John DiJulius | Customer Experience Blog


MAKING PRICE IRRELEVANT
February 29, 2012, 8:40 am
Filed under: Customer Service

 Can companies really make price irrelevant? – Sometimes I get someone who debates me about The DiJulius Group’s mantra, making price irrelevant, saying that it is impossible to make price irrelevant. I disagree, and in my presentations, books, and consulting, we demonstrate hundreds of companies that have made price irrelevant in their industry. Now, let me be clear. Making price irrelevant is NOT doubling your prices without losing a customer. Making price irrelevant IS:

Based on the consistent experience your customers receive,

They have no idea what your competitors charge

Think about it. Every one of us does business with a few people/companies that we trust and with whom we have solid relationships, where we have no idea what their competition charges nor do we care to find out. Yet there are many more products and services we buy that we are extremely price sensitive to. We will end up driving across town to save 10%, not realizing what we just lost in the deal (time & gas). Are you making price irrelevant? Do your customers know what your competition charges?

Healthcare Industry joining the customer service revolution – The entire medical industry, from doctors to receptionists, has been one of the slowest industries to make a serious effort to improve their patient experience. However, as part of the federal health-care reform, beginning October 2012, that may all change. Patient satisfaction scores will have an impact on how much Medicare reimburses hospitals for care. The policy change could affect millions of dollars in revenue at healthcare facilities.

Starting in fiscal year 2013, Medicare is reducing base operating payments by 1% to hospitals and using that money, an estimated $850 million, allocated among hospitals that have high patient satisfaction. Hospitals will be scrutinized 30% on patient satisfaction, based on surveys that cover communication with doctors and nurses. As a result, this has inspired many healthcare organizations to start being extremely creative about how they address their patient experience.

Do Happier People Work Harder? Silly question, right? We all know the answer is yes; however, you may be shocked at some of the findings in a study reported in The New York Times.  The Gallup-Heathways Well-Being Index has discovered that Americans feel worse about their jobs and work environments than ever before. What isn’t shocking but very noteworthy is a study that found that lower job satisfaction equated to a poorer bottom line. Gallup estimates the cost of employee disengagement at $300 billion in lost productivity annually. When people don’t care about their jobs or the company they work for, they don’t show up consistently, they produce less, and produce poorer work quality.

Do you know what your employees value?  Here is what was shocking: 64,000 employees responded that of all the events that engage people at work, the single most important by far, was simply making progress in a meaningful way. Yet when managers from around the world were asked to rank five employee motivators in terms if importance, they ranked “supporting progress” as dead last. An alarming disconnect. More and more companies are surveying both their employees and managers on how the EMPLOYEE ranks the influencers of job satisfaction, than compare the answers to ensure management actually knows what makes their teams engaged at work. (read the entire article and findings)

Johnism

 

 

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