What Do Customers Want?

What Do Customers Want?
A survey of 1 million consumers provides valuable insight for today’s marketers.

By Keith Lee

This article was adapted from an article Murray Raphel wrote.  You can find out more about Murray and his works at the end of this article.

In the immortal words of Andy Rooney, “Didja ever wonder…..?”  Today’s question is whether or not you read those weekly polling reports from The Wall Street Journal, ABC News or the bottom left-hand corner of USA Today and wonder how accurate they are?

If you look at the tiny print at the bottom, most say they are based on interviews with about 1,000 people and have a plus or minus factor of 5 percent.  One thousand people?  To tell me if we should have a health plan, how the President’s doing, how many diet Cokes are sold in one day, and how many angels fit on the head of a pin? (Only kidding.)

How can that be?

And so I always look askance at the results of this small sampling.

But when I ran across a survey taken by Brit Beemer and America’s Research Group, I sat up, took notice and read everything very, very carefully.  What made me sit up?  This sentence: ‘The statistics are based on over a million interviews giving valuable insight into consumer behavior and how stores match the needs and values of customers.’

“Whew” — 1 million interviews.  Now is the time for all good merchants to come to the aid of their business by knowing what the customer really thinks of your business — well at least one million of them…

Here are some conclusions from the interviews:

“Customers decide if they feel comfortable to buy in your store.”

And: “4 out of 10 customers judge how much you know by how professional you look.”

What does that have to do with your store?  What is the first impression your customers get when they walk into your store?  What is the first impression they get when you mail them something?

“Most customers know very little about the product you have to sell.”

We recently went shopping for a DVD player.  We asked the salesman in the appliance store this question:  “This VCR is $89.  And this one over here is $149.  What’s the difference?”  And he said, “fifty dollars.”  (now you can’t make that  up).

What does that have to do with your store?  The old adage of, “the more you tell, the more you sell” works for your business.  The more specific you are about what you sell, stressing the benefits you offer, the greater degree of comfort you give your customers.  The same is true with your direct mail advertising.

Years ago, Murray Raphel did a mailer to his customers on children’s yellow raincoats that had a place to write the child’s name on the inside collar.  Since most children at the time wore yellow raincoats to school they are often mixed up and switched.  We emphasized this benefit in a mailing and sold out the coats in three days.

“Most customers say all consumer ads look the same.”

In his advertising class Murray would often place five ads from local supermarkets, with their name cut out, on the board.  Each student is given a sheet of paper with the names of the five supermarkets.

“Match up the name of the supermarket with the ad?” Murray asked.

No no one ever got it right!

What does that have to do with your store?

You need to avoid what Dan Kennedy calls Marketing Incest!  In almost every industry everyone copies everyone elses advertising so it all looks the same and nothing is effective.  Get a Free Trial to Dan Kenndy’s newsletter at www.nobspugetsound.com to find out how to avoid Marketing Incest.

“Customers expect a specialty store to have the largest selection in their chosen product area.”

Many years ago when Murray first started in business, his annual volume was around $20,000 a year.  He couldn’t afford to advertise… anywhere.  But he knew people would shop with him if he had the biggest selection of… something.  He chose children’s hats and gloves because they were so inexpensive.  He put hand-lettered signs on his windows: “We have the largest selection of children’s hats and gloves!”

He soon became known as the store to go to for children’s hats and gloves.  Not big sales, but once in the store the customer might buy a snowsuit – which was like selling 20 pairs of gloves.  They became important, well-known, and business grew.

       What does this have to do with your store?

Be a specialist in what you sell.  It does not have to be merchandise… it can be service.  Murray once asked an elderly woman why she shopped the local pharmacist when the chain store’s prices were lower.  Her explanation: “They say hello to me when I come in.”

The customer is reassured when you offer an in-depth selection of any item.  It makes them feel you are an expert in that field and gives the perception you are an expert in other areas as well.

When Murray bought clothing in Europe the total inventory was less than 10 percent of what he carried.

He promoted, advertised and talked about the European clothing so much that it became the main emphasis of his inventory.  Soon the customer felt everything in the store was imported from Europe.

“Half of America buys with credit, half buys with cash.”

