The Case of the CRM Calamity

BY MEGAN CRABTREE

Smith's Jewelers was a chain of nine family-owned jewelry stores that had been around for generations and had established itself as the prime destination when you were ready to pop the question. They had earned their reputation by offering a wide array of bridal options and an unmatched standard of customer care with a distinct family touch.

For decades, Smith's had been known in the local community for giving back at local charity events. Through these philanthropic efforts as well as a prominent presence on local radio stations, they built a strong following of younger bridal customers. Their name was synonymous with having the largest selection of engagement rings throughout their markets, but they also curated a selection of fashionable jewelry, catering to diverse tastes and occasions.

While they built their business on in-person relationships, they also understood the importance of embracing new technology that would help them keep in touch with clients. As their stores passed through generations, they made a promise to uphold the ideology that retail stores should adapt to changing times in order to maintain their success. Eventually, they discovered a new software that could integrate with their existing POS system and help them nurture the relationships they had fostered over the years. The stores could stay in touch all year round, building relationships beyond buying and selling. The automated setup helped collect client information and turned into a way to effortlessly keep customers feeling close. Clients received warm wishes on their birthdays and anniversaries and were provided gentle reminders of the store's presence during important moments.

It was at a cancer awareness event that a young couple named Scott and Kayla initially met the Smith family. Kayla felt an instant bond with the Smiths once she learned they had a shared experience, having both lost loved ones to cancer. She admired the family’s generosity in donating jewelry to the charity. This event wasn't an isolated incident; it represented the store's broader commitment to supporting their community.

After five years together, Scott and Kayla discussed the idea of marriage and taking the next big step together. Remembering the bond Kayla had formed with the Smith family, they chose Smith’s Jewelers as the store where they would search for the perfect engagement ring.

Upon entering the store, they immediately felt the love when they were welcomed by multiple family members, greeted by name, and offered refreshments. This personalized treatment extended to each guest who entered, whether making a purchase or not. The atmosphere was one of affection and comfort. Beyond the showcases of beautiful diamonds reflecting the store's commitment to workmanship and quality, they sensed a familial atmosphere. What they discovered was that Smith's Jewelers wasn't just a jewelry store; it was a haven of stories, connections, and meaningful contributions to the community.

It was the day every girl anticipates: a chance to try on diamond engagement rings. Kayla's eyes lit up with excitement as she slipped on different options. Their sales associate, Shelby, suggested that Kayla create a wishlist of her favorite pieces, which included three stunning engagement rings and a diamond pendant. Unbeknownst to Kayla, Scott discreetly made note of the ring that had stolen her heart — the ring that would soon symbolize his unwavering commitment. As they left the store, Scott made a promise to himself to return and make that cherished ring his own and began crafting a surprise proposal.

After the couple left, Shelby diligently entered Kayla’s wishlist into the Smith’s CRM system. However, a minor oversight in the system's configuration would later have unintended consequences. Kayla's contact information was listed as the primary contact for the wishlist, with Scott as the secondary. The system was programmed to send out automated text messages to primary contacts upon the completion of a purchase.

As a result, when Scott returned and covertly purchased Kayla’s favorite ring from the wishlist a few days later, the automation system sent a text message to Kayla asking for her feedback on her shopping experience. The system that had been intended to enhance the customer experience, uncover valuable feedback and streamline operations had disastrously spoiled what Scott had hoped would be the surprise of a lifetime for Kayla.

Kayla was devastated to break the news to Scott: She knew he had bought the ring, and the element of surprise was now lost. Fueled by frustration, Scott took action. He called the store and expressed his anger at the untimely text message that had undermined the surprise he had worked so diligently to create. He informed the store’s manager that if they couldn’t fix this, he would return the ring and would not be returning to do business in the future.

THE BIG QUESTIONS:

How would you overcome this situation and preserve your relationship with the customer? What insights does this story offer into the challenges of incorporating technology into deeply personal experiences, especially when trying to preserve the element of surprise? How would you train your team or alter your CRM platform to ensure that nothing of this nature happens in your own business?