The Purpose of a Business is to Create A Customer Who Creates Customers

Published by: Andrew Paul    |   Category: Blog, Business Reputation, Customer Service    |   Date: 04/05/2014

Customer Service

Anyone who’s spent part of their lives living and working in a small town will tell you it’s often something of a microcosm of the country at large. Small-town politics, for example, despite being centered around arguably more mundane matters than those on the national stage, tend to carry for local residents the relative gravity of the sausage-making wrought on C-SPAN.

But it’s only been recently that the methodology of doing business in a small town has had such relevancy to companies with larger markets. As technology has allowed us to reach more customers on the national level, it’s also brought those customers closer to us — and not acknowledging precisely how close is one of the biggest mistakes a company can make. With the advent of social media and customer-controlled websites that talk about companies for better or worse, the customer-business interaction you’d typically get in small towns is suddenly everywhere.

The result has been something of a renaissance for the particularly old-fangled notion of customer service, specifically great customer service. And the reason is simply that no marketing force a company could ever hope to exert is more powerful than the collective will of its customers — and if they’ve been treated better than they expected, they’ll communicate that far more effectively than any ad buy in any medium. We’ve discovered here that a more-than-satisfied client base is our biggest single source of new customers; we deliver better service than they’d ever hoped, and in turn they spread the good word.

Blowing away expectations to create new customers might seem like an innovative idea, but again, if you’ve lived in a small town, it’s old hat. One small town I lived in years ago had two liquor stores; one allowed people to bring their dogs in with them, and the other didn’t. Considering the dog-to-people ratio tipped in the pooches’ favor in this town, word got around. When it got back to the first owner that her customers appreciated the courtesy, she started keeping a tin of doggy treats behind the register, and forked one over to every pup. It was more than people expected, and it made the customers feel valued; they would always choose her store over the one just a few blocks over, and they told their friends so every chance they got.

Another example: there were also a handful of restaurants in this town, all doing a fine job of feeding folks good food. But at one of these restaurants, every night the chef would come out and visit with every single table in the place — periodically, and for (apparently) no reason, bringing out samples of desserts he was working on as a “sneak peek” sort of thing. It was more than people expected, and it made the customers feel valued. His restaurant was regularly full, and people recommended it to one another.

Seeing the pattern?

There’s a lot of talk about creating “raving fan” customers by under-promising and over-delivering; the problem with this approach is that most businesses don’t have the ability to manage their customers’ expectations so thoroughly. In order to over-deliver, first a business must figure out what their customers are expecting to happen — and only then can they exceed those expectations and effectively build happy customers that evangelize about their product or service.

Fortunately for anyone who’s looking to this model, the expectation at the moment is that most businesses have just terrible customer service. That’s because they’ve been able to get away with it and still keep customers; years of “press one if you’re calling about a product” produced only the mildest backlash. Indeed, it was only recently those customers have been able to talk to one another on a national level the way they would in a small town.

And to succeed with all that talking going on, you need to think like a small-town business — you need to stand head and shoulders above the competition. Surprise and impress your customers with your level of service and they’ll sing your praises until the end of time.


Related: The Cost-Benefit Analysis of Delivering Great Customer Service

The Cost-Benefit Analysis of Delivering Great Customer Service

Published by: Meredith Thornton    |   Category: Blog, Business Reputation, Communications, Customer Service    |   Date: 01/25/2013

The search for new customers is an expensive business. So why not invest your resources into building a lasting and profitable business relationship with your existing customers? The answer lies in delivering an unparalleled level of customer service.

Great Customer ServiceAccording to a National Federation of Independent Business Study, having good customer service ranked higher in assessing business success than either having a price advantage over your competitors or having a unique and valuable product or service. If you simply sell a quality product at a reasonable price, you are just like 95% of all other businesses out there doing what you do. People don’t buy products or services. They buy solutions to their problems. By adding exceptional customer service to the mix, you now offer a competitive advantage that acts to instill a sense of trust between business and consumer.

In business, you may have come across the phrase, “The customer is king,” or “The customer is always right.” Given the experiences you may have had in the past dealing with those who have unrealistic expectations or requests, outrageous claims, or downright dumb questions, it often becomes a nuisance to cater to the wants and needs of each and every customer. Whether you like it or not, your customers pay your bills.

It’s interesting to note that, based on a Harvard study, an unhappy customer will likely become a repeat customer 80% of the time if you are able to rectify the issues that they have encountered with your product or service. People are far more willing to spend their time and money where they are appreciated and valued.

Developing a customer service strategy for dealing with customers is really a no-brainer. The way that your customer service department manages the queries or complaints of current or prospective consumers has a direct impact on their perception of your business and its growth potential. There are limitless ways that you can deliver a positive customer service experience, but I will go ahead and just jot down a few to get you started.

  1. Encourage customer feedback and welcome suggestions whenever possible
  2. Go the extra mile and fulfill all customer requests within reason
  3. Don’t ever overpromise something NOT within your means
  4. Know when and how to apologize
  5. Send thank you notes and periodic follow up emails
  6. Conduct after sale and customer service surveys

The necessity of maintaining long term relationships with your customer database is discussed further in a blog entitled, It’s Time to Start Dating Your Customers.

Adopting a consumer centric approach will allow you attract more business while spending less on marketing. Allowing your customers to do the selling for you through referrals will further your word-of-mouth marketing strategy, the “holy grail” of positive brand recognition.

Individuals are far more apt to trust recommendations from people they know rather than from the advertisements of promotions that they see. Implement a service-first culture and mentality throughout your organization so that everyone is aware of the commitment they must make to your customers to ensure that they are valued and respected in all circumstances.

A good salesperson can sell anything to anyone once. Good customer service can bring them back, time and time again.