Clarify Expectations with Friendship Customers

Smaller retailers are more likely than large ones to have customers who think of themselves as friends of the store owner or staff. The customers form what researchers at University of Geneva called “close business attachments.” They develop personal bonds with the retailer and are comfortable exchanging information about family and mutual acquaintances. This goes beyond “secure business attachments,” in which the relationship is limited to depending on the retailer for quick answers to questions about purchases.
     When serving customers who consider themselves to have a personal relationship with you, clarify expectations and obligations.
     Researchers at Lingnan University in Hong Kong and Chinese University of Hong Kong presented study participants with a scenario: You’ve asked the owner of a restaurant with whom you have a close business attachment to hold an ocean-view table for your birthday bash. When you arrive, the owner explains, with a tone of regret, that all the ocean-view tables are taken.
     Each study participant was asked what their reaction would be. Past research had indicated the restaurant customer would be empathic, since the owner was, after all, like a friend. And indeed, for many of the study participants, this was the reaction. They demonstrated understanding toward the owner. However, for others, the reaction was anger at being betrayed by a friend.
     What made the difference was whether the study participant, taking on the role of a customer, had clarified in advance their own expectations and obligations and those of the retailer. With this clarification for transactions based on a close business attachment, there was more likely to be customer empathy for the owner’s needs.
     University of Toronto researchers looked at the same sort of issue from a different angle. At a health club, study participants were offered a reward for completing a one-hour survey. For some participants, the reward was a free one-hour class at the health club, while for the others, it was a $15 discount on a purchase at the club. The researchers considered the free class to be more similar to the benefit given the club by the survey respondent—one hour of time.
     Respondents in the study who had a friend-of-the-family type relationship with the club were more comfortable with getting the $15 discount. They thought that friends deserve to make choices. On the other hand, those considering themselves to be no more than customers were more comfortable with the free class.

For your profitability: Sell Well: What Really Moves Your Shoppers

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Distinguish Customers from Friends
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