Has the economic downturn minimized the importance of the Customer Experience?

In Chapter 5 of my book, Strategy Activation: How to Turn Your Vision into Marketplace Success, I talk about how important it is to improve your holistic customer experience to differentiate your company from your competitors. As products and services continue down the inexorable path toward commodification, it is the ongoing customer experience that drives customers to choose one vendor over another.

However, in the past two years, as the economic downturn has forced significant changes in customer behavior, many have questioned the importance of the overarching customer experience. These naysayers claim that in tough times price is the only thing that matters. Customers, they say, are more likely to accept a bad experience as long as they are getting a good deal. This perspective, however, is not confirmed by the data.

When Money is Tight, Customers Expect an Even Greater Customer Experience…

The most recent Harris Interactive Customer Experience Impact Report surveyed consumers on how they engage with companies both online and via phone, what they find frustrating, and how negative and positive customer experiences affect them.

They discovered these facts that are startling to most business owners today…

* 87% of the surveyed consumers stopped doing business with an organization or company because of a negative customer experience. That’s up from 68% reported just two years ago.
* Even during tough economic times, the significance of customer experiences does not dwindle. More than half (58%) of consumers polled said they will pay more for a better customer experience during a down economy.
* Consumers stated that the most important thing companies could do to encourage them to spend more is to improve the overall customer experience

So, it’s clear that even when finances are tight, people still value good service.

Why This Study’s Results Are Not Surprising To Me…

When money is easy to come by customers are likely to be more forgiving. Consider this restaurant dining example…

When the economy was booming many couples found themselves dining out twice per week or more. With eight to ten dining-out occasions per month a single bad experience is easily forgotten. However, when belts tighten, monthly dining-out occasions may settle back to just two or three. With fewer opportunities to “splurge” on an evening out couples and families now demand that each experience justifies the expenditure of limited funds. Thus a bad experience like poor service, long wait times and cold food makes a bigger impression and stays with us longer.

Once you have a bad customer experience, you may wait months before you visit that restaurant again – and that’s if you ever go back. Plus, you’ll probably tell your family and friends about your experience. This will make them think twice before they visit that restaurant.

Real Proof That Bad Customer Experience News Travels Far…

A recently published Forrester Research report, “How Customer Experience Drives Word of Mouth” cites:

* Consumers tend to discuss bad experiences with more people than they discuss good ones
* Gen Xers, as a group, tend to tell the most people about a bad experience
* Gen Yers are the chattiest in general. They are more likely to tell someone about a good experience. They are also the most likely to share a bad experience.

So, don’t you think that you should find out right now exactly what your customers are saying about your organization’s performance over the past eighteen months? Have their experiences diminished in the wake of corporate austerity? As we begin to see the recession bottom out, now is the time to explore this issue; to find new ways to improve the customer experience; to ensure that your customers have only good things to say!

About the Author:

Strategy Execution Consultant Scott Glatstein, President of Imperatives LLC turns market opportunities into record breaking profits even in a recession. Now, with his new book, “Strategy Activation: How to Turn Your Vision into Marketplace Success,” Scott unveils his groundbreaking plan for improved customer experiences and higher strategic profits. Get your FREE Sneak Preview at: http://www.strategyactivation.com

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Article Contributed by Michele DeKinder-Smith

How will YOU respond when a customer threatens to leave?

Maybe it will be due to a gap in communication. Maybe it will happen due to increased pricing competition, a poor fit, a service problem, or a new product your competitor creates. Regardless of the cause, every entrepreneur faces the risk of losing customers at some point. But what we know from our research is that it’s very likely different types of women business owners will respond to this challenge in different ways. This article looks at how three of the types will respond to customer loss.

Jane Dough

As we’ve seen Jane Dough is an entrepreneur who enjoys running her business and makes good money. She is comfortable and determined in buying and selling, which may be why she’s five times more likely than the average female business owner to hit the million dollar mark. Jane Dough is clear in her priorities and may be intentionally and actively growing an asset-based or legacy business. It is estimated that 18% of women fall in the category of Jane Dough.

Overall, Jane Dough has a fairly pragmatic, business-minded approach to everything that happens in her business, so when she encounter a problem with a customer loss, she most likely won’t get flustered or panicked. Instead, she may take the attitude, “It’s just a business decision on their part. Customers come and go based on what they need. We have to stay focused on growth and not let this get to us.” In some ways, this pragmatism is very good, because it keeps Jane Dough from becoming distracted by one-off events so she can continue moving toward her big goal – growing a thriving and profitable business.

