The emotive price of “Wow!!” vs “What??”
Low headline prices. It’s a familiar scenario in many industries, forced on companies trying to prise open the gap between revenue and costs by generating greater volume and more loyalty than their competitive peers. At the same time, there is a relentless pursuit of bringing innovative products, differentiated propositions and “Wow!” moments to market.
But looking at the reasons why customers say “I’ll never, EVER use them again” – and advise others to do the same – is rarely because of the price or perceived value, but almost always about service. Or rather, the lack of it and the consequences for how that made them feel.
Looking at consumer reviews recently as part of a research assignment, it’s clear the extent to which a lacklustre experience is a destroyer of value, much more so than a low price creates it.
As ever with research, there are caveats. Telecoms, airlines, banks, utility companies – and no doubt many others – all have their good guys and bad guys. And in self-generated reviews online, the tendency is to get polarised opinions.
Recently I studied a random sample of 200 reviews across a variety of industries where the customers were not only scoring zero, 1 or 2 on a satisfaction or advocacy scale but they were adamant that their relationship was over. Of those 200, the future behaviour of 189 (94%) was directly attributable to the service they had. 94%!
Often it’s about causes of frustration – “You what…??” – and the lack of (expected) basics rather than the absence of a “Wow!!” moment. It’s an emotional thing and it’s easy to see why. However, for the business, the root causes would not cost a fortune to do in a more constructive way or avoid completely. For example, the reasons cited by these customers included:
“It was only a 2-hour flight but there were relentless announcements and pressure selling of scratch cards and ‘Win a trip to Las Vegas’ competitions. Not relaxing at all. Very unpleasant”.
“All the staff looked tired and as if they didn’t want to be there”.
“They don’t get back to you when they say they would and when they eventually do, you get a different answer each time. Honestly, how hard can it be?”
With the small exception of a handful of reviews, each articulated at least one negative emotion. I know that getting metric-driven operations teams or a target-focused sales force to make changes based on how they make customers feel is a huge cultural challenge, but it can be done. The brand is, very much, what the brand does and how it makes customers feel.
Brand loyalty? Getting harder all the time. After all, customers are primarily loyal to their wallets and to their own well-being. If the same focus and resource that was put on pricing and yield management was given to the customer experience, businesses – at relatively little cost – will be able to increase revenue and reduce costs by getting customers to come back simply because of how they are treated rather than how much the widget costs.Jerry Angrave Customer Experience Consultant +44 (0) 7917 718 072 www.customerexperience.uk.com [email protected] Twitter – @IdealExperience LinkedIn – http://uk.linkedin.com/in/improvecustomerexperiences