Embracing Lifetime Value

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More often than not I tend to relate to, and indeed learn from the content of Seth Godin’s amusing take on leadership, marketing and business. A recent blog post in particular, not only verified, but reinforced my perception of a certain topic close to my heart.

“Embracing Lifetime Value”

Here Seth emphasizes how we, as both consumers and service providers, continually fail to comprehend the importance of the value of a customer.

Speaking as a consumer, it has come to the point where I now expect mediocre or even poor service as the ‘norm’. Gone are the days when you walk into your local establishment, “..where everybody knows your name!..”

Instead you are confronted with another underpaid, characterless punk, who hates life and is praying for his 18 hour shift to end so he can collect his $8.40 in tips and go and get stoned!

Interestingly Godin refers to the globally recognized bad rep of service providers such as T-Mobile & AT&T, where the company slogan should change from “Stick together” to “No sir, that goes against company policy”. Since when does the customer give a rat’s ass about company policy? If it doesn’t benefit me – the customer – then I sure as hell don’t intend to stand here and listen to you defend why the ‘rule book’ prevents me from receiving the customer service I deserve

This has become my expectation of customer service, and sadly as a nation, we have chosen to accept it. Until recently, that is. The act of one individual employee at a local T-Mobile store managed to lift my pessimistic view of the standard one-sided company morals. After a prompt 30 minute visit, I managed to leave the store with a GREAT deal, a customized & cheaper service plan, a couple of freebies thrown in, service with a smile.. and most importantly, I left fully equipped with a whole new outlook of T-Mobile.

What I forgot to mention was that my initial intent was to switch service providers altogether! I as a customer was valued by the T-Mobile employee – and as a result, they have retained my business for years to come – with the added impact of new business due to my evident word of mouth

In our business, it’s no different. As a sales person, it is imperative that the customer’s needs and long term benefits are the main focus. Which in essence, automatically provides the company with long term benefits. It never ceases to amaze me when I witness the self-indulgent sales tactics of the over-populated short term-minded sales people. It repulses me to hear an innocent prospect being ‘charmed’ into a ‘deal’ that is clearly not a true fit for them

Inevitably, what happens, is the smart, savvy, no-nonsense prospects instantly smell a rat, and surprise surprise, they don’t buy. In fact, they are insulted by the method of which they were ‘sold’! Now, the trusting, uneducated prospects, aka ‘the prey’, do end up buying. However, not too long passes before even this weaker group wakes up and realize that they got screwed! Leaving the company to pick up the pieces, re-build credibility and restore a level of trust

Smart salespeople use a ‘consultative’ approach from the get go. They ‘listen’ to the true needs of the prospect and begin to tailor their services to suit the customer – not themselves! Even if this requires us to say ‘NO’ to certain demands or expectations of a client when we know that agreeing with them will be a detriment to them as opposed to a benefit. Under-promise and over-deliver.

It’s such a simple analogy – ‘Acknowledge the value of the client, and reap the long term benefits’.

When I was in kindergarten, my father taught me “Tell people what they want to hear, BUT you must ensure it’s for the benefit of both parties.”

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2 Comments »

  1. On February 11, 2010 @ 5:15 pm MelissaNo Gravatar said

    My last visit to an AT&T retail store was pleasant and informative. Not only was I pleasantly surprised, I was also surprised by the follow up phone call and email I received asking me to rate my experience and the CSR/sales rep I encountered, by her name and employee ID! I immediately gave her a good review.

    When given the opportunity, I also rate my tele-support calls if given the option. As consumers, we have to do our part of the interactive resources made available. Even if we feel like its a hassle and don't want to be bothered.

    In other news, this weekend I have to go to the auto-lube shop that serviced my car 2 weeks ago and explain to them that my car exhaust now smells bad and a belt is loose and embarassingly noisy. I just wanted my oil changed! How did this happen? I am hoping that it's a pleasant experience also. I plan to behave civil and respectful. However I am also on the defensive the minute I feel like they see my gender as an opportunity to feed a bunch of bullshit. I'm hoping that's not the case.

    M

  2. On February 11, 2010 @ 7:18 pm Sal BaldovinosNo Gravatar said

    I second that. In the past I've had some bad experiences with customer service reps, but there's that chance you get the diamond in the rough who is willing work with you, know that you're trying to find a resolution, not a conflict.

    I don't think most custom service reps are out to be rude, but if you had to deal with unruly and upset people all day, you might end up with a little chip-on-the-shoulder and some unsuspecting customer gets the brunt of their frustration.

    And as of late AT&T has had GREAT service and has helped me save money on my plans where I didn't know I could have been saving.

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