Sunday, May 16, 2010

Keep that Competitive Edge

Thoughts of Mr. Bob

The marketplace is changing - and customer service must keep in step. We are now in a market-driven economy, where the customer dictates what is needed. Companies must respond or get left behind.


The world is getting smaller as the global economy grows.


l The new technologies (fax, 1- 800 lines, Internet) have, to a large degree, eliminated the borders to competition. This is the beginning of a trend that will affect our ability to compete.


l Products are manufactured in countries, which offer skilled labor at low wages. There are no real differences in products. A golf ball is a golf ball, a valve is a valve, and a TV is a TV. Companies realize that to compete, they must keep their costs down and quality high.


The Bottom Line: products are interchangeable, everything is the same and the customer chooses among them. Customer service is the key to attracting and keeping your customers.


Focus on increasing Customer Share rather than Market Share by improving customer relationship - one customer at a time. Your ability to communicate the uniqueness of your product or service to your customer is vital to your company's success.


The first step toward open communications is to eliminate emotions. You need to diffuse a customer's fear and anxiety before meaningful communications can begin. So listen to your customer and read the emotions between the lines. The most successful method is to let the customer talk, freely. Create an atmosphere where the customer is comfortable and believes he or she is in control. Demonstrate your responsiveness by acknowledging your customer's concerns, as well as promising to meet his/her needs. Now the foundation has been laid. Communicating should be a simple task.


Based on the data gathered from our confidential customer perception profiles, it appears that only a few Customer Service Representatives respond to the real needs of their customers. Representatives tend to stop listening and make assumptions of what the customers want. They then steer them to solutions, which only partially address the customers' concerns.


Communication is like good manners. Be polite and invite your customers to discuss their needs. Customers want respect. They believe that they have paid for it. They want to tell you what their special situation is. Please don't assume that you know what the customer wants - avoid jumping to conclusions.


Customers rarely state their real needs and fears. This requires probing and repeating their responses back to them to obtain confirmation. What you are really doing is building a trusting relationship with each individual - one customer at a time.


For example, if your customers are seniors, how does your service address their needs? In many cases you are providing them the opportunity to communicate (talk) with another person about a particular topic. They may be just lonely. What has this got to do with your product? Everything and nothing! But if seniors are your market, then you need to understand their needs.


If you are dealing in technical products, and your customers are first-time buyers, the service you provide becomes even more vital. Take your typical VCR, and realize that only the engineers know how to operate it. What is the customer's biggest fear and need, typically, not to be embarrassed, and to walk away with simple, easy-to-follow instructions on how to run the VCR?


In both cases the need is not the obvious product or service. It is the more subtle understanding of where the customer is coming from. Let go the attitude of "let me show you how much I know " and change it to "how can I make this experience be a pleasant and productive one for both of us."


Competition is everywhere, so you need a way to stand out from the crowd. Your imagination, knowledge, ability to identify customer needs, and offer solutions will give you the competitive edge.

www.opinionnaire.ca

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