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MARCH 2009 ISSUE 2
MOTIVATION // INCENTIVES // PROMOTIONS // LOYALTY // RECOGNITION

Our March issue focuses on Customer Service and here you will find interesting information on how to go about improving your levels of customer satisfaction.

I have always wondered why customer service in Australia is not world class. Is it that we have always had a buoyant economy and take our customers for granted, or maybe they haven't demanded it so we saw no reason to change - perhaps its our laid-back character, in all likelihood it 's a combination of all of these.

Along with many other excuses I have also heard some managers say “we can’t pay enough to get good customer service oriented people”, “people just don’t care”, “our profitability is high”, “our product is the best in the market”.  Well, this is just the reflection of our commitment to customer service – appalling. We need to lift our game and in doing so lift our profits.

There’s never been a time when customer satisfaction mattered more than it does now. The economy isn’t as it was and consumer confidence is low. Customers who are buying have a choice as to where and how they buy, so companies need to truly reflect a customer centric culture if they are to protect their market share and remain profitable.

In general, we don’t have a customer-focused culture. Although our mission statements and values seem to be right, unfortunately it appears to get lost from the paper it was written on to the implementation. I am certain that great customer service is not about cost as it really can just start with a few simple changes to instill a behavioural change that will set you apart from your competitors and improve your bottom line.

Until the importance of customer service is fully understood in a $ sense, then it is unlikely steps will be put in place to make the change.

Yes we are laid back and like a nice life and for that very reason we should be aiming to change behaviours by demanding great customer service.

Best Regards,

angela_signature

Angela Dillon
Managing Director
AD+INC

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HAVE WE LOST THE ART OF SELLING?

There are many marketers and sales people sitting around pondering exactly what they need to do to convert sales.

They have plenty of advertising out in the market place and there are people with money in their pockets looking to make purchases. We are hearing that foot traffic is still good but the conversion rate is terrible.

So the question must be asked - why?

If we can get them into the store then they are in the market to make a purchase. The average consumer is now very savvy and well informed and will have done much research before walking in your door.

What we have to realise is that now more than ever they have the upper hand as they want a reason to buy from you as opposed to your competitor. So what are you and your staff doing to WOO your potential customers.

This is a time when building a relationship with your customer should be utmost in your thoughts.  They need to feel special and believe and rely on what you say, lip service will not cut it.  Like any relationship this must be demonstrated and reiterated in all areas from first point of contact through to delivery and backup service.   This will mean that price is not the main reason they purchase from you.

Now should be the time to start looking at how you sell,  in general  I think you will find we have become a group of order takers rather than relationship builders.

What skills have you given your staff to change the way they behave with your customers.  We know people need a reason to change "the old what's in it for me scenario", is fine and does work, but only so long as you can track the change, and this is where individual , team and department rewards work. 

Let's be honest for some of your front line staff this will really push their buttons particularly when you are getting them to build relationships by asking questions, making suggestions and generally building a rapport with people they know nothing about.  What we can tell you is that if we can get back to providing outstanding customer service by building relationships your conversion rate will improve not just in the short term but by setting yourself apart with a real point of difference which will see your profits increase and your company culture change in a positive manner.

Angela Dillon
AD+INC

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WHAT CUSTOMERS REALLY WANT

Think of this: When you are a customer, what do you want? And not in relation to any specific product. Think of any situation where you are the customer.

It shouldn’t be any different from what your customers want. Funnily enough, although we know what we want as a customer we seem to fail in understanding what our customers really demand; and this costs a lot of money.

Customers are interesting – they will never tell you how you messed up, they will simply leave… poof... gone! ... Not a word. But you could guess what goes wrong from the following list.

Here are the top things that keep coming up as - What Do Customers Really Want?

  1. Listen to me
  2. Know more than I do (about your product or service)
  3. Be easy to work with
  4. Give me what I came for
  5. Acknowledge my presence
  6. Don't treat me like I'm an interruption
  7. Don't waste my time
  8. Be honest
  9. Offer alternatives/solutions if you don't have what I want
  10. Don't try to sell me. Just help me
  11. Do what you say you're going to do
  12. Keep me informed
  13. SMILE

It isn’t that hard, but it seems that many companies get it wrong. Retailers, restaurants, supermarkets, banks, you name it, we all need to take a closer look at what our customers want and understand how simple it is to boost customer satisfaction.

