It takes a long time for a self employed business owner to build up a reputation for great customer service. I am a caring person, and putting customer service first is something I hold very dear as an important aspect of how I do business. And recently, I almost blew it. In a fit of irritation over a client's request for help, I made a very poor assumption -- and almost made an idiot of myself in the process.

As I reflected on that experience, I came up with these four elements of providing great customer service as a self employed business owner. I share them as a model of how to think about your own customer service interactions (especially those that occur via email) and as a reminder to myself too. I call it the CARE model of email customer service.

C = already a Customer!

Gaining a new customer is 5-10 times more expensive than keeping an existing customer. So doesn't it make sense that we should treat them accordingly? It's easy, when you are in a rush, to forget all the work it took to get them to be a customer in the first place. And never underestimate the wrath of a customer scorned -- a disgruntled customer is much more likely to talk to others about that one bad experience they had with you, than all the good experiences that came before it.

Customers are precious -- remember to treat them that way!

A = Attitude

Having a bad day? In a rush to get to an appointment? If you respond to a customer under those circumstances, chances are that your annoyance or hurry, even if it is not about them, will creep into your response. The words you choose are very important; doubly so if you are responding via email. It's hard to choose the best words if you are peeved or if your mind is elsewhere!

So, take time and care to respond. Find a time when you can take a few deep breaths and set aside any distractions. If you can't find the time, or feel yourself unable to curb your negative energy, get someone else on your team to respond.

R = Relationship

EVERY customer interaction is a link in your relationship with that customer. A good customer interaction, where you solve their problem and make them feel better in the process, makes for a solid, strong relationship. On the other hand, a careless response puts a weak link into the relationship. And a chain is only as strong as its weakest link!

Customer retention is all about how you make your customer feel. Use polite, professional (but not necessarily formal) language, take care to re-read what you've written before sending, and thank them, even if they are complaining. And always ask, at the close of your email, if you've solved their problem or answered their question adequately. These little things can make a big difference.

E = Extra

How can you go the extra mile when interacting with your customers? Can you deliver more than they are asking for? Or just add an unexpected measure of kindness in your response?

Include additional information or advice related to their request. Or, if you can't answer their question, do a little research and point them to a helpful resource. Add a P.S. with a personal note about their health, family, a recent trip, etc. Following up with a hand-written card or note can also be a nice touch.

Treat your customers with CARE, every time, and they will come back, time and time again.

Terri Zwierzynski is a self-employed business strategist and marketing consultant to solo entrepreneurs, and a grassroots promoter of the solo entrepreneur lifestyle. She runs Solo-E.com, the resource website for the self-employed which attracts thousands of solo home business owners monthly from over 100 countries on six continents (and was recently named a finalist for “Website of the Year” in the 4th Annual Stevie® Awards for Women in Business). Terri is also the co-author of 136 Ways To Market Your Small or Solo Business.

• 2 Comments

  

The obvious importance of the collection of accounts receivable is, that a sale isn't a sale until you're paid, and that all businesses run on money. A less obvious but important reason is that of customer service and retention levels.

In most businesses the largest percentage of past dues are directly tied to something going wrong (Type II Systems Problems). Surveys have found that 70% plus of delinquent customers fall into this category. Whether the source of the problem is on the sellers' end, the customers' end, or due to the action / inaction of a 3rd party (direct ships, agents, the post office, transportation etc.) makes no difference. Until a problem is identified and corrected the customer will not pay, and those unpaid open invoices become an irritant and money drain to vendor and customer alike.

Early identification of systems problems and fixing them improves the cash flow and also represents an improvement in customer service levels. Better customer service equals higher customer retention.

When customers are current they're more apt to continue buying. The most profitable sale is normally the repeat sale. Remember the primary goal of the Completion of the Sale (Collections) is to keep customers current and buying.

Implementation

Some business executives are a walking contradiction. They expend time and money in sending their people to seminars / workshops and then they fail to get involved in bringing about improvement. Too busy fighting fires, I guess.

4 Steps in Change / Improvement

1. Expect resistance
2. Take baby steps
3. Keep shifting the comfort zone
4. Pay for what you want

Push against a dog and they push back, they resist. People do the same. When you're trying to implement something new you need to explain it and then ASK your cohorts why it won't work. Make up a "Fail List", reasons why the change / improvement won't work and then ASK for ideas on how to overcome the problems.

