| |
| |
|
Customer Service Information |
|
|
|
4 Myths about Customer Value
The purpose of business is to create and retain a customer. Much has been written about customer orientation, customer relationship management (CRM), Customer Lifetime Value (CLV) metrics, Customer Centric organization models, customer retention, customer care-add any high sounding word with -customer- preceding or succeeding that word and you have a new model, a new theory. Headline hitting books, celebrity author seminars and training till another theory comes along. And we see the poor customer is still the most dissatisfied lot (that includes all of us specialists too, as customers). What a manufacturer or service provider often thinks as a market or value proposition, customers respond in a diametrically different fashion. Why does it happen? While business thinks in terms of products and derived values, customer is looking at satisfaction. The key question is whether all the strategy, product features, add ons and value creation lead to ultimate customer satisfaction. Now this may seem a little contradictory. To illustrate it better let's take the example of Cell phone services. Companies are rolling out a new product every fortnight offering more value, in their perspective. Then the point is why does the customer keep switching over to different service providers and products or packages so often, if the products are offering value. The key here is more value propositions are being rolled out without looking at the very basic. Whether the value proposed gives satisfaction to the customers. If not it is not valuable. The customer is buying satisfaction. Highest value is derived when the customer is fully satisfied with his purchase. Some common myths in Value Creation Myth # 1 More is often considered value Buy one get one free schemes are rolled out. There is of course an instant sales push. However at the end of the scheme the customer feels that he had all along been paying 100% more for the products and perceives that very product as costly once the scheme is withdrawn. May switch to another product at the same price. Conclusion: Dissatisfaction leads to value erosion Myth # 2 Price is value Many business considers lower price as offering more value. More often than not lowest price products end up as the second best with a higher priced product with similar product attributes leading the market. The simple reason is the higher price product may be offering a higher satisfaction due to perceived values and imagery. Car markets are a prime example of this syndrome. Myth # 3 More Features or add ons are value Businesses load a product or service with more features thus offering a higher value. While this may be attractive, if the features are not backed by adequate supports the satisfaction may be less and value is reduced. We encounter this everyday. A customer buys a product with many features but not demonstrated properly or may not be serviced properly. Enquiries may not be handled effectively. Airlines offering add ons like free overnite accomodation are still not favored if the services, like enquiry handling, reservations, and time schedules are poor. Cell phones companies may be offering plenty of add ons like national roaming or free incoming calls etc. However if the billing is poor and billing enquiries are not addressed properly the customer is dissatisfied and leaves the service for another provider. Myth # 4 Products are competing with similar products This is often true in the leisure industry. A movie theatre may not be competing with another movie theatre. If the customer is not satisfied with a theatre or movie he may look at options to other entertainment sources, for instance an amusement park. We may call them discretionary time products. Highest satisfaction levels are very important in this type of business. These are some of the examples of how businesses can go totally wrong in assessing value. While it is all good to talk of value creation some thought must go into the major ingredient in value that is the customer satisfaction. And are business really serious about customer retention. As even a novice to business knows it is far cheaper to service and retain existing customers. The cost of acquiring new customer is very high. Now how many business have consumer satisfaction index to monitor this prime factor in customer value creation R.G. Srinivasan is founder of Born to Win Forum. He is a certified trainer and 0nline marketing promotions consultant. Check out his webpages at http://venturelinks.tripod.com
MORE RESOURCES:
Customer-Service - Google News |
|
|
|
RELATED ARTICLES
Wholesale Buyers Versus Retail Customers Are wholesale buyers and retail customers really different? Frankly, there are two answers to this question: yes and no. Yes, because they are different from the buyers and those selling to buyers' point of view and no, because the principles that apply are the same for both types of buying. Dealing with People - Words to Avoid You probably realise how the wrong tone of voice and negative body language can cause problems when dealing with other people, particularly customers and staff. However, using the wrong words can also cause problems. 11 Ways to Get What You Want - Be a Clever Customer! We all want great service, whether we are buying our weekly groceries from a store, or want a billing hitch resolved at our local utilities provider. Whether it's getting our car fixed, or a great meal in a restaurant. At Your Service: The Ten Commandments of Great Customer Service! Customer service is an integral part of our job and should not be seen as an extension of it. A company's most vital asset is its customers. Can Three Words In Websters Dictionary Be The Key To Customer Loyalty? Are you concerned about customer loyalty? Are your customers so loyal that they will stick with you through hell and high water? And if not, you really need to question how you can create a customer relationship that's so gluey, that you never go bluey in the face. Funnily you don't have to go far. Customer Service Tips - Is Your Business A Leaky Bucket? Customer service and customer service training are vital for any business.But, is your business a leaky bucket?This is a question I always ask small business owners who attend my marketing seminars. The Nine Principles of Customer Service for the Travel Industry If you want to learn how to get your clients to do your selling for you through excpetional customer service, read on. Learn customer service secrets from tourism professionals, apply them to your business and prosper. How Not to Get Stiffed, Improving Your Collection Procedures Some businesses have slow paying customers or past due balances because they didn't "train" their customers in the beginning.It is important that your customers know your credit policy and/or terms of payment, BEFORE they become a customer. Listen to Suggestions If you are up to your ears in a stressful situation, it becomes difficult to think clearly. Sometimes, it is best to walk away from a problem, and think about it, rather than try to solve it with an instant solution. The Reality of Customer Service in America and Best Efforts in Franchising, We Can Do Better Yesterday I went to buy a sandwich at a franchised outlet. I thought while driving up would the owner be there to help out and save some money on labor, knowing a holiday weekend is hard to get labor. Hit The Jackpot With Customer Complaints Our most powerful instinct is to avoid customer complaints, but they may be the best thing that happens to your business. Here's why. Customer Service and Marketing that Works Go into many businesses today and try and get service, its sometimes impossible! The customer service officer is on the phone talking about personal issues, there is not enough staff, and they are disinterested and distracted.The old days of customer service is where you the customer were viewed as valuable and important and you received service from a person and not a machine. What Every Manager Should Know About How to Win the Loyalty of Customers Dr. Michael LeBoeuf, in his cassette album entitled, Win Customers and Keep Them for Life presents twelve principles that will transform the workplace into a customer-driven, highly motivational team. Customer Service - A Sweet Essence First let us specifically define customer service. It is the performance of a duty or responsibility due to a customer as a result of selling them a product or service. Say It With Humor When you own a business, you may find yourself in situations that may be a little tricky to handle. Dealing with customers who steal is one of them. Raising The Bar For Online Magazine Subscription Services And Customer Service After years of flying below the radar in the magazine subscription service arena online, MagMall.com is gaining traction real fast. Whatever Happened To Customer Service? Do you remember the last time you went into a shop and the person 'serving' raced over to you, greeted you with a lovely smile, heaps of enthusiasm and said, "Welcome to our store, what can I help you with today?" And then listened attentively to what you had to say?Doesn't happen very often does it? In fact, while I was writing this, I couldn't recall when I had experienced it. I'm sure I must have yet it would have been so long ago, I can't remember. Aint We Wonderful! It may come as a surprise to you to discover that customers don't buy your products or services because they feel that you have a right to make a profit. In other words, their motive for doing business with you is not to help you buy the latest Jaguar or put your children through college. Top Ten Strategies for Delivering 5-Star Customer Service Customer satisfaction is valuable, but customer loyalty is priceless. In today's competitive world of business, it is becoming more and more important to deliver customer service that is unbeatable. Absence Makes the Heart Grow Fonder However, in the world of business, this clich may not necessarily be true. Sometimes it can be more like 'Out of Site, Out of Mind'.
|
| home | site map |
| © 2006 |
