Thursday, August 21, 2008

Customer Service: don't discount it

I have a client that owns and manages a few restaurants. During one of our first meetings we sat down with his marketing person to discuss ways to bring in new patrons and increase repeat business. One of the first suggestions from the marketing guy involved coupons. My client immediately cut him off saying, "I don't discount my food." This seemed harsh and closed minded until I realized how important his statement was. In many businesses the first reaction to poor sales or a slow month is to discount the product or service. This will attract new clients and increase business, but it may not help the bottom line. In fact discounting an item often establishes a base price in the mind of the customer. 

If I buy a can of peas for 75 cents this week am I likely to be happy when they are more expensive next week? This is one of the most important concepts when it comes to customer service. You must look at your business through the eyes of your clients. If I have to pay more next month for a product I bought on sale this month it appears like I am not getting a good deal. 

So, if you can't cut prices how do you create more business? Promote what you and your company already do well. Advertise, promote, highlight, and emphasize what you are doing right to distinguish yourself from your competitors. Often this comes down to good customer service. Most of us are willing to pay a premium for good service and attention to detail. Many business owners are willing to offer better service and more attention to premium customers... it is a perfect scenario. 

Spend some money where it will improve your customer service. Ask employees what would help them to serve your clients' needs. Implement a few of the best ideas. This will increase employee "buy-in" and show the customer that you value your staff. 

Eliminate poor performers who are not living up to high standards of service. For every complaint you receive about an employee rest assured ten other customers left upset without saying a word. It is vital to your long term success that you keep only energetic, qualified, and happy staff members. This sometimes means you will need to provide more training for new hires or even additional training for current employees, but in the long term you will be rewarded.

Keeping a constant focus on customer service will not only grow your business but also keep that growth for the long haul, something specials and discounts can't do. So when it comes to good service, never discount it.

1 comment:

Anonymous said...

Good points! I think many business owners overlook customer service.