Category Archives: customer service

Biggest Entrepreneur Mistake #5

Marketing is NOT Everything

(An extract from DON’T DO IT THE HARD WAY – Avoid the Seven Biggest Mistakes that Entrepreneurs Make.)

Marketing is not everything. But it is the first important step in a three-part process to deliver satisfied customers who keep coming back for more. That’s the primary objective of every business: building loyal, long-term, profitable customer relationships.

It’s a Three-part Process: Marketing + Sales + Customer Service to achieve that objective.

Marketing is an area that many entrepreneurs often neglect or do the absolute minimum badly. Marketing is similar to the restaurant business; we’re all exposed to it enough to think that we understand how it works and we can do it ourselves. It’s never as easy as it looks. Both marketing and the restaurant business present challenging requirements for both expertise and creativity. Success is never guaranteed.

In the three-part process, marketing, sales and customer service activities must all be aligned to deliver a consistent customer experience with the company and the brand that builds a customer relationship from first-time buyer to long-term customer. The marketing and sales efforts bring in the first order and customer service delivers on the rest.

Each step has to be done consistently well for consistent profitable growth to be achieved.

Don’t make the Biggest Entrepreneur Mistake #5 – Marketing is NOT Everything  

Be better. Do Better. Be an Enlightened Entrepreneur.

Del Chatterson, your Uncle Ralph

Learn more about Enlightened Entrepreneurship at: LearningEntrepreneurship.com Read more of Uncle Ralph's advice for Entrepreneurs in Don't Do It the Hard Way & The Complete Do-It-Yourself Guide to Business Plans - 2020 Editions.

 Read more Blog posts at: LearningEntrepreneurship Blogs. 

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customer service, management, marketing, sales

Losing customer loyalty

It happens fast  

It is an important principle, in my opinion, that the primary purpose of any business is to build profitable, loyal, long-term customer relationships. Every strategic plan, policy statement, and operating decision should support that essential business objective.

Customer loyalty is not easy to earn and retain. It requires consistent customer service that builds on the minimum requirements of competitive price, availability, and delivery; then demonstrates the added value of superior service and expertise; followed by connecting on shared values and beliefs in the way you do business together.

It takes time to build strong loyalty with customers and clients and it can be quickly lost in one bad experience.

A recent example: I am stubbornly loyal to certain brands, businesses, and institutions. In each case my loyalty has been built and maintained by consistently good experience engaging with the business as the customer or client. I also try to support local businesses, franchises, and entrepreneurs to assist in their sustainability and success, especially after all the turmoil of the pandemic and the rising trend of e-commerce competitors and the demands for online services.

So I have resisted the easy option of making my frequent purchases of very expensive HP printer cartridges directly from HP online. I prefer to drive to the nearest Office Depot downtown where I have been well served for all my technology requirements and office services, until a couple of weeks ago. I made the mistake of dropping in for a quick purchase of two cartridges which were subsequently rejected by the printer as incompatible. I’d bought the wrong cartridges! My mistake, but I thought I could count on the store to help correct the error. “No way!” said the intransigent manager who had no interest in sympathizing or trying to satisfy me. He preferred to dictate company policy: No receipt – no refund, and we cannot accept return of opened boxes.

It is never my recommended approach for customer service to lecture the customer on corporate policy. It’s better to be more tactful, “I’m very sorry about your problem and I will try to help, but the best I can do for you is…”  Now we’re working together to achieve a better ending and keep the customer. In this case, I went back to my office and ordered new cartridges from HP.

Do you think I should give Office Depot another chance?

Be better. Do better. 

Del Chatterson, your Uncle Ralph

Learn more about Enlightened Entrepreneurship at: LearningEntrepreneurship.com Read more of Uncle Ralph's advice for Entrepreneurs in Don't Do It the Hard Way & The Complete Do-It-Yourself Guide to Business Plans - 2020 Editions.

 Read more Blog posts at: LearningEntrepreneurship Blogs. 

