Customer Service

Profitability

11 Jun
by Bridget DiCello

All businesses set out to make money, but many don’t watch their profitability closely.

At the risk of covering the basics, humor me for a moment. Have you ever gotten so busy doing business, working with customers, getting new customers, paying bills, delivering your product or service or putting out fires that you don’t pay attention to whether or not you are making any money doing what you are doing?

What was your profit margin in May? What were your profit margins on each type of product or service, or by job or client? What do you want or need your profit to be able to invest back into the business and still retain some profit for the owner?

Even if your profit margins were good, your total dollars of profit may not be enough if your sales are not high enough to cover your overhead costs.

Increasing your margin comes from setting your prices correctly and decreasing what it costs you to produce and deliver your product or service. If your teams are killing themselves and you still struggle with profit margin, maybe you have to look at your pricing. If your pricing cannot go any higher based on the market, you need to ensure you have talented people doing the job well the first time, effective communication with customers, tools and equipment that work well, and systems and processes that are efficient and eliminate waste.

If your bottom line profits are not enough, often you have to ask yourself if you have created a company that running at its best, will produce a profit? If your current team is productive, efficient and running at capacity, and your profits are still not what you want them to be, then maybe your ‘machine’ is broken.

If either your profit margin or profitability are not where you want them to be, don’t just work harder; stop and determine exactly where the problem lies, and work deliberately towards a solution. Too often, hard working people will work their tails off doing some of the right things, but also some of the wrong things to improve profitability. For example, taking care of customers may always seem like the right thing to do, but if you are doing it because an error was made by someone on your team, or you are spending time on a far less than ideal client (based on your niche), then you are not contributing to an increase in profitability.

What are you working on in June to increase your profit margins? What initiatives are you working on in June to increase your overall profits?

 

I Have No Time to Sell!

11 Apr
by Bridget DiCello

How many small businesses face this dilemma?  When the work is piled high and the execution of commitments we’ve made to customers is demanding all of our time to meet the deadlines, focus on selling diminishes.  Even with a dedicated sales team, salespeople can lose focus on marketing and sales when they are onboarding new customers or transitioning them to the operations team.

Yet, as that workload lessens and the work is being completed, panic arises that there is not a great deal of work in the pipeline.  Salespeople hit the field full force and the newest wave builds.  It is then that we must take a moment to look at both our sales machine and our systems and processes in the operations departments.

Any activity done consistently will yield better results.  Sales efforts must continue, at least at minimum levels, at all times, to create consistent sales and to maintain company image to prospects and customers.

The challenges are often on the operations side when systems and processes for bringing on new customers or projects, dealing with exceptions and unexpected issues in executing, and consistently delivering a quality product or service, are not solid enough to handle spikes in workload.  As a result, operations may pull in salespeople or the salesperson may hold off on selling due to a perceived capacity issue.

What to do?

Insist on consistent sales efforts.  (Some salespeople will use busy times as an excuse not to sell – and that break in their sales activities will allow lack of confidence to creep in – and then they’ve got to get started all over again.)  Measure key sales activities – it may be as simple as # calls = # appointment = # proposals = # sales.  Have plans in place operationally to handle spikes in work without using your sales team to the point that it pulls them out of sales.

Build an operations team happy to serve customers.  Seem obvious?  Too many operations teams don’t have a passion for serving new customers which requires getting to know/understand new expectations, demands, and communication styles.  Operations people stereotypically like routine and execute it well – and that’s a good thing!  Build on that to teach and create the mentality of excitement not only about current customers, but about new opportunities and put in place the contingency plans to handle what the salespeople hope to sell – so we can all be excited about the growth.

 

Pervasive Relativism Stymies Leadership

15 Oct
by Bridget DiCello

Creativity blossoms out of individual and innovative thinking, a variety of viewpoints, and personal and professional confidence.  And no leader in their right mind would minimize the need for their team members to be thinking independently in order to pursue the company’s goals and objectives.

On the other side of that same coin is often the belief of individuals that they are entitled to act on their opinions, should be able to do things their own way, and do not need to be burdened with unnecessary rules and restrictions.  The incredible rise of pervasive relativism, defined by dictionary.com as “any theory holding that criteria of judgment are relative, varying with individuals and their environments,” has made it significantly more difficult to lead a group of people to achieve the company’s goals and adhere to company values and mission.

Relativism, as it rears its head in the workplace, does not recognize right or wrong, and believes more in the value of the individual’s preferences and style.

The problem is that when you, as the leader, have a powerful vision of how you want your company to operate, how you want to do business and how you will treat your customers – there is a right and wrong way to do things.  Your powerful vision is not only your passion in business terms, but also enables you to define a niche which is what provides competitive advantage in the marketplace.

