Monday, May 12, 2014

Davidson Makes Shock Less Negative



Davidson College is ending its program of providing a laundry service for its students. It was that students could drop off laundry and get it back cleaned
and folded. It was a real service for students. The College says it is going to use the approximate $400,000 it spent a year on academic-related things like scholarships, internships, research, the entrepreneurship program and community-based learning instead of the laundry service.

I think the College may be making an error which will result in lowered student satisfaction with the College and could affect retention. It has been found that when consumers are used to getting a service and it is discontinued that the company loses clientele. People do not like to give up a perk or service they were used to getting. But Davidson is making the error correctly in the way it is going about dropping the service and there are lessons to see in its approach that may restrain some of the negative reactions

Washing your clothes is not a big thing really and most students just accept it as part of the collegiate living away from home experience but it was a perk of going to Davidson. It was a long standing service too going way back to 1925. And it was a service that students really liked. So giving it up is not something the students are going to be happy about especially since there will be no downward adjustment in the approximately $58,000 a year cost of attendance. In fact if Davidson is like most all schools, the COA will go up as services go down.  That is the sort of adjustment that irks the heck out of consumers, and students are consumers.

If there is a negative backlash it will come from the students already in attendance because they are the ones giving up the service. They are the ones who will have to go from being served to having to do it themselves. It is correct that as the College President Carol Quillen noted that students do not come to Davidson for the free laundry but it was a perk of attendance; one which students realized they were paying for. But students who are on the fence about staying at Davidson with the COA could very well be pushed over the line and leave feeling that the cost was not worth it.

Davidson may be somewhat insulated against too much of a shock effect of the insult of taking away a perk from students since it has such a strong student loyalty rate as seen in its 91.5% six-year graduation rate with most students getting through in four years (87.1%).  There appears to be a great deal of satisfaction in the school. 

And the shock might be lessened by the way the College is implementing the change. They are making the change in a year; not quickly. The time will give the students a period of adjustment to the change and allow the laundry workers time to find another job; hopefully at Davidson if possible. The delay shows a concern for the feelings of students and staff that will be appreciated. 

Too many schools make changes too quickly and only exacerbate the negative reactions to the change. We are talking a full calendar year here and not an academic which would have meant the laundry would close in the Fall of 2014.
The College also made a very wise move in developing a linkage between the closing of the laundry to shift funds and a student-backed initiative to keep the library open all day. The College did not specifically say that the agreement to the 24 hour opening change of the library was directly linked to the closing of the laundry, they let the timing of the two announcements do that. As a result, the students felt they had an immediate gain from the eventual loss of service so the shock was mitigated a bit. The students felt there was a tradeoff that had some value.

Also by tagging the saved funds to specific programs that aided students directly as opposed to a nebulous cost savings, the students were able to see offsetting gains to the loss. More scholarships could be very helpful to students and families. The internships were something students had wanted so that was an additional gain for the College’s consumers. A new entrepreneurship program may or may not be a plus for current students who have already chosen majors but for incoming students this could be an added attraction. Moreover, the College is putting in new washers and dryers which will be free for students to use. If it had made the students pay for the machines, there would have been a strong backlash. And it is worth noting that the College has been as forthcoming as it could on the change, its why’s and its direct benefits to its customers.

So though Davidson has taken away a much appreciated service it has made a mistake in the best way.
It has given sits customers plenty of time to prep[are for the changes. It gave the students something they wanted (library hours) in a “trade” for the free laundry service while keeping doing one’s laundry free. It specified how it was going to use the recouped funds for programs that would be a direct benefit to students. And it has given the displaced workers plenty of time to get new jobs. All in all, President Quillen and her team are making a negative change happen in the best way possible and we can all learn from that.

Make change slowly when it comes to taking service(s) away from students.

  • Give the consumer plenty of time to adjust to the change.
  • Be transparent in the reasons for the change.
  • Be certain to tie the loss in service to how it will provide new services for students.
  • If at all possible, provide another service for the one taken away so as to mitigate the damage.
  • Show concern and real consideration for those affected by the loss in service and changes in work situations.
  • And hope for the best. 
We will see how it all goes for Davidson as the change actually rolls out to the students.

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