It is widely held that companies do not have products; instead they have customers to whom they sell their products and services. It is likewise understood that what keeps these customers coming back is the service they receive before, during and after sale. Satisfied customers mean greater profits.

Here we will examine the aspect that most affects a customer's psyche when interacting with a company; the BUT. There is a saying that goes, "Nothing said before the word 'BUT' really counts". What happens after the BUT represents the moment of truth; where we see whether our decisions and responses either annoy or impress the customer.

It is precisely this differentiation between good and bad that concerns us here. Nothing is black or white, instead the world is a fascinating range of grays, and yet we can identify a BUT point for processes and business. A BUT is "the moment in a process at which a service decision is made as a result of an unforeseen complaint, incident or customer requirement". To put it another way, it is where contingency and support plans come into action, if there are any.

Companies can be differentiated into those with products, sales, internal processes and, above all, support that take the following approaches:

1. We must avoid BUTS at all costs (this is just as applicable within a company. There is nothing more toxic than an executive who specializes in justifying his or her work).

2. BUTS cannot be avoided, after all everything has a limit, but these must be rational or to the good

On the other hand are those companies that, due to their internal nature or strategies, commit the following errors:

3. Red tape and bureaucracy runs rife and impinges upon strategy, forcing the latter to adapt to the former. This is a common problem that nearly all companies suffer from to a greater or lesser extent

4. Barriers are built to dissuade complaints. By definition or omission, the customer is shut out.

Let's examine a number of examples that all of us will recognize:

1. You don't ask questions when fraud or credit card cloning has been committed. The amount involved is returned to the customer first and the issue is investigated later.

1. It is NOT my job to look after a customer, BUT as I am the closest employee I will inquire and offer my support, attempting to provide solutions (requires a profound cultural effort and staff training)

2. When a customer has a strong track record with a company, penalties are waived on mistakes like failing to pay off a credit card on time, with a new time frame for payment provided.

2. If a customer is unsatisfied or there is a problem with a purchase, even when the customer is wrong, they are reimbursed quickly and cleanly

3. Customer care services that rotate callers from department to department (customer care, loyalty club, etc.) in an infinite cycle that offers no solutions, and in some cases may involve calling a toll number (a classic at airlines). Everybody understands BUT nobody can deal with your issue, and if you aren't happy you can just cancel.

3. Productive industries: offering good products, good prices and a recognized brand, BUT deliveries are poor, late and incomplete (fill rate, lead time, etc.). But don't dare make a complaint or you'll drown in the bureaucracy. Meanwhile, the competition, despite lacking your strengths, delivers on time as agreed, and asks no questions when an error is identified. Nobody wants to buy problems.

4. Most of the Telco sector: the frontline is not qualified to provide a response, BUT ask to refer you to other channels. While the main problem is customer rotation, structures have been established that are designed to make customers give up during the complaint process (banks are another good example). They may well save on reimbursements, but they also generate plenty of frustration. This is commonly seen when companies have captive customers.

There is also an additional variable logic: Price. The more payments you make the more sensitive you are to the BUT. Nobody expects low cost carriers to offer outstanding service levels. In fact, you assume you'll have to pedal to help the plane take off, BUT... they are the cheapest. Sensitivity to the BUT is directly proportional to the perceived value, not to the actual amount paid.

The reverse of this customer retention approach is to strategically guide those customers that you don't want to go elsewhere. A NO (BUT) in good time is just as good for income statements as a YES, and is often better. Cost savings go directly to EBITDA, unlike increased revenue. And there is a further potential intangible benefit; a dissuasive effect is generated among customer in segments not of interest, as said customers have their own equivalent information, communication and consumption systems, which in turn allows us to bolster our brand position in the segments that are of interest. There is nothing worse than a VIP lounge full of a mixed bag of tourists.

The strongest recommendation, but one not always easy to implement, is to drive cultural change to ensure that processes at your company are shaped by strategy, rather than adapting strategy to self-imposed chains and limitations. In the end, after the strategy there can only be two inseparable things: the client and profit

One great way to evaluate companies and individuals is to listen carefully to what is said after the BUT, and above all, what they do.