Monday, September 17, 2012

The Competitive Advantage of Great Customer Service

Small companies need an edge, and one of the best ways for a small company to gain an advantage is to blow the doors off of the competition with great customer service.  This is easy to say, and just as easy to do, but for some reason companies don't always seem to grasp the value, and effect it has on their brand.  Good customer service is a mindset, and everyone in the organization needs to be in that mindset.  Here are a few simple things to get everyone in the organization thinking this way...

  • The customer is boss.  This was Wal*Mart founder, Sam Walton's philosophy, and it's a good one.  Companies who remember this simple philosophy usually have extremely high customer retention rates.   It's true that customers can be unreasonable at times, but delivering on unreasonable demands, or at least a sincere effort to do so, is a great way to earn customers for life.

  • Always exceed expectations.    Disappointment comes from unrealistic expectations, so set your expectations properly in the beginning, and then always be on the lookout for ways to deliver more value than you promise.  Be early, be enthusiastic, be honest and be consistent.

  •  The answer should be "Yes."  Some managers think the best way to be a responsible corporate citizen is for the default answer to be "No," and only change their minds when an "air tight" business case is presented.  There's nothing wrong with doing smart business, but the default response should be: "Let's find the smartest way to make the answer, 'Yes'." If this is the mindset of management, it will filter throughout the organization.

  • Tighten up the ship.  If the ball is getting dropped, find out why.  Are there too many touch points...?  Is everyone playing nice together...?  Does the organizational structure make sense...?  Also, if you mess up, fess up.  The mindset of the organization should be that it can't live with unacceptable answers and outcomes.  If your company does something badly, then it's better (and in the long run, less expensive) to fix it than learn to live with it.

  • Go the extra mile.  If everyone in the organization is going above and beyond the call of duty, there will be a palpable difference in the customer experience.  It may sound cheesy, but throwing something in for free is not a bad idea either.  Not over-the-top "glad handing," but you might be surprised how a little thing here and there (and a big thing on special occasions) will go a long way.    

  • Over communicate.  Companies don't lose customers because they're keeping in close contact with them, and keeping them in the loop.  Communicate both good and bad news proactively, follow up diligently and keep in touch even when there is no sale (or delivery) pending.  Many businesses refresh technology every three years or so, which means if you're in the technology space, keeping in touch is all the more critical.  The shorter the refresh rate and sales cycle, the more frequent the contact should be.  This can be as simple as a promo, or an article you forward to a previous client about something related to his or her business.

  • Spread the word.  When your customers have a positive customer service experience, tell the world about it.  Use customer testimonials, press releases, case studies, white papers, and so on and on.  Using your existing customers to gain new ones is one of the most cost effective ways to get the word out and build the reputation of the small company brand.  Social media is free and easy, and free is always the friend of the small company.

  • Use speed as a weapon.  If yours is a small company trying to compete with a much larger one, you should naturally be more nimble.  This means in the little things, and the big things.  Always try to answer your phone rather than hiding behind voice mail.  Always return calls ASAP, not at your earliest convenience.  Never let a customer complaint (read: sales lead) sit more than an hour if you can help it.  Work on shortening your response time first, and then work on shortening your lead times.

These simple things will help smaller companies outperform their larger competitors in the areas where they can most easily and cost-effectively do so.  Smaller companies have to find ways to be better, smarter and faster.  A company-wide commitment to the absolute best customer service in the market will have an extremely positive effect on the smaller company's brand. 

 Written by: Tracy E. Tucker, copyright 2012, all rights reserved
   

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