A standard claim in the CX propagandist’s arsenal is that loyal customers are more profitable. The Blurb Problem may cause you to question that.

I am a keen (obsessive) photographer and print a lot of photobooks. People who see them often ask where I get them made. “Blurb.” I say. “They’re amazing.”

I'm a 10/10 Promoter.

However… I've been buying from Blurb long enough to know that they routinely offer discounts. One week 25% off. Another 30% then 35% and then the jackpot - 40%. This has resulted in two consequences for Blurb:

1. They've trained me to buy in bulk at massive discounts when the 40% offer comes round

2. When I recommend the service, I also let my friends in on the secret

The outcome - A stunningly loyal customer who is probably worthless financially, creating even more loyal, worthless customers.

Two lessons:

1. Don’t just assume that loyal customers are more profitable or that increasing loyalty will grow your bottom line - it depends how you do it!

2. Don’t train your buyers to expect discounts - it can irreparably devalue your offering and make it very hard to get them to pay full price again.

Pics here if you're interested!

See this post on LinkedIn