I’m beginning to wonder if bad service is becoming good business.
Of course, some people will always be happy paying for high levels of service, but I’m starting to think, that the vast majority really don’t care as long as they’re saving a few pounds.
Ryan Air has a dreadful reputation but continues to thrive … because it’s cheap. Tesco is selling clothes, TVs, even computers – their staff can’t offer any help but the stuff sells … because it’s cheap. Many people use shops on the high street to seek advice but then buy through the internet because they save a few pounds.
If consumers don’t value service why are most suppliers working hard to add value? Could it be that Tesco and Ryan Air have got it right and the best strategy is to offer minimum levels of service and lowest possible prices?
In fact, is ‘minimum-level’ service the ultimate distruptive technology … nibbling at the ankles of established wisdom. Maybe in a few years we will all be buying from the lowest cost producer in each industry with the service-focused differentiators all but gone?
