Service versus price – the black hole of knowledge?

CruiseMole Comment by Giles Hawke, Complete Cruise Solution sales director

Last weekend I went to a large electrical retailer to buy a new plasma television. 

Traditionally this retailer was wholly price-driven but seems to have had a change of direction. I was approached by James, a very knowledgeable sales assistant and questioned in depth about the size of screen I had in mind, what sort of programmes we watched on it and what size and shape of room it was for.

Price did not come into the conversation and he certainly did not try to sell me the most expensive or even the cheapest one, but simply the one which fitted my requirements. I was very impressed and walked away satisfied, with a will to return and buy.

This got me thinking so back in the office I made a few mystery shopper calls to several travel agents to see what was really happening in the service versus price arena.

The results were concerning and made me realise that the lucrative opportunities which exist and are largely being missed by agents selling cruise holidays, as in each instance there was a similar approach.

My brief was the same each time – I had not been on a cruise before and wanted a holiday between 7 and 10 days going out of Southampton during summer ‘08 for myself, my family and my parents. I did not mention my budget and I made it clear that cruising had been recommended to me by a friend as a holiday to try.

On each call I was offered a discount without having asked for one and I was asked what quotes I had from other agents.

Often, I heard “that’s a bit expensive. Let’s see if we can find something cheaper”.

In no case was I asked any qualifying questions to discover the type of experience that would suit me.

Nobody actually “sold” me the cruise or discussed the on board experience or how they differ by company or by ship and I was left feeling unsure if this was the right choice for us all.

Taking the above issues individually and thinking about the impact on the customer:

1. I didn’t ask for a discount and was a new potential cruiser – why offer me an extra discount – surely the 40% immediate discount offered by the cruise line would make me believe it was already value for money?

2. Sales is about listening and establishing the customer needs – this hardly happened at all – the agent had something to sell and that’s what I was offered, irrespective of what I actually wanted or may have preferred.

3. I had no intention of calling another agent, until it was suggested to me – following the call though I would certainly see if other agents could do a better deal for me.

4. I never mentioned a budget and may well have had thousands of pounds to spend and thought the original price was a bargain.

5. Fundamentally, as a new cruiser I still needed selling on why I should choose that type of holiday and what the real positives are of going on a cruise. It would have to appeal to both my children, their grandparents, and us – all with differing requirements. Selling on price alone is poor service and the reason that some cruisers do not return.

The need for even more in-depth brand and product training for agents is imperative.

Agents have to be armed with the tools to focus on the knowledge and expertise they can offer to a potential new cruise customer, rather than it being wholly price led.

Enabling agents to have a first hand knowledge of the market place and the differentiation between brands would convert more people to cruising as a holiday type, agents would make more money and in turn grow their repeat customer base.

It seems a fundamental logic but one which is evidently not being communicated effectively or cascaded through to the agency sales staff.

Closing a sale through being the cheapest is a lazy and very effective way to reduce the profitability of your company and avoid delivering excellent customer service.

I, meanwhile, am off to buy a new Blu ray DVD machine and will, of course, return to James for his advice and guidance…