“I’m sorry” may be the two most powerful words in customer relations. They’re certainly applicable if you or your company messed up an order or have something else for which to apologize, but they also show empathy for the customer’s feelings regardless of who is to blame. Those two simple words go a long way toward removing the “me against you” attitude that pours gasoline on a smoldering customer’s fire.
If you really want to “wow” the customer, accept responsibility for the solution, even if you don’t deserve it for the problem. Fear that their problem is going to get short-shrift causes more customer stress than any other single factor. It’s no wonder, when we live in a society where way too many “customer hotlines” are answered by call-center operators on the other side of the world whose standard answer to a complaint is to file it. Anticipation that this is going to happen turns slightly unhappy customers into absolutely furious customers, so one of the most effective ways you can defuse an explosive situation is to immediately promise your personal attention to working something out. When the customer finds a real, live human being who says they will personally take care of the problem, they’ll feel a tremendous sense of relief. And, when you actually do solve the problem, they’ll become customers for life.
Speaking of stress, it helps to relieve yours if you remember that not every single difficult customer can be satisfied. Sometimes their frustration stems from circumstances beyond your control, the solution is something you can’t deliver, and they just can’t or won’t accept those facts. Or maybe he or she really is that one-in-a-thousand customer whose goal in life is to get the better of you in every deal. If that’s the case, just tell them “sorry” and let them go. You’ll probably lose a customer but you’ll gain a little peace and quiet.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Showing posts with label customer service. Show all posts
Showing posts with label customer service. Show all posts
Friday, May 31, 2013
Friday, May 24, 2013
Practical Methods For Difficult Customers
Here are some ways to improve communication with difficult customers:
Listening is the most important skill a sales person can possess in every situation, from trying to get an appointment with a new prospect to making a presentation to your biggest client. It’s essential when dealing with a difficult customer, so remember the first rule of listening: you can’t listen if you’re talking! Let the customer talk. Don’t pounce on the things they are saying by trying to give them an answer before they’re finished saying them. In fact, watch out that you don’t just pretend to listen when you’re actually phrasing your answer while they’re talking. A remarkable number of difficult customers just want someone to listen to their problems, so learn to offer that small service automatically.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
- Be receptive. Tell the customer you want to hear what they have to say, then give them a chance to say it.
- Put on their shoes and walk around in them for awhile. If you were faced with their frustration, how would you feel? And, just as importantly, what would you expect to be done to correct it?
- Use descriptive, non-judgmental words. Instead of saying “that’s wrong” try “that’s one way to look at it.”
- Set limits on the problem by excluding things that happened in the past or aren’t relevant to the current situation.
- Break the problem up into smaller pieces and try to reach an agreement on each one.
- Emphasize the things you have in common. “We both want the recipient of your gift to be happy,” for example.
Listening is the most important skill a sales person can possess in every situation, from trying to get an appointment with a new prospect to making a presentation to your biggest client. It’s essential when dealing with a difficult customer, so remember the first rule of listening: you can’t listen if you’re talking! Let the customer talk. Don’t pounce on the things they are saying by trying to give them an answer before they’re finished saying them. In fact, watch out that you don’t just pretend to listen when you’re actually phrasing your answer while they’re talking. A remarkable number of difficult customers just want someone to listen to their problems, so learn to offer that small service automatically.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Friday, May 17, 2013
Dealing With Difficult Customers
We’ve all had them: the customer who refuses to be satisfied. Sometimes they whine like nine-year-olds; other times they rant and rave about our merchandise, our service, or even our parentage. One way to deal with them involves a baseball bat but, attractive as that solution may be, it’s not really viable. Your goal when dealing with a difficult customer is to solve today’s problem in a way that lays the ground work for tomorrow’s order. Smacking them in the head interferes with that process. The better way is to apply some of the simpler principles of sales psychology and see if you can’t turn that steaming monster into a happy, satisfied repeat customer.
The root of most customer problems is stress, usually stemming from what they perceive as an obstacle you’ve placed in their way. They may feel you’re not giving them what they thought they were supposed to get from you, or that what you are providing doesn’t satisfy their needs. Regardless, the first step in reducing the stress level is to find out what’s really bothering them.
That’s much easier said than done. All too often, our first reaction to a complaint is to get defensive. The customer makes a less-than-pleasant comment about the design of a product we’ve slaved over for hours and it’s like somebody peeked into the bassinet and told us our first child was an ugly baby. How dare they!? We have to keep our primary goal in mind: to make more sales. It’s very satisfying to create beautiful designs, but the only award that counts is the one that ends up in your bank account and that prize comes from a very opinionated judge, your customer. So, if the customer likes it, it’s good. If they don’t, change it! And do it cheerfully, because if you’re snarling under your breath, you’re telling that customer that you think they’re wrong. No one likes to be treated with condescension.
Sometimes, we immediately jump to the conclusion that they’re trying to get something for nothing or to bad-mouth us into cutting our price. There are people like that out there, but there are a lot fewer of them than we think. If we start from a defensive posture, we’re bound to make the problem worse instead of better. Orlando-based organizational management consultant Dr. Arnie Witchel advocates what he calls “negotiation jujitsu” when faced with a difficult customer. “In jujitsu,” he says, “you go with the force to disarm your opponent, not against it. If a difficult customer is pushing hard on you, do not push back!
