• Skip to content
  • Skip to primary sidebar

Right Attitudes

Ideas for Impact

Customer Service

There’s Always Competition

July 6, 2023 By Nagesh Belludi Leave a Comment

There’s always competition, even if you’re introducing an industry-first solution. Let the following case studies serve as a cautionary tale.

Consider launching a new upmarket coffee shop in a bustling location. You might assume that establishing it in a neighborhood without other fine-coffee purveyors guarantees success, but competition still exists. Your intended clientele is already brewing their own top-notch coffee at home or patiently waiting to satisfy their caffeine cravings at work. By introducing your shop, you’re challenging their comfortable routine of enjoying coffee in their pajamas or at their work desks.

Don’t imagine the iPod didn’t face competition when it first launched. In fact, it faced a significant challenge from multiple fronts. Not only did it have to compete with other MP3 players, which were arguably less convenient, but it also had to outdo the storage capacity and convenience of CDs and the variety of radio stations. However, the iPod proved to be a game-changer with its ground-breaking 1.8-inch hard drive, a revolution in music-listening technology. With that iconic click wheel, you could shuffle through songs and switch from classical to heavy metal in the blink of an eye. And let’s not forget how cool it was to play with!

Back in the day, Southwest Airlines started with just three routes in Texas and no big-shot airlines to compete with. They had to convince folks that flying was better than hitting the road in their trusty jalopy. They hyped up the time-saving factor and ensured passengers knew they could still chow down on some grub at home. They also showered their passengers with free booze and had flight attendants rocking hot pants and go-go boots.

When Spirit Airlines decided to focus heavily on the Visiting Friends and Relatives (VFR) Market in Latin America, it had to compete against other high-priced airlines and face a new and challenging competitor. As technology advanced, Hispanic and Latino Americans could video-chat with their loved ones instead of splurging on expensive flights. Why bother with the hassle of international travel when you could easily catch up with your family while lounging in your jammies and munching on some Cheetos?

Remember, competition is everywhere—focus not just on direct competition but also on changing consumer preferences and hidden alternatives. You can’t just create customers out of thin air. Your product or service has to be compelling enough to make people choose you over your competition. You must offer something dramatically better, faster, cheaper, more powerful, or cooler than your established competitors.

Wondering what to read next?

  1. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  2. What Taco Bell Can Teach You About Staying Relevant
  3. HP’s “Next Bench” Innovation Mindset: Observe, Learn, Solve
  4. Airline Safety Videos: From Dull Briefings to Dynamic Ad Platforms
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: Business Stories, The Great Innovators Tagged With: Customer Service, Entrepreneurs, Innovation, Marketing, Parables

The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline

August 11, 2022 By Nagesh Belludi 1 Comment

When Spirit Airlines pivoted to competing on price in the late 2000s, it quickly gained a reputation not only for operational inefficiencies but also for its in-your-face, take-it-or-leave attitude towards customer service.

Where other airlines charged by-the-package fares for the flight experience, Spirit pared back service and introduced an a la carte pricing model. Charging for the “ancillaries”—i.e., everything optional, including water—allowed Spirit to keep ticket prices down and appeal to price-sensitive travelers willing to sacrifice the usual amenities for a lower ticket price.

In the ensuing years, the unconventionality of this business model did not go down well with customers. Much of the flying public’s frustration with Spirit had to do with Loss Aversion. That’s the notion that the emotional disappointment of a loss is more extreme than the joy of a comparable gain. If finding a cheaper fare on Spirit felt delightful, giving up some—or all—of the savings to purchase ancillaries and surrender the savings felt utterly miserable.

Passengers felt ripped off by these seemingly hidden fees, especially when the true cost of flying Spirit ended up greater than what the initial ticket price led them to believe.

