Customer Value Verses Customer Money

This is a comparison of two businesses. They both are in the food service industry. The areas they are located in are about the same, but they manage their business completely different.

One of these, a Mom and Pop business, has an inviting entrance and a pleasant atmosphere which invites repeat business. The second, a popular chain, has an entrance that looks like it is one of the worst neighborhoods in the city. Once inside, the walls are adorned with the usual fare, plus more negative signage.

The negative signage tells the customers in a very negative way how long they can stay, and if they can use the facilities or not. Between the entrance and the barrage of signage inside my expectations were low. The place was neat and clean. I was also surprised at how good customer service was. Though there was a big downside of the staff being focused on the wrong things.

Customer satisfaction is second to money at this business.

Customer satisfaction is second to money at this business.

The staff were sales people and not wait staff. Every comment from the person helping me was to sell me more than I asked for. Did I want to add on to what I ordered for so much more? Did I want more choices than the items I picked? Did I want to double the size of my order for less than the stated price? Worst of all, there was a tip jar at the register. I was told as I paid my bill there was a tip jar – as if I could not see it – and all tips were appreciated.

 

 

The second location was the complete opposite of this. The service was prompt and totally customer focused. I was asked if I preferred a smaller portion than the portion listed on the menu for less money? The person who was waiting on us came to the table no less than eight times checking to see if there was anything that they could do. Top off the drinks, bring more napkins, refill the water glasses, more ice in the drink, more cream for the coffee, and other real reasons to show up at the table. The check was brought at the end of the meal and not during the meal. We were asked if we wanted to-go drinks to take with us (lemonade and coffee).

Repeat customers is the goal of this business

Repeat customers is the goal of this business

Both of these restaurants are in the same price range. Yet one totally out sells the other without so much as a hint of a sales pitch. One enjoys a growing list of repeat customers, while the other is trying its best to fleece every customer who walks through the door.

Put another way, one business will thrive in any economy. One business may be near to closing even though it sells a more popular product. Which business would you wish to spend your hard earned money at, and which business would you likely never visit again? If you are a business owner, which business more closely resembles you own business?

Running a business where customers walk in off the street is difficult. Competition is tough, and profit margins are generally small. However a businesses that focuses on making the customer and not the customer’s money the number one priority stays in business longer and is more successful than a business who thinks their product is far superior that customer focus takes a distant second customer’s money.

When anyone asks my opinion on a good place to eat, a fun place to visit or a good place to see, places where I felt special come to mind quickly and they are what I recommend. When you are asked your opinion on where to go or where to eat, where do you recommend?