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customer service

Learn to Apologize

Do it right next time

 (This article is based on ideas in Uncle Ralph's DON'T DO IT THE HARD WAY & The Complete Do-It-Yourself Guide to Business Plans, 2020 Editions) 

Customer service is simple, but never easy.

We all recognize and appreciate good customer service and we have all experienced failure at it, occasionally, ourselves. The pandemic lockdowns have made it difficult to achieve acceptable levels of customer service and given us lots of excuses for not delivering up to customer expectations.

We have spent a lot of time apologizing to customers, but are we getting better at it?

(See Bloomberg Business Week, December 14, 2020 article by Arianne Cohen, Learning to Apologize.)  

An effective, timely apology that works must meet four criteria:

  1. Accept responsibility.
  2. Acknowledge the difficulty imposed on the customer.
  3. State what you’ve learned.
  4. Explain what you’ll do about it.

And to do it right, remember this:

  • Don’t blame Covid-19.
  • Make it personal and meaningful, from real people.
  • Be specific to the customer and the circumstances.
  • Show you care and are willing to pay the price.
  • Open a communication channel to keep in touch.

Like I said, simple, but not easy.

Be better. Do better.

Del Chatterson, Your Uncle Ralph

Learn more about Enlightened Entrepreneurship at: LearningEntrepreneurship.com Read more of Uncle Ralph's advice for Entrepreneurs in Don't Do It the Hard Way & The Complete Do-It-Yourself Guide to Business Plans - 2020 Editions.

 Read more Blog posts at: LearningEntrepreneurship Blogs. 

 

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customer service

Covid Customer Service - Part 3

(This article is based on extracts from Uncle Ralph’s Random Ramblings in DON’T DO IT THE HARD WAY - 2020 Edition)

Be respectful 

In this period of Covid pandemic protocols we are all being required to overcome new challenges to deliver outstanding customer service. The pandemic frustrations have heightened anxiety and stress for everyone. Neither customers nor employees are in no mood for tolerating new annoyances.

Customer service has always been the ultimate test for evaluating enlightened entrepreneurship and choosing our suppliers and business partners, brands, products and services accordingly.

It starts with respecting differences in perspectives, expectations and experiences. The with respecting differences in opinions, sources of information and conclusions by contradictory experts.

Play by the rules  

But we cannot respect or tolerate defiance of normal social norms, politeness and public health regulations. We must accept the rules of engagement determined by those in authority responsible for balancing the risks and the impacts. Individual rights and freedoms do not over-ride the obligations to the larger community.

You may choose to play a risky game of Russian roulette with your own health, but not with a shotgun pointed at those around you. Play safe.

Take care of each other – family and friends, customers, employees and associates.  These are challenging times. Enlightened Entrepreneurs will lead the way.

Be better. Do better.

Del Chatterson, your Uncle Ralph

Learn more about Enlightened Entrepreneurship at: LearningEntrepreneurship.com

Read more of Uncle Ralph's advice for Entrepreneurs in Don't Do It the Hard Way & The Complete Do-It-Yourself Guide to Business Plans - 2020 Editions.

Read more articles at: LearningEntrepreneurship Blogs. 

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customer service, Enlightened Entrepreneurship

Customer Service is Marketing?

Simply deliver what you promised 

customerserviceA recent Linkedin article argued that Customer Service is the new method of Marketing – do it right and traditional marketing is unnecessary.

I would argue that it’s an essential element of a three part process – Marketing, Sales and then Customer Service – to deliver the objective of attracting, satisfying and keeping loyal, long-term profitable customers.

The three elements must be complementary and consistent to be effective. Promote what you can actually deliver. Do not under-sell it, but do not promise and hope that it can be delivered. Or that the customer will not notice the deficiencies. That never ends well.

The sales effort has to be part of the process after marketing has introduced the customers. Continue to qualify and confirm that you can meet their needs and desires while avoiding the easy sale by telling them whatever they want to hear. The truth is better, even if it’s a disappointment.

