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 They're back! But they won't be unless you treat them right...
 
Location: BlogsSpeaking of business..."    
Posted by: Dr. Philip R. Geist 12/17/2007 2:05 PM
One of the most important aspects of a business are loyal customers who keep returning and who recommend the business to other potential customers. Assuming that you and the competition are both equally competent at providing the technical aspect of your business, the significant difference between you may be customer service. In that case, whoever provides the best customer service will have a market advantage...

Customers will overlook apparent strengths of one business over another when the perceive customer service to be better.  They will, for example, drive past a competitor to get to your business if you offer more customer satisfaction.  In some cases, price is not the determining factor.  Wal-Mart, while legend for its low price policy, has by its own admission poor "front end" service.  Many customers, myself included, will often by-pass Wal-Mart to shop at a store where I can select my merchandise, check out, and be on my way in half the time.  Jeff Wuorio, in an article on customer service posted on the Microsoft Small Business Center (www.microsoft.com/smallbusiness/resources) stated, "Customers and clients are becoming increasingly disenchanted with the merely adequate.  For them, extraordinary service is the rule, not the exception.  Anything less, and they're happy to vote with their feet and their wallets." 

Mr. Wuorio's statement, which I agree with, has several implications for your business:

  1. Potential customers will be attracted to the business with the best customer service.  You need to make sure that is YOUR business, not your competitors!
  2. Existing customers will continue to return if the customer service is meeting their needs.  You need to ensure that you are providing the services that customers' want!
  3. Customers who are not satisfied will "vote with their feet and wallets."  As in any election, you as a candidate wanting their business need to let them know what you offer and how you differ from the competition!

While there are many texts and articles on customer service, and I encourage you to review a few, the ones I used to research this blog are footnoted at the bottom of the page.  My point is that you don't need to be an academic, a deep thinker, philosopher, or visionary to improve your customer service.  There are many examples and models that are tried and true, you can pick the ones that apply to your business and modify them as needed.

Here are some of the tips I gleaned from my research:

A. To have outstanding customer service you need to begin with your employees:

  • Treat your employees well so they will treat the customer well.  From the customer's viewpoint, your employees ARE your business!
  • Consider your employees as internal customers, giving them respect and offering appreciation for their extra efforts with customers and clients.
  • Communicate with your employees about how you want customers to be treated, so that you both have a clear understanding of what outstanding customer service means.
  • Give your employees the freedom to make decisions that will enhance the customer's experience, for example, offering discounts for slow service, or a no-questions-asked refund if the customer is unhappy.  Empowering the employee will make them go that extra step to keep the customer happy.  Keeping the customer happy will KEEP the customer!

B. To continue to have outstanding customer service, invest in your employees:

  • The adage "You get what you pay for," applies in customer service.  The quality of customer service you can offer is influenced by the caliber of the employees who offer it.  If you offer the lowest wage with the least benefits, you will not be able to provide outstanding customer service. 
  • Your employees are not experts in customer service or sales.  If you invest in training, you can teach them new skills, reinforce existing skills, and build a culture that encourages customer-focused sales and service.
  • Share information about your customers with your employees.  The more they know about a customer's background or purchase history, the easier it will be to understand the customer's needs.  You can use technology, such as Customer Relationship Management (CRM) software, or you can have simple manual files to record  customer's buying habits, personal data (sizes, equipment owned, or whatever is pertinent to the product or service you sell), interests, and needs.

 C.  Show that customers are valuable assets.  Walk the walk, "do as I do," share the commitment:

  • Employees will model your behavior.  The way you treat and speak of customers, both in front of them and behind their back, will be noted and serve as the "acceptable norm."
  • Make an effort to know regular customers by name and greet them.  Make ALL customers feel welcome by greeting them when they walk in the door.  Use appropriate body language: handshakes, smiles, and eye contact all say something to the customer.
  • Be a good listener.  Let the customer communicate their needs BEFORE you begin selling! 
  • Focus ONLY on the customer.  Don't interrupt the customer to take a phone call, e-mail, or handle an issue that could wait until the customer has been served.
  • Remember, ALL customers are important.  Don't only focus on the top 20% of customers.  The customer who only comes in infrequently may be the customer who refers your business to potential customers.  They may also be budgeting for a large purchase, or about to change jobs and refer you to their new employer.

 D.  It's the customer, stupid!  The only reason you are in business is because of your customers:

  • Know who your customers are.  Take the time to learn their name and other information about them so you can personalize their experience.
  • Make sure the customers know who you are, even if they deal with your employees on a day-to-day basis.  Make sure they know how to reach you and feel free to call if they have an issue with, or question about, your business.
  • Make customers feel important and appreciated, as in fact they are, because without them you don't have a business.
  • Create a customer database.  This can range from the previously mentioned CRM to an entry for a monthly drawing where customers can enter their name, phone, and other information.

E.  Be humble, be quick, be sincere:

  • Know how to apologize.  Things WILL go wrong, when they do deal with the problem and apologize. 
  • Be a "yes man."  If you can reasonably accommodate a customer request, do it even if it is not part of your normal policy or service. 
  • Personalize the customer experience.  Learn and remember important dates to them... birthdays, business anniversaries, etc.  Let them know you think of them even when they are not standing in front of the sales counter.
  • Deliver what you say you will deliver.  In fact, deliver MORE... under-promise and over-deliver.  In other words, give more than expected.

 F.  Get regular feedback from customers and use it to improve your service:

  • Use follow-up phone calls and surveys to find out what customers think about your business and how it might be improved.  Find out what they would change or add to your service.  If you hear the same things several times you may be lacking in that area.  Remember, if there is a "gap" and the competition fills it your customers may "vote" to move on.
  • Most customer needs are emotional rather than physical.  They buy products and services because they get good feelings or solutions to problems.  If you REALLY know your customers you can anticipate their needs and let them know that you care about them.

Sources:

Blanchard, K. and Bowles, S.  Raving Fans.  1993. William Morrow & Co: New York

Friedman, S. The Ten Commandments of Great Customer Service. About.com:Marketing (http://marketing.about.com)

Himmel, B. 14 Tips to Legendary Customer Service.  Thompson Gale Small Business Resource Center (http://wf2dnvr6.webfeat.org)

Godin, S. The Bootstrapper's Bible. 1998. Upstart Books: Chicago

Sirolli, E. Ripples from the Zambezi.  1999. New Society Publishers: Gabriola Island (Canada)

Tahir, L. 10 Customer Service Tips.  About.com: Small Business.  (http://sbinfocanada.about.com)

Walters, J. Big Vision, Small Business. 2001. Ivy Sea: San Francisco

Wuorio, J. 7 Tips for Excellent Customer Service. Microsoft Small Business Center (http://www.microsoft.com/smallbusiness/resources)

 

 

Copyright ©2007 Dr. Philip R. Geist
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