Some of the best and smartest marketers are the credit card companies.  First came the cards.  Then came the affinity cards.  (When you use your credit card you are giving money to your alma mater.  Or the humane society.  Or building mileage on your favorite airline.)  Now there’s co-branding, where the name of your business appears with the name of the credit card.

What does that have to do with your store?

This: The more ways you offer the customer to pay, the higher the return.  Offer cash.  Or check.  Or credit card.  Or lay-away.  Or monthly payments.  Or your own co-branded card.  Better: offer them all and then be sure to include the internet.

“A private sale flyer must scream value.”

Retailers have negatively impacted between 25 percent and 40 percent of their core customers by sending false pretense private sale mailers.  Many businesses are mailing more often and giving less value.

Here’s what customers see as real value: real lower prices.  Deferred credit promotion.  Free delivery.  Free vacation promotions.  Free gifts.  First choice at a warehouse or clearance sale.

What does this have to do with your store?

An old and works-every-time adage: “Make sure the story isn’t better than the store.”  Another one (Cont. P.6 – What Do Customers) to remember: “Promise a lot.  Deliver more.”

If your product has six good selling points, only tell five.  Have the sixth featured when the product arrives at the house or is purchased at the store.

This gives the customer even greater confidence that their purchase is even better than “what you advertised.”

Some other guidelines from the survey:

  • “The number one reason for buying a big ticket item is No Down                      Payment.“
  • “The number two reason for buying is No Interest.“
  • “A very low interest offer will beat out a ‘6-month interest deferred’ offer.”
  • “Radio reaches the youngest audience, newspaper the oldest. Radio is the best medium to create a personality for your store.”
  • “The word ‘FREE’ in an ad has the greatest impact.”

How much attention should you pay to all this information?  A lot.  Remember the basic rule in selling is only one sentence: “Find out what the customer wants… and give it to them.”

For more great tips on customer service, go to TheHappyCustomerHandbook.com and get a FREE copy of my book. I reveal 59 secrets to creating happy customers who come back time and time again… AND enthusiastically tell others about you.

Remember, Only Happy Customers Come Back
Keith Lee

Murray Raphel has been telling the retail direct mail story as a columnist in Direct Marketing for more than 30 years.  He has developed Gordon’s Alley, a multimillion-dollar pedestrian mall in Atlantic City.   

       You can reach Murray at Raphel Marketing Inc., 12 S. Virginia Ave., Atlantic City, NJ  08401.  His phone number is 609-348-6646.

How to Work With an Upset Client

Upset Client

Train All Team Members Who Come Into Contact With Clients How to Work With an Upset Client

By Keith Lee

We’ve used this system to take care of upset clients in all my businesses since 1991.

I suggest you train your front line people to implement the LEAR Principle and the “Make-You-Happy Guarantee” (which I’ll explain later).  You don’t need to advertise this new guarantee when you start.  Simply implement it and see how it goes.  If it works, go with it.  If it doesn’t work, go back to what you have now.

Here is the LEAR Principle

L is for Listen

Listen and don’t interrupt.  There are a lot of reasons we don’t interrupt upset clients.  We don’t interrupt because, number one, it’s rude.  Another reason is that when we’re upset, you and I and everyone else do the exact same thing: We practice what we’re going to say.  And we practice what we’re going to say from the beginning.  So if you interrupt, you’re probably just going to have to listen to the whole thing all over again from the beginning.  Then of course we listen to the client because we respect the client and know that they are, in fact, the boss.  They pay all of our bills.  They give us every raise we’ll ever get.  They pay for our kids’ education and for everything we own.

E is for Emphasize

Empathize means to put ourselves in their shoes.  Say something like, “Wow.  I understand why you’re upset.  I’d be upset, too” or, “I’m sure glad you told me that so we can do something about it.”  Or simply, “Thanks for telling me.”

A is for Ask

Ask, “What can I do to make you happy?”  Now, most of the time you don’t actually have to ask.  Often times it is obvious.  But, sometimes you will want to ask.  The main thing though, is the idea and your attitude of “What can I do to Make You Happy?”  It’s your job to make the client happy.