By allowing people to tell you why something won't work you give them a chance to vent, to release the natural tendency to push back. Then by coming up with ways to overcome the very problems they brought up, you give them a chance to think it was all their idea in the first place. You know, the ownership thing.

First steps on long journeys must be the hardest. Pace yourself when trying to change / improve on things. Don't try to get others in your organization to change EVERYTHING at once. Start small and as it works add a little more.

The place to start, in improving the credit and collection function, is collections. Simply by implementing a simple Daily A/R Contact Report you'll get a lot of mileage. Track calls made and reasons given for payments not being made within terms. Review of the report is important for any report not reviewed is a waste of time.

“I’d cry for the time I’ve wasted, but that’d be a waste of time and tears” W. Nelson.

It's amazing how people do those things that are being monitored; expect your cash flow to improve and repeat sales to go up with the use of a contact report.

Once they're halfway comfortable with that report, introduce the Systems Problem Log. In the process of identifying the source of things going wrong (Type II Systems Problems) and then fixing the business process to avoid the same problems in the future; people will come to see that they're contributing to higher customer service levels, customer retention and to the quality of business practices.

Change doesn't create stress, stress must be present for change to happen. Remember high school science when they talked about inertia? Basically inertia means that if something is standing still it's going to continue standing still until some outside force makes it move. People are like that. They get comfortable and while that's a great attribute in a chair, sofa or bed, it'll kill you in a competitive marketplace.

There’s a real good reason for dating your policies and procedures. You want to be able to tell when they were last up-dated. And if you think up-dating policies and procedures is not important, you my friend are too comfortable.

Once things are working pretty good, look for the next improvement. Go to seminars, guys like me need the money. Survey the customers, ask vendors, and pay your guys to think ... opps, that's the 4th step in Change / Improvement.

People do those things they perceive to be in their own best interest. Last time I checked, the first law of human dynamics was still in effect.

In asking people to make changes, you're crazy if you think they're going to put out 110% unless they understand how it will impact them. I'm not saying that you need to negotiate every nickel and dime change. What I am saying is that by setting up goals for the change / improvement and then by paying people to achieve those goals it becomes a win / win deal. The goals must be based on improved profitability. We're not talking change for the sake of appearances.

"What we hear we forget, what we see we believe, what we do we understand."

As busy as everyone gets, new ideas die a quick death unless they're put into action. Wait for a more opportune time and chances are real good you'll space it out.

Abe WalkingBear Sanchez is an International Speaker / Trainer / Consultant on the subject of cash flow / sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com, WalkingBear has authored hundreds of business articles, has worked with numerous companies in a wide range of industries since 1982 and has spoken at many venues including the Shakespeare Globe Theater in London.

• 0 Comments

  

Envision the scenario: You've just been asked at the last minute by Chris, the organizer of your local networking group, to replace the scheduled speaker at next month's meeting. You already have too many commitments on your plate. Imagine your response:

You: "Well, I don't think I'd have enough time to prepare. I'm awfully sorry.  I wish I could help you!."

Chris: "Your last speech was super'maybe you could just talk some more about that topic? I,d really appreciate it!"

  You: "I'm glad you liked it--maybe I could do it"

Chris: "Oh that would be great! Just let me know the title"

How might you feel about doing this speech? You might feel stressed or resentful. You might not be at your best when you do the speech. Other work that you'd really like to be doing might suffer.

Now imagine a different response:

You: "No, I can't be prepared on such short notice. I know how hard it is to find someone." Alex speaks on a variety of topics and I think she could fill in for you. I'll give you her number."

Chris: "Thanks! That will really help."

This is a win-win-win: Alex gets an opportunity to speak (her specialty), Chris gets a speaker, and you aren't saddled with a commitment you don,t want--plus, you,ve probably earned some good will from both Alex and Chris. What a difference!

Whether you are saying no to a collaborator asking you to do something, or saying no to a potential client that you really don't want to have, the ability to say no gracefully is a key skill when you are in business as a solo entrepreneur. Here are four quick steps to learning this skill:

1. Understand the reasons you say "yes", even when you don't really want to. Here are some common reasons; which ones apply to you?
   • You want to please people; you don't want to hurt anyone's feelings.
   • The customer is always right, you can't say no to the customer!
   • It's not polite to say no; if you say no you feel you are being self-centered.
   • You are flattered by the request.
   • You feel like you need the business!
   • You can't think of a nice way to say no fast enough.
   • You think there might be other unforeseen  negative consequences if you say no.
     
