Sunday, March 25, 2012

Customer Service- A Study in Contrasts

"There is a spiritual aspect to our lives - when we give, we receive - when a business does something good for somebody, that somebody feels good about them!" ~ Ben Cohen, Ben & Jerry's


Some businesses really get the importance of customer service and others just do not. In many cases, those that do not get it compete on price alone, knowing that price is all their customers really want. However, this type of business strategy does nothing to ensure loyalty or repeat business. In my opinion, business owners who do not provide great customer service either do not see its value, do not have the funds to support it or are simply missing its profit potential.

Two of my recent encounters with businesses demonstrate the polar extremes of customer service. On one end of the spectrum is a restaurant I visited in Hollywood, Florida. I was in Hollywood to deliver a speech, and some clients and I went to this restaurant when we broke for lunch.

When we walked into the restaurant, there was no one in the entire place - no customers, not even staff! After waiting for a short while - not really sure why we waited at all - an elderly man came out, walked up to the table and said, "What do you want!"

The greeting - if you can call it that - was completely devoid of any welcome or friendliness, and the lunch service got worse from there. We had to ask for menus, silverware and salt. I even had to walk into the back of the restaurant to find him and ask for our check, which he delivered five minutes later.

The quality of service at this restaurant was so bad that, if I had not experienced it myself, I probably would not believe it possible. Needless to say, we will not be going back to this restaurant. Ever.

I just can not imagine why anyone would allow a business to be operated like this unless it was an anomaly. But in the case of this restaurant, it was not just an off day. After talking with some other folks who had been there before - something I probably should have done first - I discovered this horrible customer service is standard for that place.

In stark contrast, my experiences at So Pure Salon in Tallahassee are always amazing, from the moment I walk in to the moment I walk out.

When I walk into the salon, I am always immediately greeted with a warm smile and offered something to drink. My stylist, Christine, is excellent. She goes out of her way to make me feel special, whether it is by giving me a short scalp massage while washing my hair or being sincerely concerned that I am happy with my hair.

When she is finished with my hair, she walks me to the front desk - these little gestures make such a difference - where she gets them to schedule my next appointment. Three days before the appointment, they always text and call to remind me.

Another special thing about Christine is that whenever I talk to her about her customers, she never refers to them as "customers" but calls them "guests" and is always very respectful.

These extra special touches permeate the entire experience at this salon. For example, when I buy hair products, the cashier/greeter rings me up and puts the product(s) in a bag, but instead of handing me the package over the counter, she walks around the counter to hand me the bag. It is such a nice touch.

Given these accounts, it should not surprise you that So Pure Salon just doubled in size and the restaurant will not likely last another year.

While these two examples are extremes, they clearly illustrate how a business that puts tremendous emphasis on customer service flourishes and one that does not languishes.

Now go out and make sure that customer service is always at the top of your mind. Your business will be much more successful if you do.

You can do this!

Customer Service-

Customer Service - A Study in Contrasts

March 22, 2012
By Jerry Osteryoung

"There is a spiritual aspect to our lives - when we give, we receive - when a business does something good for somebody, that somebody feels good about them!" ~ Ben Cohen, Ben & Jerry's


Some businesses really get the importance of customer service and others just do not. In many cases, those that do not get it compete on price alone, knowing that price is all their customers really want. However, this type of business strategy does nothing to ensure loyalty or repeat business. In my opinion, business owners who do not provide great customer service either do not see its value, do not have the funds to support it or are simply missing its profit potential.

Two of my recent encounters with businesses demonstrate the polar extremes of customer service. On one end of the spectrum is a restaurant I visited in Hollywood, Florida. I was in Hollywood to deliver a speech, and some clients and I went to this restaurant when we broke for lunch.

When we walked into the restaurant, there was no one in the entire place - no customers, not even staff! After waiting for a short while - not really sure why we waited at all - an elderly man came out, walked up to the table and said, "What do you want!"

The greeting - if you can call it that - was completely devoid of any welcome or friendliness, and the lunch service got worse from there. We had to ask for menus, silverware and salt. I even had to walk into the back of the restaurant to find him and ask for our check, which he delivered five minutes later.

The quality of service at this restaurant was so bad that, if I had not experienced it myself, I probably would not believe it possible. Needless to say, we will not be going back to this restaurant. Ever.

