Coffee: Never Surprise Your Customers
The article stresses the importance of transparent communication in pricing changes to maintain customer loyalty. A gas station's experience with coffee price adjustments and a personal anecdote highlight this, emphasizing managing customer expectations.
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The article discusses the importance of not surprising customers with sudden price changes, using a local gas station's experience with coffee as an example. Initially offering $1 refills, the station later raised the price to $2, causing regular customers to stop coming. The author emphasizes the need for clear communication and minimal surprises when making changes to pricing or services to maintain customer loyalty. A personal anecdote from the author's own company, ngrok, highlights the impact of transparent communication when addressing pricing errors. The article concludes with a positive outcome at the gas station, where a manager's decision to occasionally not charge for coffee led to increased customer visits and potentially higher overall revenue. The story underscores the significance of managing customer expectations and relationships in business to ensure continued success.
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9 commentsCommunicating the change ahead of time (given it's popularity and cost difference) would be the most prudent.
But in the end, I think they actually found a better approach: for regulars, the coffee is often free. Because they also bought other things, and helped reinforce the customer community and predictable revenue.
In services, grandfathering is a great way to rollout changes to pricing. But it doesn't work for companies with very little growth/where everyone is a regular.
The local pub had an expensive makeover
They now charge double for exactly the same drink, and IF I go in I have to be sure to say "No Ice"
If I go in .. my patronage has dropped through the floor.
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