However, Jane Dough should monitor (or have someone on her team monitor) her company’s on-going customer retention rate. Also, she should have someone take the time to conduct an exit interview, if her departing customer is willing. Why? Because Jane Dough often will delegate work to other people, she may not immediately be aware of a systemic problem in the business. Let’s say, for example, that she starts tracking customer retention and learns that roughly 15% of customers don’t return and half of those are because product delivery takes too long. Jane Dough could work with her team to find ways to address delivery challenges to improve the process and retain more customers. But she’ll only know what to focus company efforts on if she’s tracking the reasons customers leave and the magnitude or rate at which they are leaving.

One other word about Jane Dough – if it turns out that customer defections are happening as a result of something her company has fallen short on, she may be the type of leader to become angry with the person responsible for managing the function where the breakdown occurred. I have seen several Jane Doughs react with a rapid, “Fire them!” mentality, thinking that the problem is the person, not the system. Although there are cases where the problem IS the person, it is also true that systems can be at fault. Before taking extreme personnel action, Jane Dough should carefully dissect the system itself, along with other processes that feed the system, first. This is the better way to understand how and where breakdowns are occurring and prevent the problem from arising again if a new person is hired to do the job.

Accidental Jane

Accidental Jane is a successful, confident business owner who never actually set out to start a business. Instead, she may have decided to start a business due to frustration with her job or a layoff and decided to use her business and personal contacts to strike out on her own. Or, she may have started making something that served her own unmet needs and found other customers with the same need, giving birth to a business. Although Accidental Jane may sometimes struggle with prioritizing what she needs to do next in her business, she enjoys what she does and is making good money. About 18% of all women business owners fit the Accidental Jane profile.

Because Accidental Jane tends to have started a business based on her personal networks and through referrals, the loss of even a single client may be difficult for her. First, she may worry that she’s let someone down (either the client or the referrer) – and this may cause her to doubt herself or her abilities. Secondly, because Accidental Jane’s business is often dependent on deep relationships and word-of-mouth referrals, she may worry about the negative impact on the future of her business of losing a customer – because each customer may represent a significant chunk of her income.

Accidental Jane would do well to speak with this lost customer herself to understand their reason for departure. Because her relationships are often with personal contacts or strong referrals, she has a fair chance of reclaiming the customer with an open dialog. This may mean changing the way work gets done so that the customer’s needs are better met. But, following this discussion, Accidental Jane should process what she heard with her business mind, not her heart. Sometimes, customers are just a bad fit. Other times, she may make the decision that it’s not worth it to change her process to fit a particular clients’ needs. In the end, even a lost customer can turn into a potential referrer for Accidental Jane if these discussions are held in an open, honest manner where both sides walk away with renewed respect for each other, even if they have “agreed to disagree.”

Secondly, a lost customer should always serve to remind Accidental Jane to not put all her eggs in one basket but instead to keep her eye always scanning the horizon for potential new customers. Therefore, it may behoove her to develop specific marketing systems (such as email newsletters, systematized referral programs, affiliate networks, etc.) to help her continue building a steady list of prospective customers, even if she has no plan to work with them in the immediate future.

Tenacity Jane

Tenacity Jane is an entrepreneur with an undeniable passion for her business, but who tends to be struggling with cash flow concerns. As a result, she’s working long hours, and making less money than she’d prefer. Nevertheless, Tenacity Jane is bound and determined to make her business a success. At 31% of women in business, Tenacity Janes are the largest single Jane type.

Because Tenacity Jane already tends to be struggling with cash flow, the loss of a client may be a substantial source of stress to her. She may wind up feeling that she needs to work even harder to gain and keep her clients. She may find the experience discouraging and not be certain what to do about it.

As with Jane Dough and Accidental Jane, Tenacity Jane would do well to speak with the lost customer candidly about what went wrong. Rather than doing so in an effort to “rescue” the customer, however, she should interview with her ears listening for the truths she can learn about her business. She should look for the clues that may help her understand why her business is not currently delivering the income she desires. Are there competitive pricing issues? If so, Tenacity Jane needs to understand how her competitors are able to deliver at a lower cost. Are there product, service, quality or delivery problems? If so, Tenacity Jane should listen carefully for opportunities to make improvements within the business itself. Is there a breakdown in communication such that customers expect something different than what is actually delivered? If so, Tenacity Jane should revisit her marketing and communication materials to see if they need to be clarified. In short, a lost customer can be a wonderful learning opportunity that provides the exact information to help Tenacity Jane’s entire business improve.

