As I go through my morning routine, looking for something great to discuss in the blog today, I can't help but laugh. Every other blog or web-page is selling something. They are selling the "best ideas" on how you can change your life or change your business. In fact, one Blog I found talks about the 50 Marketing Tips that will generate customers for you immediately. Another provides the Top 11 Great Sales Tips to turn a No into a Yes.
Guess what? They all work - and at the same time . . . none of them work.
The truth is, there are thousands of consultants (and yes, even coaches, present company included) who are selling their ideas to be the "be all, end all" of your problem solving needs. And do you know who is making all the money with their ideas? THEY ARE.
As I tell all my clients, there are no magical seeds or perfect solutions for every business. What it takes is a Just Do It attitude more than anything else.
Don't get me wrong - you need the information that these gurus are providing you - they do have some great ideas. But what you need more than the ideas is the commitment and dedication to doing what they say, measure how well it is working for you, and then making a sound business decision (based on the numbers, not feelings) on whether to keep it up (and for how long) or try something else.
Everything takes time. Marketing doesn't happen overnight. Leadership is not a skill you master after going to a class. Customer service requires dedication and commitment to putting the customer first each and every day - it's never ending. Sales usually requires getting nine "NOs" just so you can get to the one "YES". If you quit halfway (or even nine tenths) into the process of any of these things, you will see the process as a failure. When in fact the only failure was that you quit.
So commit and dedicate what it takes to make the change to reach the goals you want. And start today - change occurs the minute you decide to make it. And believe it or not, the decision and commitment to act is more important than what you decide.
Showing posts with label Customer Service. Show all posts
Showing posts with label Customer Service. Show all posts
Thursday, July 9, 2009
Friday, June 19, 2009
Marketing, Sales, Operations or Customer Service? What Is Your Weakest Link?
Marketing's job is getting customers to walk in the door.
Sales' job is getting them to buy once they walk in.
Operations delivers on the promise that the sales person made - the product or service that the business provides.
And finally, Customer Service is making sure they are satisfied with what they were sold.
Those are the four main functions of delivering a product to your customers. Unfortunately, most small businesses are good at one, maybe two of them, but very few are good at all four. Because if they were, they probably wouldn't be small anymore.
I've heard it said that anyone can get someone to buy something once - often times they will do it out of curiosity. But getting them to come back again and again - to become a lifetime customer - takes a real business person. And of course, it takes "systems".
As you build a new business or grow an existing business, recognize that it doesn't matter how good any one of the processes that I spoke about earlier. Think of the four systems as "the chain of business". You are only as strong as your weakest link. How strong the strongest link in the chain is doesn't matter, the chain will always break at the weakest link.
Sadly, most small business owners usually do the exact opposite - they tend to be really strong in operations - building the product / creating the service that is their business - and they work to make the product better - instead of working on strengthening the other three aspects of their business.
Sure, you can have a great product or service - most people who have a small business do. But if you can't appeal to your target market (or don't know how to) or you can't sell your product (close the deal), or you can't ensure the customer is satisfied once the product is delivered, then it doesn't matter. You might get an occasional sale, but nothing to grow a business own.
Like life, your business needs balance. You need to nurture each segment of the business cycle, Marketing, Sales, Operations, and Customer Service. And you need to make sure that each element is as strong as you need them to be to ensure your customers experience what you INTEND them to experience when they patronize your business.
This takes diligence and commitment. So, as you begin to set out your goals for the next month or even 6 months to a year, make sure that you are committing to not only developing your product and service, but also to how you are going to market it, sell it, and satisfy the customers who purchase it.
Sales' job is getting them to buy once they walk in.
Operations delivers on the promise that the sales person made - the product or service that the business provides.
And finally, Customer Service is making sure they are satisfied with what they were sold.
Those are the four main functions of delivering a product to your customers. Unfortunately, most small businesses are good at one, maybe two of them, but very few are good at all four. Because if they were, they probably wouldn't be small anymore.
I've heard it said that anyone can get someone to buy something once - often times they will do it out of curiosity. But getting them to come back again and again - to become a lifetime customer - takes a real business person. And of course, it takes "systems".
As you build a new business or grow an existing business, recognize that it doesn't matter how good any one of the processes that I spoke about earlier. Think of the four systems as "the chain of business". You are only as strong as your weakest link. How strong the strongest link in the chain is doesn't matter, the chain will always break at the weakest link.
Sadly, most small business owners usually do the exact opposite - they tend to be really strong in operations - building the product / creating the service that is their business - and they work to make the product better - instead of working on strengthening the other three aspects of their business.
Sure, you can have a great product or service - most people who have a small business do. But if you can't appeal to your target market (or don't know how to) or you can't sell your product (close the deal), or you can't ensure the customer is satisfied once the product is delivered, then it doesn't matter. You might get an occasional sale, but nothing to grow a business own.
Like life, your business needs balance. You need to nurture each segment of the business cycle, Marketing, Sales, Operations, and Customer Service. And you need to make sure that each element is as strong as you need them to be to ensure your customers experience what you INTEND them to experience when they patronize your business.
This takes diligence and commitment. So, as you begin to set out your goals for the next month or even 6 months to a year, make sure that you are committing to not only developing your product and service, but also to how you are going to market it, sell it, and satisfy the customers who purchase it.
Wednesday, April 1, 2009
Your Customers Are Looking For More Than Cheap Prices
I had an great Twitter conversation yesterday with a good friend, JaWar (yes, that's his name) about a great topic - customer loyalty and price.
When Businesses don't service their clients with excellence, someone else will. Price isn't always the deciding factor. So, how do you prove this to new business owners who attempt to be the low price leader?
Answer: YOU SHOW THEM!
When it comes right down to it, building a strong base of great customers has little to do with price - and every thing to do with how you and your employees treat your customers each and every day. And surveys show that as long as you are competitive, price is rarely the reason your customers leave your business.
