If you are in business you will have gathered very quickly
that the customer is king (or queen). Unless you have a total
monopoly of a product or service there are plenty of other
suppliers that your customers can turn to.
What makes people choose a product?
Customers look for a variety of things, all of which are important.
The first thing that drives them is the need for the product,
whether it is a new car, an airline ticket or just a meal
out. Other considerations include the presentation of the
item, the perceived quality, the price and last but not least,
the service. The problem with the last item is that a true
appreciation of the service can be gained only after making
a commitment to purchase.
Why bother to provide good service?
Indeed, if making a quick sale is all that matters, providing
an ongoing service can be ignored. But how many products or
services are sold only once in a lifetime? Very few. The successful
business person knows that to produce ongoing sales and expand
the business by attracting new customers through recommendations
it is essential to look after the customers after the sale
has been made. One of the favourite pastimes of expats in
Bali is visiting restaurants. They are certainly blessed with
a very wide choice. The most successful ones have ‘hands-on’
managers, ones who personally monitor the quality of meals
and service and who mingle with the customers to ensure their
dining experience is an enjoyable one. On the other hand,
if you ever visit a restaurant where the staff are unfriendly
or where a problem is not quickly resolved you will probably
never go there again.
One bad experience may be enough
Indeed, a single bad experience may turn you against a product
forever. Many years ago in Africa (the Congo) I had a bad
experience with Swissair. The airline forced its passengers
to line up on the tarmac in torrential rain while they conducted
a security check at the top of the stairway to the plane.
We then had to sit in wet clothes in an icy plane for eight
hours with not even blankets provided. The crew did not appear
to care as there was little competition on that particular
route. I swore I would never fly with them again and know
I will keep that promise because they went out of business
during the downturn following 9/11. The latter was blamed,
but other airlines survived and I wonder to what extent the
attitude to customers played a part. Another case is that
of British Airways, whose ground staff in London went on strike
a couple of years ago, paralyzing the airline for several
days. Although I was not personally affected my inclination
is never to fly with an airline whose employees will not hesitate
to hold passengers to ransom by disrupting their business
or holiday plans. People who poorly treat those who are effectively
paying their salaries do not deserve to remain in employment.
Many British expats will remember the coal miners’ strikes
in the 1970’s that crippled the UK for weeks. The consequence
within a few years was the end of the industry in the UK,
and no more well-paid jobs for miners.
Problems can be turned to advantage
Let’s face it; if you are running a business, things
can go wrong and customers can get upset. Ignore the problem
and you have probably lost that customer. Show immediate concern
however and do your best to put the situation right and you
will probably retain that customer and gain additional respect.
An example is when a car manufacturer recognizes a defect
in a new car. By contacting customers and arranging a recall
and free correction of the defect loyalty will undoubtedly
be retained. I once had an annoying breakdown of a car I rented
in Bali. I called the rental car company and within half an
hour they were on the spot with a replacement car for me.
That kind of service is what keeps customers on the books.
There is now a world of choice
Companies like British Airways and their counterparts in other
countries once had the airline market to themselves. They
could dictate prices and choose whatever level of service
they wished to provide. Now people have choices and they are
exercising those choices! Businesses that become complacent
and inefficient find their customers moving to newer, more
efficient suppliers with a more positive attitude to service.
Getting that first sale and having a customer base means little
if you don’t work hard to keep those customers. This
applies equally to my own industry. I know if I do not respond
promptly to enquiries or complaints and keep my own clients
properly serviced there are plenty of competitors waiting
to snap them up! It is not always easy when work pressures
are high and not all customers are easy to deal with, but
that is part of the challenge of being in business. Whatever
industry you are in, the sale is not the end of the business
process; it is just the beginning of what should be a long
term relationship if you want to be successful. If you are
not in business then you have every right to expect a quality
service wherever you go. If you do not get it, then you can
vote with your feet. The first rule in business is that the
customer is king – or queen.
Colin Bloodworth is a senior consultant with Financial Partners
International. The views expressed are his own. No investment
decisions should be taken without proper advice. If you have
any questions you may contact the writer at 021 520 8099 or
colin.bloodworth@financial-partners.biz