Reframe any attacks on you or your company with questions that seek to clarify the situation and concerns. Don’t resort to hostility!” He points out that you have to separate the person from the problem and focus on their interests and goals, not on the problem itself. If you do that, if you approach the situation with an eye on removing obstacles that block what the customer wants to achieve, you’re more likely to arrive at a collaborative, mutually-satisfactory conclusion.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
The root of most customer problems is stress, usually stemming from what they perceive as an obstacle you’ve placed in their way. They may feel you’re not giving them what they thought they were supposed to get from you, or that what you are providing doesn’t satisfy their needs. Regardless, the first step in reducing the stress level is to find out what’s really bothering them.
That’s much easier said than done. All too often, our first reaction to a complaint is to get defensive. The customer makes a less-than-pleasant comment about the design of a product we’ve slaved over for hours and it’s like somebody peeked into the bassinet and told us our first child was an ugly baby. How dare they!? We have to keep our primary goal in mind: to make more sales. It’s very satisfying to create beautiful designs, but the only award that counts is the one that ends up in your bank account and that prize comes from a very opinionated judge, your customer. So, if the customer likes it, it’s good. If they don’t, change it! And do it cheerfully, because if you’re snarling under your breath, you’re telling that customer that you think they’re wrong. No one likes to be treated with condescension.
Sometimes, we immediately jump to the conclusion that they’re trying to get something for nothing or to bad-mouth us into cutting our price. There are people like that out there, but there are a lot fewer of them than we think. If we start from a defensive posture, we’re bound to make the problem worse instead of better. Orlando-based organizational management consultant Dr. Arnie Witchel advocates what he calls “negotiation jujitsu” when faced with a difficult customer. “In jujitsu,” he says, “you go with the force to disarm your opponent, not against it. If a difficult customer is pushing hard on you, do not push back!
Reframe any attacks on you or your company with questions that seek to clarify the situation and concerns. Don’t resort to hostility!” He points out that you have to separate the person from the problem and focus on their interests and goals, not on the problem itself. If you do that, if you approach the situation with an eye on removing obstacles that block what the customer wants to achieve, you’re more likely to arrive at a collaborative, mutually-satisfactory conclusion.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Friday, May 10, 2013
How To Lose A Customer - Method #3
You can’t please everybody. Some days, in fact, it seems like you can’t please anybody. The paint color is a shade lighter than the customer thought it was going to be. There is a squiggle in the upholstery seam that only the customer can feel. The shelf is higher on one side than it is on the other—you can’t see it, but the customer can. How do you handle impossible, irrational complaints? (No, a slap upside the head is not a viable solution.)
The first step in handling a complaint—rational or otherwise—is to hear the customer out. Listening is the most important skill in customer relations, so remember the first rule: you can’t listen if you are talking! Let the customer talk first. Don’t pounce on what they say by trying to give them an answer before they’re finished. A remarkable number of complaining customers just want someone to listen to their problems, so learn to offer that particular small service automatically.
Is the customer always right? No, but they should never be told flat out that they’re wrong, either. Soften it a little by using phrases like
Then make an adjustment if you can, or explain—politely and respectfully—why you can’t. It’s tough to generalize because complaints can vary from the frivolous to the catastrophic, but the key factor in the customer relationship is the way you communicate with them about it.
You may have to shave your profit on a job to make the customer happy, but it doesn’t really happen all that often. There are people who try to get something for nothing, but if we start by assuming that the customer is trying to take advantage of us, we’re never going to resolve the problem to either their satisfaction or ours. In fact, the damage to our relationships with good customers far exceeds any loss we’ll experience by giving in to the unfair demands of the single crooked complainer.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
The first step in handling a complaint—rational or otherwise—is to hear the customer out. Listening is the most important skill in customer relations, so remember the first rule: you can’t listen if you are talking! Let the customer talk first. Don’t pounce on what they say by trying to give them an answer before they’re finished. A remarkable number of complaining customers just want someone to listen to their problems, so learn to offer that particular small service automatically.
Is the customer always right? No, but they should never be told flat out that they’re wrong, either. Soften it a little by using phrases like
- “I can see why you feel that way…”
- “Let me look at that again…”
- “I understand what you’re saying…”
Then make an adjustment if you can, or explain—politely and respectfully—why you can’t. It’s tough to generalize because complaints can vary from the frivolous to the catastrophic, but the key factor in the customer relationship is the way you communicate with them about it.
You may have to shave your profit on a job to make the customer happy, but it doesn’t really happen all that often. There are people who try to get something for nothing, but if we start by assuming that the customer is trying to take advantage of us, we’re never going to resolve the problem to either their satisfaction or ours. In fact, the damage to our relationships with good customers far exceeds any loss we’ll experience by giving in to the unfair demands of the single crooked complainer.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Friday, May 3, 2013
How To Lose A Customer - Method #2
When you are in a service business, not every job goes as planned. That’s why, depending on the kind of work you do, you give your customers an “estimate” instead of a firm price before you begin. If you’re smart, that estimate is in writing, and if you’re even smarter, you ask the customer to sign it before you touch their job. Even then, though, misunderstandings occur and customer relationships can become strained. No one likes to get a bill for more than he expected.
