For example, I took my girlfriend to a nice hotel for our anniversary last year. When the hotel heard I was having an anniversary, they sent up a very nice hand written congratulatory card, a bottle of prosecco, and a selection of deserts on the house. That couldn't have taken them more than 15 minutes and cost them like 20 dollars, but it is something I will always remember; I will definitely return there in the future; and I recommend that hotel to any friends seeking a nice place to stay. That is great customer service.
At a more basic level, I was at a mid tier hotel a few weeks ago and somehow I didn't get the room upgrade I paid for. The management immediately refunded me the difference without complaint and gave me a few drink tickets to use at their bar as an apology. That is good customer service.
Contrast those to my experience at my former favorite steak house this year where for the last ten years I had been telling everyone to go. I went there for Valentine's day (had a reservation) and was told I had to wait 30 minutes for a table to open. While I was waiting, I saw multiple couples of the same size come in behind me and get seated. After the 30 minute wait, they tried to seat us at the loud and noisy bar. When I complained, they basically told me tough shit you get what you get. A reservation just guarantees you a table not a good one. I concluded that they were discriminating against us because we are younger than the average clientele there. Not only did I walk out and cost them my business, but I gave them a scathing Yelp review, and now shit talk them at every opportunity. I will never go back even though they were great every other time I was there, and instead always point friends to one of their main competitors when asked my opinion about local steak houses. I do this even though I know the competitor's food isn't as good. They could have given me the table I deserved; they could have comped some drinks or something; but no, they were right and I was wrong and so they lost a loyal customer instead.
I'm not doubting that this is nice, but in a lot of businesses this could be all or most of their margin. You can be nice all day long but at the end of the day there has to be something left to run the business. There are plenty of ways to exceed customer expectations without running your business into the ground.
For that particular stay, yes. But it increases the likelihood that the customer will come back and, perhaps more importantly, tell everyone they know about how awesome the place is. It's hard to see how this wouldn't work out to a net positive in the longer run.
So yes, if this were an additional $20 per sale it might deeply cut into their margins if they aren’t a luxury product.
However, I struggle to imagine that every, or most, or even many, of a hotels sales are anniversaries, or similar kinds of events, that would deserve such additional servicing.
If the total profit is $200k, a single $20 (or relatively few) instance is nothing, regardless of high or low margins.
Specially servicing these rare, one-off events, is exactly how you exceed customer expectations without running your business into the ground.
By your own admission, you went to this steak house for 10 years and had liked it so much you encouraged others. I'd imagine you would've visited multiple times per year? So, let's say 20~30 visits total? All that time you were happy and raved about it, but one bad visit and not only did it sour your opinion to the point you won't return, but you also mentioned that you will disparage them whenever you can. At around 30 visits, 97% of your experience there was positive to the point of rave reviews.
I'm not having a go at you, I'm just using your story to highlight the difficulty in customer service and how fickle we all are as customers (myself included). I suppose that really just speaks more to our recency bias as humans as well.
I wouldn't call that fickle as it went further than just a bad visit.
Getting pissed off over an experience like that is probably an appropriate response. Or bringing the 10 year history of being a loyal client to the management's attention. But going to war against them for a once in 10 years event sounds like first world entitlement.
The overall point about the lengths needed to maintain an experience that keeps customers happy is real, though. You don't make money by trying to profit on every transaction or treating entitled people like you know they're acting like an ass.
In his defense, if a customer is paying and not asking for out of the ordinary, it's really bad business to not at least acknowledge the customer when they are generous enough to complain.
In general I'd be inclined to agree, but two things come to mind. One: if I had a reservation I'd expect it's for a table not a seat at the bar. Two: being deliberately singled out versus being an accident. If the staff had been more obvious (e.g. tables are for whites only), would you suggest giving them another chance?
DOSA in SF (the one on Fillmore) deserves an honorable mention for not honoring reservations. We showed up early with a reservation and they continued to seat people before us, after like half an hour we all left because we were going to a show. I talked to the manager who claimed we arrived late, etc., etc. I wasn't a regular customer, I didn't make a scene, but you can bet your ass I'll badmouth DOSA every chance I get. If you're not going to honor reservations, why take them?