Spirit became quickly convinced that there was a perception problem—its customers didn’t fully understand how its fares work. Particularly, first-time customers blindly presumed that Spirit Airlines works the same way as other airlines. In reality, there were no hidden or excessive fees, and passengers could only pay for what they need or want. In 2014, the airline introduced its “Spirit 101” campaign to educate customers and alter their perceptions. With time and the increased adaptation of the “Basic Fare” model and curtailed customer service by every other airline, passengers’ expectations have since been right-sized. Spirit Airlines has come a long way, and its customer service has improved vastly.

Further studies on loss aversion have shown that a cascade of successive fees is worse than the cumulative: i.e., three ancillary fees that add up to, say, $70, feel a lot worse than a single $70 fee. Appropriately, Spirit offers a “Bundle it Combo” package.

Wondering what to read next?

  1. Airline Safety Videos: From Dull Briefings to Dynamic Ad Platforms
  2. Your Product May Be Excellent, But Is There A Market For It?
  3. What Taco Bell Can Teach You About Staying Relevant
  4. HP’s “Next Bench” Innovation Mindset: Observe, Learn, Solve
  5. There’s Always Competition

Filed Under: Business Stories, Mental Models Tagged With: Aviation, Biases, Customer Service, Decision-Making, Emotions, Entrepreneurs, Innovation, Marketing, Mental Models, Parables, Persuasion, Psychology, Strategy

Is The Customer Always Right?

July 14, 2022 By Nagesh Belludi Leave a Comment

No matter how finicky or rude a customer is, many businesses make employees treat bad customers with unquestioned respect or risk reprobation—even getting sacked.

Per the well-worn business adage, is “the customer is always right?” No, they’re not. Sometimes they’re wrong, and they need to be told so.

Your goal should be to do business with people that you enjoy doing business with. Some customers simply aren’t good customers. They don’t follow directions and complain irrationally. They have unreasonable expectations, and they treat your people rudely.

Idea for Impact: A prudent maxim is, “the customer is usually right.” Put the customer first, but don’t get mistreated by them. Putting the customer first doesn’t mean putting employees second. As a business, you must let customers be wrong with respect and dignity; but employees should be authorized to caution some customers, “After due consideration, we believe your actions are unacceptable. Persist, and we’d choose to lose your business.” Some bad customers are just bad for your business.

Almost always, though, unhappy customers are your greatest source of learning; they can especially offer an honest assessment of the expectations you’re setting. Customer satisfaction with a transaction depends on their expectations going into it.

Wondering what to read next?

  1. Avoid Control Talk
  2. Competitive vs Cooperative Negotiation
  3. Beware of Narcissists’ Reality Twists and Guilt Trips
  4. Why New Expatriate Managers Struggle in Asia: Confronting the ‘Top-Down’ Work Culture
  5. Escape the People-Pleasing Trap

Filed Under: Managing People, Mental Models Tagged With: Assertiveness, Attitudes, Conflict, Customer Service, Getting Along, Likeability, Persuasion, Problem Solving

How to Reliably Tell If Someone is Lying

February 25, 2022 By Nagesh Belludi Leave a Comment

There isn’t one reliable behavioral cue that consistently reveals that a person isn’t telling you the truth, but the most expected sign of dishonesty is evasiveness.

Does the other person evade answering direct questions or declare, “I don’t know,” “that’s about it,” or “I don’t remember doing that?”

Instead of making direct denials, do they seem to have been caught off guard and take more time to think up a believable response?

Idea for Impact: To detect a lie, listen and pay attention. If lying is nothing more than communicating false information, dwell on what’s being said. Does it make sense? Does it align with other facts you’ve mustered or anecdotes you’ve heard? Do the answers to your probing questions stand up to scrutiny? Does the story begin to shift?

Wondering what to read next?

