Inertia

Many businesses, especially larges ones, work on the premise that customers suffer inertia.

This is particularly true of insurance, mobile phone companies and so on, where there is an annual contract or longer and it just repeats month after month. Most of us have more important and exciting things to do than check our contracts and charges constantly. So the money keeps rolling out.

Then we become aware either by chance or we discover it, that there are much better deals available.

You could say well it is up to us as consumers to check and why is it the companies fault. Partly this is true.

However, when you find out that you’ve been paying more than you needed to for a year or longer and the company stayed silent you tend not to feel too warm towards the company and often, at the first opportunity, we go elsewhere.

Smart businesses aim to keep communication going with the customers. More importantly, from the outset, they adopt the right values and staying silent and hoping your customers don’t notice, is not one of them.

Customers are people to be valued always, it’s a long-term relationship, not a relationship based on using inertia as a strategy and hoping they don’t spot better options elsewhere.

£129 for a small piece of glass, WTF!!


Today, I had to hand over my phone at the Apple Store to be fixed, I’d smashed the screen. Well, actually,  it broke when I dropped it, I didn’t smash it in some fit of rage, although, I nearly dropped it again when I discovered how much a new one was.

£129

Yes, £129 for a small piece of glass.

OK, so there is some other cost, time, expertise and shipping it to a repair place and back in the same day.

Still, that is a great deal of money for replacing a small piece of glass. After all, I could get a similar sized piece of glass for a few £s.

There are cheaper options to get it repaired.

I handed over £129, well I plan to do later when I collect it, assuming it is fixed of course!

So what I am really paying for is security, peace of mind, customer service, a small contribution to a seriously expensive marble staircase at Apple’s Regent Street store, the whole experience, and knowing that it will be done properly and that if not I will have a no-quibble come back option to get it rectified.

I am basically paying it because I have faith in Apple, they are providing what I believe to be value for money. It’s all about perception and expectation. 

If you provide your customers something of value, they will pay. Price is not an issue.

Always focus on buidling value and creating faith for your customers and not how much you will charge or how you can reduce the costs.

People rarely buy the cheapest option.