Then customer service makes sure that the promises are met with competence, helpful support and a friendly smile that says, “Y’all come back now.” And they will.

Be better. Do better.

Your Uncle Ralph, Del Chatterson

Visit LearningEntrepreneurship.com for more Blog posts and articles.

Join our mailing list for regular e-mails with ideas, information and inspiration for entrepreneurs.

Check out Uncle Ralph’s books:"Don't Do It the Hard Way" and "The Complete Do-It-Yourself Guide to Business Plans" Both are available online or at your favourite bookstore in hard cover, paperback or e-book.

 

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customer service

Exceeding expectations

Even if you’re not working for tips 

bartenderGood waiters and bartenders get it.

Prepare a good product and meet the minimum expectations for delivery, quality and price, then add the personal friendly touch, demonstrate your expertise and dispense your worldly wise advice to create a more knowledgeable buyer, who appreciates it all.

It's good for tips. Even better if you're not working for tips. You’ll win loyal customers and raving fans.

Be better. Do better.

Your Uncle Ralph, Del Chatterson

Visit LearningEntrepreneurship.com for more Blog posts and articles.

Join our mailing listfor regular e-mails with ideas, information and inspiration for entrepreneurs.

Check out Uncle Ralph’s books:"Don't Do It the Hard Way" and "The Complete Do-It-Yourself Guide to Business Plans" Both are available online or at your favourite bookstore in hard cover, paperback or e-book.

 

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customer service

This article is an extract from Uncle Ralph's, "Don't Do It the Hard Way". Read the book.

Marketing, Sales or Customer Service?

Are choices to be made? Do we need to deliver on all three?

Bplan strategy“First let’s define better the three elements of this process to build long-term valuable customer relationships:

Marketing – understanding the market and defining the target customer; building awareness, interest, and attraction; and, identifying prospects.

 Sales – converting interested prospects into qualified, buying customers.

 Customer service – delivering products and services as promised to ensure that each customer is a satisfied, repeat customer.

Each step has to be done consistently well for the results to be achieved. But a choice still has to be made - which element are you going to be best at? Will you win from competitors on marketing, sales, or customer service? You cannot be best at all three.

In my experience managing a second-tier brand name in computer hardware, we knew that we couldn't possibly out-market the multinationals, but we could out-sell them, one customer at a time. We spent a minimum of time and effort on marketing. Respecting basic principles of clear and consistent messaging and being creative at avoiding large expenditures worked for us.

Winning on customer service was also a challenge - it's expensive for any manufacturer to compete on warranty terms and technical support.

So we went back to salesmanship, even in the service department - coaching staff on persuading the customer to be reasonable, patient, and give us another order, please! We carefully explained to our service technicians that the best result from a call for tech support was to turn a complaint into a compliment and then pass the call to a sales rep for another order.

You can achieve success by being selective, instead of trying to be good at everything.

So take a look at your strategic positioning, your performance and your options in marketing, sales and customer service - then choose, focus and build one of them into your competitive weapon.”

Your Uncle Ralph, Del Chatterson

Read more at:Learning Entrepreneurship Blogs. 

Join our mailing list for more ideas, information and inspiration for entrepreneurs.

Click Here to check out Uncle Ralph’s books, "Don't Do It the Hard Way" and "The Complete Do-It-Yourself Guide to Business Plans" Both are available online or at your favourite bookstore in hard cover, paperback or e-book. 

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customer service, marketing, sales

Be Prudent not Paranoid

checking youSoon after starting my business in computer products distribution, I got burned by a couple of retailers passing bad checks. Whether they were dishonest or just bad managers, the result was the same:  Whack, NSF!

I was still an inexperienced young entrepreneur, so it was easy to over-react and go beyond caution and become suspicious and distrustful of every customer. Not a good idea. I started to notice that the sales reps and customer service staff were following my lead too well. Aggressively pushing for cash-on-delivery or making unreasonable demands before accepting sales on credit.