It happens all the time: a manufacturer raises the price of a key component after you’ve figured the old price into the job; you remove a panel only to discover a crack in the supports underneath, one thing leads to another and before the job is done the man-hours you originally estimated turn into man-years. You can’t just absorb these unexpected costs, nor should you. But you can’t just pass them on to the customer either, at least not without his prior approval.
Your future relationship with your customer depends in part on the way you tell him his bill is going to be higher than he thought. Your goal should be to convince the customer that you’re not trying to pull a fast one. Express regret that you have to deliver some bad news, then give them the details—and the more details you include in your explanation, the higher your credibility will be. You don’t have to be defensive or apologetic, but let him know you share his pain. If you’re open, honest, and above all timely, you’ll keep that customer.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
It happens all the time: a manufacturer raises the price of a key component after you’ve figured the old price into the job; you remove a panel only to discover a crack in the supports underneath, one thing leads to another and before the job is done the man-hours you originally estimated turn into man-years. You can’t just absorb these unexpected costs, nor should you. But you can’t just pass them on to the customer either, at least not without his prior approval.
Your future relationship with your customer depends in part on the way you tell him his bill is going to be higher than he thought. Your goal should be to convince the customer that you’re not trying to pull a fast one. Express regret that you have to deliver some bad news, then give them the details—and the more details you include in your explanation, the higher your credibility will be. You don’t have to be defensive or apologetic, but let him know you share his pain. If you’re open, honest, and above all timely, you’ll keep that customer.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Friday, April 26, 2013
How To Lose A Customer - Method #1
One of the easiest things to accomplish in any business is to lose a customer. Good ones are hard to find, but they’re easy to lose. A certain amount of customer turnover is to be expected; people move out of town, suffer pocketbook problems, even experience lifestyle-altering events like getting married and having kids that change their buying habits. On top of that natural attrition, though, is the kind we create ourselves. It’s the result of the things we say, do, think, and ignore that drive our customers away.
Losing customers is never intentional, but you wouldn’t know that from the way some business owners and their employees treat the people who pay the bills. They inadvertently insult them, frustrate them, embarrass them, and confuse them in numerous ways that make the customer hesitate before coming back to the shop for more. Some of the problems come from poor attitudes, others from simple misguidance. Often, we think we’re doing the right thing when it’s actually the worst possible thing we can do from a customer relations standpoint.
Here is one of the most common ways we treat our customers that are almost guaranteed to drive them away:
You’re the expert. Let’s say you are in the automotive restyling business. You’ve spent years learning the tricks of your trade, the special skills that let you tweak a convertible top until it’s watertight or lay down a pinstripe with the precision of a NASA engineering draftsman. That’s probably why your customer brought his ride to you in the first place; if he could do it himself, he wouldn’t need you. But that doesn’t mean you have to rub his face in it.
Let’s face it, tricked-out wheels are all about ego. My car is cool and it makes me cool. It’s a reflection of my self-image, my style, my place in the world. If I ask a question, please don’t make me feel stupid when you answer it. You may be able to prove you’re smarter than me, but it won’t improve our relationship. If I have an idea or suggestion on what I want done to my car, please don’t ridicule it. Even if what I want you to do violates all the laws of physics, you don’t need to belittle me when you tell me it can’t be done.
It’s all about respect for the customer, an attitude that’s reflected in the words you choose and even the body language you use when dealing with them. Here are some phrases that you might use to raise the customer’s self-esteem:
Above all, no matter how hard it is, resist laughing, snorting, or shaking your head in disbelief when the customer asks a question or makes a suggestion.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Losing customers is never intentional, but you wouldn’t know that from the way some business owners and their employees treat the people who pay the bills. They inadvertently insult them, frustrate them, embarrass them, and confuse them in numerous ways that make the customer hesitate before coming back to the shop for more. Some of the problems come from poor attitudes, others from simple misguidance. Often, we think we’re doing the right thing when it’s actually the worst possible thing we can do from a customer relations standpoint.
Here is one of the most common ways we treat our customers that are almost guaranteed to drive them away:
You’re the expert. Let’s say you are in the automotive restyling business. You’ve spent years learning the tricks of your trade, the special skills that let you tweak a convertible top until it’s watertight or lay down a pinstripe with the precision of a NASA engineering draftsman. That’s probably why your customer brought his ride to you in the first place; if he could do it himself, he wouldn’t need you. But that doesn’t mean you have to rub his face in it.
Let’s face it, tricked-out wheels are all about ego. My car is cool and it makes me cool. It’s a reflection of my self-image, my style, my place in the world. If I ask a question, please don’t make me feel stupid when you answer it. You may be able to prove you’re smarter than me, but it won’t improve our relationship. If I have an idea or suggestion on what I want done to my car, please don’t ridicule it. Even if what I want you to do violates all the laws of physics, you don’t need to belittle me when you tell me it can’t be done.
It’s all about respect for the customer, an attitude that’s reflected in the words you choose and even the body language you use when dealing with them. Here are some phrases that you might use to raise the customer’s self-esteem:
- “I can see how you might think that…”
- “Good question!”
