Why driving change is hard work

How many times do you hear or read the term “driving change”? It’s a very assertive message, the intent to make it happen no matter what, but I wonder if the concept of driving is the root cause of many initiatives failing to deliver on expectations.

Driving, it seems, implies forcing others to go in a direction they don’t want to; little wonder then that, as soon as the driving force is removed, they revert back to what they feel happiest with. Driving change, then, is hard work and demands constant ongoing effort from the driver.

Life would be perfect were it not for the customers!

Many years ago I formed the opinion that, once an organisation reaches a certain size, it develops the ability to remain busy, no matter what the level of sales. By that stage, responding to customers’ requirements almost becomes a disruption; customers, in fact, only provide the cash to keep the mechanism turning!

Price speaks!

I think it was a week ago, I saw a TV show about the fact that people relate a bottle's price with quality. The same product, when exposed with a higher price, sold more!

When we arrive at a hotel, and we see the prices of the things in the fridge, we may react in a number of ways:

- if it is much more expensive than in the supermarket: – these people are always trying to explore us! Dammit! I'll go and buy it in the corner's bar!

- if it is free: -they are making too much money with the room rate, otherwise they wouldn't cut us slack like this!

- if it is just a little more expensive than in the supermarket : - cool. These people are serious. They charge a fair price for what they provide!

Is it a good idea selling a bottle of mineral water for an amount three times higher than its regular price, and lose this message?

When a store puts 19.99 on the price tag, it is saying: I'm trying to fool you. I want to complicate your assessment. I'll do the same when I talk about the quality of my products!

I have learned the most delicious story about this game in Argentina. A company found out a way of replacing the copper-clad welding - very expensive - with a wire covered with a layer of colorless protection, much cheaper. The product's performance was practically the same.

If it was released it in the market with a lower price, it would deliver the message that it was an inferior product. The company released it with a price 20% higher than that of the copper-clad (similar to a copper coin), a SILVER ALAMBRE (wire) THAT IS ORO (gold).

It sold very well. A few weeks later, the company lowered the price by 10%. Sales skyrocketed. And the manufacturing cost was much lower than that of the copper-clad...

Does the client know what he or she wants?

Many years ago I came across an image that defined marketing in a way I considered at the same time innovative, enlightening and simple. It was practical.

It showed that there are several gaps when a question is examined:

gap 1 – the difference between the perception and the expectation a client has about a product (good or service). This is what we call customer satisfaction. and it should not be confused ( so I used) with

gap 3 – difference between what I want to produce and what I deliver - product compliance. Note that these small boxes are separate from each other. The one on the bottom is controlled by production technology. The one on the top is controlled by customer process mastery. The main connection between the two is

gap 4 – the difference between what I produce and deliver, and what my client perceives of it. I may be delivering a big box, which can be stacked, but my client needs an easily disposable package - this is an example of such a gap. Through client communication (advertising is included here) I can manage their expectations. The client's satisfaction will vary via improvements in my product only if he or she expects less - or perceives more of it. If the client is not satisfied, our first measure will be to eliminate the

gap 2 – by correcting my (project) specifications or eliminating production failures (product compliance).

So far went the article I read. But I realized that the client doesn't always want what he or she needs. A student wants easy tests, long breaks, but they needs to acquire knowledge. Someone applying for a loan at the bank wants a quick approval for their request - but a judicious review of their project is required to keep them from getting into trouble...

It is only an understanding of our client’s process that will allow us to approach

gap 0 – the difference between what the client needs, and what I am willing to offer!

In short, it is possible that your client is not sure of what he wants - but he is willing to pay someone to solve his needs...

Written by Claus Jorge Süffert.

WHAT MAKES A CLIENT LOYAL: A COMPETENT TEST!

It is called the Z test - but its name's origin can only be explained in an informal conversation...

I do not know of a more effective way for making a group of people understand the basic principles of customer's satisfaction.

Ask people to fill in boxes 1 to 4 successively, answering the questions shown in the image below.

Click in the image to view amplified.

Do this exercise with colleagues or friends. You are sure confirm what we have discovered after repeating it with hundreds of people:

- the causes for loyalty are mainly customer service and quality of products and services;

- the causes for rejection are bad customer service and low quality of products and services;

- price is hardly mentioned in this exercise.

Conclusion: What makes a client loyal are quality and service, not price. Once disappointed they don't tell you, they just go away!

Written by Claus Jorge Süffert