The Customer Service Survey
VocaLabs' weblog providing news and commentary on the challenges of providing good customer service.
Two Approaches to Premium Service
Friday - March 17, 2006 01:59 PM in
Two news items about providing premium service crossed my monitor screen this week.
One is that Northwest Airlines, the twin cities' very own bankrupt airline, is going to start charging an extra $15 to sit in a marginally more comfortable seat (exit rows and aisles).
The other is that Washington Mutual, a bank with an already good reputation for customer service, is going to eliminate certain fees for using other banks' ATM machines.
Both exit row seats on an airplane and using another bank's ATM machines are examples of small perks which make daily life just a little more comfortable and convenient. And in one case, the company is adding a fee for a comfort which used to be free; and in the other the company is removing a fee for a convenience which used to cost money.
As a consumer of course I prefer to pay less rather than more for the same level of service. But there's more going on: when you tack on fee after fee (also known as nickel-and-diming the customer), then every decision involved in a purchase starts to revolve around cost. If I suspect I'm going to get dinged every time I let my card get within ten feet of an ATM, then I avoid using my bank's services except when absolutely necessary. In the short run, that saves the bank some money. But in the long run, it makes me feel less connected to my bank, and more willing to switch when something else comes along.
Similarly, if the "aisle or window" decision starts to come down to economics, it doesn't just discourage me from sitting in aisle seats. It makes me want to fly a different airline that doesn't make me think about how much it'll cost when I give my seat preference. (And if I happen to want an exit row seat, there are lots of airlines which are now fifteen bucks cheaper than Northwest for most flights.)
As a general rule, people don't like to have to make too many decisions, and people don't like to feel like they can't predict or control what they pay for a service. Witness the popularity of national calling plans, giant buckets of mobile phone minutes, unlimited Internet access, and package deals of all kinds. Even when the customer winds up paying morefor a more-inclusive package, the convenience of not having to worry about all the little charges is usually worth it.
As for me personally, Washington Mutual doesn't do business in this area. Northwest, on the other hand, is hard to avoid if you travel to or from Minneapolis. But I've found lots and lots of other airlines which meet my needs just fine, thank you, and don't take quite such a customer-hostile attitude.
Posted by Peter Leppik
The other is that Washington Mutual, a bank with an already good reputation for customer service, is going to eliminate certain fees for using other banks' ATM machines.
Both exit row seats on an airplane and using another bank's ATM machines are examples of small perks which make daily life just a little more comfortable and convenient. And in one case, the company is adding a fee for a comfort which used to be free; and in the other the company is removing a fee for a convenience which used to cost money.
As a consumer of course I prefer to pay less rather than more for the same level of service. But there's more going on: when you tack on fee after fee (also known as nickel-and-diming the customer), then every decision involved in a purchase starts to revolve around cost. If I suspect I'm going to get dinged every time I let my card get within ten feet of an ATM, then I avoid using my bank's services except when absolutely necessary. In the short run, that saves the bank some money. But in the long run, it makes me feel less connected to my bank, and more willing to switch when something else comes along.
Similarly, if the "aisle or window" decision starts to come down to economics, it doesn't just discourage me from sitting in aisle seats. It makes me want to fly a different airline that doesn't make me think about how much it'll cost when I give my seat preference. (And if I happen to want an exit row seat, there are lots of airlines which are now fifteen bucks cheaper than Northwest for most flights.)
As a general rule, people don't like to have to make too many decisions, and people don't like to feel like they can't predict or control what they pay for a service. Witness the popularity of national calling plans, giant buckets of mobile phone minutes, unlimited Internet access, and package deals of all kinds. Even when the customer winds up paying morefor a more-inclusive package, the convenience of not having to worry about all the little charges is usually worth it.
As for me personally, Washington Mutual doesn't do business in this area. Northwest, on the other hand, is hard to avoid if you travel to or from Minneapolis. But I've found lots and lots of other airlines which meet my needs just fine, thank you, and don't take quite such a customer-hostile attitude.
Posted by Peter Leppik
Posted at 01:59 PM by | | | |