- “That’s an interesting idea, but…”
Above all, no matter how hard it is, resist laughing, snorting, or shaking your head in disbelief when the customer asks a question or makes a suggestion.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Friday, April 19, 2013
Is Your Shop Customer-Friendly?
When was the last time you looked around your shop to see if there are any customer-aggravating items? How about signs that explain your policies to customers? Do they read like they were written by Joseph Stalin? It’s really not necessary to scold your customers when you tell them where to park, make them stay out of the service area, or keep their hands off your tools, although it may seem like you have to sometimes. “No Customers Allowed” sounds pretty nasty, especially compared to a sign that gets across the same message by reading, “Employees Only, Please.”
You sound a lot more customer friendly (and professional), too, when you explain why you have the rules you have. Add “Insurance Rules” or “OSHA Regulations” to the “Employees Only, Please” sign and you’ve made your policies sound a lot less arbitrary.
When it comes to rules, it’s not a bad idea to review yours every once in a while. Look at things like your hours of operation, availability of merchandise, deposits, and return policies to see if they serve a real purpose beyond irritating your customers. Do you close so early in the day that customers don’t have a chance to pick up something they need after they leave work? If a customer has to take off work, it’s an additional cost to them of doing business with you. The same holds true for when you open—can they drop off an item for repair and still have time to get to their job? Saturday and Sunday hours are customer-friendly, too. And if you want to really do it right, offer to accommodate customers by appointment at other hours when you’re not normally open.
Most customer relationships are built on good communications, of course, which raises a couple of other questions: Do you call the customer when their job is ready or make them call you to find out if it’s finished? If the work’s not going to be done when you promised, do you call to warn them? It takes a little time and effort on your part, but the customer who gets such a call generally recognizes the thoughtfulness. Besides, it demonstrates that you respect the value of their time and, by proxy, appreciate their business.
While I’m ranting, whatever happened to saying “thank you” to customers? From the almost total absence of that phrase in most businesses these days, you might think it had been put on something like the FCC’s list of forbidden words. Another phrase seems to have replaced it, the one you hear when the cashier at the grocery store hands you your change and receipt and says, “here you go.” What the heck is that supposed to mean? Even worse, when the customer takes the change, their inclination is to say “thanks,” which sounds as if they are expressing their gratitude to the store! What’s wrong with this picture?
If you want to make your shop truly customer friendly, make it a practice to thank the customer every chance you get. “Thanks for calling,” “thanks for letting us work on your car,” even “thanks for coming in” are the right words to use when dealing with the person who keeps you in business.
These may seem like little, picayunish details when compared to major factors like how well the product works after the customer gets it home, and they are—individually. But when you add them up, which is what happens when the customer comes into your shop time after time, they grow. Add enough aggravations, and the next thing you know, you’ve built that proverbial mountain out of a molehill
.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
You sound a lot more customer friendly (and professional), too, when you explain why you have the rules you have. Add “Insurance Rules” or “OSHA Regulations” to the “Employees Only, Please” sign and you’ve made your policies sound a lot less arbitrary.
When it comes to rules, it’s not a bad idea to review yours every once in a while. Look at things like your hours of operation, availability of merchandise, deposits, and return policies to see if they serve a real purpose beyond irritating your customers. Do you close so early in the day that customers don’t have a chance to pick up something they need after they leave work? If a customer has to take off work, it’s an additional cost to them of doing business with you. The same holds true for when you open—can they drop off an item for repair and still have time to get to their job? Saturday and Sunday hours are customer-friendly, too. And if you want to really do it right, offer to accommodate customers by appointment at other hours when you’re not normally open.
Most customer relationships are built on good communications, of course, which raises a couple of other questions: Do you call the customer when their job is ready or make them call you to find out if it’s finished? If the work’s not going to be done when you promised, do you call to warn them? It takes a little time and effort on your part, but the customer who gets such a call generally recognizes the thoughtfulness. Besides, it demonstrates that you respect the value of their time and, by proxy, appreciate their business.
While I’m ranting, whatever happened to saying “thank you” to customers? From the almost total absence of that phrase in most businesses these days, you might think it had been put on something like the FCC’s list of forbidden words. Another phrase seems to have replaced it, the one you hear when the cashier at the grocery store hands you your change and receipt and says, “here you go.” What the heck is that supposed to mean? Even worse, when the customer takes the change, their inclination is to say “thanks,” which sounds as if they are expressing their gratitude to the store! What’s wrong with this picture?
If you want to make your shop truly customer friendly, make it a practice to thank the customer every chance you get. “Thanks for calling,” “thanks for letting us work on your car,” even “thanks for coming in” are the right words to use when dealing with the person who keeps you in business.
These may seem like little, picayunish details when compared to major factors like how well the product works after the customer gets it home, and they are—individually. But when you add them up, which is what happens when the customer comes into your shop time after time, they grow. Add enough aggravations, and the next thing you know, you’ve built that proverbial mountain out of a molehill
.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.
Monday, March 26, 2012
Sell More Services With Better Communication
Above all, selling services requires strong communication between you and the customer. It’s essential that you explain exactly what you’re going to do, why it needs to be done, and how much it’s going to cost. It’s even more important that you listen carefully to the customer to make sure that you’re both on the same page. Does he understand what you’re proposing? Is it what he wants? Does he have any unasked questions?
