Comments on: 5 Reasons to Over Service Your Customers http://www.saasu.com/5-reasons-to-over-service-your-customers/ easy online accounting Tue, 06 Jan 2009 02:27:49 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Adam Fox http://www.saasu.com/5-reasons-to-over-service-your-customers/comment-page-1/#comment-939 Adam Fox Tue, 12 Aug 2008 00:17:20 +0000 http://www.saasu.com/?p=1496#comment-939 The most cost effective 'over servicing' is when your competitors consistently 'under service'. With my business all we have to do to 'over service' our customers is to respond to their phone calls or emails. Our customers are constantly surprised when we give them a quick call, or follow up on their questions... for us it's all part of the basic service... something we factor into our business model... and the end result is that our competitors' customers, quickly become our customers... The most cost effective ‘over servicing’ is when your competitors consistently ‘under service’. With my business all we have to do to ‘over service’ our customers is to respond to their phone calls or emails. Our customers are constantly surprised when we give them a quick call, or follow up on their questions… for us it’s all part of the basic service… something we factor into our business model… and the end result is that our competitors’ customers, quickly become our customers…

]]> By: Marc http://www.saasu.com/5-reasons-to-over-service-your-customers/comment-page-1/#comment-936 Marc Mon, 11 Aug 2008 12:17:49 +0000 http://www.saasu.com/?p=1496#comment-936 G'day Michael. I know what you are saying and I agree. I'm talking about costed over service. In our case that might meaning taking the odd phone support call from a free customer who's a bit desperate for help (who technically shouldn't have that provided). Statistically we get a good response and the signups to paid covers the upfront bet we place. Giving time or services is a bit like placing bets in my experience. Knowing which ones to make. I totally avoid the unaccounted for cost of sale. Lots of businesses make that mistake, I relate to your comments I have done the same in the past and have learned some hard lessons. I'm talking about beating the customer expectation. Not taking it to a loss making extent. "Powerfully decline" is a good tool I was once taught. One example that always sticks with me is when I used to get my car serviced and they washed it, it felt damn good, they overserviced me, and I'd always tell people about it. I never asked for it to be washed, but I bet actually ended up paying for it. I'm sure they costed the overservicing. G’day Michael. I know what you are saying and I agree. I’m talking about costed over service. In our case that might meaning taking the odd phone support call from a free customer who’s a bit desperate for help (who technically shouldn’t have that provided). Statistically we get a good response and the signups to paid covers the upfront bet we place. Giving time or services is a bit like placing bets in my experience. Knowing which ones to make. I totally avoid the unaccounted for cost of sale. Lots of businesses make that mistake, I relate to your comments I have done the same in the past and have learned some hard lessons. I’m talking about beating the customer expectation. Not taking it to a loss making extent. “Powerfully decline” is a good tool I was once taught. One example that always sticks with me is when I used to get my car serviced and they washed it, it felt damn good, they overserviced me, and I’d always tell people about it. I never asked for it to be washed, but I bet actually ended up paying for it. I’m sure they costed the overservicing.

]]> By: Michael http://www.saasu.com/5-reasons-to-over-service-your-customers/comment-page-1/#comment-935 Michael Mon, 11 Aug 2008 04:52:11 +0000 http://www.saasu.com/?p=1496#comment-935 Nope. I disagree. Customers build up unrealistic expectations that you can't consistently deliver when you overservice. Overservicing my clients lead to being taken advantage of. In theory, the concept seems valid, but in my reality, I end up wasting time and money with tyre kickers, and freeloaders. I started charging people for what they had been getting for free, and suddenly, what I was doing wasn't necessary any more. Since stopping overservicing, my profit has increased, as has my free time. Nope. I disagree.

Customers build up unrealistic expectations that you can’t consistently deliver when you overservice.

Overservicing my clients lead to being taken advantage of. In theory, the concept seems valid, but in my reality, I end up wasting time and money with tyre kickers, and freeloaders.

I started charging people for what they had been getting for free, and suddenly, what I was doing wasn’t necessary any more. Since stopping overservicing, my profit has increased, as has my free time.

