Cracker Barrel Old Country Store, the chain of southern-style restaurants with a gift shop that lines highways across America, has gotten a makeover. Their logo has lost the ‘Old Country Store’ tagline, as well as the iconic man in a chair resting his arm on a barrel in favor of the words Cracker Barrel in text only. Inside, per patron videos of remodeled locations, gone is the dark nostalgic feel replaced with a sterile renovation. The knick-knacks have gone from quirky kitsch from yesteryear to something you might see in a suburban craft store.
While the company’s CEO has said that initial reaction to these changes was positive, the verdict across social media was very much the opposite. The new look removes the old-school charm and character that was central to the brand’s identity for decades.
Cracker Barrel is just the latest in a string of companies, including Jaguar more recently and even Coca-Cola in the mid-’80s with their New Coke rollout, to violate the critical principle of making sure that you do not alienate your loyal customer base.
I wear many hats in business and have more than 20 years of experience as an advocate for loyal customers and clients in business, working in an outsourced CCO (Chief Customer Officer) function and sharing my proprietary customer loyalty models via speeches and consulting with both the biggest companies in the world and a variety of small and mid-sized businesses. And I firmly believe that one of a company’s most important assets isn’t listed on its balance sheet: the company’s loyal customers.
Loyal customers are easier to sell more to, both in frequency of purchases and upsells, because they already love your business and have often given you permission to communicate with them and build a relationship. They are also excellent advocates for generating new business via their own advertising efforts — word of mouth, posts on social media and more.
While it is a challenge for companies to continually grow, and publicly traded companies are under even more pressure to do so, mathematically, growth becomes harder if you are losing customers from your key customer base.
If you make your customers believe you do not care about them and their relationship with your brand and company, it is going to be very difficult for you to be successful in your business. This is the stark reality many businesses who have sought out new customers have faced lately. It’s fine to reach new customers, but you must do it carefully and in a way that doesn’t simultaneously burn goodwill with your existing customers.
New customers should never be treated better or given more weight than existing, loyal customers.