Establishing and maintaining open communication is especially important for a service job because you often encounter unexpected problems as the work proceeds, which can undermine the trust you’ve built up with the customer unless the news is delivered properly. No one wants to leave their car in your shop for a dash panel upgrade only to come back and learn that a major instrumentation repair has been added to their bill as well. The time to talk to the customer about unanticipated repairs is before they’re done, not afterwards.
Another source of customer dissatisfaction that can be eliminated with better communication is pricing. Some routine, straightforward jobs can be sold at a published flat price. Most of the work you do is probably not simple and routine, however, and you don’t really know how much time it’s going to take until you do it. Pricing tools like automotive flat rate manuals can help, but they’re far from the total solution, especially for complicated work that comes with high expectations.
Again, the solution is openly communicating with the customer at the beginning of the transaction.
Emphasize that the amount of labor, parts, and material required for the job is an estimate. It’s based on your experience with similar jobs so it should be pretty accurate, but it’s still just an estimate, not a guarantee. Explain that you’ll do everything you can to keep the amount of hours under the estimate and assure them that you’ll let them know as soon as possible if it looks like there’s going to be an overrun or if there are additional parts required due to an unforeseen complication.
Then do it! Make sure you have telephone numbers where the customer can be reached during the day while the work is being done and call whenever there’s the least question about any item beyond the estimate. It’s a great temptation to skip the call in the interest of time, but it’s a false economy if the customer blows up when he finds out about the work later. Even if the work is absolutely necessary, it’s going to leave a bad taste in the customer’s mouth and make them hesitant about trusting you in the future. And those kinds of grudges not only last a long time in the customer’s mind, they linger on the word-of-mouth grapevine forever.
Service is the heart of every business. With the growth of online retailers who can sell merchandise below the brick and mortar shop’s costs, selling those services is more important than ever. Following these simple guidelines can make the experience less painful for the customer and more profitable for the shop owner.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.
Establishing and maintaining open communication is especially important for a service job because you often encounter unexpected problems as the work proceeds, which can undermine the trust you’ve built up with the customer unless the news is delivered properly. No one wants to leave their car in your shop for a dash panel upgrade only to come back and learn that a major instrumentation repair has been added to their bill as well. The time to talk to the customer about unanticipated repairs is before they’re done, not afterwards.
Another source of customer dissatisfaction that can be eliminated with better communication is pricing. Some routine, straightforward jobs can be sold at a published flat price. Most of the work you do is probably not simple and routine, however, and you don’t really know how much time it’s going to take until you do it. Pricing tools like automotive flat rate manuals can help, but they’re far from the total solution, especially for complicated work that comes with high expectations.
Again, the solution is openly communicating with the customer at the beginning of the transaction.
Emphasize that the amount of labor, parts, and material required for the job is an estimate. It’s based on your experience with similar jobs so it should be pretty accurate, but it’s still just an estimate, not a guarantee. Explain that you’ll do everything you can to keep the amount of hours under the estimate and assure them that you’ll let them know as soon as possible if it looks like there’s going to be an overrun or if there are additional parts required due to an unforeseen complication.
Then do it! Make sure you have telephone numbers where the customer can be reached during the day while the work is being done and call whenever there’s the least question about any item beyond the estimate. It’s a great temptation to skip the call in the interest of time, but it’s a false economy if the customer blows up when he finds out about the work later. Even if the work is absolutely necessary, it’s going to leave a bad taste in the customer’s mouth and make them hesitant about trusting you in the future. And those kinds of grudges not only last a long time in the customer’s mind, they linger on the word-of-mouth grapevine forever.
Service is the heart of every business. With the growth of online retailers who can sell merchandise below the brick and mortar shop’s costs, selling those services is more important than ever. Following these simple guidelines can make the experience less painful for the customer and more profitable for the shop owner.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.
Monday, March 19, 2012
Powerful Retail Selling Environments
Having shelves full of merchandise is fine, but it’s almost impossible to up-sell a customer if you just rely on the quantity of SKUs you offer. Even worse, impulse purchases might seem to be more likely, but they are just about non-existent in a cluttered, claustrophobic environment. The most successful retail operations have showrooms that make both of these profitable events happen more often. Here are some tips for making the most of your selling space:
Finally, keep in mind that every interaction with a customer is a transaction whether they buy something or not. Both you and the customer get something from every conversation; you get a chance to qualify them for future business by finding out what kind of lifestyle they have, the size of their family, and other important details that affect their purchasing intentions. They learn (hopefully) that your staff is knowledgeable and eager to assist and that you carry the kind of products that can help them achieve their goals—information that will bring them back again. So, even if they don’t make a purchase, be sure to thank them for coming in and invite them to come back soon.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.
● Your front window is the first impression many customers get, so make sure it’s an appealing one. It should be clean (including the glass), well-lit, and arranged in an uncluttered, entertaining way. Choose the merchandise you’re displaying carefully and remember that it will fade in the sun. Most pros suggest cleaning the space and re-doing the arrangement about once every six weeks.