]]> By: Marc http://www.saasu.com/5-reasons-to-over-service-your-customers/comment-page-1/#comment-934 Marc Mon, 11 Aug 2008 02:38:01 +0000 http://www.saasu.com/?p=1496#comment-934 Thanks Hugh. I think it shouldn't cost too much more in many circumstances for small business to provide better customer service. Customer acquisition is so expensive that lower churn rates in your customer base can save you a lot of marketing dollars as word of mouth takes hold. By providing good service you also get more efficient at it as you find better ways to give customers the same result. Thanks Hugh. I think it shouldn’t cost too much more in many circumstances for small business to provide better customer service. Customer acquisition is so expensive that lower churn rates in your customer base can save you a lot of marketing dollars as word of mouth takes hold. By providing good service you also get more efficient at it as you find better ways to give customers the same result.

]]> By: Marc http://www.saasu.com/5-reasons-to-over-service-your-customers/comment-page-1/#comment-933 Marc Mon, 11 Aug 2008 02:29:43 +0000 http://www.saasu.com/?p=1496#comment-933 @Adam, I often wonder why video shops don't just max out the fine at the cost of the video and let the customer feel like they didn't really lose all that much. Next time they come in the video shop would just charge you $19.95 and then you own that video that they would have to sell for $9.95 a month later anyway. Even if they just took a twenty dollar deposit on setup of the account it would solve them a lot of headaches. actually there is just too many reasons that it won't last as a business model past 2015 imo so its a classic enjoy it while it lasts business model. @Adam, I often wonder why video shops don’t just max out the fine at the cost of the video and let the customer feel like they didn’t really lose all that much. Next time they come in the video shop would just charge you $19.95 and then you own that video that they would have to sell for $9.95 a month later anyway. Even if they just took a twenty dollar deposit on setup of the account it would solve them a lot of headaches. actually there is just too many reasons that it won’t last as a business model past 2015 imo so its a classic enjoy it while it lasts business model.

]]> By: Adam Fox http://www.saasu.com/5-reasons-to-over-service-your-customers/comment-page-1/#comment-932 Adam Fox Mon, 11 Aug 2008 01:08:27 +0000 http://www.saasu.com/?p=1496#comment-932 I recently received a threatening debt collection notice on behalf of a video store for overdue fines from around 12 months ago. When I called the owner of the store (a franchisee of a large video chain - it's ezy to guess which one) I asked why they had left it so long? And didn't they realise that for the sake of $50 or so, I would never spend another cent with them ever again... their answer was that they didn't have the resources to follow up... I couldn't resist explaining to the owner that this complete lack of customer service was going to cost them many times more than the cost of a teenager to call and follow up each customer with an overdue fine once a week... a happy reminder phone call would have solved the problem... I recently received a threatening debt collection notice on behalf of a video store for overdue fines from around 12 months ago. When I called the owner of the store (a franchisee of a large video chain - it’s ezy to guess which one) I asked why they had left it so long? And didn’t they realise that for the sake of $50 or so, I would never spend another cent with them ever again… their answer was that they didn’t have the resources to follow up… I couldn’t resist explaining to the owner that this complete lack of customer service was going to cost them many times more than the cost of a teenager to call and follow up each customer with an overdue fine once a week… a happy reminder phone call would have solved the problem…

]]> By: Hugh http://www.saasu.com/5-reasons-to-over-service-your-customers/comment-page-1/#comment-925 Hugh Sat, 09 Aug 2008 00:37:33 +0000 http://www.saasu.com/?p=1496#comment-925 Excellent article, especially for Sassu clients as they are most likely in small business. There is no way small business can compete with the mass marketers on their terms. The ATTIDUDE behind overservicing is where small business can shine. I always prefer to do business with someone who shows an interest in my needs. I know it will cost more but am pleased when it doesn't. Excellent article, especially for Sassu clients as they are most likely in small business. There is no way small business can compete with the mass marketers on their terms. The ATTIDUDE behind overservicing is where small business can shine. I always prefer to do business with someone who shows an interest in my needs. I know it will cost more but am pleased when it doesn’t.

]]>