Howard
Services is a consulting firm, based in Franklin, Massachusetts, that has a mystery
shopping division.
The firm reports that in 70% of the cases where a retailer or a restaurant has received
a below average customer service score, the restrooms were dirty.
The flip side turns out to be true as well. In 70% of the cases where the customer
service rating was above average, the restrooms were clean. The company also reports that
nine out of ten dissatisfied customers never complain, and 30% will never return.
WALLY'S COMMENT ... I always liked looking for little indicators of how much a company
is paying attention to things. On airlines, I pay attention to how many crumbs are left in
my seat, and whether or not the flip-down tray has coffee stains.
What I think studies like this tell us is that value (or lack of value) relates to the
totality of an experience. It also tells us, I think, that one really bad piece can ruin
the rest of the experience.
Years ago I picked up a definition of value in business that I find much more helpful
than the usual one of value for price. The definition that I heard is that value is the
relationship between what a customer expects and what a customer gets. That means that
it's a moving target.
Tip: Take the time to look at the total experience that your customers or clients
receive. How easy is it to find you? Is it pleasant to deal with you? Are your prices
competitive? Does your product or service work? Is there good follow up? And, are the
restrooms clean?
Once you've got a handle on what people might expect, and on how you stack up, go back
and read the PIMS Principles by Buzzell & Gale. The profit impacts of marketing
strategies study is still the best overall view we have of how to generate business
success and it says that the major factor in that success is "perceived value in the
target market."
Find out what that value is what the expectations are and you've got the golden key to
business success. As long as you're willing to turn it.
You can find the PIMS Principles at Amazon.com
This material originally appeared in Wally Bock’s Briefing Memo
Newsletter of 15 May 1998.
Reviewed: 2/15/03
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