In fact as it turns out, the number one reason your most valued customers stay or leave your business (nearly 2/3 of all customers) is based on how you treat them - whether or not they feel that their business matters to you at all.
Unfortunately, because most business owners think "their clients" are different than every one else's, I show them the truth. You see, one of the first things that I have my clients do early in the Business Coaching process is "conduct a survey" - to find out what their customers are thinking. But, I'm not talking about your usual customer satisfaction / retention survey. Rather than just finding out what all of their customers are saying, we focus on breaking down their customers into three groups:
- Bad Customers that are the bane of their existence,
- Good Customers that come and go, but have no real loyalty, and
- Great customers that are raving fans and cheerleaders.
And then determining what separates the three groups.
The key to the survey is that you can not directly ask the obvious question - "are you happy with my business and my prices?" That will skew the data. It's more important to have them divulge their overall satisfaction with the business and then determine what factors most influence their decisions.
And in everyone of these surveys, one thing stands out, price is not a break-out issue - Customer Service is.
The numbers bear it out, all three groups of customers (bad, good, and great) are, at best, moderately satisfied with price. And there are no indications that lowering prices will have any bearing on customer loyalty.
So, although lower prices may draw you more customers in the short term, you won't gain any more in the long term. Instead the only thing you will do is decrease your profit margin.
Rather than focusing on price, instead offer value. Offer something to your customers that they can't get anywhere else - your service. And make it the best you can. And know that by doing this and making your customers feel appreciated, you are more likely to turn your good customers into great ones while at the same time, keep your great customers coming back for more - while bringing all of their friends and family.
When Businesses don't service their clients with excellence, someone else will. Price isn't always the deciding factor. So, how do you prove this to new business owners who attempt to be the low price leader?
Answer: YOU SHOW THEM!
When it comes right down to it, building a strong base of great customers has little to do with price - and every thing to do with how you and your employees treat your customers each and every day. And surveys show that as long as you are competitive, price is rarely the reason your customers leave your business.
In fact as it turns out, the number one reason your most valued customers stay or leave your business (nearly 2/3 of all customers) is based on how you treat them - whether or not they feel that their business matters to you at all.
Unfortunately, because most business owners think "their clients" are different than every one else's, I show them the truth. You see, one of the first things that I have my clients do early in the Business Coaching process is "conduct a survey" - to find out what their customers are thinking. But, I'm not talking about your usual customer satisfaction / retention survey. Rather than just finding out what all of their customers are saying, we focus on breaking down their customers into three groups:
- Bad Customers that are the bane of their existence,
- Good Customers that come and go, but have no real loyalty, and
- Great customers that are raving fans and cheerleaders.
And then determining what separates the three groups.
The key to the survey is that you can not directly ask the obvious question - "are you happy with my business and my prices?" That will skew the data. It's more important to have them divulge their overall satisfaction with the business and then determine what factors most influence their decisions.
And in everyone of these surveys, one thing stands out, price is not a break-out issue - Customer Service is.
The numbers bear it out, all three groups of customers (bad, good, and great) are, at best, moderately satisfied with price. And there are no indications that lowering prices will have any bearing on customer loyalty.
So, although lower prices may draw you more customers in the short term, you won't gain any more in the long term. Instead the only thing you will do is decrease your profit margin.
Rather than focusing on price, instead offer value. Offer something to your customers that they can't get anywhere else - your service. And make it the best you can. And know that by doing this and making your customers feel appreciated, you are more likely to turn your good customers into great ones while at the same time, keep your great customers coming back for more - while bringing all of their friends and family.
Thursday, March 26, 2009
4 Principles of Recession Survival For Businesses
The recession is here - but that is no reason to panic. We have been through many downturns in the past and I can guarantee that we will see many more in the years to come. Business is cyclical. There are times of great prosperity - always followed by downturns. Followed once
again by - upswings!
It is what it is. You can dwell on it and blame it for all your woes. Or, you can take control of your business and make it work - in spite of the current conditions.
The truth is - the problem isn't the recession . . .
Do you look at the current market conditions as a problem or do you look at them as an opportunity?
I, personally, believe they are an opportunity. And I believe if you approach things with the right mindset you can not only survive, but actually thrive. And, in doing so, set yourself up to lead your market when things begin to pick up again.
The truth is anyone can survive and grow in a booming market. When there is demand galore, it doesn't matter how you market yourself or how good your product is, someone will buy it. If the growth is strong enough, there are even people who will jump into the fray who have no idea what they are doing. As an example, look at the mortgage industry through the early part of this decade - it was filled with fat and unscrupulous brokers (just trying to make a buck).
But when the pendulum swings the other way - oooh, look out. To survive in a recession, you actually need to have business savvy (or at least understand some the basics of business), a quality product, and excellent customer service.
Look at the mortgage / banking industry now! Since the collapse of the housing market there are over 200 well known mortgage companies that have gone under (big and small) - declared bankruptcy and left the business. Do you think they are the strong ones - or the weak ones? It is true market "Darwinism" - and the herd has been thinned out.
There is no magic way to survive during a recession - it is simply doing the things that every business should do all the time, but most businesses are too lazy to stay focused on - when the cash is flowing in.
I've been working with small businesses from varying industries and marketplaces for the past two years. I've also been doing some thorough research on down-turned markets in the past and how best to survive them. The trick to surviving can be reduced to 4 Principles of Sounds Business. Those principles are:
- Cash is king!
- Take care of your customers or someone else will!
- Deliver a consistent product / service every time!
- Marketing the smart way!
But. . . before I break these basic principles down for you, let me give you one other principle that applies as much to life as it does to business.
That additional principle is that all things being equal - there is an inverse relationship between spare money and spare time. It's rare to have both - money and time. So when money is down, you need to take advantage of your available time to make money. And when business is booming, there is rarely enough time to do the things you want to do, but plenty of money to pay someone else to do them.
