Wednesday, December 10, 2008

Execution: Do your policies endear your clients or do your clients endure your policies

My two girls belong to a dance studio. Love the teachers. Love the center. Hate their communication execution.

Every month they send me a reminder to pay tuition even though I paid both girl's tuition in full for the full year. Each month the reminder comes with a late fee on it even though it is the first time you are receiving it. When I emailed them to say I paid in full and please stop sending me the emails, they responded, "It is a general email we send to all parents. Just delete it each month you receive it." Now really, do you want your customer annoyed each month they get the email from you?

Each year they tack on new payments for costumes, recital, etc. Each year it is about the same amount. Why not bundle it ahead and let parent's pay one payment and be done with it? I asked if I could pay the tuition, costume and recital all together but was told they couldn't process it so I had to wait until they invoiced for costumes and recitals before I could pay for those. With how I travel that means I may miss the week they send the notice home and then my kids are told they are "late" with the payment.

Really, let's be clear here. As the customer, I am trying to give them my money EARLY so I am all paid up and they are telling me it is not "convenient" for their processes.

So I ask you, are your policies endearing your clients to you or are they enduring your policies? If they are enduring your policies then you are prime for them to have one little thing send them over the edge and you lose their business for ever. For this little dance studio, figuring that each girl dances for about 10 years, that means a $14,000 dollar loss if the business of two dancers walks away.

Take Action: Take a moment to look at your policies from your client's eyes, not yours. Get rid of any that make it hard for your client to do business with you.

Anne Warfield