The most precious asset an organisation has is its customer’s. Hence, customer satisfaction is the key for maintaining market share or simply survival. Customers are taking care of how they spend their money and most products and services are nowadays commoditised; why would they choose your products over the competition?

Customer satisfaction is not only a differentiator. It goes beyond being better than the competition. It is about customer profitability and if businesses are to increase their yield with each customer and strengthen their relationship and loyalty they must carefully look at what do customers really want and give it to them.

Federico Rosas
AD+INC

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ARE YOU BEING SERVED?

A few days ago I was so annoyed with the service I received at a fancy big brand coffee franchise – one of those places where they call you by your name to be friendly and avoid any coffee confusion. I normally go to my friendly local Italian barista and I now know why his shop is busier than this wannabe social-environmental friendly coffee franchise.

It was a hot day and I thought an iced coffee would be refreshing. When placing my order I was very clear in letting the guy know that I would prefer it without the whipped cream and not to load it with ice, as I just wanted a cold drink. Not sure which part of no whipped cream, little ice he didn’t get. I received a frappe coffee with Mount Everest on top.

No fuss, I didn’t want to be a disgruntled customer and a frappe sounded just as refreshing. And since he was calling me by my name I did so too “Sorry Brian I am wondering if you could remove the whipped cream please”. To my surprise without a hitch he replied, “There’re serviettes and spoons on the counter… the rubbish bin is over there. Sorry we’re a bit busy” and continued with his business. No biggie I thought, I could do it myself. But when I was trying to get rid of all this cream this other staff member came in with an irate tone and said “don’t… the whipped cream melts and causes a mess… you could have just asked for a plain one”.

So I angrily asked Brian to replace my coffee with a plain one. He said he would, but it just made matters worse. It took so long to make another coffee, even though I was close to the counter and kept looking expectantly. I said to myself, never again. From this point on I will stick to my Italian barista who offers not only a friendly attitude but every now and then a few shots for free.

On average I have two coffees a day at $3.50 each – times 220 working days a year that would have earnt them $1,540 a year. Let alone the days I have my slice of banana bread and sometimes I get coffee for someone else. I seriously believe I bring the Italian guy an average of $2,000 per year.

Do you know how much profit each individual brings to your business? Most importantly, do your employees know? Do they know how many regular customers they have per day and how many decide to never return as a result of poor service? By making employees aware of these statistics, I am certain this would change their outlook on the customer service, or lack thereof, that they provide.

When repeat customers keep coming back again and again you clearly have developed a relationship and you don’t want to drop the ball. You don’t want to depend on one-off customers all the time. You have established a relationship though credibility, trust and business growth will be exponential.

It is about keeping the customers you have exceptionally satisfied and demonstrating to your new customers you are the best option for their purchases. That's your key to survival, and in fact growing your business.

Alex Goodsell
Motive8

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If you have any news or feedback for INCENTIVE BUZZ, please email info@ad-inc.com.au Alternatively you can visit our blog www.employeeincentives.com.au

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OTHER RELEVANT ARTICLES WITHIN THE INDUSTRY
Incentives: The Customer-Driven Bonus Plan
By Stephanie L. Gruner

The importance of a 'can do' approach in customer service
By Derek Stockley

Customer service tips
By Flying Solo Online

USEFUL INDUSTRY LINKS
Incentive Performance Centre – US based
www.incentivecentral.org/

CIM - Convention and Incentive Marketing Magazine – US based
www.cimmagazine.com/

IMA - Incentive Marketing Association – US based
www.incentivemarketing.org/

INCENTIVE BUZZ is an online newsletter from AD+INC, a full service incentive marketing agency; parent company of motive8 online incentive solutions.
AD+INC  //  215/40 Yeo St. Neutral Bay, NSW 2089  //  Tel 02 9464 6699  //  www.ad-inc.com.au

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