So when sales are down (as they usually are in a recession), and there isn't a lot of work for you to do "in" your business - that is the best time to work "on" your business. And prepare it for the long road ahead. That may sound obvious, but most people don't seem to take advantage of the slower sales / customer traffic to do the work that needs to be done o create new business both today and in the future.
You see, when sales are up, you tend have a lot excess money and very little spare time. So you spend, spend, spend to get things done. But when things slow down, the opposite is usually true. The trick is to take advantage of the slow time to improve your business - apply the four principals to your business, survive the downturn and prepare for the big upswing that is forth coming by having a better run business.
Now, let's break the original Four Principles down a bit further.
Cash is king!
In any business cash is important. But during a recession, the businesses that have a ready supply of cash are going to thrive more than any other. Why is this more important during a recession than during a growth stage? Basically cash is more important during a downturn because credit becomes increasingly hard to come by - everyone is hurting and Banks / Lenders understand the importance of cash more than anyone.
There are many cases when profitable businesses go out of business because they failed to manage their cash flow properly. Don't let this happen to you. Look at your cash flow and begin to figure out where you can make adjustments to both accounts receivable and payable to ensure a healthy cash flow throughout your year.
Take care of your customers or someone else will!
During a downturn, most businesses will struggle and many will go out of business completely. This means that when all is said and done, you should have more market share after the downturn than before - though your sales may fall off. So, just because you might start gaining customers from others misfortunes - or misgivings, the one thing you do not want to do is lose your existing client base.
Your current clients are today, and will be for the coming months, your life blood. Take care of them. Nurture them. And by all means, make sure they know how important they are to your business.
And if you see them starting to leave - stop them! Get them back in your store - at all cost.
Deliver a consistent product / service every time!
The truth is, whether we are in a recession or not, for most small businesses across America (especially following the holidays) sales are slow and time is plentiful. The early part of the year tends to be a "breather" time for many businesses from retail to manufacturing.
Retail sales are down, so most retailers are cutting back. And most manufacturers are either re-tooling or re-evaluating for the coming year. So, take advantage of the slower times to build the systems and procedures that will enable you to deliver consistent products / services regardless of your staff.
The trick to long term success isn't being able to produce today - but to be able to produce a consistent product today, tomorrow and next month. If you product is hamburgers, make sure that everyone tastes the same, and the experience the customer gets every time is the same. If you product is mortgages, and one of your marketing elements is turnaround times for brokers, then make sure you can consistently deliver what you promise.
This requires strategic planning - to not only make sure you can deliver today - but also making sure you can deliver consistently on your promise during spikes in business as well as slow downs.
Make Decisions Based on Actual Measurable Facts - Not Gut Feelings!
All too often, small business owners will tell me "sales are down". I have no doubt that they are. But . . . the follow-up up questions is usually, how do you know?
Now, if they are able to pull up sales numbers quickly, I'll take it one step further and ask them Why? or Where are they down? To that question, I rarely get an answer. And without it, the right solutions to the problem are very difficult to come by.
Let me explain. So, what if we are talking about a phone sales company. We look at the data and overall sales are down 10%. That's bad right? Could be, but what if the product you main product is selling for 15% less this year than last year and overall volume is up 3%? Is that bad or good?
Or, what if new customer sales is up 100% and repeat customer sales are down 25%?
What problem needs to be focused on then? Or what if those numbers were reversed - what problem should you come up with a solution for?
Everything comes down to numbers and looking at them objectively - no matter how painful it might be. But I can tell you this - it might be tough looking at the numbers now and facing the facts that they present to you - but it is far better to find out the real truth now, when there is time to fix it, than in bankruptcy court, when you can only say to your lawyer, "My gosh, if I had only realized that back in December 2008, things would have been much better."
Over the course of the next four months, I will be taking these concepts and drilling down deeper so that you can make sure you know how best to apply them to your unique situation.
again by - upswings!
It is what it is. You can dwell on it and blame it for all your woes. Or, you can take control of your business and make it work - in spite of the current conditions.
The truth is - the problem isn't the recession . . .
It's how you react to it.
Do you look at the current market conditions as a problem or do you look at them as an opportunity?
I, personally, believe they are an opportunity. And I believe if you approach things with the right mindset you can not only survive, but actually thrive. And, in doing so, set yourself up to lead your market when things begin to pick up again.
The truth is anyone can survive and grow in a booming market. When there is demand galore, it doesn't matter how you market yourself or how good your product is, someone will buy it. If the growth is strong enough, there are even people who will jump into the fray who have no idea what they are doing. As an example, look at the mortgage industry through the early part of this decade - it was filled with fat and unscrupulous brokers (just trying to make a buck).
But when the pendulum swings the other way - oooh, look out. To survive in a recession, you actually need to have business savvy (or at least understand some the basics of business), a quality product, and excellent customer service.
Look at the mortgage / banking industry now! Since the collapse of the housing market there are over 200 well known mortgage companies that have gone under (big and small) - declared bankruptcy and left the business. Do you think they are the strong ones - or the weak ones? It is true market "Darwinism" - and the herd has been thinned out.
There is no magic way to survive during a recession - it is simply doing the things that every business should do all the time, but most businesses are too lazy to stay focused on - when the cash is flowing in.
I've been working with small businesses from varying industries and marketplaces for the past two years. I've also been doing some thorough research on down-turned markets in the past and how best to survive them. The trick to surviving can be reduced to 4 Principles of Sounds Business. Those principles are:
- Cash is king!
- Take care of your customers or someone else will!
- Deliver a consistent product / service every time!
- Marketing the smart way!
But. . . before I break these basic principles down for you, let me give you one other principle that applies as much to life as it does to business.
That additional principle is that all things being equal - there is an inverse relationship between spare money and spare time. It's rare to have both - money and time. So when money is down, you need to take advantage of your available time to make money. And when business is booming, there is rarely enough time to do the things you want to do, but plenty of money to pay someone else to do them.
