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Submitted : 2008-01-12 02:25:55Word Count : 509Popularity: 66Tags: cost, efficiency, performance, effectiveness, product, service, business model, innovation
Take Costs Away From Customers If You Want More Of Them
Many for-profit manufacturers and service providers concentrate only on influencing their own prices and costs. In the process they ignore or are insensitive to what customers and end users pay to use these offerings. While this narrow viewpoint may be profitable, much more profit is missed because demand [url=http://www.achbanker.com/home.php]www.achbanker.com/home.php[/url] is dampened due to soaring costs incurred by customer and end users.
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After signing up for a checking account, [url=http://www.seattlesoycandles.com]hollister france[/url] I learned that I would only receive a BlackBerry PDA if I subscribed to a service costing $720 for a year. [url=http://www.gotprintsigns.com/monclerpascher/]moncler pas cher[/url] Suddenly, I had a checking account and a "free" certificate for a PDA I didn't want to spend $720 to use. The bank had wasted its time and money on me, and I had a checking account I didn't need.
Presumably enough other people signed up who used the [url=http://www.gotprintsigns.com/abercrombiepascher/]abercrombie pas cher[/url] accounts to make the promotion successful. The bank [url=http://www.1855sacramento.com/peuterey.php]peuterey outlet[/url] may have thought that it had won.
But here's what it had missed. If the bank had instead offered a $200 off value on the PDA and six months of free service, I probably would have tried the BlackBerry PDA. If I had liked [url=http://www.mansmanifesto.com]doudoune moncler homme[/url] the product and service, I would probably have continued to use the PDA and thought favorably of the bank when I did. Or if the bank had offered me $100 off the PDA's price and no required service, I could have pursued my original plan and sold this product on eBay for a profit. That would have made me appreciate my bank more, as well.
When you can instead reduce the cost of using offerings, for-profit organizations and their customers both gain. A big waste of my time is in going to [url=http://www.gotprintsigns.com/hollisterpascher/]hollister france[/url] a bank to make transactions. Although my bank has an excellent online service, I'm limited in how many times a month I can transfer balances online from one of my accounts into another one. As a result, I don't tend to keep much money in that restricted account.
If the bank instead gave me postage-free envelopes to make such account transfers, I would keep a lot more money in the account because I wouldn't have to make lots of extra trips to the bank for the transfers. The bank could slightly reduce the interest rate [url=http://www.msc-sahc.org/moncler.asp]moncler doudoune[/url] it pays on such accounts, and I would still be attracted to the convenience because I would be saving lots of valuable time I could be using for other purposes [url=http://www.gotprintsigns.com/jordanpascher/]air jordan pas cher[/url] than going to and from the bank.
Where can you slash your customer's costs?
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