Fast Company #4  Dorothy Lane loves its Customers, Page 76, June

Will R. Yliniemi Fast Company Article

Dorothy Lane loves its Customers by Scott Kirsner

Summary

Dorothy Lane loves its Customers is about a retail grocer who adopted a new marketing and customer service strategy to enhance loyalty of regular customers, and at the same time weed out all those people that werent regular customers. This was accomplished by the formation of a club based on demographic information of the retail supermarket's customer base.

The more you purchase, the greater the incentives are to the customer. Targeted newsletters, coupons, demographically directed communications go out every month. Customization of marketing rewards participation in buying from Dorothy Lane. This system of targeting customers has replaced the traditional shotgun approach of newspaper ads and direct-mail advertising that most supermarkets utilize.

The companys top 9000 customers get a monthly newsletter and receive gifts, and the 5000 biggest spenders are invited to special events in the community. The stores best 100 customers receive extra-special gifts. A kids club also was formed to provide entertainment and events for children the stores regular customers. All of these incentives have increased loyalty, which has translated into increased sales and satisfaction of both the customer and store personnel. The statements We run this business with our hearts, and its not in our culture to be complacent in dealing with the customer are good indications of the marketing strategy of Dorothy Lane Markets.

The other aspect of the company that receives special attention is the well being and motivation of the Dorothy Lane employee. Each employee is made to feel special and responsible by becoming involved in the marketing process through educational events and rewards that stimulate loyalty to the company and enhance customer service. Reflection

This article intrigued me because it demonstrated that non-traditional thinking outside the box methodologies of marketing and customer service work if customers feel special and rewarded for doing business with a company. Customer service without incentives is less likely to succeed.

The application to Extension work is that Extension Educators should carefully research who our clients are, and realize that we cannot be all things to all people. We must review our demographic base and target our educational programming to enhance customer satisfaction. Traditional extension delivery systems and personnel expertise requires evaluation for best application in meeting the needs of our customers. Our clients need to feel the reward of being involved with Extension programs, and Extension Educators need to feel the satisfaction of targeted accomplishment.

Discussion

In discussing this article with two colleagues, we came to the conclusion that learner participation was nearly always the key to successful programming. We also concluded that new or non-traditional methods of learner engagement, or self-motivated/directed educational activities were more exciting and stimulating for all participants. Often the biggest fear is the unknown consequences of change.

-- Anonymous, May 21, 1999

Answers

It would be interesting to learn what you are doing to involve your clients in this process. What are you currently doing that works? What could you be doing better?

Thanks for your comments. Keep up the good work!

-- Anonymous, May 23, 1999