So when sales are down (as they usually are in a recession), and there isn't a lot of work for you to do "in" your business - that is the best time to work "on" your business. And prepare it for the long road ahead. That may sound obvious, but most people don't seem to take advantage of the slower sales / customer traffic to do the work that needs to be done o create new business both today and in the future.
You see, when sales are up, you tend have a lot excess money and very little spare time. So you spend, spend, spend to get things done. But when things slow down, the opposite is usually true. The trick is to take advantage of the slow time to improve your business - apply the four principals to your business, survive the downturn and prepare for the big upswing that is forth coming by having a better run business.
Now, let's break the original Four Principles down a bit further.
Cash is king!
In any business cash is important. But during a recession, the businesses that have a ready supply of cash are going to thrive more than any other. Why is this more important during a recession than during a growth stage? Basically cash is more important during a downturn because credit becomes increasingly hard to come by - everyone is hurting and Banks / Lenders understand the importance of cash more than anyone.
There are many cases when profitable businesses go out of business because they failed to manage their cash flow properly. Don't let this happen to you. Look at your cash flow and begin to figure out where you can make adjustments to both accounts receivable and payable to ensure a healthy cash flow throughout your year.
Take care of your customers or someone else will!
During a downturn, most businesses will struggle and many will go out of business completely. This means that when all is said and done, you should have more market share after the downturn than before - though your sales may fall off. So, just because you might start gaining customers from others misfortunes - or misgivings, the one thing you do not want to do is lose your existing client base.
Your current clients are today, and will be for the coming months, your life blood. Take care of them. Nurture them. And by all means, make sure they know how important they are to your business.
And if you see them starting to leave - stop them! Get them back in your store - at all cost.
Deliver a consistent product / service every time!
The truth is, whether we are in a recession or not, for most small businesses across America (especially following the holidays) sales are slow and time is plentiful. The early part of the year tends to be a "breather" time for many businesses from retail to manufacturing.
Retail sales are down, so most retailers are cutting back. And most manufacturers are either re-tooling or re-evaluating for the coming year. So, take advantage of the slower times to build the systems and procedures that will enable you to deliver consistent products / services regardless of your staff.
The trick to long term success isn't being able to produce today - but to be able to produce a consistent product today, tomorrow and next month. If you product is hamburgers, make sure that everyone tastes the same, and the experience the customer gets every time is the same. If you product is mortgages, and one of your marketing elements is turnaround times for brokers, then make sure you can consistently deliver what you promise.
This requires strategic planning - to not only make sure you can deliver today - but also making sure you can deliver consistently on your promise during spikes in business as well as slow downs.
Make Decisions Based on Actual Measurable Facts - Not Gut Feelings!
All too often, small business owners will tell me "sales are down". I have no doubt that they are. But . . . the follow-up up questions is usually, how do you know?
Now, if they are able to pull up sales numbers quickly, I'll take it one step further and ask them Why? or Where are they down? To that question, I rarely get an answer. And without it, the right solutions to the problem are very difficult to come by.
Let me explain. So, what if we are talking about a phone sales company. We look at the data and overall sales are down 10%. That's bad right? Could be, but what if the product you main product is selling for 15% less this year than last year and overall volume is up 3%? Is that bad or good?
Or, what if new customer sales is up 100% and repeat customer sales are down 25%?
What problem needs to be focused on then? Or what if those numbers were reversed - what problem should you come up with a solution for?
Everything comes down to numbers and looking at them objectively - no matter how painful it might be. But I can tell you this - it might be tough looking at the numbers now and facing the facts that they present to you - but it is far better to find out the real truth now, when there is time to fix it, than in bankruptcy court, when you can only say to your lawyer, "My gosh, if I had only realized that back in December 2008, things would have been much better."
Over the course of the next four months, I will be taking these concepts and drilling down deeper so that you can make sure you know how best to apply them to your unique situation.
Tuesday, February 24, 2009
What Your Customers Want and Need From You
Regardless of your industry, your customers are looking for you to provide them what they want and / or need. And interestingly enough, those wants and needs fall into four basic levels - the four levels of customer service. The more you understand them and can fold them into your business methods, the more likely your customers will choose you again and again - and even recommend you to their friends and family. In fact, if you understand the four levels of customer service, you will become more to your customers than you have ever been before and you will begin to see that your customers will become more to you than you could possibly imagine.
Those four needs (levels of customer service) are:
- Getting the product they expect
- Being able to get the product they want, when they want it and where they want it
- Having you understand them and feel that you are on the same team - not opposition
- Being able to rely on you as an expert in your field.
The first two levels are not just wants, but in fact requirements that your customers demand of you to continue using your services / products. If you fail to provide the product that you promise and fail to provide it in a location convenient for them at the time they want / need it, they will choose another business to patron. That isn't an opinion – it is tested and proven correctly, everyday, in every business around the country.
You see, it doesn't matter how clean your store is, how friendly and nice your employees are, or how much you know about what you do - if you can't fulfill the first two needs, your customers will move on.
But not to worry, this is why you are in business – to provide your product or service when and where your customers want it. These are the easiest parts of customer service – the parts that you built into your business from the very beginning. These parts, product, location and availability are easy to create and easy to provide. Unfortunately for you, they are also very easy for your competition to duplicate. That's right in today's world, your competitors can easily provide the same service or product that you provide, where and when your customers want it.
So the essence of customer service comes down to the second two needs – both of which separate you from your competition and are very difficult to duplicate.
First lets talk about understanding your customers and getting them to believe that you are their friend – helping them to solve their problems.
Most businesses sell the product or provide the service that they create – not what the customer is looking for. The trick to reaching this level of customer service is to stop and figure out what you can offer your customers, systematically, that will fulfill some of their biggest needs / concerns beyond just getting your product.
