Yes, you are correct that certain things that are seemingly “beyond your control” can actually reflect upon the overall experience a customer “feels” they have with you…even if it wasn’t exactly you with whom they had the experience. That’s a great reason for choosing to partner with other like-minded business people, as you have so obviously done. Even then, however, one can only control so much, as you and I have both discovered, I’m sure on more than one occasion. I love your sentence, “Surrounding myself with the best in the industry has been the only way for me to insolating myself from too many ‘bad profits’.”

Repeats and referrals, indeed, are the measurement of the the types of profits – good or bad – a business is making. Thank you for sharing, Kris.

{Note from Bob: Check out Kris’ travel website at http://www.Cruise4Sail.com}

In a service business, I have gained and lost business by how vendors treat my clients. At times it doesn’t seem fair either way. I try to take care of my end of service but you can bet if I have client compaints from a vendor, I am on their tail to make it right. If I do not get satisfaction, it is the last time I use them. My business suffers if a third party does not give quality service and results in “bad profit” for me! My “good or bad profits” can come from hotels, airlines, cruise lines and excursion vendors. Surrounding myself with the best in the industry has been the only way for me to insolating myself from too many “bad profits”.

“Good profits” come to me in the form of a phone call like this one described because it’s something you cannot put a price tag on. This client was a referral so satisfaction is an added bonus. No matter how small or large the client, I work with the big picture in mind. It’s all about repeats and referrals. It cost less to keep a client than to get a new one.

Anxious to pick up this book, Bob

If may, I think you’re waxing a bit too philosophical here. Reichheld’s book has to do with the “total experience” so that is actually the answer to your question.

Regarding your thoughts about the monetary system and that it *requires* companies to develop inferior products that break down quickly, I believe you are generalizing and speaking about a different topic. We could go very deep into that as a discussion and, while many interesting case studies on both sides could probably be shared, I’m afraid that is beyond the scope (and goal) of this post.

Thank you for sharing,

Bob
P.S. In first sentence you spoke of the sale and customer “service” aspect. Reichheld really spoke more of the customer “experience.” While customer service is certainly part of the overall experience, it isn’t the whole thing. Just an fyi.