R is for Resolve

You will want to give your team members guidelines as to what they can and can’t do right then and there to make the client happy.  If what the client wants is reasonable, and it is within the guidelines you give, your team member needs to make the client happy.  Train them to take care of the client right then and there.

I know if is easy for me to say without an angry person in front of me to implement this LEAR Principle.  It’s a lot more difficult to implement calmly and rationally when someone is possibly screaming at you or showing a huge amount of disfavor towards you.  You need to train your team members to understand that the client is upset at the situation and not with them.  Teammates need to be trained to not take it personally.  They need to understand that the client is upset with the situation and not them personally.  Train your team members to take a deep breath, and tell themselves, “This is not me. It’s the situation.”  Train them to talk to themselves and make sure that they are the person who stays calm and collected.  Train them that there is never an excuse ot get angry or short.

If the client is terribly abusive with swearing or something like that, your team member needs to be trained to say, “Sir, if you could watch your language I’m sure I can help you,” or, “Ma’am, if you want to watch your language I’m sure I can help you.”

Now, what if what the client asks for is above your guidelines or is completely unreasonable?  In this case you simply say to the client something like, “I’m going to have to get a manager to see if we can do that.”  Or, “Let me see if my manager can take care of that for you.”  Or, “You know, we don’t have a manager here at the moment who can approve that right now, but can I get your phone number and I can have them get back to you tomorrow morning or whenever is most conventient for you?”

In order to use the LEAR Principle effectively I suggest you empower your front line people with your “Make-You-Happy Guarantee.”  I believe “Make-You-Happy” is the best and least costly guarantee for your business.

Here’s our Make-You-Happy Guarantee:  “When a client has a problem, American Retail Supply team members are trained to ask, ‘What can I do to make you happy?’  In 43 years we have never refused a client’s request to make it right.”

Does this mean we’ll do anything?  Just about.  We’ve never refused a client’s request to make it right yet.  But my guess is that someday someone will ask for something so outrageous that we don’t do it.  Then I won’t be able to say, “In 43 years we’ve never refused a client’s request to make it right.”

I’ve given my seminar, “How to Compete with the Mass Merchandisers” to many different organizations.  Each time I ask retailers if any have a guarantee similar to ours.  In every seminar a few people raise their hands.  Then I ask them how the guarantee works.  Every person, every time answers, “Great!”

Then I ask each of these retailers with the What Can I Do To Make You Happy Guarantee, “How often do people ask for more than what you would be willing to give them?”  The answer is “Almost never,” or “Never!”

If people never, or almost never ask for more than you would be willing to give them, why ask them to jump through hoops, or talk to a manager to give them what they want?

This guarantee will most likely cost you less than a guarantee in which you make an offer to the client.  More often than not the client will ask for much less than you would have offered.  This savings will more than make up for the few times that clients are unreasonable.

You certainly will want to give your staff some guidelines.  Give them a limit as to what they can do without a manager’s approval.  Then, unless the request is ridiculous, train them to take care of the client on the spot!

Again, if the request is ridiculous or over their limit, train them to say something like, “I’m sorry, but I’m not authorized to do that, but if I can get your name and phone number I’ll be sure that our owner gives you a call tomorrow.”

So What Happens When Someone Asks for Something Really Unreasonable?

In my next blog post, I’ll go over some tips on what to do in the rare event that someone asks for something really unreasonable. Stay tuned…

In the meantime, are you wondering where these guidelines come from? And how do you handle other things like greeting customers, talking with customers on the phone and working together as a team to deliver better-than-average customer service? Click here to find out more about how we do this in our businesses.

For a limited time, you can also get a free copy of my book – The Happy Customer Handbook.

Customer Service Expectations

Remember, Your Customers Need To Know Your Customer Service Expectations

by Keith Lee

I get a few phone calls each year from customers who think they are not getting Make-You-Happy Customer Service from us.  Almost all of these calls start with, “I read in your newsletter that customer service is important to you, and I just wanted you to know…” or “A few months ago when I was on hold I heard that you wanted me to call you if I had a problem that wasn’t being taken care of.”

Sure, nobody likes getting calls like this, but in another way I LOVE GETTING THEM!

