Money isn’t Everything … for Service Companies

“Money isn’t everything, … but it’s way ahead of whatever is in second place!” is a quote that is connected to some of the happiest times of my life.  Little did I know at the time that, with a slight modification of a single word, it could hold an important message for service companies.

As a kid growing up in southern Ontario, we used to spend a week each summer at my Uncle’s cottage on a lake a couple of hours north east of our home in Toronto.  My cousin and I would spend the days swimming, fishing, canoeing or just aimlessly lazing around.  Evenings were campfires and mosquitos.

On the shore was a boathouse and above it a living quarters that was used mainly for storage during those days.  It was the perfect place for kids to just hang out.  The walls were dotted with little plaques with witty sayings.  I do not know who originally penned this particular one, but it seems to have stuck with me.

There is a lot of talk these days about the customer experience and how it is critical to creating today’s competitive advantage.  In the service industry, the customer experience is largely created by the interaction of our customer-facing personnel with the customer.  In most cases our “customer-facing personnel” are our technicians and the customer experience comes from the relationships they are able to form.  It is these relationships, built on both personal and professional credibility that are critical for our success.

In the service business there are two components – one is the actual work that was completed (the repair, maintenance, troubleshooting, etc. – why the customer called us in the first place) and how that work was performed and described (the technician’s appearance, how they act and interact with employees, what they write to describe the work, etc.).  This fact is described in more detail in a previous blog “They don’t Pay Me to Look Good in Service Delivery”. It is the second component – the how the work was performed – that customers used to judge the quality of the work and the quality of the relationship.  And it is that relationship that creates the customer experience.  This means that, regardless of how technically skilled our technicians may be and no matter how good the work itself has been performed, the customer will not appreciate this quality nor the value that the technician brings to them unless the technician has a relationship with them that communicates that value.  Without the relationship and the corresponding value they perceive, the customer will look elsewhere to find better value.  Or, would it be better to say that in the service business:   “Relationship isn’t everything, … but it is way ahead of whatever is in second place!”

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Jim

“If you want to feel rich, just count the things you have that money can’t buy.”

– Proverb