At a recent training session I encouraged the CSRs and managers to take a 360 degree look at customer conversations. That meant looking at a situation from customer, operations, sales and management points of view to find solutions that make the customer happy, but also contribute to profitability. In franchised markets, while you have limited ways to generate new revenue, you have several ways to be more profitable. In competitive markets, don’t assume new business will make up for costly practices.
Credits for Missed Pick upsWhen your customer wants a credit for missed service, offer to take all the trash on the following pick-up day instead. If that isn’t acceptable, you need to know the formula for calculating what you will credit back. Many CSRs simply take the monthly rate for once a week service and divide it by 4 to come up with the amount of the credit. That does not take into account that you will still be taking the customer’s trash.Credits for Service Changes
I sat with a CSR who was talking with a customer who wanted to see if there was a way to reduce expenses. The customer seemed thrilled when the CSR not only offered every other week service at a lower rate, but offered to prorate it and credit her account. When the call ended, we talked about the value of having the service change take effect at the start of the new month and billing cycle. Credits are not only a billing headache, but they add up at the end of a month.
Courtesy Pick-upsOffering to send the driver back as a courtesy can become not only a bad habit, but a costly one. CSRs need to know your cost to send a driver back on both residential and commercial routes. They also need to know when it is appropriate to send a driver back for free and when it is not. If you aren’t doing it already, tally the number of courtesy pick-ups made weekly for commercial and residential customers along with the dollars associated to them. Share the results with all departments along with guidelines for proper use.
Pricing Integrity
In competitive markets price increases and price wars are common. CSRs and sales reps often panic about losing a customer and blurt out that they can meet or beat the competitor price before they understand what the customer really wants. In residential markets we need to remember that neighbors talk and what you are willing to do for one person you may have to do for everyone else.
The goal is to defend your pricing and help your customer believe you are worth it. This is where your words and attitude matter. Proudly share your safety and service records and that you are a part of the local community. If you do concede on price, the best first step may not be to meet or beat the competitor rate, but to offer something like a free bulky item pick-up.
Example: I’d like to offer you a free bulky item pick-up which is valued at $15.00.
If you just had a price increase to your customers, take the new rate and subtract the old rate. Use that dollar amount and share with your team what percentage they are empowered to lower the new rate by.
Free Service
Offering free service can be a way to capture a new customer, but a recent collections call demonstrated how this can back fire. The customer was offered 2 months free service which she gladly accepted. A quarterly bill was generated after her 2 months of free service completed. She ended up with suspended service because she never paid that bill. In essence she had 5 months of free service.
Be sure to anchor free service to payment up front for your first billing cycle or for a one year service commitment. In a competitive market, offer an incentive if a customer is willing to pay for a year of service up front. Don’t assume your customer can’t afford it.
Example: There is an opportunity for you to save $30.00 on your trash service by paying for a year up front. Are you interested?