Is it the only right way?  Not necessarily.  But it is the way you have decided your company or department will operate.  And within that, creativity can blossom. (Check out blog post on Processes are Strong Basis for Creative Thinking)

There is a right way and a wrong way to take care of a customer.  At times, an employee will do it the wrong way.  Excuses such as, “That is just my approach; the customer took it the wrong way,” or “They should not have approached me with that attitude,” are not okay.  The employee may have tried their best, but the fact is, it was not good enough.  It doesn’t mean they have to be fired, but they do need to realize that they did not act in a way that the company deems acceptable.

For example, Chick-fil-A believes it is right to smile and say, “My pleasure,” when a customer says, “Thank you.”  An employee could do the same thing at McDonald’s if they wanted to.  However, at Chick-fil-A, it is expected and the only right way to take care of the customer.

If you have an employee who demands to be able to do things their way, and it is directly in contrast to the behavior that you as the leader have communicated as acceptable, then their behavior is unacceptable and they must change.  This seems so simple.  Yet, over and over, I see situations where the pervasive cultural focus on relativism is brutally pushing companies to mediocrity.

What do you see?

Silent Killers in Customer Service

11 Dec
by Bridget DiCello

In the past, business was done on a handshake.  People’s reputation and word of mouth was critically important.  Since then, the population has increased to the point where we don’t know all our neighbors and definitely don’t know all the people in our town.  However, social media has brought us back together in an incredibly powerful way and reputation and word of mouth is more powerful and viral than ever in the past.

Do you ensure that your customers have the best possible experience?  Not just that they don’t have a negative experience.  If we have a bad experience, we will talk about it forever.  Just think about it.  Don’t we all have those stories that we love to tell others about our bad experiences as a customer?  The nine month experience I had with the Audi dealership in New Orleans to get a new grill plate, such terrible customer service that I drove over 80 miles to Baton Rouge for routine service in the future?  I’m sure you have one of those stories.

I’m not sure why we love to share dramatic stories of hardship, conflict and disappointment, but there is something viral about them.  We can challenge humanity to share positive stories and good news, but the fact is for our businesses, we must prevent those dramatic stories of disappointment.

The kicker is that those terrible experiences can hurt us significantly, but the silent killers are the customers we fail to make happy and their indifference turns into a powerful driver for them to go elsewhere.  People may forget what you say and do, but they don’t quickly forget how you make them feel.  Do you connect with your customer enough to forge a relationship?  This nuance is missed by most people because as long as the person buys, appears happy and doesn’t complain, they don’t worry.

How do you know if you’ve really connected?  Here are just a few indications:

  1. The customer opens up and talks freely.  They are comfortable and can voice concerns.
  2. Their concerns have been resolved to their satisfaction, not just where they say, “okay, that’s fine.”
  3. They ask you for help or assistance in another area, because they trust you.
  4. They’ve become relaxed with you, even if they are not a relaxed person.

Once you connect, you work to build the relationship.  You are keenly aware they have concerns before they voice them.  You take possible concerns and turn them into opportunities to serve them better.  The customer never walks away with a mediocre experience and certainly not a negative one they’re going to share with all their friends.

Can you connect?

Strengthening Customer Relationships

14 May
by Bridget DiCello

Are your customers happy? How do you know? Because they pay the bill and haven’t complained? Do you think there is a level of service you could provide that would take your customer relationship to a new level?

I’ll be honest, there are definitely times when talk of customer service wears me out! My customers are wonderful, I enjoy every moment with them, am delighted when I find a way to serve them even better and find innovative solutions that facilitate their even greater success.

But, when I think about how I can serve the customer better, the first thought is that I need to spend more time, more energy and give more for each dollar received. Then, I realize that there is great potential to deliver more value in innovative ways.

And the most innovative solutions ever discovered, especially in less technical businesses, come from an understanding of the customer’s need more clearly and delivering a service or product that meets their needs, solves their problem and deliver results they never thought were possible.

In a way, it’s the old, “Work smarter not harder.” But, let’s pinpoint the ‘smarter’ work to be purposeful conversations with customers about their needs and expectations. They may never have had the time to spend to get a very accurate and clear picture about what they need from you. They say they need X, you do a good job with X, offer it at a fair price, have built a strong, trusting relationship, so you do business together.

When you want to know if you are doing a good job. You may send a survey or call and ask:

“How are we doing?” The customer says, “Fine.”

You say, “How did we do on the last order?” Customer says, “Good, it went well.”

You say, “Is there anything else we can do to make life easier for you?” Customer says, “I don’t think so, you are all doing a really great job. Thanks!”

You say, “Okay. Please feel free to call if you need anything!” Customer says, “Okay!”

