Suggest Ways Shoppers Can Save Money

I’ve cancelled my service plan maintenance agreement with my HVAC (heating, ventilation, and air conditioning) company.
     I say “my HVAC company” because I, like most consumers, feel an extra commitment to a retailer when subscribing to a company service. Research at University of Pennsylvania and University of Southern California suggests that people agreeing to a flat-fee arrangement are even more likely to build commitment to the retailer and recommend the retailer to others if the customers are referred to as “members of the plan” rather than as “subscribers to the plan.”
     But I probably would have cancelled my enrollment and began to look for another vendor even if I’d been called a member. The problem was that I no longer felt the retailer was trying to save me money, and that was my motivation for enrolling in the first place.
     Some years ago, when I wanted a new HVAC system, this company had been praised to me by a good friend. The sales rep suggested a system adequate for my specifications after describing the alternatives and recommending against a more expensive system which he said was more than my house required.
     I was impressed with the company’s customer focus. When I received an e-mail encouraging me to enroll for the maintenance at a monthly fee, I did so promptly. About every six months, I got a call to schedule a visit, at no extra charge, to tune up the system. I liked the peace of mind. I could now think about things other than whether the system needed maintenance. Psychological inertia set in, as it will for any customers you have on a flat-fee or subscription arrangement.
     Then something changed for me during this last year. Each time, the serviceman finished by giving me a list of jobs that should be done at an additional cost. They seemed hungry for work. My trust faded fast.
     Still, I wanted to restore that trust. It was easier than having to find another HVAC company when I required service. So I telephoned the company and shared my impression that the list of recommendations was never-ending and that I was starting to doubt that they were motivated to save me money.
     Her reply: “Well, you don’t have to take the recommendations.”
     My suspicions were confirmed.
     If you want to keep the business of your consumers, let them know how assiduously you watch out for them.

For your profitability: Sell Well: What Really Moves Your Shoppers

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