Raising price? Why not service?

"The point is that if you do charge extra, then you also have to make sure that the charge is easy to digest."
-Frei & Morriss (Uncommon Service)-

Quick Recap

Some may think adding price to an added value is a fair trade off . Well sometimes its not like that. In any business field where customers are price-sensitive, a small raise in price -even by a dollar- may cause clients to flock from your business to another. But there is a way to hit both birds with a stone, maybe three.

Fedex initially added value to their brand by allowing customers to call in and track their package. This of course was expensive for the company to maintain a call service department and often times it was tedious for both parties due to communication obstacles. Fedex then took the idea of improving service while lowering cost by allowing their customers to track their package online.

Note here that Fedex didn't raise price, they just cut it. If they had raised it then there might be a chance they lose clients, but instead improved the service and kept the price steady. It inst guaranteed that they would earn more customers, but one thing is certain, Fedex customers felt comfortable with the company and that surely increased their loyalty. Though customers should all be treated equally, loyal customers is worth by far more than a regular client.

About the book

The book may be quite monotone sometimes, but it shows clear points that no service manager should avoid. Its affordable and doesn't take much time to speed read.

P.D. I have learned that sometimes cutting expenses on what you think what is good for customers is not always bad and the other way around.

ENJOY THE REST OF THE EVENING!!!

:)