In fact Customer Service leads to profitability. Last night i went to Chutney's Indian Restaurant with my wife. We ordered a meal to go. While waiting at the counter having a drink my wife blurted to the owner it was my birthday. Well first of all the drinks became free. On the house. Then they put together a special lentil dish for us on the house. And to finish it off he brought out a special potato dish for us to share with him that was his personal favorite. OK so the $40 bill had $10 or $15 of extras in it. Did that cut his margins some? Yes. He made less money last night on us. But just think how much equity he deposited in the bank. Great Customer service. Freebies, personal touch, and got us to try two new dishes. Was that a profitable move? You bet. His small investment in time and freebies is a Customer Service win that will earn him many more $$ in the coming months and years in more return visits, and buzz from me telling friends. Next time you think about investing in Customer Service, don't think of the cost, instead think of the increase in Customer lifetime value and how much more profitable the relationship will be. Not to mention the smile you'll put on the face of your Customer. Thanks Chutneys! :-)
Comments (2)
I couldn't agree with you more Mike. In an age where computers and technology are replacing the "human touch", Customer Service has become a huge issue for me. I find myself loyal to the businesses that actually seem to care and take the time to really understand my needs. When I just feel like a number, it's really easy for me to stop spending my money with them. When I feel like they actually care, I'll probably spend more than I had intended to!
Posted by Anthony Simmons | October 11, 2006 11:26 AM
Happy Birthday! Danny Meyer - the President of Union Square Hospitality Group, which includes Union Square Cafe, Gramercy Tavern, defines that level of service as "True Hospitality" - I think his belief is that "Customer Service" is a set of skills that anyone can pick up - but that True Hospitality is something that you have to hire for. Interesting thought. Read more in Bo Burlinghams book "Small Giants - Companies that Chose to be Great instead of Big"
Posted by Shaun Masterman | September 28, 2006 3:42 PM