Think Golden on Rules for Customer Service

OK, so this recession thing is indeed causing people some problems – especially if they ever find themselves with the need to travel by motorized vehicle. But I am sticking to my guns that tough times require us to stress the fundamentals of good business, and there is nothing more fundamental in business than treating our customers well.

Really well.

What exactly does that mean? While the definition will certainly vary depending on your business, I was reminded during a Chamber Leads Group presentation yesterday morning that there are a few non-negotiables to keeping customers in the fold.

Frank Kapplow, the owner of Delmas Diamonds and Jewelers, shared that his business is not only surviving, it is thriving. His sales are up significantly over the same period last year, and there are no signs of slowing down.

But how can that be? People don’t buy custom jewelry and diamonds the price of used cars during a recession. Ah, but there’s the twist. Some people do. And what Frank does is make sure that if those people make their way into his store, they understand that they are not going to be treated more fairly, receive better service or get a higher-quality piece anywhere in town. And certainly not from the Internet.

He admittedly spends more time than he probably should with each customer. He may sell his pieces for a tiny bit less than he could – if he really pushed it. And he goes against convention by showing invoices to customers, sharing markup rates and giving the lowest price the first time – even on his original, custom work. “If I give a price and then I negotiate down to a lower price, then I was not being honest the first time,” he said with an earnest conviction.

In other words, he treats his customers exactly like he would want to be treated in the same position.

So how do those of us who are not in a retail setting apply those same principles? Well, for starters, we can make sure we treat every client or customer like we really need them to survive (probably not a huge stretch these days).

I received an e-mail last week that a prized prospect was hiring my company to create their new e-mail newsletters, and when I got the news, I sent a quick thank you, did an internal “yea” and moved on to put out fires. After hearing Frank yesterday, though, I went straight to my office and shot the new client an e-mail stating simply how happy I was to be working with him and how much I looked forward to helping him be successful.

It was a small gesture, but within minutes, I received a response echoing my sentiments. Since he doesn’t know me (he is in Gainesville), it was essential that he hear from me that I appreciated his business and that I would do everything possible to exceed his expectations. He now knows what to expect from me – now, I just have to make sure I do it.

Thanks, Frank, for the reminder that the Golden Rule still rules.

Facing the 'R' Word

Word on the street is that there is a recession in town. It is bearing down on consumers, causing businesses to tighten their belts and slashing budgets, profit margins and overall confidence in our way of life.

So what do we do as innovative, proactive business people?

I would humbly assert that we do only what we should be doing in the best of times. Run lean? Yep. Be frugal? Sure. Be thoughtful with every decision and make the most of every opportunity to market, sell and properly position our business? Without a doubt.

I have seen some very useful lists for how to combat a downward economy, but they all are really just important reminders about how to do business the right way – no matter which way the market is headed or how much a half gallon of ice cream costs. The advice is solid any time, it just so happens that it is now more important than ever.

I acknowledge that there are fundamental economic factors in play that make commerce more challenging at certain times, but I still ask the same question, “What are we supposed to do about it?”

It is not like we can take a time out until things settle down.

We charge forward with confidence, because we know what we’re doing and we hope for the best. We are smart about money, creative in our marketing and wise with our hires. We make every decision count and we stay focused on our goals. If we get knocked down, we get back up – because it’s the only choice we have.

And when we get through this time and ask what’s next, we already have the answer.

More of the same.

Photo: © Lindwood Farm, Incorporated

The More Things Change...

Two weeks ago, I wrote about the challenge of prioritizing your work time. I asked: “So what do you do to guard against spending time on good stuff, but not the best stuff? And how do you figure out what the best stuff even is?”

I got some interesting responses through e-mail and conversation, but perhaps the best input I received was from my 85-year-old grandfather who lives in Ohio and is apparently still cool enough to blog.

His no-nonsense approach, learned through decades of successful sales, management and business experience, got right to the point.

“Dave, business practices have not changed much over time,” he said. “The best advice I can give you is that you have to learn to separate the chaff from the wheat. Without new business coming in, everything else is inconsequential! So that must be uppermost in your mind at all times. I know you have a million and one things to do, but somehow they will get done.”

So there you have it. Nothing else matters if you don’t have clients (or customers). What a novel idea. Of course, you should make sure you are taking good care of the clients you already have, but I think from his perspective that is a given. Creating a revolving door doesn’t get you anywhere.

Being a smart businessperson means staying in business – something that is a whole lot easier when someone is buying what you’re selling. And while there are at least a million other things we can be doing, take it from a wiser Fiore than myself – keep new business coming in and let the rest take care of itself.

That is my goal this week (and beyond). What about you?

In Search of the Retainer

Staying busy is great, but knowing you will be busy is even better. Whether your business is creating custom monthly e-newsletters (just off the top of my head), cutting lawns or dry cleaning expensive suits, earning the business of your customers on a regular basis is the ultimate goal.

In my corner of the business world (writing/PR/marketing), that means acquiring retainer clients. Retainers, as most of you are probably aware, are monthly payments from a client based on an anticipated average number of hours spent on their account. Some months you may lose a little, while other months you end up a little ahead in the ever-present battle of time spent versus money earned. The goal is that it all works out in the end. And for that, you may choose to reduce your rate a bit and promise priority service – all for the security of knowing that you can count on that income every month for some decent period of time.

Some retainers are monthly, even when the services are not. I have a friend who divides his lawn-service fees over 12 months, even though the majority of the work is done in maybe eight or nine months. That makes sense, because it spreads the financial responsibility of the client evenly throughout the year and allows my friend to have a dependable income all year.

For other kinds of businesses, the corresponding goal is to keep clients or customers coming back month after month – to keep them choosing you every time they are faced with the same purchase decision. Of course, customer service and the consistency of your product or service are big factors in customer retention, but depending on how often that decision is made, customer loyalty can be tough to maintain. Chances are, there is always a cheaper option or a new kid on the block ready to do anything to grab a few of your customers.

So what do you do to convert project clients into retainer clients or keep your clients coming back month after month? (We are not looking for trade secrets, just general principles that others could apply.) And how important are regular clients to your business plan?

Let’s talk about it.

Last Week's POLL QUESTION RESULTS

Apparently, most of you (57%) are not phased by wearing the same outfit two days in a row if a) no one sees you the first day and b) you don't spill anything on yourself. Good to know.