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8 Tips To Improve Your Customer Service

Customer service experts agree: Pay attention to your customers' experience when dealing with your business and you'll be paid back tenfold

By Brad Perriello, Associate Editor -- Industrial Distribution, 3/1/2007

In every business, the quest to find new customers is never-ending. Without sales growth, no business can succeed.

But retaining the customers you already have is just as vital. As customer service expert John Boyless says, keeping your customers happy is the key to keeping them.

“A lot of companies are so preoccupied with day-to-day operations, but if we don't have customers for life we're going to go out of business,” says Boyless, an associate professor of industrial distribution at Eastern Michigan University.

With that in mind, INDUSTRIAL DISTRIBUTION asked Boyless and fellow customer service gurus Curt Tueffert, Jeanne Bliss and Kim Shacklett for their advice. Below you'll find the result: eight tips to help you make the people with whom you do business customers for life.

Tip #1: Communication is key

This means more than telling customers about your latest discount specials. Bliss, who has led customer service initiatives at companies as varied as clothing retailer Lands' End Inc., computer giant Microsoft Corp. and auto maker Mazda Motor of America, cites the importance of focusing on what you hear from customers and making sure they know you can fulfill their needs.

“Be very clear about what you deliver to your customers—what is different and special about your product and service?” Bliss says. “Develop and reward the skills for listening and understanding what the customer needs as the keys to good service.”

Boyless agrees, listing “being able to listen” as the most important factor in customer service.

“Listening to your customers is the best way to understand what they really need,” he says. “Listening to your customers and actually giving your customers what they're looking for.”

Tip #2: Exceed customers' expectations

Tueffert, regional sales vice president of the Gulf Coast region for DXP Enterprises Inc., a Houston-based distributor, advises going beyond what your customers expect to deliver truly superior service.

“This is an attitude, more than an aptitude, where the sales rep will do whatever it takes to ensure the customer is well taken care of,” Tueffert says.

Boyless agrees, citing the importance of meeting last-minute demands or requests for odd or specialty items as quickly as possible.

“If a customer needs a product that you don't have and they need it really badly, you've got to go out and get it. You've got to find a source for them,” he says.

Tip #3: Focus on feedback

It's one thing to stress the importance of communication. But when it comes to understanding your customers' needs, the experts say it's vital to see things from their perspective.

“Ask passionately about the customer experience in meetings. Care enough to know what the customers go through and ask how the experience is being delivered,” Bliss advises. “Bring in customers to talk about what they need the most. … The biggest thing that small to mid-sized players have at their fingertips is the feedback their customers give to them.”

Another way to make sure you understand how customers experience your business is to act like a customer yourself, she adds.

“Make sure you're buying [your] products and services yourself. This seems like a 'no-brainer,' but it's surprising how many leaders don't know what their customers are experiencing, because they don't walk {their] stores, sign up for service, or call for help.”

Tip #4: Simplify your systems

A common impediment to providing good, timely service is an outdated IT system. As Bliss puts it, “Many [distributors] are not taking advantage of the [relatively] low-cost tools available to categorize and assign operational accountability for fixing the things that are broken.”

“Small companies would be wise to look into software to help them with letting their customers actively give feedback so they can act on it,” she adds.

Boyless points to the example of a major national distributor's Web site upgrade.

“It's the ease of being Web-based,” he says. “Their [customers are] pre-approved for X number of dollars. They can go to a Web-based program and just place their order.”

And you don't need to break the bank to provide that type of service, he adds, citing companies that provide programs, services and management for Web-based inventory sites fairly cheaply.

“Build a savvy Web site that replicates the call center experience for your customers,” adds Shacklett, vice president of call centers for J&L Industrial Supply, a subsidiary of MSC Industrial Supply Co.

That site should include functions that allow you to track each individual sale or transaction with every customer, she says, adding that many telecommunications providers offer such software.

“Without Web-based systems in place, it limits your ability to link to key tools and functionality that may be strategic to your business,” Shacklett notes. “This type of software … has logic built into it that allows you to turn all of your customer interactions into business insights.”

For example, such platforms give you the ability to search customer interactions using specific words or phrases your customers use.

