Lessons from a Coffee Shop Losing Business Drip by Drip

This morning my wife and I were in Downtown Portland doing some Christmas shopping. In front of the Westin Hotel , we saw three bellmen and asked them where we could find  coffee. One said, "Well, the closest place is just down the block but the coffee isn't too good. If you want something better, I suggest that you walk a couple of blocks to Peet's Coffee." His two colleagues nodded their heads in enthusiastic agreement.

As we enjoyed our tasty coffees, we talked about the huge amount of business the cafe near the Westin must be losing because the bellmen were referring folks to Peet's. We have no idea whether it was bad service or poor coffee that convinced them to refer java seekers to Peet's.

How many businesses lose tremendous amounts of money or go under because people who have tried their products or services are so turned off that they decide to refer others elsewhere? When you never know how much impact that next person you serve may make on your business, the best strategy is simply to offer consistently great service and products.

Comments

[Bill Conerly]

I think I know that place! The coffee isn't bad (IMHO) but the music is too loud for a conversation. I mentioned that to a worker once. He said that lots of customers said that, but the manager was adamant. In fact, the worker had been reprimanded for turning the music down. My best guess: the store wanted to discourage use of their business as meeting places. Now isn't that stupid.

[Patrick Galvin]

Bill,

Thanks for your comments. It's seems like every time I post about a negative customer service experience I get emails complaining about the same business. I'm convinced that each customer service problem is usually just a tip of the iceberg when it comes to overall service issues. Next time, try Peet's just a few blocks aways - I was there recently, and the coffee and service were excellent.

Best,
Patrick