  1. Avoid Control Talk
  2. How to … Address Over-Apologizing
  3. Thirteen Phrases Your Customers Don’t Want to Hear
  4. Think of a Customer’s Complaint as a Gift
  5. Flattery Will Get You Nowhere

Filed Under: Effective Communication, Managing People Tagged With: Body Language, Customer Service, Ethics, Etiquette, Listening, Persuasion, Social Skills

Selling is About Solving Customer Problems

December 15, 2021 By Nagesh Belludi Leave a Comment

The best salespeople don’t sway customers through manipulative games and mesmerizing presentations. Instead, they figure out how they can enhance a customers’ lives.

If customers believe their problems are real and, more importantly, if they understand them personally, they’re more likely to be persuaded by an image of a satisfying solution.

No product or service is excellent in and of itself. It’s only worthy if it fulfills customers’ needs.

Invest more time in the problem representation stage. Develop a fuller appreciation of your customers’ problems. Make the idea of paying money for the solutions seem natural. Induce consumers to fit your products and services into their long-held routines.

Idea for Impact: Focus on solving customer problems. Don’t find customers for your product. Find products for your customers.

Wondering what to read next?

  1. Make ‘Em Thirsty
  2. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  3. Creativity & Innovation: The Opportunities in Customer Pain Points
  4. What it Takes to Be a Hit with Customers
  5. A Sense of Urgency

Filed Under: Leadership, Mental Models Tagged With: Customer Service, Marketing, Mental Models, Persuasion, Problem Solving, Skills for Success

When to Send Customers Gifts

November 20, 2021 By Nagesh Belludi Leave a Comment

Gifts are crucial marketing tools, which can help customers remember you throughout the year, not just during the holidays:

  • Send a gift after a sale. Saying thank-you does more than complete the sale—it helps build the relationship.
  • Send gifts after receiving referrals. One of the most rewarding compliments a salesperson can receive is a referral. Send a thank-you soon after getting a referral.
  • Commemorate anniversaries. Observe the day you signed your first contract with a customer, making it a special date to celebrate each year.
  • Remember birthdays. Send customers some birthday cheer, not just a card. Be creative and personalize the gift—send tickets to a sports event that the entire family can enjoy, for instance.

Idea for Impact: Business gifts can help solidify sales relationships and earn even more business. Pay attention to the things your customers enjoy and show your appreciation. As long as your gifts don’t seem patently insincere, they’re likely to welcome them.

Wondering what to read next?

  1. A Trick to Help you Praise At Least Three People Every Day
  2. Avoid Control Talk
  3. How Small Talk in Italy Changed My Perspective on Talking to Strangers
  4. Why It’s So Hard to Apologize
  5. When Someone Misuses Your Gift

Filed Under: Effective Communication, Managing People Tagged With: Courtesy, Customer Service, Etiquette, Getting Along, Gratitude, Likeability

How to See Opportunities Your Competition Doesn’t

November 19, 2021 By Nagesh Belludi Leave a Comment

'Different' by Youngme Moon (ISBN 0307460851) Harvard strategy professor Youngme Moon’s Different: Escaping the Competitive Herd (2010) describes how many companies pursue the same opportunities that every other company is chasing and thus miss the same opportunities that everyone else is missing.

In category after category, companies have gotten so locked into a particular cadence of competition that they appear to have lost sight of their mandate—which is to create meaningful grooves of separation from one another. Consequently, the harder they compete, the less differentiated they become … Products are no longer competing against each other; they are collapsing into each other in the minds of anyone who consumes them.

Moon argues that the companies and brands that see a different game win big. Such innovators don’t just try to outcompete their rivals at the margin. Instead, they redefine the competitive landscape by embracing unique ideas in a world crammed with me-too thinking.

European airline Ryanair unleashed a new wave of relentless cost- and price-leadership by charging customers extra for everything beyond a seat itself. If you want to check a bag, you pay extra. If you want an airport agent to check you in and print your boarding pass, you pay extra. If you want food and drink, you pay extra. Later on, Spirit Airlines took the price-obsession further by charging for carry-on bags too. After a rough rollout and customer defiance, paying for carry-on bags has become the new normal.

