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customer choice business

Here is a question I received through my Linkedin account in regards to customer choice – I thought the question was pretty interesting and touched on companies having to build on trust and goodwill to move forward, especially with the new Panda and Penguin releases in Google – so I decided to share it…

Hi Virginia,

I know you deal with a lot of people everyday and as a marketing professional I thought you may be able to give me some feedback. I have now been in a sales role with Paladin Security for just over 8 months. Cutting to the chase here is I wanted to know in your opinion what your feelings are to NOT having to lock into a 3 year contract for a business service such as cell phone service or as in my situation security alarm monitoring (for commercial or residential customers). Would not having to sign a fixed term contract be more attractive to you or people you know in general? Or would your answer be that it wouldn’t influence you in any way? Paladin just went with all services on a no fixed term contracts so I’m trying to see how I can position that in my conversations with decision makers. Thanks for any feedback. Greatly appreciated!
Warm regards,

Christine

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Hi Christine,

Thanks for your message and congrats on your relatively new position!

Personally, I like the idea of a product not being available only on a fixed term. Especially as we are moving toward an era of genuine and transparent B2C interaction. With the importance of social media and socially influence search playing a much bigger role in SEO and other business ranking factors, the more trust you can build with your customers the better.

In my experience when you lock someone into a contract there is a mild feeling of mistrust – like “Why do they have to lock me into a contract? What don’t I know that I may not like down the road?”. Which does not build a feeling of goodwill and trust toward the business, and ultimately a negative impression – if only slightly. This may influence how they talk about your product OR if they talk about your product at all. Your customers want to feel in control about their choice to use your service and that by offering a flexible no-obligation option, you value that choice. I think if your marketing efforts can focus on humanizing your brand and developing a great customer satisfaction strategy, then your company’s move to no-fixed terms will be a success.  Good luck – thank you for your question!

With appreciation,

Virginia-Rae Choquette