Service Contracts: A Great Idea for the Provider…
Are Service Contracts Customer Focused?
Somewhere in history a very wise businessperson came up with the concept of “sign this service contract and for the next year we will deliver you the services entailed.”
Caveat: Even if we don’t deliver to the expectation we set, for the next year we will continue to send you a bill every month until the contract is up.
Second caveat: Around nine or 10 months into the contract we will show up and ask you to renew your contract. If you don’t, our service levels will further diminish because we will need to turn our attention to clients who are still under contract.
Oh the irony.
So you sign up for a contract to receive a guaranteed level of service for a period of time. However, even if you don’t get service that meets your expectation, you are stuck in the agreement? Whoever came up with this idea was definitely smart, but the question I have is, were they customer experience focused?