What’s the alternative?  For most businesses it’s a customer who really doesn’t want the hassle of complaining.  A customer who doesn’t care enough about you to say anything.  The customer who goes to the competition and not only doesn’t recommend you to others, but maybe even bad mouths you.  I love customers who give us the opportunity to MAKE THEM HAPPY.

Another thing you need to be sure to understand is that even though I consistently and persistently tell my clients over and over again to call us if they are ever disappointed and call ME if they are still not happy, just about every one of the people who call me to tell me that we’ve failed them, apologizes for calling.  That’s critical to understand.  You can’t just say this once and expect them to actually let you know when they’re disappointed; you need to tell them over and over and over again.

Find as many ways as you can to tell your customers that you want to know if they are not happy.

I stole an idea from Stu Leonard’s Dairy (which is a supermarket) in Connecticut.  He has a big sign with his picture that says, “What do you like?  What don’t you like?  I’d like to know!”  Every invoice we send out at American Retail Supply has a flyer that asks the same questions Stu Leonard asks: What do you like?  What don’t you like?  I’d like to know!  While it is redundant to send it out with every invoice, we do.  I want to be sure that every customer knows that they should expect Make-You-Happy Customer Service and that I want to know if they don’t get it.

But then, if you’re going to ask for input from customers, you need to act when you get it.  Every customer who writes to us at American Retail Supply, whether it’s a good comment or a complaint, gets a response.

Again, every chance you have, tell your customer you want to hear from them if they’re not totally happy.  Tell them when they are on hold.  Tell them with signs in your store.  Tell them in your advertising. Tell them any way you can think of.

Of course another reason you want to ask for those complaints is so you can fix the things that went wrong in the first place…

But there’s yet another great reason.  Your team members aren’t likely to forget your customer service expectations when they know that your customers know them and that you want your customers to tell you when they don’t get exceptional customer service.

Click here to see more about how we meet and exceed customer service expectations in our businesses.

Bury Your Ego

Bury Your Ego

by Keith Lee

 

I recently invested in myself and my company by attending a Glazer Kennedy Inner Circle event. While there, I went to lunch at an independent fast food style Mexican restaurant. The food was so good, I ate there 2 of the 4 days I was at the event.

While I was waiting for my order, a lady came up and said, “I ordered beans and got rice instead.” The clerk replied, “You ordered #1 with rice and salad, and two #3s beans and rice.” The lady replied, “Well, I wanted beans.” To which the clerk said, “I can give you a side of beans.”

In this exchange, it was obvious the cost of the beans was totally irrelevant – it was a tiny cup of refried beans for crying out loud! The clerk’s EGO was the issue. Why did she need to tell the client that she was wrong?… EGO.

A more timid client would have likely turned around without reiterating that she wanted beans, ate, left, and never come back. Who knows, in fact this client may not come back after being “put in her place” by the clerk. Remember, 68% of clients who leave one business and take their business somewhere else do so because they were treated with indifference.

There is a huge chance that this client will go somewhere else after being treated rudely. Anyone who works with your clients needs to be trained to put their ego aside. In this case, just say, “Oh, I’m sorry, let me get you a side of beans.” No EGO, no “putting someone in their place”, no chance for an upset client, no blame, just fix the problem.   Most client problems are just this simple. It just doesn’t matter. And it sure as heck is not worth embarrassing a client or making a client look bad.

So what was I doing at the Glazer Kennedy Inner Circle Event I talked about at the beginning of this article? I was practicing the quotation  from Jim Rohn, “Rich People Have Big Libraries, Poor People Have Big TVs.” Let me tell you how true that was for me at this event, and how true it can be for you when you spend your time and money increasing the size of your library.

While attending the seminar itself didn’t physically increase the size of my library, just attending the event and taking notes was a huge addition to my Mental Library and extensive library of notes and ideas. The tuition for this conference was $1497. Airfare, hotel, and food added well over $1000 to the cost. So my total investment for the conference was at least $2,500 plus a few days away from work.

One of the many incredibly exciting results of these three days happened at breakfast the first morning. I ran into a guy I had met at a previous conference so we had breakfast together. While talking with him at breakfast, before the conference even began, I got one idea that returned me at least 10 times the $2500 investment I made to go to the conference.

