Tuesday, July 19, 2011

Why Three Businesses Lost My Business

A wise businessperson keeps at the forefront of his/her mind is a fundamental fact, consumers have a host of options and a bad experience can cause the businessperson’s customer to take their business elsewhere. A manager/owner her forgets this fact will lose significant business, and possibly so much so as to put their business at risk.

Most people accept that mistakes are made, but when they are, consumers expect adequate redress. Inadequate redress is nothing short of poor customer care. While it is true that I will accept poor customer care if the results are clearly superior (quality of product and price), on a whole such superiority is rare. Hence, when all things are equal I rarely patronize a business from which I receive poor customer care.

Following are three recent negative experiences with for profit businesses that my friends in the nonprofit sector can readily apply to their work too.

In May I had to select a place for two upcoming business dinners. Hence, our family wen to an Italian restaurant, Da Domenico, in Tyson’s Corner. Evie and I go there from time to time, and I thought I would look at it as an option for one or both dinners. Shortly after we were seated, the waiter asked if we were interested in appetizers. We declined noting that none of us were interested. After getting our orders he returned to the subject of appetizers and said that they were lovely, and he would put together two samplers that were not listed on the menu. He suggested that there would not be too much of any single item and the price was reasonable. I made a big mistake by not asking for a specific price, which the waiter clearly took advantage. What came to our table of five were two good sized platters, more of a party size, from which we ate no more than a third.

When we received the bill, the platters turned out to be about 35% of the total bill. Further, when I asked for the doggy bag from the platters I was informed that they were tossed out. That was in May…I selected two other restaurants, albeit more pricey, for the business meetings. This particular restaurant in Tysons received that night the last dollar I will ever spend there.

The second poor customer service experience occurred three weeks later in early June when I went to American Lube for an oil change. For the most part I have used this shop four to five times a year for the last eight years. In the last seven months or so the establishment has undergone management change. During the most recent visit they mistakenly put in the more costly synthetic oil. When I noted I had not asked for that oil and would only pay for what I requested, the manager explained the synthetic oil was ordered by the customer ahead of my car was put into mine too by mistake. What would you do?

A mea culpa, leave the oil in the vehicle and charge for the regular oil would be good customer care. Instead, the manager did everything wrong. I was given two options, pay for the synthetic oil or wait for the correct oil to be added. I refused to pay the extra. As the drained synthetic oil would be sent out for recycling you would think they would leaving the synthetic oil in the car? At the end of the day, they not only increased their costs of the extra oil, but cost themselves a regular long-term customer.

Lastly, over the last week Evie have been in the process of changing our place of residence. Driven by value and customer service factors, it is a move that was settled this past fall.

The complex in which we reside has undergone four ownership/management changes. The first management firm was warm, helpful and customer focused. If you needed something, they listened and sought to do something to help. When they needed something from you their call or note was respectful while still accomplishing their business.

While the current management is better than the prior one, their customer care is far from being the best. Retaining good customers/tenants is a key to ongoing business success. Long-term tenants are even more prized, or so you would think. Over the years we have had various repairs done. A bathroom drain leak damaged a spot on the ceiling and wall in the dining room. While the leak was fixed, they did not return to repair the plaster. Last fall another request yielded the repair but the paint did not match. We suggested that we could move the furniture from the wall so that the whole wall could be repainted to which we received a flat and cold “no”. Management explained that painting happens only when an apartment or townhome is being prepared for a new tenant.

In the same conversation I noted that we had been there for ten years and as long term tenants it would be nice to have the ten year old carpet in the living room, hallway and stairway replaced. We received the same answer as with the painting even though we were willing to move the furniture out of the space in question. It stands to reason that the longer you remain the more the quality of the carpet wears and the walls fade, and after eight or in years it would be prudent to start replacing some carpet and painting the walls too.

With the same message we made our decision. So we are moving and with Jonathan getting married, we are taking the opportunity to downsize, move a little further out and save some money too.

Those who have attended the Disney Institute would have heard again and again the importance Disney puts upon creating a positive experience for its guests. When something does not measure up, they do not overreact but they will do what is reasonable to leave the guest feeling positive. They have solid customer care.

Donors too can have a bad experience…slow receipts, misspelled names, wrong donation amount, doing a mea culpa, etc. In those moments care must be taken to listen to the donor as well as those being served, accept responsibility, weigh their observations and see what where we can do a better job going forward. Care must be given to not dismantle what is working, but refining is always possible.

While at the Disney Institute I was struck afresh by how Disney values listening not only to their guests but their cast/employees too. They are willing to listen, evaluate and incorporate ideas from all levels of their cast and from guests. They work hard to create an a good guest experience by trying to look at everything they do from the customer’s common experience. There some things Disney cannot change, such as long lines for certain rides and crowds, but they have gleaned ideas from cast and visitors alike as to how they can make the overall experience positive for their guests. Teamwork is valued throughout the organization and outstanding ideas can come from the insight of the newest employee in the most minor position.

Whether it be a nonprofit or a local business, customer service is critical, for without it, the organization’s or business’ health is at risk as donors and supporters can take their money elsewhere. Clients can look elsewhere for meaningful help and thereby cause the rationale for the service and agency to decline. Listening and creating a positive environment for all is a noble yet demanding goal that can be readily be achieved, IF we are willing to listen and change too.

No comments: