Valuing the Price Our Customers Pay

July 29, 2013 · 0 comments

in Business

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The day before yesterday, during the Saturday meeting with our customer care executives, I listened to one of them who said that an effective way to win customers’ buying decision is reducing the price.

Of course, this is the easy way out, endorsed by most people in sales.

I spoke to the executives about the difference between ‘Price’ and ‘Value.’ Price is what we as an organization get, for the service we provide. Value is what the customer gets in return for the price he pays.

If we can offer the customer a greater value than the price he pays, he will be happy with us and feel convinced that he is the winner in the transaction. The question is how we perceive the value we offer customers.

Service Square is not on the back-foot when it comes to the value we provide to customers. Almost every customer who has tasted our service would vouch for the excellent quality of service. Our teams have their uniforms. During the 13 years we have been in this business, we have heard about pilferage just once or twice. And, our house keeping teams are extremely cordial with customers. Finally, we are always honest in our business practices with our customers.

How does a customer know that he has got more value than the price he or she pays? When he or she feels it inside. When there is a surge of happiness within the customer at witnessing a service beyond the realms of his expectations or imagination, then we know that we have made the customer win in the transaction.

Being in a service business is the art of creating experiences for customers. Mere transactions are what normally customers get. To provide experiences, companies and their people need to work with their heart.

Not that we do not have areas to improve. For one, we can improve on the timings. Secondly, we can also expand the list of services so that we emerge as a one-stop-shop for house keeping services.

Communicating with customers about the value we offer should rest with everyone at Service Square. I reminded the executives that their loyalty with regard to money matters should always be with the company. And, on matters concerning value, they should always be on the side of customers.

Customer care executives should listen to customers’ feedback and take steps to bring to the notice of the company any areas of service deficiency. Such feedback mechanisms can vastly improve service delivery levels.

I dream of a day when Service Square will not negotiate pertaining to our price. Our service is for those who can afford our quality and the value we provide. Those who treasure value would not really haggle over price. This would mean that we have to cater to the rich sections of the society in Chennai.

How I wish everyone is rich enough to afford the good things of life!

Here’s the contrast and challenge offered by life to me – to reach for and live a life of abundance.

After the meeting, I went to a shop to buy some mangoes. I left it to the shop keeper to select the good ones. When I reached home and opened the bags containing the mangoes, I found a few of them were over ripe.

The fruits in that shop were not accessible to customers and they had no way of choosing – after feeling the fruits with their hands. I made a mental note that I should not go to that shop again. Perhaps the fruit vendor has lost a customer for good. He made me lose in that transaction.

My wish is that Service Square should never lose a customer because of thinking small and exploiting a trusting customer.

Finally we now have a software to keep track of customer satisfaction and this could act as a spring board to offering greater value to our customers. I invested a lot of time this morning with Mathan and the tele-calling executive to study how effectively we are using the software. There are some modifications necessary, but this can serve us very well.

Neale’s message today created a great impact on me. Though I had read it earlier too, today the effect was deeply felt. He used a quote by Wallace D. Wattles:

Every action is either strong or weak,

And when every action is strong we are successful.

What this message brought to me is, whatever I do, do it passionately. And, put a lot of feelings and emotions behind everything I do.

There is something about Neale’s message which resonate within me – almost always.

I have to tend to Service Square with more commitment and conviction. And with huge depths of feelings and passion.

So also with my new love – Training.

 

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