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Customer Service, different strokes for different folks

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Having recently bashed unprofitable customers for scamming our businesses and taking advantage of us, let’s acknowledge that we gave them permission and investigate “win-win” customer service.

Before sending unprofitable customers to the competition ask, can this customer be made profitable by minimizing the cost of serving them? If the answer is no…send them to the competition, but before doing so, let’s explore some other alternatives.

Not all customers will be profitable and you must let go of those who are not before they bankrupt your business. Of those who generate profits, while everyone should be made to feel special, not all should be treated equally. Often, it’s only by offering different levels of service for different customer segments that they can be lucrative.

Although Marriott owns both Fairfield Inn’s and Ritz Carlton’s, guests wouldn’t expect the same quality or level of service at each property. Many businesses have conditioned their customers to expect the same level of quality or service, regardless of the price they’re paying.

Marriott has succeeded in achieving profits with the right balance of price and service while remembering the most important concept to their customer. Although the customer pays less at Fairfield Inn’s, Marriott still makes them feel special with the level of service they do provide.

Even high-end department stores treat customers differently based on which department they’re shopping in. A much higher level of service is always offered to the shopper in the ladies evening gown department than to the same customer just purchasing pantyhose.

The right customer service is about continuous renewal and reinvigoration of profitable business by delivering the right level of quality and service to the right customer at the right cost. Let’s look at both profitable and unprofitable customers separately.

Focusing on your profitable customers is essential because your competitors are trying to steal them. The challenge is to make enough of a difference so they won’t switch. Either demonstrate superiority in a way that customers value, or be prepared to deliver at a lower price than the compe¬tition and still make money.

Are your profitable consumers forced to run through a gauntlet of paperwork or phone calls encountering the “press 1, press 2, press 3” voice-option experience? Companies reducing or eliminating inconveniences generate more loyal customers. Ask profitable customers to explore ways to improve their experience with you in ways that matter to them.

Profitable customers will often give you insights as to how you can reduce your costs which could help turn unprofitable customers into positive revenue-generating centers. As technology can be key to enhancing the profitable customer’s experience, it can simultaneously reduce servicing cost to the point where unprofitable customers become profitable.

Could allowing cus¬tomers to order directly reduce customer service costs? Ask yourself, “Can you reduce your costs of service and make this customer segment profitable by deploying e-commerce or by using new technology?”

Can you charge for what you offer in a different way? Are you charging more than a customer wants to pay because you have too many features or benefits attached to your offering? Can you simplify your offering, reduce cost, enhance customer satisfaction and make them profitable?

Are there ways you can change the current way your industry operates and convert unprofitable customers to profit centers? Remember the selection and cost improvements of Staples, Lowe’s and Best Buy?

Win-win customer service mandates using different strokes for different folks, and making sure it results in a profit for your organization. Not all customers will be profitable, enhance your service to those who are, investigate methods to make those who aren’t become profitable and send the rest of the competition.

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This article is provided by Joe Murtagh, “The DreamSpeaker™” www.TheDreamSpeaker.com. For keynotes, facilitation, workshops, consulting and questions or or a free report on The 3 Most Common Mistakes Organizations Make, email us at Joe@TheDreamSpeaker.com or call 800-239-0058.

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