Don't Let Customers Carry Companies on Their Backs
In these hard financial times, the temptation to raise prices and customer fees looms large as companies look for quick ways to keep revenue. But resisting that temptation may prove to be much better for your bottom line in the long run.
I recently attended the Infor user conference in Las Vegas. CEO Jim Schaper mentioned that the economic situation is affecting everyone, but his company has decided not to raise maintenance or licensing rates.
"We can drive long-term growth by taking care of our customers, and not try to leverage them for a quick buck," he said.
Unfortunately not all companies follow Schaper's philosophy. Airline luggage fees, college tuition hikes, and other price increases may pump some revenue into a company quickly, but could end up destroying long-term customer value. Customers will grow unhappy with having to carry companies on their backs, and leave.
Yes, it's true that for some companies that are in dire straits there are no other options, but I wish that companies save this practice as a last resort, not a first step during economic times.
Everyone's strapped these days, and as Martha Rogers mentioned in a recent On the Road video, companies that can win and keep customers now with a strong value proposition and customer focus will likely see them remain loyal as economic conditions improve.
How do you balance short- and long-term customer focus during these troubled financial times?
Related Entries
- Guest Blogger Jim Boyce: "Value" is Key to Positive Customer Experience in 2010
- Forrester's Dave Frankland: Are You Ready for the Economic Rebound?
- Forrester's Suresh Vittal: Applying Customer Value to Online Targeting Strategy
