Have You Really Thought about the People You Want to Reach?

At the recent #DellCAP Days meeting in Austin, we — 15 customers and C-Level folks from operations and customer service — had an interesting discussion about sending customer service offshore.

When asked about it, the Chief-of-Staff gave a most honest and simple response that they felt that people wouldn’t be willing to pay the higher price for computers it would cost to keep those services in the U.S.

DELL is going for operational excellence in delivering there product. Operational excellence is a low-cost, reliable product with less customization and lower service.

The question came up … Is that attracting the market you want?

Every market falls into three tiers:

• operational excellence … think Southwest Airlines
  An operational excellence model attracts customers who care most about price. Their loyal is lower. A second high value needs to hold them when a still lower price becomes attractive.
• customer relationship … think Zappos
  A customer relationship model attracts customers who care about their individual experience. They want customization that suits their lifestyle and their values. They’re willing to pay more for what they value — service or commitment that is tailored to them.
• product innovation … think Apple
  A product innovation market attracts early adopters and prestige buyers. This group is willing to spend more to get high performance and to be the first on the block who owns the shiny new object. They are also willing to pay a premium price for a one-of-a-kind experience.

As you can see each tier’s model attracts a different customer.

Whether we’re DELL or a solo service professional, we need to make sure our price / value model matches the customers and the market we can reach and those customers we want to attract to us. If you want fiercely loyal customers,

• Know why people are buying what you offer and know that price will always drive your loyalty relationships. If you attract people who buy for price, they will leave if you no longer hold the lowest price in the market. Build in other values to protect your loyalty. Southwest has outstanding “fun” as their price value-added.
• Incorporate barriers to entry to reduce the threats to your value-added. Zappos has established a “story of service” that underscores their outstanding commitment to relationships and empowered, happy employees who serve individual customers in unique and personal ways.
• Be the “first hired and first trusted” to serve your most loyal fans. Value what your customers value. Apple doesn’t appear to let other price points or other offers change their dedication to building in “childlike wonder” into every innovate design they offer. They also realize that their most raving fan- customers will forgive a few glitches to be the first to own the newest Apple products.

All three tiers can offer great customers for the business who serves them.

Have you got the right model for your ideal customers?

–ME “Liz” Strauss
Work with Liz on your business!!

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