Lisbeth Calandrino::

Last month I appeared on Richard Naylor's TV show "The Money Factor" to talk about business strategy. I was asked ahead of time to provide what I considered to be the Top 10 Customer Service Tips that businesses could employ to survive a downturn. The following are my thoughts. What are yours?

1. Answer your phone. We’re all tired of voice mail and "press one".
2. Get personal. There are fewer customers to go around, take care of the ones you have. Find out what’s important to them and do it.
3. Return phone calls immediately. Everyone’s busy but as a customer, I don’t care about everyone else—only me.
4. Be upbeat but forget "have a nice day." We are all worn out with that expression, so change it to "I hope you get your shopping done" or "take some time out for yourself."
5. Throw in something extra; maybe it’s a great or a sincere "hello, how is your day going?" or a small gift. A cup of tea or coffee would be great.
6. Treat customers like friends, not customers. The world is more transparent, show your customers you care. Find out about their families, their children and their hobbies—that’s what friends do.
7. Go the extra mile—even if there’s no immediate profit. We remember when someone is nice to us. Letting a customer use the phone or the bathroom.
8. Listen to your customers.
9. Take care of perceived issues immediately. Since 96% of customers never complain and just go away mad, going the extra mile to show the customer that you really care will help tremendously.
10. Reward customers for being customers. Send them thank you notes, a holiday or birthday card or plan a holiday event and invite your past customers.

What are your tips for businesses in a touch economy?

If you're interested in watching my TV interview from "The Money Factor," click here. Feel free to subscribe to my YouTube channel as I'll be posting video soon!

This Wednesday I'll be a guest on Paul Vandenburgh's radio show talking about anything and everything Red Hot Customer Service. Here are the details:

What: Strategies for Providing Red Hot Customer Service

When: Wednesday, January 27, 2010, 9 a.m. ET

Where: on the radio at 1300 AM or online at www.talk1300.com.

Please tune in!

There seems to be a lot of blame going on in Albany, maybe its catching. 

In Albany we seem to have three situations: the closing of the inner city YMCA, the building of the new Honest Weight Food Co-Op, and a charter school. 

The Y and the charter school have poor attendance — code for "not enough customers" — and they are both ruminating as to why the facilities should stay open. The Food Co-op is raising money for their new building and does not have enough investors. I know, I know, these are bad economic times—let’s get that out of the way. But let me remind you, a business is a business; I don’t care if it’s a not-for-profit, for-profit or no-profit. To stay in business, a business must have enough money to pay its bills and have some left over—that’s called profit. 
The problem for all three businesses is not enough paying customers— period. Did this just happen? I doubt it. Many of you know these statistics by heart, by the time a business is 5 years old 80% of its new business comes from referrals and existing customers.

Who is supposed to get customers for these businesses?

The problem with customer loss, it doesn’t just happen. Some bad reviews, annoyed customers and you’re on your way out the door.

By the way, I go to the local Y; it’s really close, I love my trainer and I can get in and out in 45 minutes.

Why? Because there are no customers! I feel the same way about Staples and I hope they’re not next.

Yesterday I’m on my way out of the Y and I hear a couple at the desk ask about the indoor track. I want to cry over the next three minutes as I listen to the woman at the counter literally talk the couple out of using the track.

With all due respect she didn’t look like she had ever run anywhere — no less on the indoor track. She also suggested that the couple go to the Y across town! There were too many people standing around agreeing with her for me to slap her — maybe they all work for the other Y on their days off. I got to speak with the “potential customers” in the parking lot.  They said they were delighted that she had told them about the Y and for being so truthful. “Truthful, I remarked, she doesn’t look like she ever saw the track, to which they laughed and said that’s what they were thinking. I also added, I’m a runner and as long as there are no cars or dead bodies in the way what could be wrong with the track? By this time they were on their way to the crosstown Y. They say an unhappy customer will tell anyone who will listen so you can be sure the membership isn’t going up this month. 

By the way the Y needs a bunch of members to stay open.

So the track is not great; the upstairs gym was a little cold for Zumba and Yogi, but I can wear a sweater. Did I tell you the Zumba instructor forgot her music? As a friend said, it’s like going to a gun fight and leaving your guns at home.  The Zumba instructor had 50 excuses as to why her life was too complicated to remember her music, Lisbeth, mind your business and hold your tongue. The woman next to me replied just loud enough for me to hear, "who cares about her life?" and then she repeated in Spanish for her friends!