Now we had a new problem. Customers were getting turned off and going elsewhere to competitors who were easier to do business with.

We adjusted our attitudes and went back to dealing in good faith and treating customers and other business partners with more respect. That means trusting them implicitly and expecting the best of intentions. Then if things ultimately go badly, we can still be friends and work it out.

It does not mean blind faith or being naïve. Prudent business practices are necessary and that includes clear terms and conditions on every sales order and purchase contract.

Be aware of the risks of doing business and then manage them.

Unfortunately, they cannot be avoided. Unless you lock the doors and don’t answer the phone.

 

Your Uncle Ralph, Del Chatterson

Read more at:Learning Entrepreneurship Blogs. 

Join our mailing list for more ideas, information and inspiration for entrepreneurs.

Click Here to check out Uncle Ralph’s books, "Don't Do It the Hard Way" and "The Complete Do-It-Yourself Guide to Business Plans" Both are available online or at your favourite bookstore in hard cover, paperback or e-book.

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attitude, customer relationships, customer service

Choices to be made or all part of a continuum?

I believe they are the three elements of a process required to build long-term valuable customer relationships. Which is the primary value proposition of most businesses. (Buy once and goodbye forever is not a business model that works for anybody. If you can find one, please let me know.)

The three elements defined:

  1. Marketing - to build awareness, interest, attraction and generate customer initiated action in your direction.
  2. Sales - converting interested prospects into qualified, buying customers.
  3. Customer service - ensuring that each customer is a satisfied, repeat customer.

Each step has to be done consistently well for the results to be achieved. But a choice still has to be made - which element are you going to be best at? Will you win from competitors on marketing, sales, or customer service? You cannot be best at all three.

From my experience as a second tier OEM brand name in computer hardware, we knew that we couldn't possibly out-spend or out-market the multinationals, but we could out-sell them -one customer at a time.

Winning on customer service was also a challenge - it's expensive to compete on warranty terms and technical support. So we went back to salesmanship in the service department - coaching staff on persuading the customer to be reasonable, patient, and give us another order, please!

So take a look at your own performance in marketing, sales and customer service - then choose, focus and build one of them into your competitive weapon.

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customer service, marketing, sales

Sometimes we get so preoccupied with marketing and sales activities and all the associated details that we forget the original strategic objectives.

The basic objective, of course, is to generate and grow sales revenue. But to have sales you need customers. And to have sustained, profitable and growing sales, the best strategy is to develop loyal, long-term customer relationships.

So the marketing, sales and customer service activities should all be aligned to deliver a customer experience with you, your company and your brand that evolves from a first time buyer to a loyal, long-term customer.

The customer experience typically evolves through four levels:

1. Satisfaction with price and availability

On the first exposure to you and your business, customers will quickly, maybe even subconsciously, compare price and availability to their expectations based on prior experience with your competition. There will likely be no sale, and maybe no second chance, if this minimum expectation is not met.

2. Recognition of superior service levels

The first point of differentiation and the first step to building a stronger customer relationship will be when the customer recognizes that you offer superior service. You can demonstrate it in many ways – faster response to inquiries, easier access, more stock, better prices or terms, better delivery, better warranty service and support.

3. Appreciation of the value of your knowledge and experience

After the basic needs of price and availability are met, and you have distinguished yourself with superior service, the customer experience should then lead to an appreciation of the added value of your knowledge and experience. This will be demonstrated by applying your product knowledge, training, education and experience to educate the customer and give him/her the confidence to make better purchasing decisions. Now you are building a valuable customer relationship.

4. Connection on values, mission and vision

The final step in cementing loyal, long-term relationships will occur when the customer recognizes a common sense of values, mission and vision in the way you both do business. This connection will be developed over several interactions, particularly when problems are solved together, or you meet on non-business related issues.

The sooner you can meet customer expectations at these four levels, the faster you will build lasting and loyal customer relationships.

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customer relationships, customer service, marketing, sales