Next week, we’ll continue this article by looking at how Go Jane Go and Merry Jane would handle this issue.

Interested in learning more about the five Jane types? Check out www.janeoutofthebox.com

About the Author
Michele DeKinder-Smith is the founder of Jane out of the Box, an online resource dedicated to the women entrepreneur community. Discover more incredibly useful information for running a small business by taking the FREE Jane Types Assessment at Jane out of the Box. Offering networking and marketing opportunities, key resources and mentorship from successful women in business, Jane Out of the Box is online at www.janeoutofthebox.com

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"Wisdom is the integration of thought and analysis based on accumulated experience." - Elkhonon Goldberg

Improvement starts with acceptance that a business doesn’t have to be sick in order to get better.

Some years ago the CEO of a 3rd generation manufacturing company asked that I conduct an evaluation of his credit operation. The company was expanding into Europe and with the expansion came greater demands on the ability to extend credit and cash flow. Following breakfast at my hotel the CEO and I drove out to the factory and administrative offices. On the
drive out the CEO continued the story he’d started over breakfast. His grandfather and father had built the business and now he and his brother, who was the VP of sales, were trying to take the company to the next level in growth.

We parked in the back of the building and as we walked through the production area on the way to the administrative offices, we must have passed by at least 20 production people…and there was silence. Not one of the employees we encountered said good morning, hello boss or even nodded…and neither did the CEO.

We met with the CFO, the Credit Manager, the Customer Service Manager, and the A/R and A/P Managers…all women. The brother, he’d stuck his head into the room and then disappeared.

I’d ask a question of the group and as one of the women would start to answer the CEO would butt in…soon the women shut up and the only voices heard were mine and the CEO’s. After I broke up the meeting I went to each member of the group individually to ask my questions.

On the way to the airport the CEO and I stopped for lunch and he wanted to know what I thought needed to be done. I told him that his people were approaching credit and A/R management in an old an out of date risk management way…like many other companies. I told him that I had an associate who in a week’s time could train his staff on our "profit" approach and that he could help organize and document the knowledge needed to ensure proper implementation.

The company president asked why I wouldn’t be doing the training, and I said to him, "I don’t like you."

The man was shocked. "Why don’t you like me?", he asked. I was hoping he’d ask and I said to him, "All the production people we passed were brown or black and you didn’t greet any of them and on their part they looked away from us. All the people in the front office are white and every time one of the women in our meeting tried to say something you cut them off as if what they had to say was of no value." I went on, "I don’t have to look at any numbers to know that you have a high absentee and turn over rate. Morale is bad because the employees don’t like you and that leads to poor productivity and poor work quality. If you want to expand to Europe
you better know that those folks expect quality."

All was quiet for a few minutes and I wasn’t sure if I was going to have to catch a taxi to the airport, and then he said, "You’re right , we keep retraining new people and we’ve had a big problem with quality and with employees stealing from us. My father and grandfather were loved by the employees and they would do anything for them but neither my brother nor I seem to have that ability." We drove to the airport in silence.

In my follow up report I suggested to the CEO that he and his brother find themselves a GM (general manager) who liked people and wanted to be liked in return. To his credit they found such a person and things got better, he also had my associate out for the week.

The Point

Great Customer Service starts with great Employee Relationship Management. It Will Make You or Break You

Marvin Minsky in his book , "Society of Mind" says that the human mind is made up of thousands of learned agents/programs none of which on their own define the mind, but collectively they make up the mind. Every business and organization, including government, is a collection of people and none on their own, including the CEO, define the organization but collectively they are the company/organization.

Three Areas of Relationship Management

1. Employees. The highest priority is good relations with employees because if they are unhappy your customers better look out. An old friend once said to me, "If mama ain’t happy no one’s happy."

2. Vendors/Suppliers. Vendors are critical to your success and if you disrespect and abuse them they’ll get even, and the word (buzz) will get out on your company and then others will demand a higher price to work with you,… if they‘ll work with you at all.

3. Customers. You might be able to get away with abusing consumers because so many businesses do, because they have short memories and because there’s a lot of them and more on the way. Business/commercial customers are fewer in number and they have generational memory. Get on the wrong side of a business customer and you find that long after the reason is forgotten the bad taste lingers on.