This newsletter is an example of investing in your library. The act of reading this blog post alone shows your team members that you are serious about client service.

I suggest you share this, “Bury Your Ego”, article with your team. It’s likely that teaching your team to do something to stop just one customer from leaving you and going to your competition will pay you big dividends.

If you want to find more great tips like these, then click the link below to request my free book The Happy Customer Handbook. It’s chock full of secrets to creating happy clients who come back time and time again. Not only that, they tell others about you. Just click the link below to get the hard copy delivered to your front door:

I want a FREE copy of The Happy Customer Handbook.

Beating The Odds – Part 2

Beating The Odds – Part 2

We’re picking up our conversation on one of our great clients at American Retail Supply, McLendon’s Hardware, which has seven locations throughout the Seattle area.  To review part one, refer to the last blog post (Beating The Odds).

Competition Makes Them Better

I’ve done a lot of research over the years on how to compete with the national chains.  I’ve been sharing that information with my clients in my monthly newsletter for 21 years and my bi-weekly email retail tip since 2004.  In my research I found that those companies that survive and thrive look at the new competition as a challenge to get better themselves.  McLendon’s has done this also.

For years McLendon’s knew they should be looking into better automating their inventory and point-of-sale computer system.  When the retail giants came to town they made the investment in their future but also were sure to invest in new software that really helped them stay focused on their customers and not allowing the software to take away from their exceptional customer service.

Other areas in which McLendon feels the competition has made them better are display, advertising and pricing.  McLendon says, “We never really concentrated on end caps other than to put things on them.  Now we have a person in every store hire just to do that.”

McLendon’s realizes that with the big guys right down the street they need to be much more aware of price competition so they can be seen as having “good” prices.  Their advertising person consistently pushes to have “hot buys” in their ads.

What can you learn from the competition to make you better?

Variable Pricing Structure

McLendon refers to his variable pricing structure as A item, B item, C item pricing.  “A” items are very competitive, commodity items, that everyone uses and everyone knows the price.  McLendon knows his prices must be “good” on these items.  They don’t need to be the same or lower than the retail giants, but they need to be very close.  “B” and “C” items are not as competitively priced and the company can get better markups.  Sadly, too many independent retailers refuse to accept this type of pricing strategy.

Buy Right

McLendon’s, like many who compete well with the mass merchandisers, is a member of a buying group.  They buy a lot of their product though True Value.  With the exception of direct import items, McLendon feels their costs are in line with the retail giants.  But he believes the retail giants often get advertising allowances that he does not get.

Don’t Compete Directly With the Retail Giants

McLendon’s knows their niche-huge selection and great service.  In addition, McLendon’s now very carefully considers location as a niche when opening a new store.  When opening a new store McLendon asks, “Is it their market?”

The retail giants in the hardware business like to be near freeways and locations that attract large number of people.  McLendon’s looks for a niche that is not close to freeways, has a good population base, but isn’t a place that the retail giants are likely to put a store that requires a huge population to support.

This is huge.  How can you position your product and/or services to go where the competition ain’t?

Brand Names

A strategy retailers like to use to compete with the retail giants is to carry brands that the giants don’t carry.  In the past, McLendon’s tried to carry brands that the big guy didn’t carry.  With the number of competitors now in the market, and the huge popularity of a few brands in the hardware business, that strategy doesn’t really work.  As a whole, McLendon’s tends to carry quality brand products.

Hours of Operation

Historically hours of operation for McLendon’s shows the company’s long roots and reflect the work ethic in the community – early to bed, early to rise. The company has always opened early and closed early.  Today they’re finding they need to extend those hours.

Store used to close on Sundays.  Today, Sunday is the company’s second busiest day of the week.  McLendon’s stores used to close at 6:00 PM.  Now they close at 8:00.

Temporary Sales Decline

McLendon’s has found that retail giants moving into their market is a cause for concern and an opportunity to improve, but it is not a cause for panic.

Like retailers across the country, McLendon’s has found that stores sales drop somewhat when a retail giant opens a store close to McLendon’s.  but like many independents, McLendon finds that within nine months sales are back to where they were before and growing… maybe not growing as fast as they did before the big guys moved in, but growing.