You don't make money by trying to profit on every transaction or treating entitled people like you know they're acting like an ass.
And what makes someone entitled? Wanting a table to go with the reservation? Or looking different than the typical customers?
Do the exact same thing they did except simply present it better and apologise and now you're likely not going to piss off a loyal customer.
The guy apparently received appalling service and was humiliated in front of his girlfriend on Valentine's day by a restaurant he trusted and was attached to.
This was personal betrayal.
This is why cause people to react so strongly. We don't see this as a simple business transaction, this is personal and emotional.
The reality is, if 97% was a great experience and 3% awful, its still a great place when averaged. I for example would gladly try out such a place if it would be described objectively, without some stupid emotions overshadowing every single fact.
Some would call the reaction appropriate, some overblown. Not judging, haven't been treated like that. But generally emotions are bad long-term advisor, unless decision also passes some basic logic check (which usually they don't).
We need to listen to our emotions more, not less in some circumstances. I don’t mean to make a scene, but to take it as a sign that we shouldn’t eat at that restaurant, take that job, date that person, patronize that airline, etc.
It makes no difference if it's rational or not if it's reality because if you're an expensive steak house, you have first world customers so their first world problems are your problems.
Yes I would go to steakhouse which has 97% chance of being awesome, with 3% chance of waiting in the line 30+ minutes, even on valentine. But that's me (and my wife)
Yes I'm being tongue in cheek here, but try not to cut off your nose to spite your face.
V day and M day are the absolute worst times to go out for dinner, anywhere half decent is full and the kitchen is super stressed so they have reduced menus that are easier to cook (not possible with steak...). If you must go, you have to speak to the manager beforehand, tell them how important this is, remind them you come often, get a specific table, etc.
Why is that, exactly? A whole bunch of tables with two people at them sounds like it should be a bit easier than a normal busy day. And you know far in advance that you need to be well-staffed. Are valentines couples very demanding? Are there other troubles?
As for your second example, I don't find this to be good customer service. You paid for an upgrade and didn't get it. It's not just about the incremental upgrade. You could have booked elsewhere and the upgrade was part of that decision. The sum of the parts is greater than the whole sometimes. They could have done better than a refund on the delta and some booze.
Credibility tends to take a hit when you do that. People interpret it not as the restaurant necessarily being bad as much as you having a bone to pick.
Intent matters. Let's say your partner is trying to toss a coke bottle into the garbage bin. Let's say your partner misses and bonks you on the nose with the bottle instead. Do you leave? What if your partner, instead, had been trying to throw the bottle at you in anger?
The software development world is plagued with the idea that developer productivity and happiness comes before all other considerations. Can you imagine a car manufacturer building something that get's 2 mpg but excusing it with "but it was quicker to build"? Yet we have electron.
Meet the customers basic requirements and you compete on price first 9 times out of ten. Look at the airline industry, prices have steadily declined since deregulation and creature comforts right along with them. If Americans could buy standing room only tickets they would in droves.
Bad example, ever try fixing your own car and wondering why they made it so hard to access some parts? And then you try to replace some bit and break some smaller bit, like a plastic clip or something. And you can't buy the smaller bit anywhere. Most cars are built for ease of assembly, not ease of repair for example.
Same with other giants / monopolies; this is why monopolies are bad for customers.
However, don't underestimate that the majority of people will often gravitate towards the most marketed thing, not the best designed (usable) thing.
I'm amazed at people's tolerance threshold nowadays for software that's mind-bogglingly difficult to use.
I find that technology has overall become less usable, less well-designed, more bloated, and more stuffed with eye-candy.
You don't get what you don't pay for.
Why didn't they just say so.
That being said, when writing engaging content, it's usually better to show, rather than just tell. That's also what they did here.
Last thing - they wanted to convey the message to as many people as possible. If the article was entitled "Put the concerns of the customer first before yours," virtually no one would read it (and no one on a site like HN, Twitter, or Facebook would click through to it).