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Boost your value to customers
Many drycleaners think that value means
either low price or that it’s merely the relationship of
quality to price. For instance, some cleaners promote any
garment for $1.99 as a value position, ignoring other
components of what customers actually perceive as value.
Although price and
In addition to price and quality, value is
derived from convenience, service, and experience. When
combined effectively, they enable drycleaners to command higher
prices for their services.
Consider the convenience component of this
value equation: According to recent marketing studies, 75
percent of customers believe they need to manage their time
more efficiently, and 71 percent believe they need to find ways
to reduce stress in their lives. Customers increasingly feel
there is not enough time to do the things they need to do,
which contributes to the high stress levels so prevalent today.
It’s no wonder customers’
tolerance for error has grown so thin.
Drycleaners can take advantage of this
development by ensuring that their services genuinely help
consumers simplify their lives, whether through longer hours of
operation, providing service on Sundays, pick-up and delivery
or, even, improved packaging.
Improvements to packaging can be: plastic
hangers with skirt-clips, jacket sleeves stuffed with tissue or
customized to each customer’s preference (as in
“Have it your way”).
Service is the next component of the value
equation, and we are experiencing a substantial service void in
the drycleaning industry. Customers tell us that good service
is more important to them than ever — so much so, they
are willing to pay more for what they perceive to be superior
service.
Yet satisfaction levels for drycleaning
and laundry have reached all-time lows. According to the
American Customer Satisfaction Index (ACSI), overall
satisfaction for the service sector, which includes
drycleaners, has dropped by a greater percentage in the past
six years than for any other sector in the U.S. economy.
Interestingly, poor service is the reason most customers cite
for changing cleaners — well ahead of both quality and
competitive activity.
Although there are many attributes that
contribute to overall satisfaction in any service business, one
key factor is the comfort of knowing that a cleaner will stand
behind his work.
Service-oriented drycleaners offer
unconditional guarantees to ensure their customers’
satisfaction.
A guarantee will instill confidence. Many
cleaners are afraid to try this. They say, “Oh, I
can’t do that! Every customer will want their money back,
and I’ll go broke.” Or “Too many of my
customers will take advantage of me. I won’t make any
money.”
These kinds of objections are only used to
mask their true concerns — namely, that their work
is below par. And people will, indeed, ask for their money
back.
Actual studies show that this is not true.
Here’s what does happen: sales increase because the
customer has confidence shopping with you. Guarantees will
bring you more business. Guarantees will give your customers
more confidence to use your services.
Guarantees will give your business a
greater sense of quality. Guarantees will set your business
apart from the competition. Guarantees will position you as the
“first choice” drycleaner.
Here’s what you need to know. There
is a small group of people who attempt to take advantage of
anyone they do business with. Of course the laws of nature and
giving and receiving catch up with them in the end. The only
free cheese is in the mousetrap.
The point is, you can’t design your
business to protect yourself from a few ignorant people.
That’s known as, “Throwing the baby out with the
bathwater.”
Build your business around customers you
want to attract. And one of the best ways to attract good new
customers is to take away their risk of doing business with
you.
The third component of the value equation
is experience — not yours, but the customer’s.
More than just the absence of problems and inconvenience,
experience is the total of all the positive and negative
encounters a customer has while doing business with you.
Do you enjoy going to McDonald’s?
Even if you don’t like the food, the experience is
usually pleasant.
Do you enjoy going to Disney World or
Disneyland? Most people do. Why? Because these are both
well-engineered experiences.
That’s right. It’s no accident
that all of these places make you “feel good” when
you visit them. The colors, the sounds, the smells, are all
considered in the design and construction of these
establishments.
We are all in business to satisfy the
customer. Or, at least, we should be.
However, many cleaners don’t
understand how to satisfy the customer. They don’t
understand how the customer really wants to be satisfied. So
they opt for the easiest out. The short term fix. Discounting.
Since we are the ones in control of our
customers’ experiences we are responsible for their
fragmented vision of our services. We are the ones who must
redirect their focus toward the whole pie. The entire
experience.
Would you consider your experiences at
McDonald’s or Walt Disney’s to be pleasant if the
people that worked there were less than cheerful and helpful?
In fact, if you’ve ever had a bad
experience at one of these, a front-line employee was probably
the reason. The same can happen in your store! Don’t
allow employees to be anything less than courteous and friendly
at all times. Even with other employees.
Tomorrow morning, when you come to work,
drive up to your store, as if you were a customer. Park in a
customer parking space. Note if there is ample parking. Note if
your building and signage are well painted.
Come back at night and check to see if
they are well lit. Walk into the call-office and look around
like a customer. Is everything clean, neat, well painted,
pleasant and cheerful to look at? Do the surroundings make you
feel good? Would they make you feel good, even if you
weren’t the boss?
Smart drycleaners realize that providing
value is a means to an end. Value is the key to customer
satisfaction, which in turn results in higher levels of
customer loyalty. In addition to price and quality,
convenience, service and experience are all necessary to
achieve and maintain profitable market leadership.
Dennis McCrory is president of The
Golomb Group Inc., a firm that
designs marketing programs for drycleaners. Contact him at The
Golomb Group Inc., 7664 Plaza Ct., Willowbrook, IL 60527.
E-mail: dennismccrory@golombgroup.com
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