Hungary was always a more progressive socialist state. Even in the days behind the iron curtain free enterpise was to be found everywhere - you just weren't allowed to sell "Stalin Sucks" t-shirts.
Now 15 years after the iron curtain was drawn, Hungary has completely embrased capitalism. It has also embraced open markets and free trade zones. Its a place where anyone and everyone can and does do business. (As one can see with the number of French, Germain and other foreign BIG BOX stores everywhere).
Still - one can tell when talking to the people there that they still don't quite get how to do business well. They understand how to open a store. They understand how to compete on price. They even understand marketing and branding... But they haven't the foggiest idea about customer support and customer retension.
They also have this weird idea that no matter how shitty service is or how often they try and screw customers over - that they will somehow stay in business for ever. It seems as though many businesses in Hungary don't think that their customers talk to anyone... They don't seem to get the idea that if one person has a bad experience that they are likely to tell their friends about it...
On the other hand it seems to be a cultural thing with the citizens to not complain and not demand better service. After all for many years they had no choice and there was nobody to complain to. And maybe now the people of Hungary have choices and people to complain to - but have an apathetic view of it all and think "there's just no point".
Of course, what they haven't figured out is that if enough of them complain or enough of them stop shopping in certain places things are likely to change (and quickly).
So if anyone is thinking of opening a business in Hungary - here are some tips for you.
Price fairly and delivery everything you promise.
Have a liberal refund policy.
Have customer service take action in front of the customers eyes.
Offer free delivery.
Offer volume discounts.
Do a little extra for your customers without them asking.
Offer alternatives.
Embrace your competition and encourage your customer to compare you to them.
Do any or all of these things and you will KILL the comptetion and own the market you go after.
While they get the basics of capitalism - they just don't know how to compete.
andre
Posted by andre at June 19, 2004 06:34 PM