Customer Service Gives Little Guys Edge over Big Companies

“Economic recovery will be powered by small businesses. Period," wrote Tina Loza, current president of the local chapter of the National Association of Women Business Owners (NAWBO), upon returning from the National Conference in Washington, D.C. She said, "The message during the conference was clear and coming at us from all sources, Nancy Pelosi, Valerie Jarrett, and Karen Mills. They all had one clear, unwavering message...." Small businesses are the answer.

But small business owners need to start believing it and acting like it!
 
Recently after conducting a workshop on the topic of Small Business Marketing, a young woman approached me about a business she wanted to start. I was encouraging her with statistics and information, when she let out a big sigh and said, " Yes, but who will want to do business with my little company, when they can go to the big established company in town?" With a mixture of surprise and mild scolding, I warmly asked, "Girlfriend, have you not heard anything I've said in the last two hours?" She muttered, "I know, I know."

I pondered her comments as I drove home that night. It's one thing for business owners to hear all the "shoulds" of marketing techniques - the importance of having a plan, conducting research, formulating a target audience, determining your niche and value, and serving your customers through knowing their expectations. But it's quite another to actually apply and live it.

Let me enlighten you with the grim statistics: 50 percent of small businesses fail within the first five years. That's not even counting the hundreds more that never even get off the ground. Several reasons contribute to their failure. Lack of planning is a major factor. And business owners don't fully grasp that they have a major competitive advantage: their small size. This becomes the basis for providing personalized customer service.

Small businesses do themselves and their businesses a disservice by not knowing enough about their customers and what those customers expect. A few years ago, Bain & Company conducted a study of 382 companies, revealing some interesting findings: 80 percent of the companies surveyed believed their customer service was already exceptional. And did their customers agree? In fact, only 8 percent of these same companies' customers rated their customer service experiences as "superior." It sounds like someone is out of touch --and it's not the customer.

Small businesses have the opportunity to learn from this study to leverage their competitive advantage. Here's how:

• Understand that everything you do as a business owner shows your commitment to customer service, from answering the phone to delivering the invoice.
• Learn what customers want; learn what they expect. Remember that a basic, human need is to feel important and respected. How can you deliver this for your customer --even in a small way? A handwritten Thank You card produces a big impact.
• Apply the "WIIFM" concept: know that your customers are asking "What's In It For Me if I continue to do business here?" Ask yourself, "Would I want to do business here?"
• Deliver consistency of product and service. Train your employees. Use yourself as the model.
• Create systems and standards so that excellent customer service becomes the norm. Customer loyalty is the reward.
• Document great customer service moments. Use these to inspire your staff.
• Embrace customer service. Adopt these practices and begin building a stronger reputation with your customers. Those who provide world-class customer service will stand out from the crowd.
• Be a part of jumpstarting the new economic recovery.

 

Carolyn Ortman is owner of CKO Marketing & Training Group and is a 17-year member and past president of the American Marketing Association - Inland Empire. She can be reached at 951-784-9174 or www.ckogroup.com. Carolyn also teaches Customer Service Management at UC Riverside Extension.