How to focus on service, not cost containment

Introduction

When it comes to business the bottom line is that if you do not make money you are not going to be successful right? Well, this is mostly true; you do need for people to buy your product if your business is going to stay afloat. However, many business people get so caught up in the numbers of their business, that the customers are overshadowed by statistics, profits and charts. The best business owners understand that service to their customers is also necessary in order to be profitable.

Instructions

The price of a product should also include the service. Perhaps you can think back to a time when you went shopping around for a larger ticket item. Was price the only thing that you looked at? No, you were probably looking for a company with a good reputation and as you spoke with sales associates you were probably judging them on their level of service. Certainly it is fair to say that a negative or disappointing transaction with one company may have caused you to take your business to their competitor. Many of us would be willing to pay a higher price if we were more comfortable with the service that one company provided or if we had a loyal relationship to one company because of their excellent customer service.

Yet it is still difficult for some business managers to focus on service and not just cost containment, especially when the manufacturing company has a high emphasis on lean manufacturing techniques that are focused on nothing but the product. Below are just a few examples of what your business can do to focus on service.

Suggestions for how to focus on service, not cost containment



• Make service a company goal - There is power in having a goal written down and displayed for all to read. If you want an interesting read, visit the websites of the most successful businesses that you are aware of. Most of these companies have their goals listed and you can bet that item on the top of every list is going to include providing worthwhile service to the customer. Without the customer you have no business.
•  Costs of additional training are minimal compared to the difference that can be made in customer satisfaction - One of the biggest mistakes that companies make when they are trying to cut back on spending or to implement a lean manufacturing system is to cut support for the line of customer service. There are times when downsizing is needed to reduce wasted resources but when that downsizing negatively effects the service given to the customer it may end up costing the company more in lost business, than had they not made the cut in the first place.
•  Remember that your customers pay the bills so put them first - Ultimately everything that you are going to do in your business should be to please the customer so that they purchase your product.
•  Pass along savings to customer - An excellent way to combine the concept of cost containment with service is to pass along your financial savings to the customer. Providing incentives for new customers and making an already appealing product even more available to your loyal customers can increase sales and boost profits much more dramatically than had your company simply "pocketed" the cost savings initially.

Other tips

You can contain and reduce your costs, there is simply nothing wrong with doing this. However, having the ability to see if and how those cost cuts are affecting your customers is also a vital part of strategic planning.

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