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I hate to shop. Because I hate to shop,
when I finally break down and do it, I’m ready to spend money. That
means when I’m looking for clothing, its common for a shopping trip to
result in a couple thousand dollars worth of articles.
On many an occasion when necessity forced me into this
task, I was determined to ‘be a good shopper’ — you know, look
before you leap! I had to force myself to comparison shop at first. I
thought this was wise. But, it didn’t take long to determine that
comparisons were easy. Once I was treated poorly on a regular basis at a
major department store chain, (nobody would help me — the sales staff
would rather talk among themselves than help a customer), I wandered
into Casual Corner.
Boy, did I get lucky. Not only did I find many of the
same garments, but I also found a salesperson who understood customer
service. She actually cared that I hated to shop and made the
process as fast and simple as possible.
I’d walk into her store and she’d greet me by name.
Then she’d quickly qualify what I was looking for. Next, she’d find
all the clothing that she thought might work, including accessories, and
brought complete outfits to me one after one. I was in and out of a
dozen or more ensembles — generally in less that an hour. I’d have
all my accessories, and be out the door (my wallet usually quite a bit
lighter) in a flash.
One day I found the perfect ensemble, but I wasn’t
happy with any of the earrings they had in the store. She suggested I go
down the mall to "THE DEPARTMENT STORE". I explained to her
why I didn’t like to shop there. She gave me a cold soda, sat me in a
chair, and announced she’d be right back. And sure enough she was —
with three pairs of earrings she purchased at the department store for
me to look over. She found a perfect pair — and a life long customer!
Whether you’re selling clothing, accounting services,
or business machines, extraordinary service pays off more than anything
else you can ever do. If you recall, it costs 80% less to get additional
sales from an existing customer than is costs to get a new customer.
That alone says how important this phase — this lifelong phase, of
your sales process is.
Lifelong, but not difficult or costly.
There are three key areas you must concern yourself with
in order to develop an extraordinary customer service program in your
business. They are:
-
Have Regular Contact With Customers
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Role Model Extraordinary Customer Service
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Involve and Empower Employees
Nine Steps to Success
1. Contact Customers Regularly
It never ceases to amaze me that business owners and
managers rarely work their customer base with any regularity, if at all.
A customer list provides endless opportunities for additional sales and
great referrals. In fact, if you actively work your customer base, you
might find it’s the only marketing you really need.
The exception, of course, would be if you are so new in
your business that you don’t have an extensive customer list to
nurture. If this is your case, you’ll want to spend more time and
energy in the lead generation area for a while until your customer
database develops.
Your first step for success in this area is to develop
and regularly maintain a good customer database in a good contact
management program. This assumes that there’s no question about having
a computer in your business — if you don’t, you simply won’t be
around for long anyhow. If you do and you don’t utilize it’s power
to help you keep track of customers, you’re in the same boat — the
sinking one!
When you’re looking for a contact management program,
I strongly suggest you find one that includes invoicing and inventory
— even if you are a service organization. You’ll find it’s sales
volume and product tracking ability valuable in your database marketing.
Back to the point, the more you know about your
customers, the better off you are. For instance, if you are a lawn mower
dealer, it may be important to know how much property your customer has.
Are they serious gardeners or just into minimal landscape? You must
figure out the appropriate bits of information that will help you target
specific promotions or customer follow-up. Regardless of the
industry-specific information that may be appropriate to your business,
consider keeping some or all of the data you can get in the following
areas:
-
kids names
-
product preferences
-
hobbies
-
favorite colors
-
brand preferences
-
birth dates
Now you might wonder how you can get a hold of some of
the kinds of information I’m suggesting without seeming like a snoop.
It’s really easy. If you just pay attention to your normal
conversations with your customers you’ll find all sorts of tidbits
dropped in conversation. Maybe someone is buying a gift for a family
member — it’s a great opening to ask the sex, age, and more
particulars about that family member as well as learning about the rest
of the family through very conversational queries.
Then, when that customer has a birthday card show up for
themselves or a family member, or a note when you get a new shipment of
their favorite brand of product, or a call asking how one of their
children is doing away at college, you have just made a major step to
establishing a lifelong relationship with that customer.
But how often should you contact customers? If you want
this to be simple, contact everyone once a month. If your database is
too large for personal contact every month, then drop a post card in the
mail, an invitation to stop by, or some other pertinent bit of material,
preferably something very personalized.
