A couple of years ago, my parents bought a new dishwasher from a major electronics chain along with an extended warranty plan offered by the retailer. A few years later, that extra coverage appeared to be a wise move as they started having problems with their dishwasher after it was no longer covered by the manufacturer’s warranty.
However, when my parents called the electronics chain to make their claim through the retailer’s extended warranty plan, the company refused to honour their contract, insisting that the problems my parents were having with their dishwasher were not covered by the extended warranty. After several more phone calls and written letters, the electronics chain grudgingly acquiesced to respecting the terms of the warranty plan they had sold to my parents. Although the problem was ultimately resolved, the fact that my parents had to fight for something they paid for left a lasting impression as to this day, they refuse to buy anything from this major retail chain.
What this story shows is that this company failed to appreciate the importance of integrity in their dealings with their customers. Sure, the retailer had succeeded in
getting my parents to purchase the appliance at their store over their competitors, as well as getting them to drop down additional cash to purchase their extended warranty plan. And yet, by focusing only on that short term gain and not on their post-sales relationship with their clientele, they ended up losing years of repeat business, if not also the loss of additional customers like myself who became wary of purchasing large items from this retailer after hearing this tale.
Presently, with the current economic recession under way and with no clear signs of when the economy will recover, most companies are no doubt putting blinders on, focusing primarily on the bottom line and on measures to keep the bloodletting at a minimal. However, as the story I told above shows, companies should recognize the importance of honouring commitments they made to their customers since this will have a tangible effect on how willing consumers will be to spend in their stores when the current recession comes to an end.
Right now, all companies are either increasing their costs and/or reducing the number of products they offer, so what consumers will remember most from this period is how companies chose to treat and manage their customers. Those who make sure to handle all interactions with integrity and respect will undoubtedly be able to come out of the gate quicker once consumer purchasing power starts to rise again as customers won’t soon forget how they were treated when times were rough.
Of course, the necessity of integrity in human interactions is not only an issue between retailers and their customers; the issue also applies to any relationship, regardless of whether it is based in business dealings or personal affairs. Whenever two individuals or groups work together for an exchange of ideas, products or services, it’s important that all parties know the interactions will have a basis of mutual respect and trust, not only to ensure a successful outcome from the current collaboration, but to also encourage additional engagements in the future.
As is being oft-repeated, times are tough right now. However, it’s important that we remember that this is part of a cycle that will inevitably turn upwards. How we deal with others while riding these stormy seas will have a great impact on how many will still choose to engage us – either in a business capacity or a personal one – once calmer seas prevail.
In my estimation Tanveer, the companies that will come out of this economy smelling like roses are the ones that think beyond the bottom line and focus their attention on keeping the customers they have and nurturing a good relationship with all new customers.
When every dollar is important, customers want real value. Real value these days is a competitive price and good, no, outstanding customer service.
The market is screaming for this right now. It will be interesting to see which companies have the integrity needed to weather the storm.
Great piece!
Thanks Frank; I appreciate that.
I think what’s also at issue is leaders recognizing that their focus needs to return to their employees, on what’s their shared long-term goals, as opposed to simply trying to meet up with forecast projections of how much revenue could be generated for a given quarter.
It’s important for businesses to remember that they’re in this for the long run, and not simply to make a quick buck.
Thanks again Frank for the great comment. 🙂
I always say that respect is earned not given. The company that your parents dealt with probably lost your families respect, they lost mine. Integrity is not mentioned enough these days.
Thank you for a great well needed post as always. Integrity is either not mentioned enough these days, or used as a shroud to cover the truth.
Thanks Mouyyad. Glad you enjoyed this piece. I agree with you that the concept of integrity is one that is too often paid little heed these days. Of course, that doesn’t change the fact that integrity is still plays a key role in the success of our interactions with others.
Thanks again Mouyyad for sharing your thoughts on this piece. 🙂
It seems that more and more businesses are forgetting about integrity. As soon as they've got your money, they're no longer interested. They don'r realise it will come back to bite them in the long run.
I agree with you, Sam. No matter what type of business it is – a store, a restaurant, a service provider – I'm always very attentive to how much care and consideration they expend on the interaction. Sure, not all of them are great at providing top-notch customer service, but when you're treated as merely a means to earn a quick buck, it's a sure way to turn off customers from ever wanting to do business with you again.
Thanks again Sam for sharing your thoughts on this piece.