A Relationship-Ending Move

Last Saturday morning at 10 o'clock, the phone rang at my home. The lady on the phone indicated that she was calling from one of Canada’s largest department stores, and asked to speak with my wife. I called my wife and went back to mowing the lawn. About five minutes later, my by-then-very-angry wife came out to tell me what the call was all about.

First, let me provide a bit of background. This is a major retailer and one with which we have been dealing forever. In fact, my wife’s father actually worked for this company for almost 50 years. My wife uses the card every month, especially when we travel, and routinely pays the balance in full when she receives a monthly statement. Last month, we were away on vacation and visiting family for four weeks — see what’s coming? Right! The call was to inform my wife that she had missed a payment and to ask when they might expect the minimum payment of $60.

My wife explained that we had been away and that she had put a check to cover the full amount owing in the mail a few days earlier, when we had returned from vacation. She also expressed her complete surprise and several other pointed emotions at receiving such a call and ended by telling the collections lady that she could be assured that the card would never be used again. She was livid!

Why do companies do such things? They succeeded in ending a very long and profitable relationship by making a stupid move — calling a very, very loyal customer and harassing her for $60, thereby causing a loss of several thousands of dollars annually in sales.

They either have a customer accounts database that fails to show the history of 20 to 30 years without a missed payment. Or they are really focused only on short-term financials. The irony is that this company is regularly written up in the business press in Canada for their use of CRM and their loyalty card program. Someone should explain the concept of loyalty to the collections department or at least share with them what is going on in customer relations. Clearly, they are not talking at the moment.