As I finish that last paragraph, I wonder if I’ve just
given the faint of heart an easy way out. You could have just 500 names
on your customer list and use the ‘it’s too large’ excuse, and
never get anywhere. Or, if you’re serious about generating additional
sales and profits, you’ll simply find a way to make this happen.
Oh, I guess I should tell you — businesses that have
employed just this technique of personally contacting every customer
every month — well some of them have tripled their business in a year!
That’s not a bad pay off for a zero cost customer service tactic.
Businesses who employ this technique successfully will
make every employee responsible for making a certain number of calls a
day. And they teach their employees how to make these customer contacts
without sounding intrusive or pushy to the customer.
2. Become an Active Manager
Part of the effectiveness of any customer service
program will be the active participation of management. You must become
highly proficient at using your contact management program so you can
generate the valuable management information it will be storing. Once
this system is in place, and once you and all your staff are using it
religiously, then you will have a wealth of information you can tap. Are
your staff really making all the contacts they’re supposed to? Are
customers coming in more frequently because of your staff’s nudging?
What are customers purchasing? What are your most in-demand products or
services? What are your most profitable products or services?
Once you start developing a comprehensive database, you’ll
be able to use the data to know when a staff member needs help or
training. You’ll start seeing activity patterns so you can plan more
effectively. And you’ll have direct, quantifiable results of your
advertising, public relations, and other marketing elements. In other
words, a good contact manager is your accountability tool for your
people and programs.
3. Be a Role Model
Walk through different businesses and get a ‘feel’
for their culture? You literally can feel the difference in a business
that’s created a positive culture from one that’s created a negative
culture.
In the positive culture you’ll hear laughter
occasionally. Employees will be smiling — obviously liking their jobs
and their surroundings. You’ll find employees rallying around to help
each other if there’s a problem.
That positive, energetic culture starts with the
leaders. Owners and top managers must role model all that is positive in
a business environment if they hope to have a healthy, productive, and
profitable organization.
You simply must wear a smile — even in the face of
adversity. You simply must dress appropriately — everyday. You simply
must demonstrate the best techniques for closing sales, defusing
customer problems, and following through on your commitments. Because if
you don’t practice what you preach, nobody else will either.
4. Involve and Empower Employees
So many business owners and managers think their job is
to ‘run things.’ And sure enough, they lock themselves in their
offices, pretend to know everything, and dictate how the business will
function.
The employees in the meantime get more and more bored by
the routineness of their jobs. Oh, they do most of what management
wants, how they want it — even though they’ve found a dozen ways to
make things run smoother, and more profitably. But they’re not asked.
And the bold ones who venture forth with ideas are soon discouraged
because management, if they listen at all, just gives them lip service.
After all, they were hired as ‘just employees’ — not management.
So they accept the boredom — until another job comes along and they’re
gone in a flash!
The employer is stuck with the cost of hiring and
training a new employee. And the vicious, and costly, cycle starts
again.
Unfortunately, this scenario is all too common. And yet
when one interviews the employees of the firm with an open mind, they’ll
find lots of intelligent, interested people with lots of potentially
profitable ideas.
When management actively seeks, and responds to,
employee ideas and suggestions, actually involving the employee in the
operation and management of the company, their attitudes, energy, and
enthusiasm for the job soars. All of a sudden they have ownership of the
ideas, and they’ll work like crazy to make them work. They’ll be
happy, you’ll be happy and you’ll all profit monetarily and
emotionally.
How do you develop such an environment? First you must
hire right. Look for attitude and intelligence along with the
traditional ‘job skills.’ And set the right expectations from the
time of the interview. Let the interviewee know what’s expected of him
or her in the way of sales volume, customer contact, attitude, and
commitment.
That means that you must have your act together before
you start the hiring process. You need to build systems to operate the
various parts of your business, then define the various tasks that it
takes to make that system work. For instance, if you know that if all
your employees who make calls to a minimum of 10 customers a day have
the highest sales volumes, then be sure you have job descriptions
written that reflect that task as part of their duties.
Also, you’ll want to analyze your sales systems to
build in incentives for your employees to exceed base line performance
standards. Bonuses for making more calls or for being the top
salesperson are simple things to put into place and are great motivators
for your sales team.
Regardless of the type of sales position you’re hiring
for, you’ll want to work with new employees to help them set realistic
goals that mean something to them, not you. Ask yourself why you’re
working. It’s not just to make sales. It may be to be able to take
your family to Disneyland, or put your children through college. Money
can certainly motivate, but it’s not the only factors that may be
important to them. Intellectual stimulation, security, travel — there
could be any number of factors instead of, or in addition to, money that
motivates them.
