No one can take your customers from you. Not with a cheaper price. Not with better service. Not with better processes. Not even with more innovative products.
You must first give them away.
The first step in giving away customers is simply NOT communicating with them. Not asking them about the value of your product or service. As entrepreneurs and small business owners, it is important that we constantly encourage our customers to feel as though they can speak openly about experiences with our products and services. For me, the most exciting part of this process is discovering some possible dissatisfaction. This is what I like to call the “blind spot” of customer satisfaction. Let’s face it, no one wants to tell us we’re doing a mediocre job. This is a conversation both client and merchant want to avoid at all costs. As a result, customers often defect for unknown reasons. Or their defection is chalked up to that all encompassing “price” issue. The reality is that most customers defect because there is one or more service issues with which they are unhappy. When we can get our customers to share these service issues, we have a fabulous opportunity to create breakthrough innovation.
I heard a funny story a while back. I don’t know where it originated but it illustrates a powerful point about client communication:
A boy walks into a store and asks to use the phone. He then calls one of his neighbors.
“I wanted to know if I could cut your lawn,” he says.
“No thanks, I already have someone that cuts my lawn,” the man replies.
“I’ll get all the grass clippings and sweep up real good.”
“Well, I appreciate that young man, but I really am happy with the boy that is doing it now,” says the neighbor.
“Whatever you’re paying, I’ll cut it in half. Now can I cut your grass?”
“The young fellow I have now does a great job; thanks anyway. Okay, bye now.” And they hang up.
The storeowner has been listening to the boy on the phone. “All that and you still didn’t get the business, huh?”
“Oh, no,” says the boy, “He’s already my customer. I was just making sure he’s happy.”
Perhaps this method of ensuring customer satisfaction might be taking things a bit too far, but isn’t better to understand what may need to improves rather than wondering what went wrong after customers defect?
I have talked about the importance of finding out the customer’s perceptions. In fact, I have gone so far to say that reality is far less important than the perception of the customer. What can we do to obtain accurate, relevant customer feedback on a continuing basis?
I have listed some of the things that can be implemented by nearly any small business. Simply putting one or two of these strategies in place will automatically thrust you into the top 10% of companies focused on customer satisfaction. While these are reliable, proven methods, the sad fact is that few organizations, large or small, ever implement client communication programs:
Surveys
Structured questionnaires (with an incentive such as a prize or drawing) encourage feedback from customers. They can be analyzed and measured and the ensuing follow-up will surely make customers feel more valued. The incentives don’t have to be exotic. Free movie passes, gift certificates or some type of convenience item usually work well. I do not recommend discounts or free trial services. This encourages customers to tell you that all is well simply to earn the prize rather than identify where things may need to improve. Make the survey brief. Include no more than five questions, preferably with multiple-choice answers. Perhaps the final question can be open-ended allowing customers a chance to put it in their own words. Also, do not make the survey a selling opportunity. This is not about YOU; it’s about THEM!
Encourage Complaints
Complaints are particularly valuable performance indicators. If you do not receive many complaints do not assume that customers are satisfied with your business. Statistics show that most dissatisfied customers don’t contact the business but simply switch to an alternative one. I have heard it said that we should multiply every complaint times a factor of 10 simply because few people like to complain. It is thus important to take seriously the complaints you do receive and address them as necessary. It is critical that complaints are addressed immediately and that relevant feedback is provided to the customer. I recommend sending a letter thanking the customer for making the complaint and outlining how it was handled and what the outcome was.
Rating Systems
Several of our clients have instituted a weekly or monthly rating system. This involves a simple telephone call or email to the key customer contact. They are asked to rate the service by giving an “A” for excellent (far better than any competitor), “B” for good (a little better than the competition), “C” for average (about the same as the competition) and “D” for poor (some things need improvement). We have made a specific person responsible for conducting this “Rating System.” If the customer rates the service less than an “A” they receive a call from the appropriate department manager. This helps to ensure honesty and eliminates a bad grade simply because the customer might be having a “bad day.” If a customer does give us an “A”, we ask: “if there were one thing that you could change about our company, product, or service what would it be?” This primes the pump. It assumes the current offerings are not sufficient. It is amazing how many people give us “A’s” yet would like something to change.
Mystery Shopping
Mystery shopping is a revealing exercise. Put yourself in the customers’ shoes (or pay somebody to do it for you) by calling your business, visiting your website, requesting literature, and seeing how well your organization responds. Do they follow the established processes? How long did it take to find the information you requested? How easy was it to buy the product or service? Were questions answered in a timely and polite manner? What impression did you come away with? It’s also valuable to use mystery shopping to compare your customer service standards with those of your competitors.
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