Customer Service

The secret to competitive success is to give customer service so far above the customers’ expectations that it becomes legendary. But, of course, this service must be driven by “customer needs and wants” and be tied to superior quality!

Customer service is critical today more than ever because Competition is increasing, customers expect more, superior service means repeat customers and excellent service is profitable!

The cost of customer service is minimal when the following is considered:

1. It costs five times more to go out and get a new customer than to maintain a present customer.

2. 91% of customers who complain will not buy again.

3. If a complaint is handled correctly, within 48 hours, 82-95% of these customers will return.

Why is customer service so poor in so many companies? Companies are inwardly focused, not customer-focused. Companies tend to be product/service-driven, not customer driven.

Furthermore, companies see customer service as an extra and generally as the responsibility of only front-line personnel. As a result, excellent customer service is not often measured, recognized or rewarded.

To be successful, we must sell our goods and services at a profit and still satisfy our customers.

If we satisfy our customers but fail to make a profit, we will soon be out of business.

If we get the profit but fail to satisfy the customer, we will soon be out of customers.

The secret of doing both lies in the word SERVICE. Service means doing something so valuable for the customer that he is glad to pay a price that allows us to make a profit.

Keeping your customers happy is probably the most essential job your company has.

If customers feel good about your company and its products or services, they will be less inclined to switch suppliers and more inclined to increase their business with you. However, in today’s hypercompetitive marketplace, keeping customers happy requires more than just “doing your job.” You must make customers feel they are getting what they paid for. And you must avoid becoming complacent and taking customers for granted.

How can you go about keeping your customers happy? Here are four steps that will move you in the right direction:

Stay in regular contact with customers.

This could mean regularly calling them to “check-in” or occasionally meeting as appropriate. Another idea is to send along articles you may read in trade media that relate to your customer’s business. It also means responding immediately to calls from customers. One of the most irritating things to customers is not being called back promptly.

Seek out specific feedback on your company’s performance.

Don’t just ask generally, “How are we doing?” Ask instead, “What could we be doing more effectively? What could we do to make our product or service more valuable to you?”

Continually develop new ways to add value.

Customers tend to have short memories and are inclined to ask, “What have you done for me today?” Your job is continually improving your product or service and letting your customers know what you have accomplished. Write them letters, or send out newsletters. Customers want to be reassured that they buy from people who are constantly adding value.

Avoid adversarial relationships.

When conflicts threaten to flare, such as over prices or delivery schedules, try to discover the real cause rather than getting your backup. For example, it might be said that while the customer isn’t always right, the customer is never wrong or should never be told they are wrong. You may not be able to do everything the customer asks for, but at least give the impression that you are listening to complaints and trying to rectify them.

Keeping your customers happy is much cheaper in the long run than finding new customers. And it is the secret to growing your company.

Job #1: Customer Service

Keeping your customers happy is probably the most outstanding job your company has. If customers feel good about your business and its products or services, they will not only be less inclined to switch suppliers but more likely to increase the amount of business they do with you. In today’s hypercompetitive marketplace, keeping customers happy requires more than just “doing your job.” You must make customers feel they are getting what they paid for. Moreover, you must avoid becoming complacent and taking customers for granted.

The fundamental truth in business is that repeated business from faithful customers builds profit. We have all heard that, statistically, it is much easier to keep a customer and expand sales to that customer than it is to gain a new customer.

Here are five tips for providing outstanding customer service to generate new and repeat business:

1. Sell a product or service that you believe in.

2. Develop a customer-first philosophy in everything you do.

3. Make it easy for your customers to contact you with questions or concerns.

4. Take your customer’s comments, concerns or questions about your product or service seriously.

5. Solicit your customers’ opinions about your product or service and encourage them to be honest! If your business is customer service driven, it will be apparent throughout every customer’s sales and service process. While many business people understand that they need to provide a quality product or service, they must remember that customers care just as much about service as quality. You must give both to keep your customers coming back.

The customer is always right, but making the customer consistently happy means much more. Producing the best product is not necessarily enough if you do not know what your customers think.

Keeping the customer satisfied demands different things from product businesses than it does for service companies. Product companies often have intermediaries between them and their clients — distributors, reps, and others. Service companies, though, are usually in direct contact with their customers and must pay attention to them to survive. Owners of both companies must devise ways to inquire about customer reactions and feelings about their business operations.

One sure sign that you have a problem with their clients is if you do not get repeat business. Unfortunately, this warning comes too late to resolve. So it is essential to pick up other signs earlier. Here are some suggestions for keeping tabs on customers:

Use every device to determine customer reactions and feelings about your company’s product or service. Quiz customers directly and question your sales, service people, and distributors. Find out what customers think about your offerings and what they think of the competition. Try short written surveys, monitor your social media and watch for commentary on service web portals.
Managers should go out on sales calls. They can go alone or with salespeople. In the latter case, sit on the sidelines and listen. You will often be amazed at what you hear being said between the lines — about what customers think of you and what they think of competitors.
Use samples as a way to initiate a smooth relationship with customers. Those who buy based on having tried a sample are much more inclined to be satisfied and feel the product meets their needs.

Use after-market service judiciously. While you should be able to make money on such a service, many customers resent paying for follow-on service. A solution: Build the cost of such service into the product’s price structure to make the service available at seemingly nominal rates.
The farther you are from the customers in the distribution cycle, the more innovative and persistent you must be to stay in touch with them.

Nationwide studies show dissatisfied customers fail to make their complaints known to management in 50% of all cases. Furthermore, when customers complain, only half are satisfied by the company’s response. Because dissatisfied customers talk to as many as eight acquaintances and friends about their negative experience, a business can lose sales yet not understand why.

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Category: Customer Service