Your job is to help your employees identify their own
positive and desired outcome. If you can accomplish this, it will allow
them to visualize, and achieve those goals more readily.
Once you understand their motivators through this
process, you can better encourage and motivate them. If they really want
that red Turbo Carerra, them get a picture of it for them, frame it and
put it on their desk.
If you actively pursue, and I hope you will, developing
a positive upbeat environment for your employees, you’ll find that
simple things can go a long way. Everybody deserves a pat on the back
now and then. You have to become an active ‘observer’ of the little
things, and big ones too of course, so you can acknowledge every
individual as often as possible.
A plaque on the wall for the ‘employee or salesperson
of the month’ can do wonders for self esteem — and sales production.
A special parking spot, an impromptu day off for exceptional
performance... If you use your imagination, combined with a good shot of
psychology, you won’t have to use your checkbook to motivate your
employees.
Find ways to help them achieve their goals, and there’ll
be little question whether you’ll achieve yours.
5. Provide Training
I so frequently hear "I’m going to hire only
experienced salespeople, that way I don’t have to worry about
training." And they do. Then, as if by some mystery, the ‘experienced
salesperson’ doesn’t produce. The business owner grumbles something
like "there just aren’t any good people out there — nobody
wants to work."
There are a lot of people in the world who have worked at
sales, and only a handful who succeed. Probably because they don’t get
any training. The successful ones are self starters who pursue training
and education on their own, because unless they’ve come from a large
company, sales training is rarely even thought of, let alone imparted to
the troops.
If you’re an entrepreneur, you may never have gone
through sales training yourself. You may not know how to isolate and
identify techniques, and thus may be unable to pass them along. But
alas, there are training programs for you that can make a world
of difference in your own personal performance, and help you find
techniques that you can pass on to your staff.
Dale Carnegie training is available in most larger
cities. Every Carnegie franchisee I’ve ever sent anyone to has been
top-notch. And the trainees I’ve sent have been transformed into
selling machines. Other programs are available through your local Sales
and Marketing Executive Club, the American Marketing Association, the
American Management Association, and others. At the very minimum, buy
books, audio or video training programs on sales and sales management.
Even if you’re experienced in these areas, a refresher never hurts,
and could arm you with the tools you need to make your sales staff more
productive than ever.
For most in-person training programs you’ll invest
from $1000 to $3000, the books, audio and video of course will cost much
less. Whichever method you choose, if you take it seriously, it will be
one of the best investments you can make.
In addition to sales training, you should invest in
telemarketing training for yourself and for your staff. I don’t mean
the kind of telemarketing where you’re going to cold call every
household or business in your market, I mean learning the skills to
handle incoming calls properly and to make customer callbacks effective.
Your local telephone company may have programs of this nature. Otherwise
look for a skill based program on audio or video you can share with your
staff.
Once you and your staff are trained so you can optimize
your effectiveness in these areas then you truly must stay a step in
front of the staff with your knowledge (a constant learning program
never hurt anybody that I’ve heard of) and you truly must manage the
sales activities and processes.
Other areas of training that can be extremely helpful in
providing excellent customer service is in the areas of problem solving,
handling complaints and suggestions and dealing with difficult or irate
customers. Again, in-person training is great or you can find many
excellent programs on video or audio tape.
Once you combine good skills with a positive attitude
and an active outreach to your customers on a regular basis, you’re
really on the way to success. But extraordinary customer service takes
even more. Once you’ve provided the training, set the stage for
"the customer is always right," reinforced the fact that a
customer should never be dissatisfied, then you must empower your
people to do whatever is necessary to assure that your customer is
satisfied.
Empowering your people to make decisions that you’ll
stick by no matter what, is sometimes pretty scary. But unless you do,
they’ll never be truly satisfied with their job, your customer will
likely be less than satisfied with the service he or she receives, and
you’ll continue to have staff — and customer turnover.
Teach them and let them make their own decisions. Oh
sure, they’ll make mistakes, but even if they give the customer a
replacement product for free, or do something else that has an immediate
short term cost, you must ask yourself how much did you gain by
extending the life of that customer doing business with you. It’s a
common mistake to look at a short term cost as opposed to a long term
customer relationship. Don’t fall into that trap.