Idea for Impact: Being different is what makes all the difference. If you do things the same way everyone else in your field does things, why would you expect to do any better? What are you doing to raise your game—not just to stay in place, but to get ahead?

Wondering what to read next?

  1. Airline Safety Videos: From Dull Briefings to Dynamic Ad Platforms
  2. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  3. Lessons from Lockheed Martin’s Skunk Works: Autonomy Can Create Innovative Workplaces
  4. Five Where Only One is Needed: How Airbus Avoids Single Points of Failure
  5. Fail Cheaply

Filed Under: Business Stories, Leadership, The Great Innovators Tagged With: Aviation, Competition, Customer Service, Getting Ahead, Innovation, Leadership, Risk, Strategy

Employee Engagement: Show Them How They Make a Difference

September 20, 2021 By Nagesh Belludi Leave a Comment

The sure-fire way to assist employees find meaning and fulfillment at work is to get them to have even a small interaction with people who directly benefit from the work they’re doing.

One research showed that radiologists developed a stronger sense of the significance of their work if a photo of the patient were attached to an X-ray. “It enhanced their effort and accuracy, yielding 12% increases in the length of their reports and 46% improvement in diagnostic findings.” Radiologists typically don’t interact with patients directly—they work in the background providing interpretation services to other doctors.

Idea for Impact: People are inspired less by what they do and more by WHY

How people see themselves and their meaning and purpose in this world may be the most significant incentive of all.

Empower your employees, especially those that aren’t on the frontlines, with direct reminders of task significance. Invite next-down-the-line customers (virtually or in-person) to share meaningful insights, give appreciation, and share feedback. Promote regular dialogue with customers to help stay relevant and become responsive to customer issues as they arise.

Wondering what to read next?

  1. From the Inside Out: How Empowering Your Employees Builds Customer Loyalty
  2. Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness
  3. These are the Two Best Employee Engagement Questions
  4. The Speed Trap: How Extreme Pressure Stifles Creativity
  5. A Sense of Urgency

Filed Under: Leading Teams, Managing People Tagged With: Customer Service, Great Manager, Leadership, Motivation, Networking, Performance Management, Persuasion, Social Skills

The #1 Thing Top Salespeople Do

July 8, 2021 By Nagesh Belludi Leave a Comment

It is astonishing how many salespeople aim for nothing and hit it every time.

Average salespeople often don’t have a written “game plan” for every sales call. They may have only a vague idea of how to go about their sales call. They usually wing it and hope for the best. They fail to plan and thus plan to fail.

Planning a sales call is vital because it gives you a framework to understand your customer’s buying motivations. You can have “value summaries” at hand to evoke her interest.

  • Establish the call objectives. What do you want to accomplish? Review your Customer Relationship Management (CRM) system, meeting notes, or whatever method you use to manage interactions with customers. Reexamine what was discussed the last time you met with the customer. What are her pain points? What might she need that she’s not asking for?
  • Develop a list of questions you’re going to ask. These questions should guide the “needs analysis” phase of the sales process—they shape her buying criteria. Being ready with prepared questions help minimize the amount of close-ended questions you’ll ask your customer.
  • Review what you can “value add” to your customers to incentivize getting more business from them. A “value add” could be anything from extending warranties, training staff, selling pre-assembled products, customizing products, providing financing, etc.
  • Think through what resistance you may anticipate. List possible objections that could stall a sale: bad timing, budgetary constraints, new leadership, market uncertainty, etc. Develop a go-to response for each challenge. Ask yourself, “How can I help the customer get past this resistance?”

Planning a sales call helps you get in the shoes of the person you’re trying to sell to and sell it from their perspective.

Idea for Impact: Always have a plan for a sales call. No matter how rushed you are, how well you know a customer, or how routine the call might be, plan the call. Never wing it. Great brands aren’t measured by units sold but relationships built.

Wondering what to read next?

