But I hate it when a company clubs me over the head with a sales pitch presented as a “reward” for being a loyal customer. I especially hate it when they try to force something on me I don’t want. Then I have to cancel it or I get charged for it after the “free” period has expired.

The large retailer J.C. Penney did this not long ago. They called to inform my wife how thrilled they were that she has been a loyal customer for so many years. So they decided, out of the goodness of their big corporate heart, to “give” her several months of some type of insurance coverage – absolutely free.

I have news for you smarty marketing types at J.C. Penney who thought up this one. You’re not as smart as you think. And, by the way, not all your customers are as dumb as you seem to think we are.

This is not a gift. It’s not a reward for being loyal. It’s a sales pitch. In fact it’s the worst kind of sales pitch. It’s cloaked in a big fat lie. You are trying to sell us something without any evidence that we want it. And you didn’t even ask. You just assumed we would want it. Because, you said, “it’s our gift to you.”

This is the worst kind of marketing. It’s customer abuse. What makes it hideous is the dishonesty. If you want to contact your customers to offer them insurance, go ahead. But don’t lie about it. Don’t tell me this is some wonderful gift you’re offering. We both know it’s not.

And one other thing. When a customer says “no” to a ridiculous offer like this, train your employees to listen and accept it.

It’s bad enough you have interrupted me, wasted my time and lied to me. Now your employee will not take “No, never, not in a thousand years” for an answer.  She actually argued with me! I had to repeat the word “no” nine times before she accepted it and went on her way.

When companies do this they are abusing the trust and the relationship they have with their customers. They will drive them away. If they do this to enough customers, it will hurt their bottom line.

And since J.C. Penney’s profits are down 48.5% from last year, they might want to rethink this strategy.

{ 3 comments… read them below or add one }

Bob S November 18, 2009 at 8:38 am

Great points, Kevin. I wonder if the person who refused to accept your “NO” may in reality have been the insurance company’s employee. JCP allowed the third party to represent themselves as if they were JCP. I think that would be even more foolish on their part.

I have found the telephone catalog order line employees to be more courteous than your experience here.

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Kevin Stirtz November 18, 2009 at 10:39 am

Bob – you make a good point – it could be I was talking to a non-JCP employee. But if it’s true I would wonder why they don’t compel them to disclose that information right away. If JCP does not require it then shame on them. Customers have a right to know who they are speaking with. Thanks for your comments Bob!

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Summer Camps October 30, 2010 at 2:51 am

Maybe you could change the post name J. C. Penney uses questionable tactics to ‘reward’ loyal customers | Customer Service Training to something more generic for your content you make. I liked the post all the same.

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