Which Customers Should You Listen To?

In 2011, Netflix decided to do away with a popular DVD subscription service that also offered unlimited on-demand streaming video for $10 per month. Netflix decided that DVDs and streaming would be separated and each would cost subscribers $7.99 a month, or $15.98 for both - a 60% increase.

The company subsequently lost 800,000 subscribers.  Its stock plummeted 70%, and the CEO,  Reed Hastings, went from Fortune magazine's Businessperson of the Year to the target of parody on late night TV.

When the change was announced, customers were vocal.  Some understood that times were changing.  Others were irate.  When customers disagree about your products, services or approach, which ones do you listen to? Customer service strategy professionals say that you should listen to both…those who support your decision and those who do not.

Try to understand both points of view and how strongly they are held. Can you address the concerns of those who are against the new policy and persuade them to accept the strategic, operational or pricing reasons behind your decision? Try, too, to determine how the new policy will affect sales. Will those who agree with you continue to buy? Are they in the majority? How many sales will you lose by possibly alienating the negative group?  Is it worth it?

Once you know the ramifications of your decision and are clear on what kind of resistance and consequences you will face, be sure you and your customer-facing team are prepared to deal with the flak. Give your employees the tools they will need to answer customer questions and the opposition you anticipate. And don’t forget to monitor social media so you can manage any negative stuff that appears online.

Then make a smart decision.  Like Netflix, Coke learned this lesson the hard way in 1985, when it replaced its classic coke with a new cola that alienated loyal customers and hurt sales and brand positioning.