● Keep the entrance area free of clutter. Customers—especially new ones—generally stop when they come through the door to look around and get their bearings, so give them a little room—and the sight lines—to do that. Avoid big displays just inside the door that might block their view of whatever it is they’re really shopping for.
● Keep your space brightly lit, not just because it makes the merchandise look more appealing, but because it gives a sense of energy and motion to the shopping experience.
● Silence is deadly, so crank up your CD player or radio. Almost any kind of music is good, just as long as it’s not so loud that the customers and your sales staff can’t hear each other.
● Take a tip from the supermarket industry and arrange your merchandise on shelves or racks in ways that encourage impulse buying. Put related items like winter hats and gloves near each other and remember that the items that sell the best tend to be displayed just below eye-level. Generally, goods located above the customer’s head might as well be hidden in the back room for all the attention they’re going to get.
Finally, keep in mind that every interaction with a customer is a transaction whether they buy something or not. Both you and the customer get something from every conversation; you get a chance to qualify them for future business by finding out what kind of lifestyle they have, the size of their family, and other important details that affect their purchasing intentions. They learn (hopefully) that your staff is knowledgeable and eager to assist and that you carry the kind of products that can help them achieve their goals—information that will bring them back again. So, even if they don’t make a purchase, be sure to thank them for coming in and invite them to come back soon.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.
Monday, March 12, 2012
Retail Customer Service
We sometimes fool ourselves into thinking that people are so used to shopping unaided in the aisles of mass-market retailers that they don’t want to be bothered by pesky sales people, but nothing could be further from the truth. What customers don’t like is a clerk hanging around putting silent pressure on them to make a decision. While there may be a few independent souls who want to browse unaided through a plan-o-gram full of merchandise, most people appreciate the expert advice and guidance of a knowledgeable retail sales person, especially when they’re shopping for something more complicated than a bottle of shampoo.
A good retail salesperson does their best work when they help a customer figure out what they need in order to accomplish their goal or fix their problem. Which means, of course, that your staff has to know what they’re talking about. They need to know the lines you carry and what the products do—and don’t do. They need to be able to answer the prospect’s questions and even to suggest questions that the prospect should be asking. If they don’t know the answers, they should know where and how to get them—and make it clear to the customer that they’re willing to do the extra work cheerfully.
Helpful service like this means the sales person needs another set of tools, too: good communication skills. Sometimes, it’s not enough to just ask the customer what he wants. The sales person may need to do a little probing about the customer’s needs or desires before he or she can suggest a good solution. They need to know what kinds of questions to ask and—even more importantly—they need to listen to the answers. Some customers will be able to tell you exactly what they’re looking for, what size they want, and even where it’s located in your inventory. A far greater majority of them, though, are like patients in the doctor’s office; they need somebody to listen to their symptoms, to tell them why it hurts, and to prescribe something they can do about it.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.
A good retail salesperson does their best work when they help a customer figure out what they need in order to accomplish their goal or fix their problem. Which means, of course, that your staff has to know what they’re talking about. They need to know the lines you carry and what the products do—and don’t do. They need to be able to answer the prospect’s questions and even to suggest questions that the prospect should be asking. If they don’t know the answers, they should know where and how to get them—and make it clear to the customer that they’re willing to do the extra work cheerfully.
Helpful service like this means the sales person needs another set of tools, too: good communication skills. Sometimes, it’s not enough to just ask the customer what he wants. The sales person may need to do a little probing about the customer’s needs or desires before he or she can suggest a good solution. They need to know what kinds of questions to ask and—even more importantly—they need to listen to the answers. Some customers will be able to tell you exactly what they’re looking for, what size they want, and even where it’s located in your inventory. A far greater majority of them, though, are like patients in the doctor’s office; they need somebody to listen to their symptoms, to tell them why it hurts, and to prescribe something they can do about it.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.
Thursday, April 14, 2011
Dynamic Manager Handbooks - Priceless Advice For A Dollar
Sometimes you need to brush up on a single issue you're facing in your business. For just ninety-nine cents, you can turn to the Dynamic Manager's Handbooks for a quick refresher on sales, marketing, advertising, or several other disciplines that affect your company's bottom line.
I'm planning an even dozen for release this year. Here are the first seven:
Best of all, they're only ninety-nine cents!
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
I'm planning an even dozen for release this year. Here are the first seven:
Customer Relations: The Dynamic Manager's Handbook of Customer SatisfactionYou can find the Dynamic Manager Handbooks for Kindle at Amazon.com or your Nook at BN.com.
Five Rules Of Advertising: The Dynamic Manager’s Handbook Of Small Business Advertising
Marketing In Cyberspace: The Dynamic Manager’s Handbook Of Social Media Marketing
Beat The Big Box: The Dynamic Manager’s Handbook Of Winning The Retail Battle
Promotion and Public Relations: The Dynamic Manager’s Handbook Of Alternative Ways To Build Your Business
First Call Selling: The Dynamic Manager’s Handbook On How To Make Sales On The First Call
Sales Promotions: The Dynamic Manager's Handbook Of 23 Ad Campaigns and Sales Promotions You Can Use
Best of all, they're only ninety-nine cents!
