“Service, Price, or Quality – Pick any 2.”
A sign with that statement used to hang in my dry cleaners years ago – luckily, it was a joke. They’re pretty good at all 3!
But that statement hasn’t died; a recent article in Moneywise essentially had a revised version of the statement – “Service or a Perk – Pick 1.”
The article references a survey with the following finding: “Almost half (49%) of consumers would change banks because of bad customer service – more than twice the number (22%) of people who would change providers because of rewards and incentives.” Now you may be thinking of an incentive from a bank being a stereotypical “toaster,” but different organizations have different definitions of incentive, reward, or perk.
We work with lots of organizations that focus on perks, particularly professional sports organizations. And many of them are constantly looking to expand their offering of benefits to season ticket holders (STHs) to impact renewals for the next season. But instead of assuming perks drive retention, we often survey (or tell our clients to survey) STHs and ask them directly – how much impact does “X” have on your likelihood to renew?
Now “X” could be “Direction of the Team” or “My Relationship with My Account Representative” or “Perk A” or “Benefit B.”
But don’t make assumptions; ask the customers what drives their retention and renewals, and then act on that information. Remember, Perks/Benefits can cost a LOT of money, so don’t spend it unless you have to do so.
So when you’re determining what perks and benefits to provide, first ask your customers if those items really drive retention.
Listen to our Pro Sports episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/2011/10/11/stepping-up-service-3-customer-service-in-professional-sport.html
Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/
Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/