As an example, one of my clients, a cleaning specialist, recognized the value of this level of customer service. He noticed that many of his customers were selling their house or had just moved into a new house and wanted his services. So, in order to drum up new business, he created guarantee – If you sell your home with six months of using his services, he will clean the same areas of the home for free when the new owners move in. By making this simple gesture, he showed his customers that he understood how difficult the process of selling a home is, and that he is on their side – and will help out by relieving them of the burden of having to re-clean again after the sale is made.
Another example of this comes from another one of my clients – a medical professional. He realizes the importance of understanding his patients' needs, too. But in this case, this Doctor wanted to honor his patient's time. So he created a guarantee, that no other doctor I know has the gumption to make. He guarantees that if you aren't seen within 15 minutes of your scheduled appointment, you will get a free $20 gas card at a local gas station. Sound crazy – you bet it is – but his patients love it and he is always on time!
So, take a look at your customers and figure out what it is that is really going to help them feel understood – because the business that can pull this off is one step closer to turning your one time customers into lifelong cheerleaders.
Finally, the last level of customer service is becoming an expert in your industry – someone that they know they can turn to for advice and someone that teaches them the ins and outs of the industry (the trade secrets). Reaching this level is truly about becoming more than just a product provider and becoming a source of information on the hows and whys of what you do.
Again, to provide some examples of this concept, let me bring up a couple of clients.
The first example is a flower shop. A couple of months back they began teaching their clients how to arrange by offering evening classes with their clients. Some might think that this would hurt sales – those customers won't need to buy flowers any more. They will be able to make their own. Nothing could be farther from the truth. Because not only did they attend the classes, but they talked about the classes (and the shop that provided them) to every one of their friends and families. Suddenly, they became the talk around the dinner table – as much as the centerpiece itself did.
And another example goes back to my cleaning specialist client. In his newsletter, he gave away his secret cleaning recipe. That's right just gave it away to all of his customers. How crazy could he be? Now instead of calling him when they have a small stain that needs to be cleaned, they can go to any thrift or grocery store and get the ingredients to mix up his special homemade cleaning agent and NOT have to call him to come out.
But wait . . . Do you think when it's the grime builds up on their carpets or tile floors, they will call someone else? Absolutely not. And do you think they will share this information and where they got it from with their neighbors. You better believe it. So without spending a dime, this client of mine has taken his customers from just being one time customers to now being truly fans of his business and the testimonials and referrals just come streaming in.
So, by moving beyond just providing your product and service when and where you clients want or need it, and beginning to understand your clients bigger concerns and issues as well as becoming an expert source for your clients, you are well on your way from just having one time customers to having cheerleaders and raving fans that will grow your business faster and more effectively than any other form of marketing out there.
Those four needs (levels of customer service) are:
- Getting the product they expect
- Being able to get the product they want, when they want it and where they want it
- Having you understand them and feel that you are on the same team - not opposition
- Being able to rely on you as an expert in your field.
The first two levels are not just wants, but in fact requirements that your customers demand of you to continue using your services / products. If you fail to provide the product that you promise and fail to provide it in a location convenient for them at the time they want / need it, they will choose another business to patron. That isn't an opinion – it is tested and proven correctly, everyday, in every business around the country.
You see, it doesn't matter how clean your store is, how friendly and nice your employees are, or how much you know about what you do - if you can't fulfill the first two needs, your customers will move on.
But not to worry, this is why you are in business – to provide your product or service when and where your customers want it. These are the easiest parts of customer service – the parts that you built into your business from the very beginning. These parts, product, location and availability are easy to create and easy to provide. Unfortunately for you, they are also very easy for your competition to duplicate. That's right in today's world, your competitors can easily provide the same service or product that you provide, where and when your customers want it.
So the essence of customer service comes down to the second two needs – both of which separate you from your competition and are very difficult to duplicate.
First lets talk about understanding your customers and getting them to believe that you are their friend – helping them to solve their problems.
Most businesses sell the product or provide the service that they create – not what the customer is looking for. The trick to reaching this level of customer service is to stop and figure out what you can offer your customers, systematically, that will fulfill some of their biggest needs / concerns beyond just getting your product.
As an example, one of my clients, a cleaning specialist, recognized the value of this level of customer service. He noticed that many of his customers were selling their house or had just moved into a new house and wanted his services. So, in order to drum up new business, he created guarantee – If you sell your home with six months of using his services, he will clean the same areas of the home for free when the new owners move in. By making this simple gesture, he showed his customers that he understood how difficult the process of selling a home is, and that he is on their side – and will help out by relieving them of the burden of having to re-clean again after the sale is made.
Another example of this comes from another one of my clients – a medical professional. He realizes the importance of understanding his patients' needs, too. But in this case, this Doctor wanted to honor his patient's time. So he created a guarantee, that no other doctor I know has the gumption to make. He guarantees that if you aren't seen within 15 minutes of your scheduled appointment, you will get a free $20 gas card at a local gas station. Sound crazy – you bet it is – but his patients love it and he is always on time!
So, take a look at your customers and figure out what it is that is really going to help them feel understood – because the business that can pull this off is one step closer to turning your one time customers into lifelong cheerleaders.
Finally, the last level of customer service is becoming an expert in your industry – someone that they know they can turn to for advice and someone that teaches them the ins and outs of the industry (the trade secrets). Reaching this level is truly about becoming more than just a product provider and becoming a source of information on the hows and whys of what you do.
Again, to provide some examples of this concept, let me bring up a couple of clients.
The first example is a flower shop. A couple of months back they began teaching their clients how to arrange by offering evening classes with their clients. Some might think that this would hurt sales – those customers won't need to buy flowers any more. They will be able to make their own. Nothing could be farther from the truth. Because not only did they attend the classes, but they talked about the classes (and the shop that provided them) to every one of their friends and families. Suddenly, they became the talk around the dinner table – as much as the centerpiece itself did.
