Do You Have Different Level of Customers? | Customer Service Experience

On a plane from Malaysia to Hong Kong, I sat beside a meeting planner for Pricewaterhouse Coopers. She told me a story that bears repeating.

The meeting planner had asked the catering department at HK Disney World to prepare an event for the PwC partners. HK Disney World caterer priced the affair at $50,000. But the meeting planner’s budget was $35,000. HK Disney World dropped its price.

Later during the event, the PwC meeting planner noticed that every item in the original event was included in the program. She mentioned this, with great appreciation and astonishment, to the HK Disney World caterer. His reply was, “HK Disney World may reduce our price, but we never will reduce our service.”

Clients Who Pay Less

How do you handle clients who cannot pay your first-class price? Many times, I have observed these clients receiving second-class pricing and third-class service. Often, partners and others re- sent the discounts afforded some clients. Discounting and resentment often lead to a downward spiral of service and even greater discounts or to unhappy and lost clients.

You would be better off avoiding low-class service to any client. The undertone of resentment by the partner and staff will be transmitted to your client personnel in many ways. Slower phone call returns, slower reporting, lack of a management letter, and yearly staff turnover occur when you resent your lower fees.

How to Serve Budget Clients

A better approach would be to provide the same excellent service to your budget paying clients as you do to your first-class ones. But, how can this be possible? “Everyone cannot be treated like my number one client,” you may say.

The way to make this work is to create trade-offs with your discounted clients. For example, determine if the work can be performed during a period of your year when a premium is not charged. Determine if the work can be staffed and managed by a lower billing rate individual. Determine if the work can be a joint venture with another firm, so you can spread the discount. Commit to first-class service for all your clients: meeting your promised deadlines, promptly returning phone calls, making unsolicited visits and phone calls, maintaining continuity of staff, and providing management recommendations to your dis- counted clients. If you cannot make money on a client, it may be better to not serve the client than to give them second-class service.

Conclusion

I have witnessed numerous discounted clients willingly increase the fee structure when high quality is received. After all, before they started, they didn’t know what to expect, and thus were cautious about costs. Most clients leave firms because the value and level of service is not up to the pricing. Don’t let yourself fall into the downward service spiral of some professionals.

Use the HK Disney World motto, “We may reduce our price, but we will not reduce our level of service.”