09 October 2008

Don’t Cut Corners With Your Customers

To maintain profits, businesses are looking for ways to reduce costs. But shortchanging the customer experience may cause long-term problems.

by William J. McEwen
Author of Married to the Brand (Gallup Press, 2005) and coauthor of the Harvard Business Review article "Inside the Mind of the Chinese Consumer"
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To maintain profits, many businesses are continually looking for ways to reduce costs. Shortchanging the customer experience, however, may cause long-term problems.
William J. McEwen, Ph.D., is Global Practice Leader for Gallup's Brand Management practice. He is the author of Married to the Brand (Gallup Press, 2005) and coauthor of the Harvard Business Review article "Inside the Mind of the Chinese Consumer."
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Reader Comments
Kailash Joshi Posted On 10/22/2008 6:52:18 AM

While I am in agreement with the author as far as keeping the customers informed in case companies decide to lower their offering to maintain margins, I am wondering what will be the right approach for the companies who are into cut throat price wars with each other to add customers. The focus on revenue & not on profit (though it seems out of sync with this article) does not augur well for any one ....companies as well as consumers as the bubble is going to burst one day.Airlines in India are bleeding but still persisting with their low cost offerings to customers & now they are into retrenchment drive.....

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George Richardson Posted On 10/30/2008 9:33:51 AM

Depend on the industry type. As a rule, instead of "cheering but seying nothing police-(altering the recipe)- I will market a new recipe. When it comes to business, consumer always rewards honesty. "You are in good hand". Learn about Ikea case. Yes, yes, yes you can keep the 'old' recipe while high your price. Just tell/show your consumers WHY do they have to pay more and WHY ,based on research, this is a better choice.

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