You Can Thrive

Mike McLendon and McLendon’s Hardware have proven that yes, you can thrive in the shadow of the retail giants and compete with them, but not directly against them.  McLendon’s focuses on a broad product line, great customer service, and a niche location to not only survive, but thrive in the shadow of retail giants.

Discover more ways to improve your business by requesting one of my free books: How to Control Your Business and Your Life and The Happy Customer Handbook

by Keith Lee

Beating The Odds

No matter what business you’re in, you likely have competition from a discounter, national chain, huge franchise, or something along those lines.  Regardless of the competition or the industry we can all learn from those who survive and are thriving in the face of this competition.  This article is about one of those businesses who are beating the odds and what you can learn from them.

You might know that I own American Retail Supply (www.AmericanRetailSupply.com) We provide independent retailers with the things they need to run their stores – the bags they give you, displays, fixtures, marking equipment, point-of-sale computer system, etc.

Let me ask you a few questions. Think back 20 years, or even 10.  How many independent drug stores do you see now versus 20 years ago?  Pet stores?  Department Stores?  Office supply stores?  Hardware stores?  The list goes on and on, and the answer is the same:  NOT MANY.

In those 20 years, while the market has shrunk dramatically, our sales at American Retail Supply have grown more than 10 times.  But this month’s article is not about my business, it’s about one of our clients who has beaten the odds and huge competition from the “BIG GUYS” and not only survived, but thrived.

McLendon Hardware opened in 1926.  Today they have 7 stores and continue to grow while Home Depot and Lowes blanket the market area with new stores.  At the same time that the entry of these retail giants forced the biggest regional hardware chain into bankruptcy, McLendon’s continues to thrive and open new stores.

How do they do it?  How does McLendon’s Hardware continue to grow, survive, and thrive while the old leader in the market has gone bankrupt?  I interviewed the president of McLendon Hardware, Mike McLendon, a few years ago to find their secrets, and you can use these same secrets to thrive in your market place.  Throughout this article I’ll use italics to ask you questions about using the ideas previously discussed in your business.

Find a Niche and Fill It

McLendon’s niche hasn’t changed in 87 years… Their niche – SERVICE, SELECTION, and LOCATION.

McLendon says they see themselves as being more family oriented than their competition.  That makes sense coming from an 87 year-old family business.  McLendon says, “People come to a hardware store because they have a problem, and they want to be able to go home and fix the problem themselves.  And they want to be able to understand something about the problem.  That’s one of the reasons we stay in business.  People think we can help them with their problem, they get the solution, go home and fix it, and they’re happy.”

Seems kind of simple, right?  Give your niche what they want.  McLendon’s wide breadth of products and friendly, helpful staff, insures that customers go home with solutions that make them happy!

What makes you different?  As my mentor Dan Kennedy says, “Why should someone do business with you versus every other option in your business category?” 

I shop at McLendon’s Hardware.  Here are just a few examples of their selection and great service.

I had a chip in my bathroom sink that I wanted to repair.  I went to the national chain about a half mile from my house.  They had one color – white.  My sink is cream.  I drove 5 more miles to McLendon’s.  They had the exact color match and 50 other colors!

What do you offer that your clients can’t get from the competition?

I needed a Philips head screw driver bit for my power drill.  I went down to McLendon’s, and like always quickly found someone to help me.  She suggested a bit and then said, “Here, try this one also.  We just got them in.  You can have it for free.  Let me know what you think of it.” Are you kidding me?!?!

It really is the little things.  What can you do to surprise and delight your clients with the little things?

I traced a leak in my hot water tank to the flexible copper tubing water inlet hose.  I took the old hose to McLendon’s where again someone was ready to help me.  Instead of just handing me the hose and letting me go, the sales person took an extra 30 seconds to tell me exactly how to install the hose.  His information made the job much easier and the repair will last longer.

What information, education, expert advice can you give to you clients that your competition doesn’t?