You invite them to golf, talk about the spouse, children and football, and the relationship builds.

There is still valuable information in their head that could take that relationship to the next level. This standard conversation is pleasant, the customer may feel like they are being honest, and you are showing your concern. If there was a problem with the order, this is an opportunity to find out, rectify this situation, and make sure it does not happen again.

What if you asked questions more along the lines of:

“Thank you for your business! On your last order, how did we do on a scale of one to ten?”

“If we could change one thing, anything, even if it seems impossible, about the process, what would you like to see change?” Customer says, “You’re great!” You respond, “Really, I’d love to know, even if it seems impossible.”

“What is a frustration in your business in the area [of your expertise, industry, the area in which you interact with them] that you’d love to see resolved?

Don’t take their time with nicety conversations and surface questions. Spend your time with them wisely. Find out what they really think, desire and would love to see different. Even if it’s impossible now, keep it on your radar and look for the next opportunity to build a relationship based on amazing service, not just a consistent good job.

Your Nemesis & the Battle Plan

08 Jul
by Bridget DiCello

Your Nemesis – that one thing in your business that continually haunts you and inhibits your success. Identify it and Battle it.

Maybe this situation describes where you are right now: You are experiencing success. You have a good team. You have a plan to get better, to grow, to expand and to reach 2011 goals. But something is holding you back from the greatness you could achieve. Although you can picture even more success, it seems to be just out of reach.

Maybe just when things are good, you have turnover in your team and that slows you down.  Maybe when sales are being closed left and right, you lose a large existing customer and the back door seems as open as the front door. Maybe although your employees do a good job, there are just enough errors to make the fire-fighting a significant part of your week. Maybe your employees do what you ask, but don’t seize opportunities they see and add to the potential of the team. Maybe everyone does a good job, but there is tension between key managers or key employees. Maybe… The list could go on.

What is it for you that keeps you from achieving an even greater level of success that you know you could or that your boss is demanding that you do?

What to do? Identify your Nemesis and Correct it.

Identify Your Nemesis. Finish this sentence: “In an ideal world, we would…” At some point we all let mediocrity take over. Even successful companies rest on their laurels in certain areas or at a certain point in their success. Reach back to what you really want to accomplish and determine what is in your way to achieving that.

Then summarize your quality issues, fires fought, frustrations for you as a leader, expectations not met and customer complaints in the first half of the year. Pinpoint common themes and the root causes behind them. What is the problem or challenge that repeatedly comes up? What is your Nemesis?

Correct it. If this problem or issue was easy to correct, you would have done it already, it wouldn’t be recurring and it wouldn’t be your Nemesis.

How to correct a Nemesis? You’ve got to come up with a battle plan. If you want to win against your enemy in battle, try these tactics:

Know your enemy better than they know themselves. A quick look at a recurring problem and an easy solution is not the answer to address something that recurs consistently. Your Nemesis will only be addressed if you really understand it. What is the problem? What is the root cause? How is it affecting us? When does it occur? What have we done to try to correct it? What are best practices in our industry? Why does it occur? How does each person contribute?

Arm yourself with the right weapons. When you know the enemy/problem well, you learn how it fights, what makes it occur and you must identify how to attack it with what it won’t expect. This may mean your managers need new and different tools in their leadership tool box, new technologies or software, or good old fashioned face time with customers, vendors, colleagues or employees.

Attack with the element of surprise and destroy the enemy’s will to fight. In business, this means that you can’t just try the same old approaches and expect they will fix a long term problem. You might need to do something a little crazy. Although it’s hard to “destroy the will” of a turnover problem, the other side of that is your team being committed enough to fixing the problem that they stay focused and committed. When you are successful, the risk is that your team will tell you, “We’re successful. We are doing great. Why upset the applecart by addressing this issue – it’s just part of doing business in our industry. It’s always been that way. Our competitors face the same issue.” And on and on. A true Nemesis takes a lot of courage to fight because it’s a long term problem that may be seen as acceptable.

Fight on the terrain where you are strongest. In the Bible, the Israelites win a battle with foot soldiers against chariots because they are in a valley deep with mud. Use your strengths and your team’s talents and abilities to engage the problem.

You and your team can accomplish greatness! What is standing in your way? Identify your Nemesis and work diligently to correct it.

Can you not see the forest for the trees? A true Nemesis in your business is not easily discovered or corrected. Sometimes it requires a set of eyes from the outside. Someone outside your company can often lead you through the analysis and resolution of a long term, recurring problem. Contact Bridget if you’d like to talk about setting up a company meeting or team retreat to take your company to the next level.

What does Top-of-the-Line Service Look Like in Your Industry?