6. Become an Active Listener
There are so many things that we assume. For instance,
we are given two ears, so we assume that everyone knows how to listen.
Nothing could be farther from the truth. Just a week or so ago, I attended a seminar presentation which was designed to
get people interested in the services of the company offering the
program. The woman making the presentation was intelligent and well
versed on her subject. But, she was far more focused on herself than on
the needs of the audience. Repeatedly, audience members would ask
questions, and repeatedly, she would answer a totally different
question, if she answered at all. Later, when this was called to her
attention, her response, "well there were certain things I was
supposed to cover."
Nobody cares to listen to a one-on-one presentation or a
seminar if the presenter doesn't consider the needs of his or her
audience. It doesn't matter what your product has, if the prospective
user doesn't understand what it will do for him or her, then the
attributes of your product become irrelevant.
I've told many a beginner salesperson to set their first
appointment with a prospect and only ask questions. Don't start babbling
about product information until you truly hear the prospect's needs,
because if you don't, it won't matter what you say, it won't hit the
mark.
God gave us two ears and one mouth. We would be wise to
use them in the same proportion. Active listening is a learned
skill, and an easy skill to teach at regular sales meetings. Practice,
get some books or tapes on the subject, and be sure it's a part of the
process you teach and expect of your sales staff.
7. Respond to Complaints & Suggestions
Your receptionist lets you know there's a customer on
the phone, and he's not very happy. It's been a long day -- you'd really
like to get back to him tomorrow -- it'll wait, won't it?
Mrs. Smith put a suggestion in your suggestion box
regarding a new brand of widgets she says is far superior to the old
brand, and she really needs them to complete a project she's started.
Well, you're not in the market for a new widget maker, so you blow off
her suggestion.
Mrs. Smith starts doing business at the competitor --
where she can get the new brand of widgets.
The next year, good marketing has made the new widget
line very much in demand. And you can't carry the line because your
competitor now has the exclusive distribution agreement. A costly
"oops" that may be avoided by giving more credence to your
customer's opinions.
Complaints and suggestions are some of the best market
intelligence you can ever hope for. Only 4% of all unhappy customers
bother to complain. Most just go elsewhere and you never get the
opportunity to correct the problem and save the customer. In fact, most
companies lose 20% of their customer base to a competitor every year.
That's a lot of costly new customers you must bring in just to maintain
your existing volume. It's far less costly and better for business to
implement a customer service program that reduces customer attrition to
begin with.
8. Listen to & Involve Employees
Some of the most successful companies in America involve
their employees every step of the way in their operation. They ask
employees, at every level, for ideas, ways to improve the company or its
operation, and they involve them in management decisions. Companies who
operate in this fashion rarely hear any grumbling about a new policy,
sales plan, or operational procedure because they’ve had a hand in
making them.
Your staff, especially your sales staff, is your 'front
line.' They know far more about operating your business successfully
than you may be giving them credit for. Their input should be sought
frequently (back to those regular sales meetings again) on a formal
basis, and an open door policy for them to drop in on you or the
appropriate manager with ideas other times surely won’t hurt.
It’s so very important for the success of your
business that you have a reliable information loop back to you from each
and every customer either directly or through your sales staff.
Encourage them to carry a notebook with them at all times so they can
easily jot down notes about a customer, his or her requests or problems.
And if you happened to have a reward system for
money-making or money-saving ideas, you’d probably get even more
enthusiasm going in your organization.
9. Provide the Tools
Now that they’re trained, you must provide them with
some tools. This is really quite simple. Thank you cards (they should
send one to every customer who makes a purchase). Don’t forget that
contact management program — it’s a vital element to providing
extraordinary service. You may also wish to have other promotional or
educational items on hand that can be dropped in the mail when customers
inquire about a solution to a particular problem, or may just want to
stay up on the latest widgets. A personal note with a third-party
article that solves a customer’s problem or gives him or her more
information on how to solve it will add lots of points to their customer
service rating of you.
Conclusion
Hopefully you've learned that successful marketing
doesn't take money, it takes tenacity and a good knowledge of the
marketing process. If you use the techniques in this book consistently,
you'll consistently enjoy higher sales and lower costs. And these
techniques work for any product or service.
I invite you to share your successes with other eager
marketers by sending a brief synopsis of your situation and the
creative, low-cost marketing methods you used to improve your bottom
line.
In the meantime, keep on doing the right
things and you'll reap the rewards now and in the future.
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