February 15, 2013

Choose Customer Service

In today’s news, Metrolinx, the provincial agency that oversees transit planning in the Greater Toronto Area, stated that it was considering charging for parking at the GO Transit parking lots.  Publishing this possible action is a clever move — it allows them to gauge customer reaction and get feedback before taking any action. If you’re planning a major change to how you to do business, finding out what customers think about it ahead of time is a sound idea.

As the comments to the news story show, customers are overwhelmingly against paying for parking at GO Transit lots. They feel they are already paying for parking in the price of the fare. Some have noted that ridership will go down as people seek to car pool instead of pay an additional $100 to $200 a month. Alternatively, some people will abandon public transit and drive their cars into the city, an activity GO Transit was designed to reduce.

While the 65,000 parking spaces at GO Transit lots can rightly be seen as an untapped business asset, instituting a parking fee for those spaces will hurt business growth. Customers see it as “double-dipping” into their pockets, and have clearly expressed that they don’t like the idea.

This is a case where the customer backlash will be far greater than any benefit from charging for those parking spaces. Business growth at the expense of customer satisfaction is false growth, and will not last. There are other ways of increasing revenue; choosing a course that turns your customers against you is never the correct one.

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