What do you do different?

I teach business planning to entrepreneurs. What do you do different? This is always the first question I ask. Are you faster? Cheaper? Better?

Understanding how we differentiate ourselves in the market is key to developing a successful marketing strategy and ultimately a successful business. If your customers have three options (or some amazing multiple thanks to the Internet) why do they do business with you? Why do they come back? Do they come back?

One of the key ways a new business can differentiate itself is through customer service. Call any major corporation for assistance and if you are lucky enough to get a human - you are likely talking to a remote call center half way across the world – once the operator grills you on such things as what is your mother’s maiden name, where did you go to high school, and what is the name of your first pet – you will then get to enjoy their scripted dialogue which does little to solve your problem.

When your customers call your business, do you answer the phone? With Caller ID, I can typically answer the phone “Hey, Bob – what’s up?” I am connected to my customers, they are talking to the key decision maker – OK, I am also the chief bottle washer and all around guy Friday – but I’m still the decision maker.

If your not sure what makes you different – ask! You may get some amazing insights.

Press 3, if you’d like to be in a continuous loop without ever making human contact.

One of the advantages of being a small business is customer service. We don’t have layers of management; we don’t have a complex sale force - which means we can actually engage with our clients. The guy that cuts my hair knows I forget to schedule appointments, so he always seems to call when I’m getting shaggy. My local coffee shop always has a dog bone for the pooch. My local video store knows I have penchant for Almodóvar films.

Sure big organizations have many advantages, but not when it comes to engaging customers.

• Am I talking with the owner? - Whether it’s a buying decision with a vendor or solution with a client – they are talking to the decision maker and a decision is made. When I call a big company, I am often told a supervisor will call me back in 3-5 working days – Don’t bother, I’m already gone.
• Let me talk to your supervisor – If a customer isn't happy - being forced to deal with policy instead of people means he will leave. As a business owner, you’re on the front lines - you can be responsive or at the very least offer to make it right. When is the last time a big business took that kind of responsibility?
• Are you being served? - You can provide personal attention because you actually know your customers. You know what they like, you know their histories, and you might even know their hot buttons. And when you make them happy, they tell others. You just can’t beat word of mouth.
  

Customer service matters. We all just want to be treated nicely and given a sense of worth. Like our business matters. And with small business, it really does!

Are you being served?

The Wall Street Journal - Making the Most Of Customer Complaints - discussed how customers are judging companies by how well they handle customer complaints. It made me think of all the companies I’ve interacted with recently – Yahoo customer service – friendly, knowledgeable. 1and1.com referred me to a call center in the Philippines where the agent read a script. Vendor from Florida told me a flying rat story – strange, but extremely personable and I was talking to the owner. These experiences would---to some extent---affect whether I continue doing business with these companies.

What would your customers say about you?

This article provides solid guidelines on how companies can use customer complaints to do a better job. There is also interview with David Bowen, one of the authors of the article and study.

Vendor Relations

In the past year, we launched a retail site The Complete Bear. We wanted to see if we could take our own advice. Sometimes we do, and sometimes we don’t . . .

This experience has provided amazing insights into trying to grow a business. By going piece by piece through the business development process, we are able to provide real life experience to our consulting clients.

It has always been our belief that one of the key advantages of smaller businesses is their ability to respond to their customer base. Without the myriad of levels of management, customers speak with decision makers and develop “relationships” with the owners. We have a few vendors who are just amazing – both big and small. We use Yahoo! Small Business couldn’t be more pleased. When we have a question or concern – we are able to get a knowledgeable support person on the phone and they walk us through a solution. Irene over at Big Sky Carvers is a godsend. She answers the phone, she returns calls, and she is knowledgeable about the products.

But to our surprise, a lot of folks seem to go out of their way to lose our business. While I understand we are not the biggest account to come in the door - you never know where we will be in a few years.

At the recent SF Gift Show, a national account manager spent more time bad mouthing her company than selling us product. We subsequently contacted the owner of the company, who was very nice and responsive, but told us “Oh yea, she’s a bit of a problem, no one likes to work the booth with her . . .” Are you kidding me?

Another vendor referred us to their local rep. The woman came to our offices, was pleasant enough, and we placed an order. In placing the order we discussed the fact that we had a large show coming up and were assured we would have the product in plenty of time. As the show loomed, we called the rep voicing concern over having not yet received the shipment. No response. The shipment eventually arrived three weeks after our event. It had been mailed 3 days earlier.

We sought out another vendor, because we were impressed with their product line. Once again, we were referred to the local rep. We placed an order; it arrived and was not what we ordered. We called our rep, we were told it would be resolved, a replacement shipment was sent, once again wrong. Once again, we called our rep, he asked, “Can’t you just sell what we sent you?” Actually, I would prefer to sell what I ordered, thank you.

I am sure I am preaching to choir of retailers. But as so many start ups struggle to grow their businesses and woo customers – I am once again convinced that a little genuine customer service separates you from the pack. Secondly, what do your customer’s experience? Ask a friend to attend a trade show, and interact with your reps. What was the experience like? Call a customer who has stopped placing orders and ask why. You may have lost that customer, but you may get some insights before you loose the next one. It’s just a thought.