Millions of Dollars Saved in the Transportation and Logistics Industry


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Put your money where your mouth is. PDF  | Print |  E-mail

MoneyMouthI suspect people will be even more careful, now as the economy begins to recover, how they spend their money. I know I will. Therefore, if we are expecting to make an impact in our niche, the value to our customers must be absolute and tangible. 



Most of us in small business do not manufacture products. Most of us are in the service business and do not offer tangible products. There are inherent issues with providing services that do not exist for selling services. Primarily, the customer can see and feel (and in some cases smell, taste and hear) or otherwise physically inspect your product. This is not the case prior to buying a service. Ted Levitt, the renowned Harvard Business School professor said,
‘. . . the most important thing to know about a service is that the customers usually don’t know what they are getting until they don’t get it. Only then do they become aware of what they bargained for and only on dissatisfaction do they dwell. Satisfaction is, as it should be, mute. Its existence is affirmed only by its absence’.
You know this is true when you talk to the service companies that you use. Haven’t you heard yourself say, “I thought that was included.” The very polite customer service representative says, “I’m sorry but that is not included. That service is extra.” Levitt goes on to say,
"A customer’s preoccupation with dissatisfaction could prevent him from trying out a service initially, or it could force him to look for another provider in the event there emerges dissatisfaction from a service. When competition is keen, customer satisfaction and loyalty are difficult to achieve and maintain.
A service lacks tangibility as there is no physical form or substance. Thus, the challenge, as pointed out by Levitt, is to tangiblize the intangible by stating the benefits in a perceivable manner; the promotional focus may emphasize items such as office decor and dress rather than the "real" service benefit. Professional services with high human contact pose special promotional problems, because of the established professional standards and the need to maintain client trusts.
Super-satisfy the customer.
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