I just can not imagine why anyone would allow a business to be operated like this unless it was an anomaly. But in the case of this restaurant, it was not just an off day. After talking with some other folks who had been there before - something I probably should have done first - I discovered this horrible customer service is standard for that place.

In stark contrast, my experiences at So Pure Salon in Tallahassee are always amazing, from the moment I walk in to the moment I walk out.

When I walk into the salon, I am always immediately greeted with a warm smile and offered something to drink. My stylist, Christine, is excellent. She goes out of her way to make me feel special, whether it is by giving me a short scalp massage while washing my hair or being sincerely concerned that I am happy with my hair.

When she is finished with my hair, she walks me to the front desk - these little gestures make such a difference - where she gets them to schedule my next appointment. Three days before the appointment, they always text and call to remind me.

Another special thing about Christine is that whenever I talk to her about her customers, she never refers to them as "customers" but calls them "guests" and is always very respectful.

These extra special touches permeate the entire experience at this salon. For example, when I buy hair products, the cashier/greeter rings me up and puts the product(s) in a bag, but instead of handing me the package over the counter, she walks around the counter to hand me the bag. It is such a nice touch.

Given these accounts, it should not surprise you that So Pure Salon just doubled in size and the restaurant will not likely last another year.

While these two examples are extremes, they clearly illustrate how a business that puts tremendous emphasis on customer service flourishes and one that does not languishes.

Now go out and make sure that customer service is always at the top of your mind. Your business will be much more successful if you do.

You can do this!

Sunday, March 18, 2012

Is Technology Replacing Customer Service?

“Make your product easier to buy than your competition, or you will find your customers buying from them, not you.” ~Mark Cuban

Watching trends is such an important task for entrepreneurs. One trend that I see happening now is the replacement of traditional customer service with technology. This trend has been at work for some time, but now is really starting to accelerate at a break-neck pace. This is a game changer for any business, and you just cannot afford to miss out.

One of the reasons the use of technology is becoming so widespread so quickly is that the younger generation prefers to communicate through technology as opposed to traditional, in-person methods of contact. In addition, increased competition has made it more important than ever to keep costs in line, and businesses are using technology as a more cost-efficient alternative.

From a customer service perspective, technology has changed how consumers interact with companies and receive information and assistance with their products and services. Smart phones and mobile apps have given consumers the ability to do so many things for themselves that formerly required a phone call to a customer service representative.

In addition, it used to be that you had to have personal contact to learn about a product, but so many companies, from Amazon to Sears, now offer short videos about products and services on their websites. A wealth of videos about product and services are also available on YouTube. Though not always professionally done, you can glean so much information from them. With all these resources so readily accessible, consumers are able to get information about a business’ products and services without ever setting foot in the door or talking to a representative of the business.

Case in point: I am buying a new house and have been shopping for a new refrigerator. I was able to go online, view videos of each model I was considering, and even see other customers’ reviews. I had everything I needed to make a decision without ever talking to a living person.

For another example of how technology is being used in customer service roles, just look at how many stores have moved to automated cashier machines. You no longer have to talk to a person to check out. Of course, these are not my favorite things, as every time I use one, I have to call for help. This may just be my problem, however.

There is probably no other type of business where the adoption of technology is having a greater impact than financial institutions. Credit unions and banks typically operate with a gross margin of approximately 4 percent – that is, they have to cover all of their operating expenses with this very small number. Now, with interest rates being so low, this margin is shrinking even further. With profits continuing to be squeezed, financial institutions have no other choice but to change their business model from customer service-oriented to more technology-oriented in favor of the cost savings.

Consumers are now able to handle so many of their banking needs using electronic methods – conduct basic transactions on their mobile phones, open new accounts online, apply for loans online and even get approvals electronically. This is significantly reducing the number of new locations being built.

Now, I am not saying that you should decrease the level of customer service you provide. Rather, what I am saying is that you need to recognize these trends are quickly becoming standard practice for many businesses.

Now go out and make sure you are thinking of how technology will change your customer service function. Do I think this will happen overnight? No, but the trend is fast becoming the norm, so you need to board this train early!

You can do this.