I’ve learned my lesson.  I now drive right past the national chain and go a few more miles to McLendon every time.  For me, McLendon is right on the mark.  When I go to other hardware stores, because it’s convenient, I often leave discouraged.  When I go to McLendon’s I go home with the solution to my problem.  McLendon tells me he often hears customers saying, “I should have just come here in the first place.”

What can you do to create loyal customers who, even if more convenient, don’t even think about going somewhere else?

Finding Good People

With the national chains coming into town, finding and keeping god employees has become a bigger challenge.  The big guys can often afford to pay more.  But McLendon’s relies on great help to send customers home with solutions.  How do they do that?

McLendon’s attracts employees who want to be more than just a clerk.  Trades people are attracted to McLendon’s.  They have a tool guy who was a contractor and didn’t want to be a contractor anymore.  He likes his job, he likes the people, and he gets the regular hours he wanted.

A journeyman electrician hurt his back and couldn’t work as an electrician, so now he works at McLendon’s.

The new store manager at the Kent store started at McLendon’s when he was in high school.  McLendon finds that people may leave the company to go to work for a new competitor, but they often come back to McLendon’s.

What can you do to attract the kind of employees you want, and will give your customers Out-Nordstrom Nordstrom Customer Service, without having to pay premium wages?

There’s more to this article, but you’re going to have to wait until part 2 of this series next month when I reveal the six core strategies McLendon’s is using to not only survive in the shadow of the retail giants, but thrive.  Stay tuned!

See how the Out-Nordstrom Nordstrom Customer Service System can help you

or

Find out more about the Make-You-Happy Management System

Customer Service Lessons From A Latte Stand

Customer Service can be challenging. But there is still no excuse for showing sincere appreciation to your customer each and every time they see you. In this video, I tell a story about a time I visited a coffee stand in Montana. As you will see, it didn’t turn out so well, and I learned a few valuable customer service lessons from that experience.

Out-Nordstrom Nordstrom Customer Service is all about taking care of the customer and showing them sincere appreciation. When we don’t take the time to really show our customers that we care about them, and to make sure that we clearly communicate our sincere appreciation for them, we can often miss out on opportunities to keep our relationship with that customer. All it takes to lose a customer for life is to come across as if you don’t care, or in the case of the latte stand owner, to talk down to that customer. We should always keep in mind that the CUSTOMER IS THE BOSS, and treat them with respect and sincere gratitude.

You can find more customer service lessons like these in my FREE book: The Happy Customer Handbook. Just click the link and I’ll send you the book, and I’ll even pay the postage!

Take a moment before you interact with your next customer and ask yourself: “Am I ready to show this customer my appreciation through my smile, my greeting, my service, and most of all my attitude?” Just reminding yourself that the customer is the boss will help you get in the mindset of delivering exceptional customer service, and you’ll set yourself apart from the competition because of your exceptional attitude.

Remember, Only Happy Customers Come Back

Keith Lee

P.S Want to know more about Out Nordstrom Customer Service? Just click here.

How Saving 208 Dollars Can Cost You $250,000

By Keith Lee

Here’s a true customer dis-service story that happened to me a number of years ago.  This highlights the value of making sure each of your Team Members know how to take care of customers.  The airline’s name has been changed to Bungle Airline to protect the not-so-innocent.

The day after the big earthquake here in Seattle about 12 years ago, I had a trip planned with another person to the east coast.  It was an important trip that I didn’t want to cancel so I looked on the web and found that due to damage at the airport, my flight had been cancelled.

I called the airline to see if they could get me on another flight.  They couldn’t.  but, as I was on hold, I was also on the internet and found that I could fly America West (name not changed – their service throughout was great!) and make it to my meetings. 

I told the agent at Bungle that I was going to book on America West and keep the second part of my ticket open with Bungle to come home.  This last minute ticket on America West was much more expensive but it was important, so I made the trip anyhow.

I confirmed with the agent at Bungle that I would be able to get a credit on the first part of my ticket.  She offered to transfer me to someone who could do it right them, but I was in a hurry to book my other flight and get some things done before I left.  She assured me I could get the credit later.

The next night, while in my hotel room in Massachusetts, I called Bungle to get my credit for the cancelled flight.  Since I had not used the first part of my ticket the return reservation had been cancelled. 

