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 Figure 1 Welcome to the world of customer service in small business. Filled with lackluster performance, lack of tools, limited budgets, weak tracking, poor training, and a ton of excuses. Isn’t nice to call a small business inquiring about their “stuff” only to be shoved into voice mail hell, or worse, stuck on the phone with a temp worker who doesn’t know much or care? No wonder businesses fail in large numbers.
The Real Situation
It’s not about determination or desire to foster better customer experience. Business owners and their staff are filled with good intentions but lack execution. Regardless of size companies are facing a dilemma when it comes to servicing their customers. Figure 1 shows the relationship between customer experience and general factors that may affect it. Note that in all categories desire is the foundation. People want great service whether the product is $1 or $1 Million. Most of the time expectations are not met and the buying experience is “settled” upon. Consumers have to take for granted that poor service may go hand-in-hand with lessening quality/price. The current market demonstrates this concept by a growing glut of big box stores, discount warehouses, specials, rebates, and automatic sales. Each one is designed to purchase customers by paying through promotions. Doesn’t anyone wonder why a company doesn’t lower their retail price permanently and forget the headache of discounting and constant sales promotion?
Components of Service
Before getting into competitive pricing and value, refer back to Figure 1 to explore the general relationships between desire and experience. Buyers approach sales transactions with themselves in mind and sales personnel are supposed to match their desire with product benefits. Bingo, Sale! Unfortunately that doesn’t happen nearly enough in small business. The reasons are many but primarily lack of training and employee involvement. Business owners are entirely at fault. Yes, it’s true! With no investment in training and building culture, what business could manage their customers effectively? None. Even if buyers choke down poor quality and “volume” discounts for substandard “necessary” products, eventually something has to give. The normal result…. no more revenue. You can only “buy” customers for so long before they become fed up.
The Answer is Value
Why does anyone buy a $100,000 sports car instead of a moped? Or, why does anyone by organic instead of bulk? The answer is perceived value. The real question should center on how can a business owner build a strong link between desire and purchasing. The first step is employee training and building a competitive price structure from both costs AND market evaluation. There is a frightening amount of small businesses that build their product mix only on cost and limited research. They neglect market evaluation, leveraging customer service, and their biggest asset… themselves. It doesn’t matter if a business is a sole proprietorship or a mid-sized corporation; value comes from the combination of human capital, operational excellence, and market knowledge. Success is demonstrated in higher revenues, better “reputation”, and a stronger bottom line.
So take a hard look at your business model and value of your product/service; then decide if taking the message and returning the call is better than letting it go to voice mail.
You are driving in the rain and experience a flat tire. Pulling over and whipping out your cell phone to call emergency, you notice two tire repair locations within easy walking distance. The one on the left looks clean with proper landscaping, well-lit signage, and a covered entrance. The one to the right has weeds growing in the asphalt of the parking lot, missing lights in the main sign, and dirty windows. Which one will you choose? When will price and brand selection come into your decision? The short answer, after you decide on appearance. Does it really matter if one or the other is advertising a special or offers to pick you up on their parking lot signage? A little bit but not enough to sway your decision. It is common knowledge that people want to obtain the best “service” in the cleanest environment possible. This creates value.
 Profits build from customer experience Restaurant mishaps
Taking the idea of outside maintenance inside, let’s look at the effect of a “clean and properly maintained” bathroom in your favorite restaurant. Even with the choice of several locations, your favorite eatery keeps competition at bay through a clean bathroom. Ask yourself how often do you go into a restaurant and head for the bathroom to wash your hands or freshen up prior to eating (hopefully, regularly). After the outside visuals, greeting staff and bathrooms are critical to customer experience. Dirty bathrooms mean dirty food habits in my book. Just saying… Along the same lines, visiting a restaurant to “just” use the bathroom because it’s clean puts pressure on the customer to buy something or at least look at the menu. Everyone knows that nothing is truly for free.
Strip mall shenanigans
Going to the mall can be a ritual for the weekend and often entails selecting where to go over what to buy. The selection process starts with availability of parking and products but also rests on adequate displayed directions, properly maintained grounds, and ambiance. How many times do you go back to places that appear grungy and unkempt with peeling paint, weeds, filthy signs, or poor parking lot directions? Not often is my guess. Business owners maintain competitive advantage by being part of well-oiled retail machines not pushing clunkers. All aspects of the buying experience have to be addressed regularly including maintenance, cleanliness, and organization to truly impact customer service. If they are not, people will simply not show up anymore.
Power of contracts
As leasees, small business owners have the power to make demands right up until the leasing agreement is signed. After that, they are at the mercy of their landlords or leasors. Signage, environmental upkeep, security services, parking services, utilities, policies and fees can be defined or challenged during negotiation and are the responsibility of the business owner. They all can cost either party money and personnel but should not be the sole responsibility of the tenant. Contracts should be the basis for a successful relationship defining roles and responsibilities to ensure that potential customers always see small businesses in their best light.
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There is a frightening amount of small businesses that build their product mix only on cost and limited research. They neglect market evaluation, leveraging customer service, and their biggest asset… themselves. It doesn’t matter if a business is a sole proprietorship or a mid-sized corporation; value comes from the combination of human capital, operational excellence, and market knowledge. Success is demonstrated in higher revenues, better “reputation”, and a stronger bottom line.