And another example goes back to my cleaning specialist client. In his newsletter, he gave away his secret cleaning recipe. That's right just gave it away to all of his customers. How crazy could he be? Now instead of calling him when they have a small stain that needs to be cleaned, they can go to any thrift or grocery store and get the ingredients to mix up his special homemade cleaning agent and NOT have to call him to come out.
But wait . . . Do you think when it's the grime builds up on their carpets or tile floors, they will call someone else? Absolutely not. And do you think they will share this information and where they got it from with their neighbors. You better believe it. So without spending a dime, this client of mine has taken his customers from just being one time customers to now being truly fans of his business and the testimonials and referrals just come streaming in.
So, by moving beyond just providing your product and service when and where you clients want or need it, and beginning to understand your clients bigger concerns and issues as well as becoming an expert source for your clients, you are well on your way from just having one time customers to having cheerleaders and raving fans that will grow your business faster and more effectively than any other form of marketing out there.
Monday, February 16, 2009
Upgrade Your Best Customers To "First Class"
When it comes to how most Airlines treat customer service, there isn't very much there worth emulating. They are big, most of their customer service reps seem disenfranchised, and quite honestly, they are stuck in a rut where they don't feel they can meet customer expectations anyway. But there is one aspect of customer service they do very well - the way they take care of their "best customers".
Most people don't realize the lengths that Airlines go to take care of their best customers - because "most people" don't fly often enough to really capitalize on the perks. Sure they get "miles" on their trip to visit family or when they vacation to Cancun - but few fly often enough to gain access to the top rewards programs. Good or bad, those of us business travelers who spend hours and hours in airports flying from meeting to meeting, week in and week out, the perks that are offered by the big Airlines are very nice - and enough to drive customer loyalty, in a business that otherwise has none.
What is it that they do for their best customers? More than anything, they make them feel important - like they really care that they are flying on their airline. Something that doesn't come out so well in the rest of the flying experience.
Have you ever been upgraded to First Class - randomly pulled out of the crowd to see with the "elite"? For their best customers, First Class upgrades are common place - sometimes as often as 60-75% of the time (if they schedule their routes smartly). And "First Class" treatment goes well beyond the big seat. It is an entire attitude and way they treat their "elite" customers.
I know what you are thinking. This is great stuff, but your business isn't like the airline industry. You don't have the ability to offer anything like "First Class" to your customers. It would cost too much and disenfranchise your other customers. This could be true, but the same could be said for the Airline Industry as well.
Surveys show that most customers don't leave a business because they are dissatisfied with their experience. Instead, most (nearly 70%) leave because they don't feel the business cares about them and whether or not they ever come back. And it has been shown that one of the best ways to show how much you care is to offer more "perks" to your best customers - give them value above and beyond what they expected.
Frankly, in an industry where most "tickets" are purchased based on price alone, most Airlines have built-in a system where the travelers who fly the most, actually go out of their way to choose the same Airline again and again - often without even shopping around for other fares. I know I do.
One way to do this in your business is to start offering higher end service in your business model - something like first class. That could be faster delivery, same day service, special seating, or even "head of the line" privileges. Will some people pay for it? Absolutely - they always will. If you build a product and market it to the right target audience (those that have the need for the service), someone will always want the "best" service you offer. Once you have this high end service in place (and quite honestly making more money from it), you can start to offer that service as a perk for your best customers - let them get a taste of the "good life". And watch them find ways to patronize you. . . again and again. The key to the success of a process like this isn't just doing it covertly - silently upgrading customers. Shout it out! Make it part of your marketing programs! Make it something that customers can work towards earning as a loyal customer of yours.
So, stop and think about it. What could you do to make your best customers feel like they are your best customers? What could you do to make your average customers want to become "your best customer"? What "upgrades" could you put into place in your business, and then offer them as perks to your best customers? It doesn't take much, but if you can make your best customers know how much they mean to you, I promise, they will pay you back in so many ways - referrals, testimonials, and increased sales by themselves.
Most people don't realize the lengths that Airlines go to take care of their best customers - because "most people" don't fly often enough to really capitalize on the perks. Sure they get "miles" on their trip to visit family or when they vacation to Cancun - but few fly often enough to gain access to the top rewards programs. Good or bad, those of us business travelers who spend hours and hours in airports flying from meeting to meeting, week in and week out, the perks that are offered by the big Airlines are very nice - and enough to drive customer loyalty, in a business that otherwise has none.
What is it that they do for their best customers? More than anything, they make them feel important - like they really care that they are flying on their airline. Something that doesn't come out so well in the rest of the flying experience.
Have you ever been upgraded to First Class - randomly pulled out of the crowd to see with the "elite"? For their best customers, First Class upgrades are common place - sometimes as often as 60-75% of the time (if they schedule their routes smartly). And "First Class" treatment goes well beyond the big seat. It is an entire attitude and way they treat their "elite" customers.
I know what you are thinking. This is great stuff, but your business isn't like the airline industry. You don't have the ability to offer anything like "First Class" to your customers. It would cost too much and disenfranchise your other customers. This could be true, but the same could be said for the Airline Industry as well.
Surveys show that most customers don't leave a business because they are dissatisfied with their experience. Instead, most (nearly 70%) leave because they don't feel the business cares about them and whether or not they ever come back. And it has been shown that one of the best ways to show how much you care is to offer more "perks" to your best customers - give them value above and beyond what they expected.
Frankly, in an industry where most "tickets" are purchased based on price alone, most Airlines have built-in a system where the travelers who fly the most, actually go out of their way to choose the same Airline again and again - often without even shopping around for other fares. I know I do.
One way to do this in your business is to start offering higher end service in your business model - something like first class. That could be faster delivery, same day service, special seating, or even "head of the line" privileges. Will some people pay for it? Absolutely - they always will. If you build a product and market it to the right target audience (those that have the need for the service), someone will always want the "best" service you offer. Once you have this high end service in place (and quite honestly making more money from it), you can start to offer that service as a perk for your best customers - let them get a taste of the "good life". And watch them find ways to patronize you. . . again and again. The key to the success of a process like this isn't just doing it covertly - silently upgrading customers. Shout it out! Make it part of your marketing programs! Make it something that customers can work towards earning as a loyal customer of yours.