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Sunday, January 16, 2011
Surprising Your Customers Online
If you want to go an extra step, you can really “wow” the customer by putting a picture of the results of your work for them on a calendar, coffee mug, t-shirt, or even a teddy bear. If you do home remodeling, painting, landscaping, pool installations, or anything else with a visual impact, a customer gift will be a real treat. Online services like Café Press (www.cafepress.com) will put your digital photo on a wide variety of merchandise for just a few dollars. There aren’t any setup charges and you can order a piece at a time, too. All it takes is a photo and a few minutes online.
While you’re cruising the web with marketing on your mind, look for websites, groups, or other online material your customer might find interesting. Then drop him or her an email with a link to the site you’ve found. If your customer is a Corvette owner, for example, send him a link to the nearest Corvette club’s website. Even if he already belongs, he’ll appreciate the fact that you were thinking of him. Just about every special interest group you can imagine is on the Internet someplace. It doesn’t have to be anything exotic, either. If you know your customer is into music, send her a link to an up-and-coming band’s MySpace site. It should go without saying that you need to know your customer to carry out this tactic.
The key factor is to make your surprise something with a personal connection to the individual customer. If your nursery sends a generic link to all the flower shows in your area to all your customers, that’s fine, but you’ve lost that personal touch that makes the surprise such a potent marketing tool. Never forget, you’re in the retail business, where you succeed by selling one customer at a time.
Speaking of websites, what’s on yours? It’s fine to have pages extolling the virtues of your experience, the value of your merchandise, and the expertise of your technicians, but you’re missing a bet if you don’t have a section devoted to your customers. For a mechanic, putting a picture of your customer’s car on the web is like taping their kid’s picture to the refrigerator door. It makes you both feel good. Just don’t post any identifying information about the customer on the web: a caption describing the car and perhaps the work you did on it is enough. And never, ever, post a picture of the customer’s kid on the Internet—with or without permission.
Once the picture is up, surprise him with the link in an email. These days, you don’t even have to pay for a website. The social networks like Facebook or MySpace, photo sharing sites like Flickr, Shutterfly, and Kodak.com or even blog services such as Google’s Blogger, are all free and can allow you to communicate with—and surprise—your customers online.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
While you’re cruising the web with marketing on your mind, look for websites, groups, or other online material your customer might find interesting. Then drop him or her an email with a link to the site you’ve found. If your customer is a Corvette owner, for example, send him a link to the nearest Corvette club’s website. Even if he already belongs, he’ll appreciate the fact that you were thinking of him. Just about every special interest group you can imagine is on the Internet someplace. It doesn’t have to be anything exotic, either. If you know your customer is into music, send her a link to an up-and-coming band’s MySpace site. It should go without saying that you need to know your customer to carry out this tactic.
The key factor is to make your surprise something with a personal connection to the individual customer. If your nursery sends a generic link to all the flower shows in your area to all your customers, that’s fine, but you’ve lost that personal touch that makes the surprise such a potent marketing tool. Never forget, you’re in the retail business, where you succeed by selling one customer at a time.
Speaking of websites, what’s on yours? It’s fine to have pages extolling the virtues of your experience, the value of your merchandise, and the expertise of your technicians, but you’re missing a bet if you don’t have a section devoted to your customers. For a mechanic, putting a picture of your customer’s car on the web is like taping their kid’s picture to the refrigerator door. It makes you both feel good. Just don’t post any identifying information about the customer on the web: a caption describing the car and perhaps the work you did on it is enough. And never, ever, post a picture of the customer’s kid on the Internet—with or without permission.
Once the picture is up, surprise him with the link in an email. These days, you don’t even have to pay for a website. The social networks like Facebook or MySpace, photo sharing sites like Flickr, Shutterfly, and Kodak.com or even blog services such as Google’s Blogger, are all free and can allow you to communicate with—and surprise—your customers online.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Monday, January 10, 2011
What's a Lifetime Customer Worth?
Next time you’re thinking about the worth of a customer, consider a business like Sueann Blackwell’s automotive restyling shop in Merrillville, Indiana. At Merrillville Restyling, most customers are serial car owners. They don’t just trick out one set of wheels and live with it; they buy, sell, trade, and do it all over again and again. Do the math on the customer who gets a different car every couple of years. If the shop’s average job is $1,500 and the customer stays with them for twenty years, he’ll bring ten jobs—or $15,000—through the door. If the gross margin (before overhead expenses) is 40%, the shop owner will put $6,000 in the bank.
Plug in your company’s numbers and think about that the next time you’re tempted to brush off a newbie.
One temptation to resist is the urge to make the customers’ decisions for them. It’s easy to limit the number of options you show them in the interests of time or from the mistaken belief that you’re clarifying the issues for them. The problem, of course, is that later they may discover that you’ve done so and misunderstand your motivations. It’s fine to guide them in their decision-making, but don’t give them any reason to think you’ve shortchanged them.
Another thing to keep in mind with newbies is that praise goes a long way toward making them feel good about their decisions. Think about Little League for a minute. Which coach got the most out of his team, the one who screamed at you about errors or the one who applauded when you did something right? The same is true for a new customer. As they make each incremental decision that goes into drawing up the specs for their order, confirm each decision as a good one. They’ll feel better about themselves—and about doing business with you.
