Grrrr clients who cancel at a moments notice!!!

no_choice_now

I want to play devil's advocate.

When somebody cancels why not send them a 10% discount voucher? Obviously try not to let the word get around you will do this and only send 1 per customer in case they deliberately keep canceling to get discount vouchers.

It seems likely a lot of people will cancel simply because at that point they don't have the money they thought they would have when they made the appointment. Offering a small discount on their next appointment will likely give them the nudge they need to go through with the appointment, and the fact that you're sending them a voucher tells them you're happy to see them again so it will relieve any embarrassment or bad feelings on their part for canceling and they probably won't avoid you in the future, but be happy to give you a call.

If nothing comes of it you've lost a negligible amount, but if just 1 customer does go through with an appointment because of a voucher the profit may well have paid for all the potential other customers who you have sent vouchers to.

A small calculated risk?

emsywoo123

no_choice_now wrote: »

I want to play devil's advocate.

When somebody cancels why not send them a 10% discount voucher? Obviously try not to let the word get around you will do this and only send 1 per customer in case they deliberately keep canceling to get discount vouchers.

It seems likely a lot of people will cancel simply because at that point they don't have the money they thought they would have when they made the appointment. Offering a small discount on their next appointment will likely give them the nudge they need to go through with the appointment, and the fact that you're sending them a voucher tells them you're happy to see them again so it will relieve any embarrassment or bad feelings on their part for canceling and they probably won't avoid you in the future, but be happy to give you a call.

If nothing comes of it you've lost a negligible amount, but if just 1 customer does go through with an appointment because of a voucher the profit may well have paid for all the potential other customers who you have sent vouchers to.

A small calculated risk?

I think this would be a huge mistake TBH

pitkin2020

no_choice_now wrote: »

I want to play devil's advocate.

When somebody cancels why not send them a 10% discount voucher? Obviously try not to let the word get around you will do this and only send 1 per customer in case they deliberately keep canceling to get discount vouchers.

It seems likely a lot of people will cancel simply because at that point they don't have the money they thought they would have when they made the appointment. Offering a small discount on their next appointment will likely give them the nudge they need to go through with the appointment, and the fact that you're sending them a voucher tells them you're happy to see them again so it will relieve any embarrassment or bad feelings on their part for canceling and they probably won't avoid you in the future, but be happy to give you a call.

If nothing comes of it you've lost a negligible amount, but if just 1 customer does go through with an appointment because of a voucher the profit may well have paid for all the potential other customers who you have sent vouchers to.

A small calculated risk?

You have identified the biggest flaw in that idea yourself. They cancel you send 10% voucher. They book and turn up using their 10% voucher. Next time they book and cancel, you send a 10% voucher. SO not only are you giving discount you are losing out twice as you have reduced the price where a full price booking could be done and you have also lost an appointment slot where no money has been earned. Plus the admin costs of producing, printing and posting a 10% discount voucher.

nedmundo

Agree with the last 2 posts - it's a slippery slope rewarding unloyal clients with discount.

pitkin2020

nedmundo wrote: »

Agree with the last 2 posts - it's a slippery slope rewarding unloyal clients with discount.

Definitely you are pandering to time wasters and then rewarding them. Admittedly they may have a genuine reason for cancelling but as long as you remain polite (in the first instance) they may come back in the future. If they don't come back what have you lost?? Nothing, you had nothing to lose lol.

OP why not add a paypal button on your site and take payments upfront for the service, you can clearly state through the payment process your cancellation terms. You could even offer a small say 5-10% discount for paying online in advance!!

no_choice_now

pitkin2020 wrote: »

You have identified the biggest flaw in that idea yourself. They cancel you send 10% voucher. They book and turn up using their 10% voucher. Next time they book and cancel, you send a 10% voucher.

If you had taken the time to understand what you read, you would realise I have pointed this out "only send 1 per customer in case they deliberately keep canceling to get discount vouchers."

The voucher can clearly state it's a one-time introductory offer for new clients only.

If we apply some logic to the process, let us consider the following steps:

1) We all agree that clients are going to make appointments and some will then cancel.

2) If a client cancels, a voucher can be sent at a nominal cost; 2nd class postage and the envelope/voucher printing (under 50p total is easily achievable).

3) If the client is a timewaster and has no intention of undertaking the service then the only lost value is 50p.

4) If the client was short of cash, nervous about trying someone new or embarrassed at canceling an appointment at short notice for a legitimate reason they may likely go somewhere else (a quick unscientific survey of several friends said most of them would do this, and I have to say so would I).

5) Therefore if you send out 10 vouchers with a total out-of-pocket cost of just £5, even if it may result in just one of those ten people making an appointment where they otherwise wouldn't have; then your losses incurred are:
a) x% profit reduction on the job
b) £5 costs;
and your gains incurred are:
a) >0% profit on a job*
b) A new customer who will likely return.

I consider the potential gains to far outweigh the potential losses for an incredibly small calculated risk.


* As I say, 80% of something is better than 100% of nothing.

paulwf

no_choice_now wrote: »

I want to play devil's advocate.

When somebody cancels why not send them a 10% discount voucher? Obviously try not to let the word get around you will do this and only send 1 per customer in case they deliberately keep canceling to get discount vouchers.

It seems likely a lot of people will cancel simply because at that point they don't have the money they thought they would have when they made the appointment. Offering a small discount on their next appointment will likely give them the nudge they need to go through with the appointment, and the fact that you're sending them a voucher tells them you're happy to see them again so it will relieve any embarrassment or bad feelings on their part for canceling and they probably won't avoid you in the future, but be happy to give you a call.