     
2. Recognize the good things that can come out of saying "no":
   • You have more opportunities to say "yes" to the right customer.
   • You have more time to do the things you *want* to do.
   • Saying no expresses how you *really* feel. You are taking responsibility for your own feelings and letting others take responsibility for theirs.
   • Someone else who really wants this customer's business, has a chance to get it
     
     
3. Learn how to say "no" gracefully:
   • "No, I can't do that." Don't beat around the bush- put "no" right upfront.
   • Use non-verbal cues to underscore the "no"-shake your head; use a firm and direct voice, use eye-contact.
   • Add an explanation if you want, but don't apologize: "I have another commitment." - even if that commitment is to yourself!
   • Be empathetic if the situation calls for it: "I know how hard it is to find a tax-preparer at this time of year."
   • Recommend an alternative if one is available: "Let me refer you to..."
   • If you're not sure, it's always OK to ask for more time to think it over!
     
     
4. Practice your new skill:
   • Rehearse ahead of time if you think it will help. Role play with your business coach or a friend or colleague.
   • Choose a low-risk situation first. Practice on your significant other, family, friends. Or practice on strangers, if that's easier for you: the salesclerk who wants to sell you one more thing, the telemarketer calling at dinner.
   • Work your way up to friendly clients. They are likely to appreciate the boundaries you are setting!
   • When you have the courage to fire that client who hasn't paid and makes unreasonable demands-you'll know you've mastered saying "NO!" (Hint: refer them to someone else that is a better fit and help manage the transition!)

Saying "no" gives you freedom. It is a way of honoring both yourself and the person you are saying "no" to. Learn to do it well, and you will earn the respect of others--and yourself!

Terri Zwierzynski is a self-employed business strategist and marketing consultant to solo entrepreneurs, and a grassroots promoter of the solo entrepreneur lifestyle. She runs Solo-E.com, the resource website for the self-employed which attracts thousands of solo home business owners monthly from over 100 countries on six continents (and was recently named a finalist for “Website of the Year” in the 4th Annual Stevie® Awards for Women in Business). Terri is also the co-author of 136 Ways To Market Your Small or Solo Business.

• 2 Comments

  

BusinessKnowHow: Nobody makes mistakes on purpose, but they do happen. If you are working in a call center, behind a counter or in any capacity that directly interfaces with customers then you are going to encounter an irate customer at some time. The most common response is to evaluate the merit of the complaint while your are listening to it. Try to curb that common response and replace it with the assumption that the customer has a right to be angry, even before you know the details.

Perhaps the customer feels betrayed because the product or services did not meet expectations. The customer may be angry because he or she made incorrect assumptions that led to improper expectations. The customer may be angry because of previous experiences, previous contacts with your company or simply because the problem occurred at a very inconvenient time in the customer schedule. Regardless of the circumstances, acknowledge the customer has the privilege to be irate. Listen carefully to how the anger is expressed so you can find the root cause of the emotion.

Listen to the inflections and emphasis that the customer places on specific topics to identify the emotional catalyst. Listen to the emotion as well as the words. This will help you to identify the specific item or items that need primary attention. Resolving a technical issue may be only partially effective if it does not also address the customer emotional concerns. It may not be possible to completely resolve the emotional distress, but it is appropriate to acknowledge it.

How to Respond to Angry Customers [BusinessKnowHow]

• 0 Comments

  

Learn Good Customer Service: One of the most important things that you can have as a business owner are good relationships. Good relationships can be very instrumental in the success of a business. There are several different types of relationships that a business owner should be trying to obtain. This article will take a look at three of them that I feel are a must have! These three are: relationships with your existing customers, relationships with potential customers and lastly relationships with other people in your field.

