Creating Customer Value - Airlines offereing add...
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Airlines offereing add ons like free overnite accomodation are still not favored if the services, like inquiry handling, reservations, and time schedules are poor. Cell phones companies may be offering plenty of add ons like national roaming or free incoming calls etc. However if the billing is poor and billing inquiries are not addressed properly the customer is dissatisfied and leaves the service for another provider.
Myth # 4 Products are competing with similar products
This is often true in the leisure industry. A movie theater may not be competing with another movie theater. If the customer is not satisfied with a theater or movie he may look at options to other entertainment sources, for instance an amusement park. We may call them discretionary time products. Highest satisfaction levels are very important in this type of business.
These are some of the examples of how businesses can go totally wrong in assessing value. While it is all good to talk of value creation some thought must go into the major ingredient in value that is the customer satisfaction.
And are business really serious about customer retention. As even a novice to business knows it is far cheaper to service and retain existing customers. The cost of acquiring new customer is very high.
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