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Which situation are you more likely to tell a friend about?

Commentary by Mark Francis, Head of Learning at STAR Commercial Academy:

 I've provided training and consultancy work to Luvata for several years, and our experience both confirms and denies these statistics.

When you manufacture key components for OEMs, product quality is (of course) fundamental. Human nature dictates that because we assume products will meet the quality specification, we often only share the news when we don't get it (hence 86% tell a friend when the product lets them down).

But here are two perspectives to conjure with. First, why do restaurant customers tip on average 7% higher when the server smiles and says thank you, compared with those who simply place the bill on the table? Why does this figure rise to 16% higher when the restaurant gives you a chocolate with your bill? Human emotion always plays a part. 

Now consider if you were a major German OEM with Luvata as your supplier. Would it impact your decision-making if none of your Luvata contacts spoke German? The answer is most definitely yes. What added value would this or any other OEM place on having a supplier totally fluent in their mother tongue? You probably wouldn't tell a friend that the service exceeded your expectation (6% might), but you will continue to favour this all-round excellence. Service beyond just the metallic product!


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