Below is an an article from the May edition of my free Buzz Bulletin monthly online newsletter. To subscribe, please sign up on my website.
I can never get enough ice cream so I was chagrined last
year when Dreyer’s, which makes some of my favorite flavors, shrunk their most
popular container from two to 1.75 quarts. Last week, Dreyer’s cut their standard
ice cream packaging even further, from 1.75 to 1.5 quarts, with only a small
reduction in price. Pretty soon, we’ll be taking magnifying glasses to the grocery
store.
As people reduce their purchases in these tough economic
times, Dreyer’s is just one of many
companies that believes that shrinking packaging is a smart way to keep
prices down while enticing people to buy more. However, other businesses have
discovered an entirely different lesson: reduced pricing or even free products
and services can be a much better way to engender customer loyalty and create buzz.
As soon as the weather gets nice in Portland, I feel like
riding my bike. Invariably my tires are flat or I’m facing other mechanical
nuisances. Two weeks ago, I started calling local bike shops to ask how much it
would cost to repair a flat and tune up my bike as well as my wife’s. Three
places quoted me prices in the $75 to $85 range. However, the Community Cycling Center in
Portland, Oregon told me to bring my bike into the shop and they would see what
it needed.
Because I was in hurry, I dropped the bike off and told the
mechanic to do whatever he thought was necessary to get it working as smoothly
as possible. When I returned, the mechanic told me that he only fixed a flat
and put cloth tape on the inside of a wheel which is always getting flats as a
preventative measure. The mechanic said that he looked over both of our bikes
carefully and that there was no reason to do a tune-up on either bike since
they were operating without any problems and the brakes were safe. I left the
shop after paying a $14 bill, instead of the $150 I had expected to pay.
I had a similar experience recently with our Subaru Outback.
After noticing some minor rattling coming from the left front tire area, I took
the car to Superior Import Repair in
Portland and left it there to see whether they could figure things out. The
mechanic said that they drove the car a couple of miles, listened to sounds
coming from the car with a stethoscope, and couldn’t find anything wrong with
the car. While he was looking at the car, he checked fluid levels, brake pads,
lights, and other items. He made me feel great when he said that our car was
running so well that he would feel confident driving it across the country. The
bill: $0. When I asked why I wasn’t being charged, the mechanic said, “it’s the
least we can do for a good customer.”
In their commitment to providing great service first and
worrying about pricing second, my bike and car mechanics solidified my loyalty.
Why would I shop around for other providers when I have people looking out for
my best interests? Furthermore, these stellar customer service experiences have
inspired me to buzz about both businesses to friends since they’ve occurred.
Surely, some of this positive word of mouth will lead to new sales.
Clearly, in this difficult economy, it’s critical to watch
your expenses closely. However, sometimes giving things away is the best way to
grow your buzz and your business.