Sunday, March 11, 2012

Customer Theft

“Bankruptcy stared me in the face, but one thought kept me calm: soon I'd be too poor to need an anti-theft alarm.” ~Gina Rothfels

Being a university town, backpacks are a common sight around Tallahassee, given the number of students. The proliferation of book bags and their potential for making theft easier have given rise to a variety of "backpack" policies at the stores that cater to students.

Most have signs posted saying you must either leave your backpack on a shelf at the front of the store or be subject to a search.

While these kinds of policies have become pretty widespread, one retailer took it to the extreme. Not only does he ban backpacks and book bags, but he has also disallowed purses. When I questioned him about this policy, he said that he has never had a complaint in the three years since he posted the notice.

He may not have received a complaint, but on my visit, I watched a bunch of potential customers come to the front door only to turn around and leave when they saw the sign.

Now, understandably, every business wants to keep theft to a minimum, but overly tight restrictions can stifle business by turning away potential customers. It is questionable that the value this practice adds by protecting inventory is worth the lost business. As an aside, it is worth noting that the majority of theft is not committed by customers, but by employees.

Unfortunately, theft is a given. No matter what theft deterrent system you impose, you will never be able to abolish it completely, and you really need to be aware of the affect your restrictions are having on your customers.

I can choose to have sales of $500,000 with $10,000 in theft loss, or I can impose overly restrictive policies that drive away a percentage of my customers and bring in $100,000 in sales with no theft. Obviously, the first scenario would be preferable as the bottom line is much higher, even with the theft loss.

I have seen entrepreneurs take theft personally, feeling as though the thieves are purposely trying to hurt them. Others let their egos get involved and they lose all objectivity. It goes without saying that no one likes theft, but retailers need to accept that a certain amount just comes with the territory.

Having some measure of prevention to reduce the incidence of theft is important, but it is also important to understand that the cost of totally eliminating theft is just too high, both in terms of additional equipment and lost sales. Rather than focusing on eradicating it completely, you need to do a cost/benefit analysis to ascertain whether the benefit of prevention outweighs the cost.

Now go out and evaluate your theft policy. It should not be so restrictive that it discourages customers from coming in. Neither should it be too lax that it encourages theft.

You can do this!

Sunday, March 4, 2012

Turning 70

"Our birthdays are feathers in the broad wing of time." ~Jean Paul Richter

On February 25, I turned 70, which is a milestone I never thought I would reach. All of a sudden, one day I just woke up, and I was having my 70th birthday party.

As I prepared to celebrate this big birthday, I spent a considerable amount of time thinking about my life and what I have accomplished. I am fortunate to have had the opportunity to do a great many things in my 70 years, having been a father, a professor, an entrepreneur, a writer, a community volunteer, a leader and a mentor.

As I think back over my life and try to imagine which of these things will have a lasting impact, it is pretty simple. In addition to my kids and grandkids, who are my legacy, the things that have given me a real sense of value over the years are those where I helped others without expecting anything in return.

During the course of my job at the Jim Moran Institute, I helped thousands of entrepreneurs, and the same can be said of the hours I spent doing volunteer work. In six years as a counselor at 211 Big Bend, Leon County's crisis hotline, I helped many people through many very difficult positions, and as chairman of the board of both Goodwill Industries of the Big Bend and Florida Commerce Credit Union, I received zero pay but have always gotten tremendous satisfaction out of knowing that my efforts really helped people.

It turns out that the old cliche that you get more when you give from the heart is so true. Sure, I have done well financially as I understand the value of saving and investing wisely, however, it is not the financial gain that has given me joy in my life. Rather, it is the belief that by giving of myself without expecting anything in return, I have truly been able to help people. I have been so blessed and have received so much as a result.

I am sure some of you are saying, "Okay, Jerry. How does this relate to being an entrepreneur?" I think that the lesson I would like for entrepreneurs to take from this column is that making money is great and a worthy goal, but a higher goal is helping people in need.
Consider the entrepreneurs you know that are truly successful. One thing they all have in common is that they go out of their way to make sure they give back to the community both as individuals and as a company.

Businessmen have gotten a bad rap lately for being solely interested in making money. Without question, there are some out there who are only concerned with this, but many realize there is a greater good in helping their community become better.

Now consider how you can reach out and help people in need. The people you help could be your employees, friends or just strangers. Whatever form of altruism you choose, I promise you will see the value when, down the road, you look back on what you have accomplished in your life.

You can do this!