That’s the goal, of course, to make the neophyte customer so comfortable with your business that he’ll come back the next time he has an itch that needs to be scratched. Keep in mind that the second job will be easier to explain than the first one and the third one will be easier than the second, and so on. That makes the time and patience you spend on the newbie customer an investment, not an expense.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
Plug in your company’s numbers and think about that the next time you’re tempted to brush off a newbie.
One temptation to resist is the urge to make the customers’ decisions for them. It’s easy to limit the number of options you show them in the interests of time or from the mistaken belief that you’re clarifying the issues for them. The problem, of course, is that later they may discover that you’ve done so and misunderstand your motivations. It’s fine to guide them in their decision-making, but don’t give them any reason to think you’ve shortchanged them.
Another thing to keep in mind with newbies is that praise goes a long way toward making them feel good about their decisions. Think about Little League for a minute. Which coach got the most out of his team, the one who screamed at you about errors or the one who applauded when you did something right? The same is true for a new customer. As they make each incremental decision that goes into drawing up the specs for their order, confirm each decision as a good one. They’ll feel better about themselves—and about doing business with you.
That’s the goal, of course, to make the neophyte customer so comfortable with your business that he’ll come back the next time he has an itch that needs to be scratched. Keep in mind that the second job will be easier to explain than the first one and the third one will be easier than the second, and so on. That makes the time and patience you spend on the newbie customer an investment, not an expense.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
Thursday, December 30, 2010
Use Surprise To Wow Your Customers
Customers come and, all too often, go. If you want to keep your customers coming back time and time again, give them a surprise. When you do something unexpected that wows them, they'll not only keep returning, they'll recommend you to their friends--a great way to grow a solid customer base.
The surprise you give your customers doesn’t have to be a big one. In fact, it’s the small touches that resonate with meaning, that make them feel like their order is more than just another job on your list. In fact, it was a little thing that sparked this idea for me. We got a Christmas card from Ed Plante Auto Detailing last year. The card wasn’t anything special, but there was a surprise inside that made it stand out from all the other business associates’ holiday greetings we received: he included a picture of our family SUV taken after his last detailing. In other words, he surprised us with a small, personal touch that made us feel just a tiny bit special.
When you do a little something extra like Ed did, you acknowledge your customer as a friend, as someone whose good feelings toward you warrant particular attention. The picture itself wasn’t any big deal either, but, as your mother always said, it’s the thought that counts.
The main factor to keep in mind is that what you do needs to be slightly out of the ordinary, something the customer doesn’t expect. That means it doesn’t have to occur at the point of service; in fact, surprises work really well when they come later, after the customer has started to forget the last time they did business with you. Secondly, the surprise should have a personal angle to it. If it’s something you do for every customer, like the book store clerk who automatically puts a bookmark in the bag with every order, it’s not going to prompt anybody to give it a second thought.
Different kinds of businesses present all sorts of opportunities to give customers great surprises. The picture Ed sent was of our clunky old family SUV with a fresh wax job. Can you imagine what kind of impact an unexpected picture of an auto restyler customer’s tricked-out rides would have? Those customers’ cars mean a lot or they wouldn’t be spending money on them. To the auto shop customer, getting a picture of his car is like getting a picture of his kids—maybe better!
Dave Donelson, author of The Dynamic Manager's Guide To Marketing & Advertising: How To Grow Sales And Boost Your Profits a how-to book for entrepreneurs and business managers.
The surprise you give your customers doesn’t have to be a big one. In fact, it’s the small touches that resonate with meaning, that make them feel like their order is more than just another job on your list. In fact, it was a little thing that sparked this idea for me. We got a Christmas card from Ed Plante Auto Detailing last year. The card wasn’t anything special, but there was a surprise inside that made it stand out from all the other business associates’ holiday greetings we received: he included a picture of our family SUV taken after his last detailing. In other words, he surprised us with a small, personal touch that made us feel just a tiny bit special.
When you do a little something extra like Ed did, you acknowledge your customer as a friend, as someone whose good feelings toward you warrant particular attention. The picture itself wasn’t any big deal either, but, as your mother always said, it’s the thought that counts.
The main factor to keep in mind is that what you do needs to be slightly out of the ordinary, something the customer doesn’t expect. That means it doesn’t have to occur at the point of service; in fact, surprises work really well when they come later, after the customer has started to forget the last time they did business with you. Secondly, the surprise should have a personal angle to it. If it’s something you do for every customer, like the book store clerk who automatically puts a bookmark in the bag with every order, it’s not going to prompt anybody to give it a second thought.
Different kinds of businesses present all sorts of opportunities to give customers great surprises. The picture Ed sent was of our clunky old family SUV with a fresh wax job. Can you imagine what kind of impact an unexpected picture of an auto restyler customer’s tricked-out rides would have? Those customers’ cars mean a lot or they wouldn’t be spending money on them. To the auto shop customer, getting a picture of his car is like getting a picture of his kids—maybe better!
Dave Donelson, author of The Dynamic Manager's Guide To Marketing & Advertising: How To Grow Sales And Boost Your Profits a how-to book for entrepreneurs and business managers.
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