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Vendor locking - why you shouldn't lock your customers in.

I don't know about you but I'm increasingly finding that customer service is disappearing! The idea of the "customer is always right" and of making sure they are happy is being replaced with one of "well they won't leave, it’s too hard". Companies seem to be focusing on "locking in" customers either with contracts, technology or processes that make it so difficult or unpleasant for customers to leave they just don’t.
 
Now the hardnosed commercial people reading this will say "What's wrong with that, it’s great, it protects our turnover, stops competitors and enables us to cross sell". But, and it’s a big BUT, you’re not doing what the customer wants and you are destroying any customer satisfaction. You see, once you adopt that mindset your organization starts to change culturally, your customer service people don't care if your customers are happy and get what they need, and slowly bit by bit your customers become a nuisance, a pain in the back side, the problem; and because they "can't" leave your relationship with them spirals down and down into despair. Until that is one day, they do something incredible - they leave. They go off and find someone who will treat them with courtesy, listen to what they need and out deliver their expectations; and now you are in a world of pain, not only have you lost the business but you now have your worst nightmare. You see when someone finds a really good company they rarely take the time to tell others how great they are, but if they find someone who's really bad they
 
 
 
 
 
will start a crusade against you that will make a biblical plague seem like a mild irritation. They will stand on the highest hill and shout to all and sunder how appalling you are, how they would like to rip you limb from limb and how even if you were the last supplier on the planet they wouldn't touch you with a barge pole; and the final coupe de gras is they will lambaste and ridicule any one they come across who is stupid enough to buy from you - you are now a social embarrassment!
 
Now if you think I'm wrong then I invite you to stop and think for a moment about those companies and organizations that are part of your life. Let’s just start a little list; phone companies, IT companies, TV companies, utilities, banks, and let’s not forget the whole off the bureaucracy of the Public Service. They are all around us and growing.

So what’s the alternative? Well you can start with tearing up every contract with every customer; every copy of your Terms & Conditions can go in the bin. Yes I did really say that, you see they are just "Certificates of Failure". The only time you use them is when you have failed. If you ever have to refer to them let alone use them then you have failed to manage your relationship with your customer. They are obviously angry, upset, disappointed and are most probably withholding payment, your relationship with them has already spiraled out of control and before you know it they will be on their crusade. Surely it

 
would be far better to make sure you keep them happy, outperform their expectations and have them as ambassadors telling their friends how great you are. If you don't choose this path then the only people who prosper are the lawyers.

Over the last 20 years I have had customers from one man bands to multi-national corporates. I have never asked any of them for a contract, I have never sent them a copy of my "T&C's". I agree with them upfront things like payment terms and then I focus on doing want they want time and time again and keeping them happy. They pay me promptly, and often more than I ask for, because they value what I do and want to keep me working with them to improve their business. In a way I do "lock them in" but it's something they choose, they choose to lock me in not the other way round - it's just a great way to do business.

Finally, why don't you have a look at your business and see which type of organization you run and how you truly treat your customers. If you don’t like what you see then now is the time to change things before the crusades begin. If you'd like some help putting things right, we'd be happy to take your call - 01932 888864.
CMP Insight is a division of FTS Services Limited. Company Registration Number 3156718.