Here is an example of a practice that can either lead to
added sales or backfire and hurt your business.
First you offer a service and either provide a no cost
upgrade for one year, or provide an automatic renewal after the first year (at
full price). At the end of the first year you bill the customer for the second
year at the new rate. The customer may simply appreciate the service and pay
the incremental cost. On the other hand the reaction may be very different,
leading to an irate customer and possibly a lost customer that will talk up the
negative issue.
One thing that can help is to make the cancellation as
painless as possible. Maybe you can cut the added service out but keep the
primary business and look to sell up later.
In one case a customer waited over 30 minutes on the phone
to resolve the issue, during which time he decided to cancel the entire
business with the firm. He may have simply cancelled the added service if the
wait time had been reasonable.
The choice is yours.
Steve Koenig, SCORE Counselor
Visit us at: www.scoresouthflorida.net
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