Elucidate with Close Business Friends

It pays for your customers to consider you to have what University of Geneva researchers call a “close business attachment.” These customers develop personal bonds with the retailer and are comfortable exchanging information about family and friends. This goes beyond “secure business attachment,” in which the relationship is limited to depending on the retailer for quick answers to questions about purchases.
     Researchers at Nanyang Technological University in Singapore found that, in their studies, consumers who considered themselves to be close friends of a retailer were more forgiving of the retailer when the outcome of a transaction was unfavorable. The consumers gave higher ratings on fairness and satisfaction than when the retailer was considered only an acquaintance.
     But 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.
     Does it matter that all these studies were done with consumers in Asian cultures? Asians place higher significance on personal relationships with a merchant than do North American consumers. Still, researchers at University of Toronto obtained compatible findings. Respondents in their study who had a friend-of-the-family type relationship and donated one hour were more comfortable getting a $15 discount at a health club than an hour class. They thought that friends deserve to make choices. Those considering themselves to be no more than acquaintances were more comfortable getting the free class.

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Clarify Expectations with Friendship Customers