So, stop and think about it. What could you do to make your best customers feel like they are your best customers? What could you do to make your average customers want to become "your best customer"? What "upgrades" could you put into place in your business, and then offer them as perks to your best customers? It doesn't take much, but if you can make your best customers know how much they mean to you, I promise, they will pay you back in so many ways - referrals, testimonials, and increased sales by themselves.
Saturday, February 7, 2009
Marketing is Satisfying The Customer - Not Your Own Ego
I've had a couple discussions in the past 24 hours about customers and how best to satisfy them. And interestingly enough, Seth Godin wrote a short blog about it today as well.
Most business owners / Entrepreneurs out there are frustrated because sales are not as high as they want (or need) them to be. When I hear this, two of the first questions I ask them are:
1. What do your existing customers like about you - why do they choose you?
2. What are the needs / wants of the market you are trying to capture?
As I talked about the other day in my blog, Which comes first, the product or the marketing?, it's quite easy to fall into the mindset of "If I build it, they will come." This is the standard response - because the Entrepreneur thinks he has a great product. But nothing could be further from the truth. You can create the best product in your market, and still not be able to get any customers to come to you. That's because, except in very few cases, YOU ARE NOT YOUR TARGET AUDIENCE! If you haven't asked them the questions, you won't really know the answers.
To find out what your target audience is looking for - what "needs" do they have that are currently unfulfilled, you must ask some questions (and obviously find out the answers). Who is your target audience? Who is it that you are either currently appealing to? Or who do you want to appeal to?
Once you know WHO your target market is (as specifically as you can narrow them down), you have to find out WHAT they are specifically looking for.
Let me give you an example on this one. If you are a carpet cleaner, you would think that your customers are looking for carpet cleaning. Makes sense right? WRONG! But, if you look through nearly all the carpet cleaning ads out there, most of them are selling carpet cleaning. Unfortunately, that's really not what most people want. What they really want is clean carpets!!! The difference may only seem like the reversal of two words - carpet and clean. But the meaning is completely different.
When you sell carpet cleaning, you are selling a process - a method. People don't really care about the method - what they want is the end result - clean carpets. They are willing to pay someone to provide them clean carpets - if you will assure them that is what they are doing. But they are less inclined to want to be sold "carpet cleaning" - because there is no implied guarantee that they are in fact getting clean carpets. See the difference?
How do you find out what it is that they need? As simple as it sounds, you ask them. Create a survey. Ask your current customers and as many potential customers (your target audience) as you can afford to ask. Find the answer, because believe it or not - YOUR BUSINESS' SUCCESS DEPENDS ON IT!
So, it comes down to, understanding what the customer wants and needs - answering the question, "What does my business and / or product have to be in the heart and minds of my customer in order for them to choose me over every other option that they have to spend their money on?" When you find this out and use the in your marketing message - then you will become the Entrepreneur that you set out to become when you started your business.
Most business owners / Entrepreneurs out there are frustrated because sales are not as high as they want (or need) them to be. When I hear this, two of the first questions I ask them are:
1. What do your existing customers like about you - why do they choose you?
2. What are the needs / wants of the market you are trying to capture?
As I talked about the other day in my blog, Which comes first, the product or the marketing?, it's quite easy to fall into the mindset of "If I build it, they will come." This is the standard response - because the Entrepreneur thinks he has a great product. But nothing could be further from the truth. You can create the best product in your market, and still not be able to get any customers to come to you. That's because, except in very few cases, YOU ARE NOT YOUR TARGET AUDIENCE! If you haven't asked them the questions, you won't really know the answers.
To find out what your target audience is looking for - what "needs" do they have that are currently unfulfilled, you must ask some questions (and obviously find out the answers). Who is your target audience? Who is it that you are either currently appealing to? Or who do you want to appeal to?
Once you know WHO your target market is (as specifically as you can narrow them down), you have to find out WHAT they are specifically looking for.
Let me give you an example on this one. If you are a carpet cleaner, you would think that your customers are looking for carpet cleaning. Makes sense right? WRONG! But, if you look through nearly all the carpet cleaning ads out there, most of them are selling carpet cleaning. Unfortunately, that's really not what most people want. What they really want is clean carpets!!! The difference may only seem like the reversal of two words - carpet and clean. But the meaning is completely different.
When you sell carpet cleaning, you are selling a process - a method. People don't really care about the method - what they want is the end result - clean carpets. They are willing to pay someone to provide them clean carpets - if you will assure them that is what they are doing. But they are less inclined to want to be sold "carpet cleaning" - because there is no implied guarantee that they are in fact getting clean carpets. See the difference?
How do you find out what it is that they need? As simple as it sounds, you ask them. Create a survey. Ask your current customers and as many potential customers (your target audience) as you can afford to ask. Find the answer, because believe it or not - YOUR BUSINESS' SUCCESS DEPENDS ON IT!
So, it comes down to, understanding what the customer wants and needs - answering the question, "What does my business and / or product have to be in the heart and minds of my customer in order for them to choose me over every other option that they have to spend their money on?" When you find this out and use the in your marketing message - then you will become the Entrepreneur that you set out to become when you started your business.
Saturday, January 24, 2009
Good guys finish . . .
Interesting. Yesterday, I held my first seminar, entitled "Four Critical Principles to Surviving a Recession". And one of the topics I spoke about, Taking Care of Your Existing Customers, was the topic for Seth Godin's blog (in a round about way).
Specifically, Seth responded to a comment he received from another article about whether "Good Guys" can be successful in today's market. I agree with his position completely (and my clients hear it regularly). In fact, I believe strong ethics focused on taking care of your customers is critical in today's market and a sure way to shoot to the top of your industry.