It doesn't matter if your regular customers are individual people or a business; developing a relationship with them could be the difference between keeping that customer and losing that customer to a competitor offering the same type of products or services that you do. Let them know that you really do appreciate them as a customer on a regular basis. You don't always have to try to sell them something either, every once in a while send them a postcard or email thanking them for choosing you to do business with on a consistent basis. It might not seem like much;but your customers will appreciate the jester, increasing the chances of them staying one of your loyal customers. Let these individuals be the first ones to hear of your upcoming sale or new product or service that you will be offering soon. Reward them with special discount prices and deals just for them being one of your regulars, it'll be a well spent investment.

Building Relationships In Business - Why It’s So Important [Learn Good Customer Service]

• 0 Comments

  

Entrepreneur: It's both a problem and a blessing: You have one or two very large accounts that make up the bulk of your business. According to what you may have been told, such a concentration is very risky; you should never put all your eggs in one basket.

Or should you?

Most experts would advise you to get more accounts, reducing your concentration of business. But your major accounts will likely grow at a faster pace than your new ones. The concentration will remain--and thus you will remain vulnerable.

There's nothing wrong with trying to grow other business. But I'd like to suggest a different approach. Instead of reducing your business concentration, consider providing services outside your core business or activity. In doing so, you'll add value to your account.

With that in mind, ask yourself: Do I know all the key players involved in my main account? If not, get to know all the departments and personnel involved in the account.

Why Your Customer Count May Not Matter [Entrepreneur]

• 0 Comments

  

Entrepreneur: JetBlue remains the best low-cost carrier for the third straight year, according to J.D. Power and Associates' 2007 North America Airline Satisfaction Study. The survey gauges customer satisfaction by looking at performance indicators across several categories, such as cost, in-flight services and boarding/deplaning time. It's somewhat surprising, considering the winter weather blues that kept more than 10 of JetBlue's flights grounded. One jet literally froze on the runaway, trapping passengers flying to sunny Cancun, Mexico for more than eight hours.

Linda Hirneise, executive director of travel practice at J.D. Power and Associates, believes JetBlue kept its ranking because the airline commands a fiercely loyal customer following with its modern amenities including leather seats, all-you-can-eat in-flight snacks and satellite TV at a time when many other airlines are phasing them out. American Airlines, which stripped passengers of the seat pillow last year, showed the largest decline in quality among the traditional carriers category.

JetBlue Still Top Low-Cost Airline [Entrepreneur]

• 0 Comments

  

BusinessWeek: If you sell almost any type of product, then you already know that despite your best efforts at managing service and inventory, clients will be displeased from time to time. But don't simply accept ongoing dissatisfaction as an inevitable part of doing business. Instead, work at improving how you deal with customers whose experience has been less than satisfactory. It could mean the difference between losing customers permanently or keeping them satisfied—maybe even more committed to doing business with you. Here are seven keys.

1. Always acknowledge the customer's problem.
2. Ask the customer what you can do to make her feel better.
3. Tell your customer that you want to record all the details of the mistake so you can share it with everyone within your company to prevent it from happening again.
4. If the customer has been getting the runaround, and you are still not the person who has the answer, tell the customer that you will find out and call her back.
5. If you can, provide the customer with your name and contact number so that he may call you in the future if issues arise.
6. Never say "It's our policy."
7. Never blame your company or someone else in your company.

Dealing with Angry Customers [BusinessWeek]

• 0 Comments

  

 The ARCA Launch for the Google Lunar X Prize » The Aeronautics and Cosmonautics Romanian Association (ARCA) has announced that it will be ready to launch it’s 92-pound rover called the European...

 Nuebbo Business Contacts » Nuebbo is a new digital and virtual business card holder for the Internet. The free service provides you with all of the...

 Ikea Guerilla Marketing Stunt » Ikea have done an amazing job of creating a brand that everybody considers when needing good quality cheap and cheerful furniture. We...

 TerraCycle » The Wall Street Journal: TerraCycle has formed deals with large food and beverage makers to collect discarded wrappers and juice pouches and...

Need more brand new promising business ideas and innovations around the world you wish you'd thought of? Visit CoolBusinessIdeas.com now!

Ever wanted to be the CEO of your very own Starbucks or Amazon.com? Fire your boss and be your own boss? Now you can, with BIZNESS! - the free biweekly business newsletter about new business ideas, opportunities and innovations from around the world. More than just new business trends, BIZNESS! helps the aspiring entrepreneur (you!) with small business advice, business tips, and entrepreneur resources and opportunities.

   Subscribe for free now!    

---