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Honesty is still the best policy
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‘Bait and switch” advertising, as most of you know, is when a company offers a great deal on a
car, a sofa, a vacation package or anything else, but once the customer is
lured in, they are told that item is sold out and are then pressured into
buying another similar item at a higher price.
Fortunately, blatant misrepresentations are becoming less common. Instead,
companies are more likely to rely on tactics in which claims are technically
accurate but couched in such a way that customers may initially be led to
believe they are getting something more.
The “free checking” frenzy started by the banking industry is a classic example. Customers quickly
became cynical when they realized that
“free checking” offers carried many disclaimers, contingencies, and hidden fees that made these
accounts anything but free.
Cell phone plans whose advertised rate is only good for the first three months,
automobile leases that require large down payments, video rentals whose late
fees far exceeded the original cost of rental, round-trip airfare advertised
for $49 but available only on a handful of seats
— these are all examples that represent a gamble on the part of the company that
the additional traffic generated by the misleading claims will outweigh the
resulting loss of customer satisfaction.
On more than one occasion, I’ve worked with cleaners who advertised “Any garment for $1.99” or something similar. Because of up-charging, the final price usually ended up
in the three-dollar-plus range.
While this may be a source of pride for the drycleaner, when customers realize
this discrepancy they are less than pleased. In fact, they develop a deep
mistrust for the drycleaner.
This kind of pricing can lead to an increase in claims for lost and damaged
garments. Once a customer
’s confidence is shaken, it can be difficult, if not impossible, to win it back
again.
Smart drycleaners refuse to mortgage their future and their reputations for a
short-term bump in sales. This is the key reason that drycleaners with high
customer satisfaction gain the most market share over time.
Don’t get me wrong, I’m not totally against up-charges, because they are quite justifiable in many
circumstances, like pleated skits, for instance. I just think it makes more
sense to have a base price that compensates for the majority of garment
variances, without having to change the price customers generally expect to pay
for every garment that comes across the counter.
Not only is honest communication with customers one of the most effective means
of satisfying them, it costs essentially nothing to implement.
Securing customer confidence doesn’t only involve honest pricing; it comes from not breaking commitments or
promises that can leave customers hanging with nowhere to turn.
When an employee takes the easy way out by telling a customer what she wants to
hear, the statements may be the result of a personal desire to avoid conflict
or to follow company policy on handling a particular situation.
Let’s face it, when confronted with an angry customer who wants to know why her
order isn
’t ready, or if someone will look into the problem and promptly get back to her,
there is always that little voice urging us to just say whatever the customer
wants to hear to just get her off your back and let somebody else worry about
the consequences later.
The urge to commit to what the customer wants to hear is particularly strong if
there is at least a chance it will actually happen.
Doctors know that statistics have shown if you tell the patient in great detail
about the procedure beforehand (they call it good bedside manner), the patient
will be much more relaxed about the whole thing than if they have no idea what
’s coming next.
Larry Kellner, the CEO of Continental Airlines, says, “It’s how we work with our passengers so they know what to expect, and then you
deliver on those expectations. When something doesn
’t quite work out, you tell them why it didn’t work out.”
People are a lot more forgiving than we sometimes give them credit for. You just
need to avoid the temptation to delay the inevitable. You may be able to avoid
an uncomfortable conversation today, but it
’s going to be a heck of a lot more uncomfortable if you wait until you have no
choice but to notify your customer.
The impact of being able to reach the same individual should not be
underestimated. Customers want to feel as if there is a real person with a real
name who will act as their personal champion when it comes to getting their
problems resolved. The best scenario is to empower your employees to handle
problems on their own.
A promise broken and then made good can even be more powerful than a promise
never broken at all. But the ability to follow through on commitments and
fulfill expectations is one of the cornerstones of customer satisfaction and a
requirement for turning simply satisfied apathetics into true advocates.
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