“[This] can be extremely beneficial in capturing what your customers are feeling, and allows you to narrow feedback down to specific areas. You can also drill down to individual customer interactions if needed,” Shacklett says.

Tip #5: Measuring the metrics

As important as subjective evidence from customers and your own experience can be, it's also important to have data to measure your level of service. And getting that data can be as easy as asking a few simple questions.

“I like to ask, 'What are we doing well, and what can we get better at doing?'” Boyless says.

Systems play a role in how you can tap into your customers' thoughts about your business, Tueffert says, adding that Web-based technology can make it easier to get feedback.

“Most people want to provide feedback if asked,” he says. “In our high-tech, Web world, it would be easy to go to a Web site and complete a short survey, or have a place to go to submit comments and feedback '24–7.' … Something where the customer can provide quick feedback and then slow feedback. Quick, [as in] how are we doing, and slow, [as in] give us your opinion.”

Another way to easily obtain regular feedback is to include a pair of questions on your monthly invoices to customers, Bliss says. Asking, “Would you recommend us to colleagues, family or friends?” and “What's the one thing you'd like us to fix?” can yield valuable, actionable feedback from your customers, she says.

Tip #6: Follow-through is fundamental

Once you have a sense of how well you're doing, it's time to translate the feedback into action. Bliss says making sure you address your customers' gripes and glitches, rather than letting their feedback fall into a black hole, sends the message that you're serious about providing the best customer service possible.

“Customers are sick to death of being asked [for feedback] with no real follow up,” she says. “Companies should take advantage of communication they are already having with their customers to find out how things are going.”

Shacklett says another important aspect is making sure your back-office operations are as efficient as possible.

“Look hard at your internal processes,” she says. “Many times there are wasted, non-value- added steps which delay outcomes. This varies from standard policies and procedures to your business systems workflow and the screens your teams access to service customers.”

Tip #7: Create a culture of customer service

Putting customer feedback into play depends on the training and culture you instill in your employees.

Tueffert says its crucial to have an, “open doors, open ears” policy when it comes to creating a service-oriented culture in your organization, in which, as he puts it, “the owner/president and [everyone on] down are all wired to solicit feedback from the customers.”

For Bliss, the key is hiring people who already have an ingrained customer service focus, and paying attention to what they report from customers.

“Take the feedback from the frontline seriously. Really fix what their customer says is not working,” she says. “How long does it take from the time you sign a new contract to when someone welcomes the customer and really understands what they need?”

Tip #8: Make it personal

Boyless says it helps to put a human face on your business through periodic visits to your customers.

“Communicate with your customers when they don't expect you to, just to find out how they're doing, how their company is doing. Do something out of the ordinary, throughout the year, not just during the holidays. It's a way of saying, 'We appreciate your business. Is there anything we can do to help you?'”

Though it seems the opposite of the human touch, another way to forge a connection with customers is through email. If you go that route, Boyless says the key is to personalize each missive in some way.

“What you don't want to do is send an e-mail that says, 'Dear Customer,'” he says. “Personalize stuff electronically, or just drop by to say, 'Thanks for the business, we're here to help in any way we can.'”

 

The numbers don't lie

Improving customers' satisfaction with your business translates directly to your bottom line. Still not sure you're ready to invest in improving service? Check out these statistics:

  • It costs between five and six times more to attract a new customer than to keep an existing customer.
  • Companies can boost profits from 25 percent to 125 percent by retaining 5 percent more existing customers.
  • Only one out of 25 dissatisfied customers will express dissatisfaction to you.
  • Happy customers tell at least four others of a positive experience. Dissatisfied customers tell as many as 12 about a negative experience.
  • Two-thirds of customers do not feel valued by those serving them.
  • Acquiring new customers can cost five times more than satisfying and retaining current customers.
  • A 2 percent increase in customer retention has the same effect on profits as cutting costs by 10 percent.
  • The average company loses 10 percent of its customers each year.
  • The customer profitability rate tends to increase over the life of a retained customer.

Sources: Extreme Management, Mark Stevens, 2001; Leading on the Edge of Chaos, Emmett C. Murphy and Mark A. Murphy, 2003

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