Okay so the Co-op is another story. I have been volunteering to pack bags at the checkout. This is a good time to ask if a person’s a member, because members get an automatic 2% discount. Of course after bringing this up the cashier explains that I didn’t tell the truth. She says you have to invest $100 and if you want a 10% discount you have to work 3 hours a month.

Doesn’t she know, most people don’t want to work for “nothing” — not even 10%? Consider that a $100 investment will make you feel like an insider, part of something good.  In addition she said I was pushy. 

Guilty as charged!  Some of our customers travel 3 hours to come to the Co-Op, honest. Shouldn’t we give them a little something extra?

In my book, pushy is when you’re trying to sell something of little value, not something of value.

Oh don’t forget the Charter School with the kids on TV crying about their school closing. The administration said they were proud of the kids for saying what they felt! I don’t even know what that means. They need more students to stay open and it seems that’s the administration’s problem. The effect is the closing of the school; the cause is not building the membership from day 1! Let’s not make it the kid’s responsibility to go out and get the sympathy vote.

Some thoughts about sales:

• Sales are what make a business whole. 
• Without customers there’s no reason for a business. 
• In a business, selling is everyone’s job; teach them how to do it. 
• Understanding why customers stay or leave is everyone’s job. 
• One “really” unhappy customer can ruin your business. 
• 96% rarely complain, they just go away mad. 
• Things might seem okay, but it’s likely most customers just aren’t happy. 
• How about some customer service training for all three of these places?

By the way, being proud of the company you represent is real customer service.

I hope Lincoln Pool isn’t next. 

Resources

Honest Weight Food Co-op members approve design of new $6M store

The Adage "Absence Makes the Heart Grow Fonder" Doesn’t Work for Retail

In the last two days I have had the same conversation with two entrepreneurs who've been saying: "When I’m not here my customers want to know where I am and when I’ll be back. Customers just want me!"

This is both good news and bad news. The good news is you’re important to your customers. The bad news: you’re important to your customers. If you’re the only one customers ask for it’s likely your business will be in trouble — unless you want to be in your store all the time. You must be able to understand the process of customer service and then train your salespeople, or you will be forever “stuck” in your business. Not only will you be stuck but you’ve actually lowered the value of your business. If the business can’t run without you you’ll never be able to sell it. In other words, without you there is no business.

The reality is that some business owners love being the center of their businesses; others don’t realize they are the center of their businesses. Growing a business is not easy; in the beginning it may be fun; lots of people coming in, asking for you and then buying your products. But if you’re the only one they want to buy from, look out.

Building a business is building relationships with customers. If the customer doesn’t like you it’s doubtful that she/he will buy your products. The data suggests that the male customer doesn’t need a strong relationship with the salesperson. Traditionally men prefer to capture, not hunt. If you’re all about capturing you need to keep your eye positioned on the target and go in for the kill. This is a singular experience, and may the best man win. 

Women on the other hand traditionally enjoy the hunt. They like to look, compare, uncover and then determine if it’s worth capturing. If they don’t find what they want, they continue the hunt. If it’s not perfect a woman will go home empty handed and go back to hunt the next day. This is why women do their own hunting; how can you trust someone to buy the right thing unless they’ve searched and compared?

The word “capture” is rarely used by women. On the other hand, “going hunting” is part of their vocabulary. When you are on the hunt, you use all the resources available; this includes the salesperson. This is where customer service comes into play.
Women seek customer service experiences, not sales experiences. A female shopper will make friends with the salesperson — particularly if the salesperson is female. By the end of the transaction it’s likely they will be planning a luncheon engagement or meeting for coffee. The relationship is not about the transaction; it’s about two people sharing their likes, dislikes and in many instances their lives. Where salespeople screw up is thinking the transaction is just a onetime event and it’s all about the products.

Being liked by the customer is the essence of the business. Remember 80% of new business comes from existing customers.

Why let a customer disappear after the sale? They are your link to the next customer. If they can’t remember you how will they remember to tell their friends? The adage "absence makes the heart grow fonder" doesn’t work for retail.

Consider the following:

• Are you building relationships with your customers after the sale? 
• Do you hold events to bring your customers back? 
• Are you watching your salespeople with customers, how are they doing? 
• Are you teaching your salespeople what you know about people? 
• Do your salespeople act like they care about the customers? 
• Do they show the same caring you show? 
• Are customers calling asking for your employees?
• Do your salespeople talk about your product warrantees, give out product literature and let the customer try out your products?
• Are you getting e-mail addresses from customers to keep them up to date with discounts, products and other information that will help them?

Remember your last sale is the link to your next sale.

Legal Sea Foods Knows!