  1. Benefits, Not Boasts
  2. Make ‘Em Thirsty
  3. Confirm Key Decisions in Writing
  4. Creativity & Innovation: The Opportunities in Customer Pain Points
  5. Think of a Customer’s Complaint as a Gift

Filed Under: Effective Communication, Sharpening Your Skills Tagged With: Asking Questions, Conversations, Customer Service, Persuasion, Problem Solving

Don’t Try to Convince Every Potential Customer

June 16, 2021 By Nagesh Belludi Leave a Comment

Many entrepreneurs believe that their innovation is so unique and valuable that the whole world will want it, and if a potential customer won’t get it within seconds, it’s only a question of hammering it into their heads.

Don’t try to convince every potential customer to buy your product or service. If they get your innovation within, say, three minutes—excellent. If not, move on.

As you go about selling your product or service in the early stages of your business, you may find specific customers who will get what you’re doing. They’ll cheerfully buy your solution if they could be convinced that your solution can solve a problem they have (or if you can help them recognize a problem that they have but don’t see it yet.)

If you’re starting out, such customers will be your early adopters. At this stage, they’re the ones that are your biggest fans (or critics) and can be an enormous asset for gaining traction by word-of-mouth.

Idea for Impact: Instead of misusing your marketing efforts on convincing all those who don’t get it and may never get it, laser-focus on identifying, courting, and engaging the early adopters.

Wondering what to read next?

  1. Your Product May Be Excellent, But Is There A Market For It?
  2. Pretotype It: Fail Fast, Learn Faster
  3. Make ‘Em Thirsty
  4. The #1 Clue to Disruptive Business Opportunity
  5. Van Gogh Didn’t Just Copy—He Reinvented

Filed Under: Leadership, MBA in a Nutshell Tagged With: Creativity, Customer Service, Entrepreneurs, Innovation, Thinking Tools

« Previous Page
Next Page »

Primary Sidebar

Popular Now

Anxiety Assertiveness Attitudes Balance Biases Coaching Conflict Conversations Creativity Critical Thinking Decision-Making Discipline Emotions Entrepreneurs Etiquette Feedback Getting Along Getting Things Done Goals Great Manager Leadership Leadership Lessons Likeability Mental Models Mentoring Mindfulness Motivation Networking Parables Performance Management Persuasion Philosophy Problem Solving Procrastination Relationships Simple Living Social Life Social Skills Stress Suffering Thinking Tools Thought Process Time Management Winning on the Job Wisdom

About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

Get Updates

Signup for emails

Subscribe via RSS

Contact Nagesh Belludi

RECOMMENDED BOOK:
The Guide

The Guide: R. K. Narayan

R.K. Narayan's story of the transformation of Raju is a profound, yet dryly humorous assessment of the frailty of the human condition and the meaning and consequences of our actions

Explore

  • Announcements
  • Belief and Spirituality
  • Business Stories
  • Career Development
  • Effective Communication
  • Great Personalities
  • Health and Well-being
  • Ideas and Insights
  • Inspirational Quotations
  • Leadership
  • Leadership Reading
  • Leading Teams
  • Living the Good Life
  • Managing Business Functions
  • Managing People
  • MBA in a Nutshell
  • Mental Models
  • News Analysis
  • Personal Finance
  • Podcasts
  • Project Management
  • Proverbs & Maxims
  • Sharpening Your Skills
  • The Great Innovators

Recently,

  • No Amount of Shared Triumph Makes a Relationship Immune to Collapse
  • Inspirational Quotations #1106
  • The Tyranny of Obligations: Summary of Sarah Knight’s ‘The Life-Changing Magic of Not Giving a F**k’
  • Acting the Part, Change Your Life: Book Summary of Richard Wiseman’s ‘The As If Principle’
  • Inspirational Quotations #1105
  • Why Doing a Terrible Job First Actually Works
  • The Barnum Effect and the Appeal of Vagueness

Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!