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#91: Warranties and guarantees

 

 

 

 

 

 

 

 

 

4 March 2002

Quote of the week:

  • "Quality is when our customers come back and our products don’t." – Seimens Quality Motto

Book of the week:

  • On Equilibrium. Author: John Ralston Saul. Publisher: Penguin Books. Saul explains how our different qualities give us the intelligence, self-confidence and practical ability to think and act as responsible individuals. He argues, however, that when certain human qualities are worshipped in isolation they become weaknesses, even forces of destruction or self-destruction. In short they become ideologies. How then can we use them so that each builds upon the other? This enlightening book explains how.
 
  • SPECIAL OFFER for ‘Touchstones’ readers only. Be one of the first to obtain your own copy of Seducing the Vigilante Customer – winning strategies to guarantee the return of happy customers and healthy profits at www.grahamharvey.com.au/Products/ at the introductory launch price of AUD $24.95, plus p&h. All copies purchased online will be personally signed by the author. Copies of the book are also now available at your favourite bookstore.
 

Website link of the Week

  • http://www.risoftsystems.com Some companies spend thousands of dollars creating their own computer screensavers. The free software available from this site allows you to do it for just the cost of your time. Why not create a screensaver as an internal marketing tool? If all your company computers are networked, screensavers can be used as an effective medium for communicating important messages throughout your organisation.

This week’s customer service "Touchstone"

  • Warranties and guarantees.

If a customer is not happy with the quality of your product or service, what are you prepared to do to rectify the problem? Do you have a policy for such occurrences, or is it pretty much left up to how you or your staff feel on the day?

I believe it is vitally important that you have a clearly laid out warranty, guarantee and refunds policy. Of equal importance is your practice of clearly communicating that policy up-front to exiting and potential customers. In fact warranties and guarantees should be an integral part of your marketing strategy.

For instance, as a Professional Speaker, I clearly state in all my booking terms and conditions the following:

Money Back Guarantee: To afford our clients maximum protection, all Graham Harvey Conference presentations and Training Workshops are covered by a 100% Money Back Guarantee. If, for whatever reason, you believe your expectations have not been met, speaking and training fees will be cheerfully refunded in full. (Guarantee subject to booking confirmation fee being received by due date.)

In addition to this statement, I also use a shortened version on all my marketing material that reads; 100% GUARANTEE: NO RESULT, NO FEE.

My ethical position is that if a client has not received value from me, then I have no right whatsoever to receive value, i.e. money, from them. How do you feel on this issue? Does you or your company have the right to retain money from clients who have not received value from you? Remember that value, as we shall discuss further in Touchstones # 94, is, and can only ever be, a perception in the mind of your customer.

Apart from cheerfully giving refunds for ethical reasons, the other question you need to ask is whether or not you are going to take someone to Court over not paying a bill because they were not satisfied with your product or service. How often have you seen a company lose thousands of dollars in legal fees over some trifling disagreement with a customer? It’s amazing how attached many people are to being RIGHT! My advice is to give them a refund, create some goodwill and have your disgruntled customer leave with a smile on their face and a positive story on their lips to tell their friends about you.

Put whatever time and energy you would have spent on a court case into the further development of your business.

What most businesses don’t seem to understand, is that the primary purpose of having a guarantee attached to your product or service, is for your business and not your customers. In my own situation, knowing that I have provided a written guarantee to my clients, ensures that I deliver the best possible presentation or workshop every time.

So if you have a customer who is not happy with your service, use the experience as a ‘wake-up’ call and make the necessary improvements to ensure it doesn’t happen at all.

Until next week, many happy customer returns!

Graham Harvey B.Com APS

Next week: High speed delivery.

Graham’s new book, Seducing the Vigilante Customer – winning strategies to guarantee the return of happy customers and healthy profits, is now available at your favourite bookstore.

It is also available online at http://www.grahamharvey.com.au/Products/

Previous newsletters available at www.grahamharvey.com.au/Articles/

Please feel free to recommend "Touchstones" to your family, friends and business colleagues. Tell them that their free subscription is waiting for them at www.grahamharvey.com.au

Graham Harvey

Wow!