In Closing

In human society all real meaningful change comes from the masses. Institutions fight change even if it’s an improvement. James Russell Lowell wrote, "He who is firmly seated in authority soon learns to think security (their own) and not progress."

In a business change must come from the management team. Business managers need to take time to seek out improvement or they’ll get lost in the day to day details.

It’s up to the top managers to be leaders and set the example of what great relationship management looks like, sounds like and feels like…and if they can’t do it they need to get help.

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.

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Almost everyone associates the telemarketing industry with outbound call centers. You know, the gigantic room full of people with headsets on, “cold calling” customers to make sales, generate leads, or collect information for surveys. There’s another kind of telemarketing, though- think customer service 1-800 numbers, customer help desks, or order processing over the phone. Inbound telemarketing is becoming a popular way to outsource processes that businesses might not have the staff capacity to handle. Here are a few ways you can use inbound telemarketing to benefit your business:

Order Processing
Inbound call centers can take customer orders over the phone and even process sales when customers pay with credit cards. Any business with time restrictions, such as those whose employees only work during business hours, can take advantage of this extended availability- the more you’re available to customers, the more sales you’ll make. You can also use inbound call centers for order processing for their language capabilities. While you might not have the resources to hire sales representatives that speak Spanish, Japanese, or Tagalog, an inbound call center does- this allows you to reach and communicate with more potential customers in a language they’re comfortable speaking.

24/7 Customer Service
If your employees can’t be available for customers at all hours of the day, inbound telemarketing offers a solution. Many businesses assign a 1-800 number to a telemarketing firm for in order to give customers around the clock access. Businesses like banks, hotels, and insurance companies that need to provide constant access use inbound telemarketing companies to fill the gaps when their own employees aren’t available to answer questions, fix billing errors, or file claim reports. If your company could benefit from offering 24/7 support to customers, telemarketing is an option you should consider.

Helpdesk and Customer Support
If you sell a technical product, such as software, it can be a good idea to use dedicated telephone service representatives- telemarketing company employees trained by your business that only answer calls on behalf of your company- rather than employing a full-time helpdesk employee as a member of your own staff. You can also reach more customers- telemarketing companies keep longer hours, employ representatives with different language capabilities, and are able to stay open to customers in different time zones more easily.

Lead Generation and Appointment Setting
Inbound telemarketing is often used for lead generation and appointment setting. You can direct sales leads to call the telemarketing company directly to set up a sales appointment, or gather sales lead information when customers place calls for more information about your products or services.

Inbound call centers can be used for several purposes in addition to those mentioned above. Inbound call centers can assist with promotional contests (such as radio call-ins) can help collect survey or donation information, or for any other service you can think of that might benefit your business. It’s always a good idea to speak with at least a few different companies before making a decision about which company to choose.

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Every time I turn on the news I feel like screaming. I am sick and tired of hearing about how bad the economy is. Unemployment is up and is only going to get worse. Banks are in trouble and going under. Real estate is a mess and there is no end in sight. Major corporations are going bankrupt - heck, even the big three automakers may go under.

I hear about how this is the next great depression. I hear about the collapse of the dollar, the collapse of the western world, and the end of society as we know it.

It Isn't As Bad As It Sounds
The sad part is that it isn't all that bad. Yes the economy stinks, but this is only when compared to the amazing boom we experienced in the last decade. Companies have been able to go after the low hanging fruit-heck, there was more lying on the ground than you could pick up!

Just because the ground isn't littered with business anymore doesn't mean that there isn't business out there. You just have to work for it. And the past decade of easy business means that most companies have not made the connections and built relationships. Now they pay the price.

And at the end of the day, now is the time where entrepreneurs can really shine.
No, I'm not crazy. Think about what a true entrepreneur does.

• He connects with his customer


• identifies his needs and problems


• then creates products and services to fill those needs or problems

In other words, he gets paid to solve problems

Now more than ever companies are in trouble. Your customer desperately needs you. No, he isn't spending indiscriminately. But if you solve his problem and help him survive (or thrive) in this downturn he will be your customer for life. And you solve your "slow business" problem at the same time. Only an entrepreneur can do this, and you finally have an advantage over larger companies.

