Service quality

Service quality

Thursday, 15 January 2015

Customer discrimination? We do it all the time!

Nowadays, in any industrial, organisations tend to use systems to automatically route customers to higher or lower levels of service based on the loyalty and profitability of the customer. Casino membership, banks and even insurance uses this kind of system.

This happens every day with gold and platinum customers enjoying faster telephone service and shorter lines while everyone else waits an waits.

Isn't this a case of discrimination? And of course this is customer discrimination. It is totally appropriate. After all, customers do this with companies all the time. This is why; customers are constantly choosing which companies to patronise, how frequently and with what amount of their available budgets. Companies must do the same: choose which customers to serve, how quickly and with what amount of their available budget.

In both directions, the intention is the same. Customers spend more where they perceive they are getting better service and value. Companies invest ore where they see they can obtain better value and long-term 'service' (loyalty) from their customers.

When the matching is done right, it's a win-win situation for both parties. Customer are given an incentive to consolidate their spending, patronage and loyalty behaviour with those companies that 'treat them right'. And companies have incentive to increase their service and special recognition for customers who 'treat them right' with their buying and referral decisions.

What about those who complain an say, "All companies should give all customers the same service level regardless of how much a customers the spends"? To simplistic and righteous view, the reply is:" Wake up and enter the real world. As a customer you insist on your right to choose who to patronise, right? Companies should also have the right to choose which customers they want to attract, retain, cultivate and appreciate."

Please take note: this principle may not apply to government services, charitable organisations or companies in a monopoly situation. In these instances, a more uniform level of service may be appropriate.

Partnership in business is a 2 way street. If you are a customer and want more service from the companies you choose, give them more of your purchases, budgets, frequency, constructive input and quality referrals. If you are a company and want more profitable business from customers you choose, give those customers more of your time, speed, improved systems, well-trained people and other special attention.

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