Service Providers - Get the Balance Right between Cost and Service
As a service provider to multiple customers, you have your own opportunity sweet spot - that perfect customer who will fill your capacity gaps and fall seamlessly into the daily / weekly operating cycle. However, it is incredibly rare that this customer will arrive at the right time and in the right way.
“If you do decide to take the business on, be sure to understand the cost and service proposition...”
The truth is that customers have their own needs and requirements that will cause you challenges, and if you wish to grow your business there will be a step change where taking on new business may make you less profitable until you learn how to integrate their business as part of your overall operation.
This often requires looking at customers from a strategic perspective. You don't have to take on every piece of new business that comes your way. However, if you do decide to take the business on, be sure to understand the cost and service proposition and evaluate it on its merits.
Evaluate before you Implement
Time and time again we witness a service bought at an agreed price, but the reality of the service proposition not meeting the customer requirements.
“...if the customer does not get what they were expecting, the result is as bad as a poor implementation...”
There are four ways that these relationships will go, with price and service either changing or not. The only win-win solution is that by keeping the customer you adapt your service and are able to change your price accordingly. Even on these occasions, reputation and relationship are often damaged beyond repair.
We are not concerned with a poorly executed implementation in this argument. We are highlighting the effect of not paying enough scrutiny to the service proposition and the consequences of not meeting the customer service requirements. Maybe the execution of the implementation was perfect. However, if the customer does not get what they were expecting, the result is as bad as a poor implementation.
At Slater Austin, our experience in procuring, implementing and managing operational services to multiple customers reduces the likelihood of a dissatisfied customer. If you need additional resource or skills to evaluate the impact of.. and / or deliver a new customer into your business, we'll be delighted to offer our advice.
Contact us and start your journey today.