Simple, but Hard to Do
This is a simple concept that is hard to do. I've written several articles that are aimed at this:

• Recessionproof your sales


• How to Thrive in a Recession


• How to Thrive in a Recession - Ignore the News


• How to Thrive in a Recession - It’s All About the Customer


• How to Thrive in a Recession - Working for Someone Else


Brandt Smith is a sales, marketing, public speaking, and professional development expert. Learn about achieving wealth and life balance through entrepreneurship at Wealth and Wisdom, where he is cofounder and senior editor. Their advice on wealth building, personal development, and life balance can help take you to the next level. You can also read more of his thoughts on his blog.

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If you’re starting a business right now, marketing can be one of the first efforts to take a hit. After all, why should you market products aggressively to customers who aren’t ready to spend?

Cutting back on marketing efforts right now is actually a pretty risky move- studies show that companies who increased or maintained marketing budgets during lean times are rewarded with more sales as the economy begins to pick back up. According to McGraw-Hill research, companies who increased or did not change marketing budgets during the ’81-’82 recession saw significantly higher sales growth within five years- over twice as much as those companies that chose to cut back.

So how do you design and implement an online interactive marketing strategy on a shoestring budget? What can you save on when contracting for services? Here’s a quick primer on choosing an online marketing company and forming the contract you want- at a price that’s within your budget.

Evaluate your requirements.
Do you already employ online marketing strategies such as email blasts, customer follow-up emails, or search optimization strategies? If you’re already working with an online marketing firm and are unhappy with the services you’re receiving, the price you’re paying, or both, figure out exactly what you need before you switch or begin to negotiate. Do you want to build relationships, increase brand visibility among certain customer groups, or stay in touch with existing clients? Evaluate your needs before choosing- or choosing to stay with- a company: List the services you want and how much you’re willing to pay.

Re-negotiate.
If your current online marketing firm is meeting your needs, you can still negotiate on price. Most of the time, this means contracting for additional services or a longer term- a better deal in the long run if you’re working with a reputable company. You may be able to get discounted services simply by asking, especially if your contract is about to expire. Trying to re-negotiate your existing contract- if you have one- is a step you should take before looking for a new provider.

Use smart bargaining tactics.
If you’ve narrowed down the field of providers to a few worthy contenders, try to negotiate with each to get the best deal for services. Most vendors are a bit more flexible and open to bargaining near the end of the month or the end of a sales quarter. You can ask for more services, an extended agreement, a payment plan, or any other compromise that reduces your out-of-pocket-cost. Up-front payments (retainers) are usually not negotiable- most vendors will require some monetary outlay before beginning work.

Get a written estimate or service quote.
These usually serve as previews for the final contract. It should be specific, but not too specific- it can be a good idea to split projects into phases if you’re using several different strategies. You should have access to all necessary information (graphics, advertising agreements, affiliate information) in the event that you ever decide to use a different company for later efforts. Make sure that you compare several different service quotes to get an idea of the “going rate” for services- this places you in a better position to negotiate.

Make sure you can track efforts.
Make sure you know how results are tracked. Will you be able to monitor key information (web traffic, conversions, etc.) yourself? Make sure you know how results of the marketing strategy will be measured.

Online marketing is one of the most effective methods of sales generation. Make sure you shop around for a company, compare price quotes, and ask for references. A good firm won’t ever “guarantee” a certain search engine result or output, but will be able to accurately track the results of their efforts. Spending on marketing is effectively investing in future sales- make sure you invest wisely.

Merrin Muxlow is a writer, yoga instructor, and law student based in San Diego, California. She writes extensively for Resource Nation, a company that provides resources for business owners, and is a frequent contributor to several sites and programs that offer tools for entrepreneurs, including Dell and BizEquity.

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Article by Ronald Lang, the CEO of Majestic Consulting Group. He offers readers simple recommendations for leveraging your CRM system to maximize your client base. His insights help both product and service-based organizations discover new revenue opportunities.

A critical part of building your CRM strategic plan should be an effective “Customer Profile” to identify up-sell and cross-sell opportunities. While new customers come at an extreme premium today with longer sales cycles, existing clients would be more receptive to hear your offerings, especially if it can be a positive impact to their business. Take the following three recommendations if your business is primarily a product-based sales operation:

1. Are there products you have sold to a client in the last three years that have new accessories or a new model (or discontinuation of the current model)? – if so, this is a golden opportunity to setup a presentation with the client.

