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.

When Hard Work is Not Enough

After a week of enthusiastic, but time-consuming posts, I have decided on a schedule of weekly musings that should be far more maintainable. I expect to post a new entry – and new poll question – each Wednesday by noon. I appreciate the encouragement to invest this time in offering topics of discussion common to those of us who are living on the edge (in a Killearn sort of way, at least).

This has been one of those weeks in which effort has not resulted in corresponding income. That was perhaps the biggest lesson I learned when going into business for myself seven years ago. How much or how hard you work has nothing to do with how much money you will make. Sure, it does in the long run (if all goes well), but you can’t pay yourself with a timecard (if those even still exist).

There are just too many other things to do that have nothing to do with generating income. There are too many projects that take too long to bill. There are too many prospects that remain prospects. And there are too many distractions to knock us off track.

I know, I know. Time management. But it’s more than that. It’s about balancing our daily activities so that we are providing flawless customer service, pursuing new business and attending to the tiny details that keep our doors open.

There are plenty of work-related activities to keep us busy. But it is too easy for an entire day to go by without moving the essentials forward. 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?

Let’s talk about it.

Achieving True Success Takes Time

I’m not sure how smart it is to go all “preachy” in the fourth day of a new business blog, but this being Good Friday, I figured I might get a pass.

As small-business people, it is very easy for us to work all the time. There always is something else to do – one last e-mail to send, one last report to complete or a quick call to return. The truth is that running a business is 24/7 – and for most of us, the wheels never stop churning, even when we are home with our families.

And there’s the problem. I’m sure many upcoming blogs will deal with this issue in some way, but let’s look at it today in the biggest picture possible. No matter how much there is to do, all our work is in vain if we let it define who we are.

We are not our business. We are not successful because we make enough money to support our family. We are successful because we have a family that loves us and would rather spend time with us than go to Disney this summer (although, admittedly, it might be close).

I say this as I didn’t get home until after 7 last night and will probably have to come in for a couple hours tomorrow (Saturday) morning. I am not naïve, and I realize that it takes time to make a business work – it just can’t take all our time. And even more importantly, it can’t take all our heart.

Don’t give your family your leftovers. Striking a balance is not easy, but it is essential. Think about what your kids will remember about you in 10 years. Think about what your spouse thinks of you now.

Again, I am not saying this as one who has completely overcome this common pitfall, just as one who loves his family more than his job.

And on this weekend, as we celebrate the resurrection of the One who loved us enough to die on the cross for us, let’s not miss an opportunity to love our families by giving them what they want most – us.

Have a blessed Easter.

Backing Up to Move Forward

I spent part of this morning writing a client e-mail newsletter that focused on the importance of backing up your data on a regular basis. The necessity of backing up our work, files and financial info (not to mention recent music downloads) is certainly not news, but how seriously do we really take it? What would happen to you if everything on your hard drive(s) was suddenly and unexpectedly gone?

I mean seriously gone.

While I am religious about backing up my QuickBooks files, I am less committed to regular data backups. And since what I sell is my time and what I create using my computer (as opposed to using the computer to keep track of what I am selling), I am in especially vulnerable.

I would probably most miss the thousands of e-mails that serve as a contact resource and history of client communications for much longer than they should. Maxing out Outlook is not a good strategy either, but that is another conversation.

The point is that even if you are a one-person shop, your data is the foundation of your business -- something you don't want to be without. So back up, back up, back up.

If you are interested in talking about good local resources to help you do that, please post them here. We could all benefit from your experience.

The Rollercoaster of Confidence

How’s business? While nice and well-intentioned, that question is most often intended to have the return volley power of a “Howya doin’?” The polite and expected answer is “fine,” accompanied by a confident head shake and slight lifting and scrunching of the bottom lip. (Do that now. See?)

But in reality, that question is a real one for many of us every single day. That is because the status of our businesses can change quickly. And so can our confidence. Some days we are king of the world, while other days we are a bit more unsure about the status of our empire.

In fact, how many of us -- no matter how long we've been in business -- still ask ourselves if we are doing everything possible to give ourselves a fighting chance? Or if we are really “on to something.” And how long before the darkest parts of our minds are free from thoughts like getting a regular job would be a whole lot easier?

So what is the answer? Admitting that things are slow and you are exploring a variety of options to make things happen is certainly OK if that is indeed the case. These are tough times, and many established businesses are struggling to meet payroll and pay for lots of overhead.

But we are lean and agile. Let’s take advantage of our size to adapt quickly, explore all our options and make the most of our resources. There is nothing better than working for yourself – even when the immediate future is unclear.

And that’s how business is. Thanks for asking.

Starting the Conversation

If you are like me, you are suspicious of any business person who has time to blog. While I generally believe that time is better spent actually doing our business than talking about doing it, there certainly are some subjects worth discussing.

It is my hope that this blog serves as a sounding board for area small businesses to share ideas, frustrations, challenges and opportunities. There is much we have in common -- probably more than we even realize -- and I hope this forum will bring those into the open.

This is not intended to be a portal for small business resources. It is not intended to be a networking site. It is not intended to be a harvesting site for new business. But if a little of that happens along the way, that's OK with me.

This blog is an open conversation between business people waking up every day facing the same issues. Where we go from there is up to us.

Let's talk.