In the February 19, 2009 issue of BusinessWeek, an article titled Customer Service in a Shrinking Economy featured customer service enhancements at BMW dealerships. Specifically, the automaker rolled out Wi-Fi service at its dealerships last year with the intent of giving customers an inexpensive way to pass the time while their cars were being serviced.
The cost was minimal because BMW just expanded the broadband dealers already used to run their businesses. Even so, every expense is being scrutinized in this delicate economy. BMW decided that positively impacting the customers’ waiting experience by helping them to increase their personal productivity was worth the investment.
But what BMW didn’t anticipate was that now, since customers were able to use their waiting time productively, fewer of them were opting for free loaner cars—which are pricey for dealers to maintain. BMW attributes a reduction of 10% to 15% in monthly loaner car expenses, in part, to the availability of Wi-Fi. These savings more than offset the investment in the expansion and ongoing maintenance of the Wi-Fi networks.
BMW has provided a great example of how a simple, low-cost customer service enhancement can actually cut costs while improving the experience for customers. The article quotes BMW Vice-President Alan Harris: “Fix the customer before you fix the car. If you focus on fixing the customer’s problem first, the rest is easy.”
I would add that, if you focus on fixing the customer’s problem first, you might actually stumble upon a cost savings (e.g., reduction in BMW’s loan car expenses) or a revenue enhancement (e.g., it’s well-documented that happy customers contribute to the growth of a business through their loyalty, future spending and referrals).
How does this focus on customers apply to your business? What inexpensive features or benefits can you provide to customers to increase their perceived value for the price paid—which is especially critical in today’s economy?