2. Do you have service-level agreements (SLA) with your clients? This is an opportunity for you to strengthen your relationships with your client prior to the SLA’s coming due. Reinforce your support commitment, response time and quality assurance. The SLA coverage information should be tracked in your CRM system.

3. Do you have your clients organizations mapped out? Meaning, if you have done well selling into one or more areas of the organization, it is time to map out the rest of the organization and key contacts with each department or division. Connect with each of them and/or get referrals and introductions from the current contacts you are doing business with above general satisfaction levels. Your CRM system should be able to track hierarchy and organization charts of your clientele.

Take the following three recommendations if your business is primarily a service-based sales operation:

1. Have you done a customer survey lately of how satisfied your clients are with your services? If not, put together a 4-7 question survey that should take more than 5 minutes to complete. The questions should focus on the quality of service you are providing. You might want to ask about other services they may require. Track this in their CRM customer profile and target a campaign around their needs. If the client is not happy, make a call with your manager or CEO to the client within 24-48 hours.

2. Are your customers using competitive services along with yours? If so, find out how happy they are with them and see if there is an opportunity to win that business. If they have a contract, find out when it expires and track that with a reminder. Also have an automated report sent to you when expiring competitive contracts the first week of every month. This is a strategy to win more business without trying to pitch your services on a frequent basis.
3. If you offer services that your clients use frequently (i.e. weekly, monthly, etc.) look to offer them a services agreement for a year at a discounted rate. This will provide you predictability and consistency over the next 12 months. If the client calls frequently now, a schedule can be constructed or a block of time can be pre-purchased as part of this annual agreement. This will also help with resource planning. The CRM system can track this contract, hours against it on a monthly basis and most importantly profitability.

These are just a few simple recommendations to leverage your CRM system to maximize your client base.

Contact Info: Ronald Lang, CEO – Majestic Consulting Group, Inc. – rlang@majestictechnology.com – (888)403-9400

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This article is contributed by Michelle Ulrich.

"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has." by Margaret Mead

Here is a list of my Top 10 Reasons Volunteering Can Help You Grow Your Business:

1. Volunteering helps you find your place in the community, whether online or in person, especially if you are "the new kid on the block."
2. Volunteering facilitates many new learning opportunities. This occurs through mentoring or just being around others who share your passion or interests.
3. Volunteering fosters new relationships and builds on existing ones.
4. Volunteering can be a great opportunity to try out new skills or hone existing ones.
5. Volunteering gives you a sense of giving service; studies have found this to be very healthy for our brains, our overall health and our psyche (soul).
6. Volunteering creates opportunities for you to be on ‘ground zero’ of your community or industry.
7. Volunteering builds self-confidence and great potential for leadership building opportunities.
8. Volunteering can lead to business opportunities as most people like to do business with people they know and trust.
9. Volunteering is an important value we can teach our children. We can also act as role models for those in need. You may be the reason they give back and volunteer when they are ready.
10. Volunteering is a way to share your knowledge with others as others before you have passed down history and traditions from one generation to the next.

When you are in a rut, need some help or want to impart your knowledge to others, find a community (online or offline) and get involved. It won’t feel so lonely, your questions will be answered and you can pass down your legacy to share with others. Besides, it’s good for your health and well-being.

P.S. Volunteering can be a great way to 'pay it forward.' I have seen commercials where one person is having a horrible day and takes it out on someone else, and then the next person takes it out on the next and so on. If we turn that around and perform random acts of kindness via volunteering in our communities, what an incredible and beautiful synergy we can pass on to others. We can affect our communities with one single act. Imagine if everyone pitched in and volunteered for something...what a peaceful and happy planet this would be!

About the Author
Michelle Ulrich is the Chief Villager and founder of The Virtual Nation, an educational destination for Virtual Professionals around the globe. Michelle is an avid believer in giving back to her industry and she does this by offering coaching, teleclasses, resources, and tools, in addition to providing a community of learning, a nation of culture, and a virtual village for her members. Education is the foundation of her organization as well as for her own personal and professional development. Michelle has been a community college instructor teaching a Virtual Assistant certificate program online. Aside from coaching and teaching, she is also a speaker and soon-to-be author on the subject of Virtual Assistance. She maintains her private practice where she specializes in working with authors, coaches and speakers who struggle to keep up with e-commerce and new technologies. Clients can check out her services at www.virtualbusinessmarketing.com, while Virtual Assistants can find her over at www.thevirtualnation.com. She can be reached by telephone at (916) 536-9799 in the Pacific Time zone.