If nothing comes of it you've lost a negligible amount, but if just 1 customer does go through with an appointment because of a voucher the profit may well have paid for all the potential other customers who you have sent vouchers to.

A small calculated risk?

There is actually some logic to this. Think of it as a normal sales lead, you have got a good lead and the customer is nearly hooked but you haven't quite closed the deal so far. A lot of people would get bitter because the customer has messed about but as the customer booked in the first place they must be very interested in the product and service so there is no point in giving up yet. There are a number of reasons why the customer might have canceled, sadly people prioritise other things before keeping appointments these days.

I might not give a voucher but I certainly would follow it up so that the client knows there is no hard feelings. Chances are in a majority of cases the customer was interested but now feels like they can't rebook now they have cancelled, this is a good chance to get them back on board.

As to other ways to maximise productivity you can't double book if you have specific times but if you could give customers 1 or 2 hour windows that might mean you could book on the tight side and allow your work to average out through the day.

pitkin2020

no_choice_now wrote: »

If you had taken the time to understand what you read, you would realise I have pointed this out "only send 1 per customer in case they deliberately keep canceling to get discount vouchers."

The voucher can clearly state it's a one-time introductory offer for new clients only.

If we apply some logic to the process, let us consider the following steps:

1) We all agree that clients are going to make appointments and some will then cancel.

2) If a client cancels, a voucher can be sent at a nominal cost; 2nd class postage and the envelope/voucher printing (under 50p total is easily achievable).

3) If the client is a timewaster and has no intention of undertaking the service then the only lost value is 50p.

4) If the client was short of cash, nervous about trying someone new or embarrassed at canceling an appointment at short notice for a legitimate reason they may likely go somewhere else (a quick unscientific survey of several friends said most of them would do this, and I have to say so would I).

5) Therefore if you send out 10 vouchers with a total out-of-pocket cost of just £5, even if it may result in just one of those ten people making an appointment where they otherwise wouldn't have; then your losses incurred are:
a) x% profit reduction on the job
b) £5 costs;
and your gains incurred are:
a) >0% profit on a job*
b) A new customer who will likely return.

I consider the potential gains to far outweigh the potential losses for an incredibly small calculated risk.


* As I say, 80% of something is better than 100% of nothing.

I'm not disagreeing with you and it may well be a good idea for the OP. Its certainly not a model I would use in my business personally. Even one voucher per person (which you would have to keep a record off) if that person then tells their friends if you cancel you'll get a discount voucher to rebook your going to have more people wasting your time, more empty appointments.

redned_2

In your case I think that I would offer a discount/incentive for rebooking/paying upfront in full or just request a deposit upfront - I am sure people are less likely to "forget" when they have already paid some money out:D. I think personally I would enforce the late cancellation/no show fee, at the end of the day you are running a business not a charity and loyal customers should not behave like this anyway - imo. If you state it in in your t&cs then I think you are entitled to ask for it. It really annoys me that people think this is acceptable, you wouldn't be able to tell an employee that they're not getting paid because someone didnt show up.

Unfortunately I think its a sign of the times. We have never had a year like this for people messing us around and it is horrible!

Actually thinking about it my childs nursery charge a fiver for every five minutes you are late picking up:eek:, I imagine they would let you get away with it the first time though. I know its not the same thing but what I do know is that because they made it quite clear that is what would happen I've never done it as it made me think about it! Also the dentists make it quite clear they charge for missed appointments so I've never done it, moral of my waffling; make it as clear as possible!

Savvy_Sue

redned wrote: »

I think personally I would enforce the late cancellation/no show fee, at the end of the day you are running a business not a charity and loyal customers should not behave like this anyway - imo. If you state it in in your t&cs then I think you are entitled to ask for it.

Thing is, we don't know if these ARE 'loyal customers', or first-timers, or regulars who just don't behave very well. I think you might want a different approach for different situations.

I'm pretty good at keeping appointments, and I get (more than) a bit p'd off when people don't keep appointments with me, eg tradesmen at work - I've had one not turn up 3 times now! last chance tomorrow ... But this is someone doing us a favour, so I can't get too shirty about it.

If, as a loyal customer, I do miss an appointment then I expect to pay for it. But if, as a first-timer, I cancelled an appointment (for which I'd have a good reason) at fairly short notice and you tried to charge me, I'm unlikely to become a loyal customer. And if, as a regular, I start messing you around, then you might be glad to be rid of me!

redned wrote: »

Actually thinking about it my childs nursery charge a fiver for every five minutes you are late picking up:eek:, I imagine they would let you get away with it the first time though. I know its not the same thing but what I do know is that because they made it quite clear that is what would happen I've never done it as it made me think about it!

One nursery which did this found that lateness actually increased, because parents were quite happy to pay for extended hours ... Perhaps they weren't charging £5 per 5 minutes, but it does have to be done carefully!

redned wrote: »

Also the dentists make it quite clear they charge for missed appointments so I've never done it, moral of my waffling; make it as clear as possible!

NHS dentists are not allowed to charge for missed appointments. And that is a serious failing in their contract. However, they know who you are, and you may find it difficult to get an appointment in future.

I go back to my question about WHY people are cancelling, and why they are cancelling at short notice?

Rather than sending a discount voucher, what about a discount for a course of appointments (if that's appropriate), and reminding people who have cancelled about that possibility?