I assured the agent that I was indeed in Massachusetts and that an agent the previous day had told me that I could use the return portion of the ticket and that I needed to go home on the flight that I was reserved on.  The agent would need to talk to her supervisor…

Ten minutes later we found that luckily I had the credit card that the flight was charged on so they could see that I had not fabricated this story.  Again, luckily there was room on the flight and yes, they would break the rules and accommodate me.  Not bad.  A bit of a hassle, but I’m going to get home!

I asked them about the credit on the unused cancelled flight – $208.  I was told, “That’s a nonrefundable ticket.”  Even though the flight never took off they told me it was nonrefundable!  You can imagine where it went from there.  I was told that the supervisor had already gone out of her way to get me on the return flight and that I should be grateful.  I was told they would gladly refund my entire unused ticket for the full price of $416 and I could then book a one-way back to Seattle for $1800!

I asked to talk to the supervisor.  I just as soon could have talked to a brick wall.  She pointed out that they could not control earthquakes, but seemed appalled when I told her I couldn’t either.

I asked to talk with her supervisor.  She was the top person there at 9pm eastern time.  When I asked for a supervisors’ name to talk to in the morning I was told, “Just talk to anyone.”

As I got ready to hand up I mentioned to this supervisor that I owned a company that took about 50 round trip flights a year and Bungle Airlines was probably not going to see any more of our business.  I was told, “Well, we can’t have special rules for everyone.”  I replied that I didn’t want anything special, just a refund on a flight that was cancelled by them!

To make a long story short, I decided not to call until I got back to Seattle.  When I called I decided to act like I had never talked to anyone about the refund.  I really didn’t want to get into a long drawn out discussion again.  I simply wanted a $208 refund on a flight that had been cancelled.

I called Bungle and told them my story.  Within two minutes I had my refund applied to my credit card.

What Customer Service Lessons Can We Learn From This?

  • Be sure your front line customer service people (heck, make sure EVERYONE is) are trained to truly take care of customers.  Review common problems and complaints and be sure your Team is trained to handle them quickly and efficiently.  Remember, Only Happy Clients Come Back!
  • Supervisors and managers must be able to think, act, and do.  Maybe Bungle Airlines couldn’t get the message to all of their customer service agents to take care of people whose flights were cancelled due to the earthquake (I haven’t got the foggiest idea why they couldn’t, but who knows?)  Regardless, if they couldn’t get the word to all the customer service agents at least the supervisors should have been trained to understand that the customers can’t control earthquakes, either, and that “nonrefundable” doesn’t apply to cancelled flights.
  • Be sure everyone in your company understands the “Lifetime Value” of a customer.  In this case, Bungle was looking at losing the opportunity to compete for at least $250,000 of business.  Our company takes about 50 round trip flights a year.  At the time this happened I planned to be around here for at least 20 more years.  I would have very likely told everyone here to use Bungle only as a last resort if I had not received my refund.  They would have missed out on the opportunity to get their share of at least $250,000 in airline travel over saving 208 dollars.  What is the Lifetime Value of your Customers?
  • Be sure everyone in your company knows that word-of-mouth can be your best advertising or your worst advertising.  The cumulative effect of word-of-mouth is absolutely amazing, and with social media as popular as it is, it costs too much to have poor customer service!  You have Facebook, Instagram, Twitter, Yelp, blogs… you name it, if you create a bad customer service experience you and everyone else on the interweb will hear about it!

 

Do your people know that a happy customer will tell 1-2 other people about their experience and your great service?  Do your people know that a dissatisfied customer tell an average of 16 people about your poor service?!?!  OUCH!

 

And what about word-of-mouth in this instance?  At the time when this story happened I was sending out my newsletter to 25,000 customers (this is through my main business, American Retail Supply).  If I had not received my refund I would have not changed Bungle’s name.  I would have told every one of you about their incredibly poor service.          

  • Check yourself out.  Do your policies, procedures, and practices allow your people to use their good judgment to take care of customers?  Do you put your customers through the wringer in order for them to get their request fulfilled, or do you empower your Team to make the best choice possible to make the customer happy?

 

Remember, Only Happy Customers Come Back!