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This article is contributed by Dittman Incentive Marketing (www.dittmanincentives.com).

In today’s competitive marketplace, the race to increase profits by cultivating customer loyalty is going at full speed. Customer retention is not only a cost-effective and profitable strategy, it is a necessity for businesses wanting to stay ahead of the pack.

As consumers are spending less thanks to soaring fuel and food costs, companies are more reliant than ever on the loyalty of a dedicated customer base to maintain a competitive advantage. Following the Pareto Principle, 80% of your sales come from 20% of your customers, and in a recession the numbers are closer to 95% and 5%, says Ajit Maira, senior vice president of the Information Technology Services Marketing Association. Since these returning customers cost less to reach, are less vulnerable to ploys from the competition and buy more over time, companies need to give customers an incentive not to go elsewhere for the same product or service.

One of the most successful ways to achieve this cost-effective retention is through the use of customer loyalty reward programs. By rewarding the ongoing purchase of product or services, companies achieve long-term relationships with customers. With a variety of loyalty programs available to companies, the key is discovering what works best for your needs and goals.

Build a Strong Foundation

Successful loyalty reward programs are built from a working knowledge of your customer base. To create the foundation, you must first identify the type of customers you want to retain and understand the types of products and services they value most. This information can then be used to determine the kinds of rewards programs that will appeal to them.

To obtain this level of understanding about your customers, it’s vital to conduct targeted research. In an article in the Harvard Business Review, authors Thomas O. Jones and W. Earl Sasser, Jr., suggest utilizing a combination of customer satisfaction surveys, customer feedback and market research. Together, these three tools can help businesses better grasp the wants and needs of the customer to build stronger brand loyalty.

Establish Winning Relationships

While good service is the key to earning customers, it’s not enough to maintain their long-term loyalty. In his book How to Win Customers & Keep Them for Life, author Michael LeBoeuf states, “Smart companies go the extra mile for the customer and show them just how dedicated they are to making sure that they feel good about doing business with them.”

To prove to your customers that your company is going that extra mile, you must show them you are doing just that on a regular basis. For example, Ben McConnell, co-author of Creating Customer Evangelists: How Loyal Customer Become a Volunteer Sales Force, suggests showing customers they are valued by inviting them to lend their opinions on new products and ideas, or invite them to your company’s conferences or meetings. These offers to participate in your company’s operations will promote a feeling of value and inclusion.

It’s also vital to maintain open lines of communication and always treat customers with courtesy. Loyalty is established over time, and customers need to believe that your company values them.

Give Them Incentives

Giving customers incentives to let their purchases be tracked allows you to base loyalty programs on very specific requests and needs. The incentives can help your business to increase customer traffic and sales, and most importantly—allow you to measure the effectiveness of the incentive.

The incentives can vary, and can include immediate rewards like free long-distance phone calls for hotel guests, targeted deals such as exclusive “friends and family” sales events, valuable membership cards offering extras like bonus spending points. Other options are also successful, like manufacturer rewards for items such as brand merchandise and discounts, and point-earning partnerships between retailers and online shopping sites.

Offering these loyalty incentives, also know as frequency marketing, allows your business to build a database of loyal customers that you can target again and again, and with precise tracking.

Follow Through

To reap the rewards of a customer loyalty programs, it is vital to maintain a consistent approach and follow through with your strategy. By staying the course with targeted research, communication and incentives, you can establish a loyal customer base yielding great results.

It's important to remember that customer loyalty can't be established overnight, but the investment required to create a satisfied customer is always worth the effort. Establishing long-lasting, loyal relationships with clients should not be an afterthought in the current market; it's now a fundamental necessity on the road to achieving higher profits and business longevity.

About Dittman Incentive Marketing
This article was provided by Dittman Incentive Marketing (www.dittmanincentives.com), a quality leader in the field of people performance improvement. Since 1976, Dittman has helped companies achieve critical corporate goals via original, one-of-a-kind customer loyalty programs and motivation programs that inspire a sales force to sell more and customers to buy more.

R.L. Fielding Bio
R.L. Fielding is a freelance writer who has written on a wide variety of topics, with special expertise in the education, pharmaceutical and healthcare, financial service and manufacturing industries.

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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.

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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.

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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.

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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]

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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]

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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]

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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]

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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]

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