01 Jul
by Bridget DiCello

In the May 2011 edition of Entrepreneur Magazine, The Best in Business Travel article compared different levels of hotel service, and the description of top-of-the-line Premium service was inspiring!

It described how the hotels in this class remembered a guest’s allergy to feathers and adjusted the bedding, remembered his favorite wine and provided it complimentary, provided an outdoor temperature reading in the room so the guest could dress appropriately, had an enormous fitness center with 30 complimentary classes per week, delivered comic books instead of a newspaper because of the guest’s offhanded remark, and made a special trip to purchase a case of a guest’s preferred type of bottled water.

While I have never held a job in this top of the line hospitality environment, I think it would be incredibly fulfilling.  Or can we provide this level of service in every one of our businesses? Logistically, it requires two things to excel in service – employee time and resources (labor costs) and money (to purchase preferred wine, bottled water outside of a purchase agreement, etc.).  Many businesses, if they don’t charge premium prices, don’t have the revenue or profit margin to add awesome customer service perks.

So, unless you are a 5-star hotel or a Nordstrom’s, are you out of luck?

Ask yourself, “What is it that the guests really like about this Premium service?”   In order to answer that question, we need to look at two types of premium service that I have experienced:  Perks Service and Custom Service.

Perks Service – This is where every amenity is present.  Anything that you think of is readily available at no additional charge.  From the example above, that would be the 30 complimentary fitness classes a week.  This level of service is expensive to provide because each of these perks cost the company money, but the return on investment can be significant depending on your product and your customers.

Custom Service – This is where the customer service is tailored to each customer’s needs and wants.  This requires that we listen to each customer to hear what they really want and what is important to them.  From the example above, this is delivering the guest’s favorite wine or comic books that they mentioned the last visit.

Both levels of service require that we listen to the customer.  The Perks Service requires we listen to them as a group and offer what is important to our customer base as a whole.  The Custom Service requires that we listen to an individual, remember what they’ve said and deliver that customized service next time we interact with them.  This is more difficult, more often overlooked, can have a tremendously powerful impact and has the potential to cost a lot less to implement than the Perks Service.  But, it requires that you hear and remember what the customer says.

Listening is like riding your bike next to someone who is walking.  You can think at 400 words per minute and most people speak about 100 words per minute.  The danger in listening is that your brain is thinking about something else with that excess capacity.

It doesn’t cost anything to listen to someone, and often it doesn’t cost much to customize the service they receive to some degree.  Where are those opportunities in your business and your industry?

Does Customer Service Increase in a Bad Economy?

07 Apr
by Bridget DiCello

Have you been treated any better as a customer over the past two years?

I was wrong to assume that in this economy, with less money being spent and businesses going out of business, that the survivors would be incredibly focused on customer service.  My experience may be atypical, but I have found not only a decrease in attentiveness from vendors, but a decrease in their desire to make the customer incredibly happy.

I sense that many workers and leaders are tired, mentally exhausted and worried about their business and their job.  I have personally been disappointed by companies both large and small with the service they deliver, and their lack of concern about addressing or resolving issues.

What does this mean to you as a leader or owner?

1.      People are tired. Even in the businesses that are doing well, there is a general concern about their family and friends who may not be employed, there is a hope that things in general will get better, and yet despite the publicized numbers, the average person does not at all feel that the worst is over.  If your business is struggling, your employees know it, and they may even have had to take a pay cut or a cut in hours.  They may be asked to do more with less help or less resources.

2.      People may have lost focus. It’s tough to stay focused on work when life is tough, but one of the greatest things that you can do is provide your employees an environment where they work towards something important and can feel successful on a routine basis.

3.      Refocus yourself and your team on your goals, your mission and your way of doing business. Give them something to identify with, be proud of and work to achieve.  This means you have to set the destination and then hold them accountable to it.  Recognize their successes and push them to achieve their potential.  When you ask them to act more strategically, and focus on “how”, not “if”, you give them the opportunity to do more with less, in less time.  You are not necessarily asking them to work more hours.

4.      Define your customer service standards. There are extremes of customer service.  At the Audi dealership where I have my car serviced, Jeff in Service is fantastic, never says no, and always does just a bit more than he said he would.  Compare this to the post office where I was told that even though my mail was not being delivered properly, there was no one I could talk to, and when I found a customer service phone number on my own, she took my name and number, told me that if I did not get a call in 48 hours, to call back and then hung up before I could ask a question.

We all want to believe we look more like Jeff’s customer service than the USPS, but what are your specific standards?  How do your employees know what you expect?

This economy provides an opportunity, but you must provide concrete focus, direction and accountability to enable your employees to stay focused on the customer and the desired results, and work with you to make your business a success.

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