Unfortunately, living with integrity is very hard. Especially when so few around us do - it can be incredibly discouraging. But, the truth is, in today's world, you can't afford not to - which is why I think so many small business owners struggle.
Competition in nearly every industry is tighter than ever before. And in today's communication driven world - word spreads of "unethical" behavior faster than ever. In the past, if you failed to meet your commitments to a customer (operating without integrity) they would yell at you, tell a few people and that would be that. You would definitely lose one customer - maybe three or four, but the damage could be contained.
Not any more.
Today, with the power of the internet, emails, and text messaging, angry customers can send vile words to thousands of friends and family (as well as strangers) in a single key stroke - damaging your reputation in a matter of nanoseconds.
In fact, some time ago, when doing research on a company that I was helping, I found some feedback that was not only negative - but was "over the top" damaging. The worst part was that this negative feedback was on the front page of the feedback list - after nearly three years. And no matter how many good reviews would get entered, this one negative one kept showing it's ugly face.
So, I agree with Seth Godin, good guys finish first . . . so live your life and run your business with integrity each and every day - the payoffs will be more than just feeling good about yourself.
Specifically, Seth responded to a comment he received from another article about whether "Good Guys" can be successful in today's market. I agree with his position completely (and my clients hear it regularly). In fact, I believe strong ethics focused on taking care of your customers is critical in today's market and a sure way to shoot to the top of your industry.
Unfortunately, living with integrity is very hard. Especially when so few around us do - it can be incredibly discouraging. But, the truth is, in today's world, you can't afford not to - which is why I think so many small business owners struggle.
Competition in nearly every industry is tighter than ever before. And in today's communication driven world - word spreads of "unethical" behavior faster than ever. In the past, if you failed to meet your commitments to a customer (operating without integrity) they would yell at you, tell a few people and that would be that. You would definitely lose one customer - maybe three or four, but the damage could be contained.
Not any more.
Today, with the power of the internet, emails, and text messaging, angry customers can send vile words to thousands of friends and family (as well as strangers) in a single key stroke - damaging your reputation in a matter of nanoseconds.
In fact, some time ago, when doing research on a company that I was helping, I found some feedback that was not only negative - but was "over the top" damaging. The worst part was that this negative feedback was on the front page of the feedback list - after nearly three years. And no matter how many good reviews would get entered, this one negative one kept showing it's ugly face.
So, I agree with Seth Godin, good guys finish first . . . so live your life and run your business with integrity each and every day - the payoffs will be more than just feeling good about yourself.
Friday, January 16, 2009
Learn a Lesson from US Air Flight 1549
Yesterday, the crew of US Air Flight 1549 were complete pros. They flawlessly handled an airborne emergency that could have injured or killed dozens. And what makes that even more impressive is that it comes off the safest two years in American aviation history.
American airlines (not the company specifically, but the industry as a whole) has in incredible safety record. They fly millions of passengers to their destination every year, employing hundreds of thousands of flight crew, and they have nary a hiccup. In fact, I would venture to guess that compared to every other industry, they are probably the best at delivering their product (passengers safely arriving at their destination) consistently, regardless of the situation. And believe me they see more "unique" situations than most of us can even imagine.
The truth is, that the airline industry most likely, strictest "procedural-driven" industry out there. Some of those procedures are directed by the government, but most of them aren't. The entire industry lives by procedures, because when they don't, they lose consistency in product. And in the aviation business, inconsistency costs lives.
Yes, the pilot of US Air Flight 1549 actions were amazing - I don't mean to take away anything that he did. From all accounts, he was truly heroic. But I would venture to guess that what he was best at, in a time of high stress, was following procedures - procedures, that most likely have been rehearsed and tested countless times to ensure they produce the desired outcome each and every time.
In the aviation world, the cost of inconsistency is human lives. But what is the cost of inconsistency in your business? What is the cost of weak or no procedures in your industry? Maybe the hamburger won't taste quite as good, the carpets won't be quite as clean, or maybe the package gets there a day late. Think about it. Does the cost end there?
Airlines aren't much different from you - if they don't take care of their customers, they won't stay in business. The difference between them and most small business owners is that they take it so serious that they have checklists for everything, they train their crews constantly, and do everything they can to make sure those procedures will handle any and all situations that could arise.
So the question is . . .
American airlines (not the company specifically, but the industry as a whole) has in incredible safety record. They fly millions of passengers to their destination every year, employing hundreds of thousands of flight crew, and they have nary a hiccup. In fact, I would venture to guess that compared to every other industry, they are probably the best at delivering their product (passengers safely arriving at their destination) consistently, regardless of the situation. And believe me they see more "unique" situations than most of us can even imagine.
How do you think that happens?
Luck?
Not likely.
The truth is, that the airline industry most likely, strictest "procedural-driven" industry out there. Some of those procedures are directed by the government, but most of them aren't. The entire industry lives by procedures, because when they don't, they lose consistency in product. And in the aviation business, inconsistency costs lives.
Yes, the pilot of US Air Flight 1549 actions were amazing - I don't mean to take away anything that he did. From all accounts, he was truly heroic. But I would venture to guess that what he was best at, in a time of high stress, was following procedures - procedures, that most likely have been rehearsed and tested countless times to ensure they produce the desired outcome each and every time.
In the aviation world, the cost of inconsistency is human lives. But what is the cost of inconsistency in your business? What is the cost of weak or no procedures in your industry? Maybe the hamburger won't taste quite as good, the carpets won't be quite as clean, or maybe the package gets there a day late. Think about it. Does the cost end there?
Airlines aren't much different from you - if they don't take care of their customers, they won't stay in business. The difference between them and most small business owners is that they take it so serious that they have checklists for everything, they train their crews constantly, and do everything they can to make sure those procedures will handle any and all situations that could arise.
So the question is . . .
How serious do you take delivering consistent products / services
to your customers every time they visit?
to your customers every time they visit?
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