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Customer Service and the Recession
8/19/2010 9:26:25 AM
I was with a client recently and we were talking about customer service.  We had completed a customer satisfaction survey and had made an analysis of his company’s customer service versus his competition.  He said something very simple, yet profound, "If I could get my frontline people, who have any kind of face time with our customers, to realize that if they are courteous and went out of their way to help with little things, our customer service numbers would soar.”  He is absolutely right.

Customer service has always been a lynchpin for retaining customers.  It is typically one of three factors in keeping your customers happy and returning to do business again (the other two are price and quality of the product/service.)  In fact, if you have high quality and exceptional customer service, you can greatly reduce the emphasis that price has on continued sales.  People will pay for great customer service and high quality.  This was the thought behind Nordstrom’s Department Store, which has set the standard for customer service.

For years, Nordstrom employees were given an "employee handbook” that was nothing more than a single card that stated one rule for all employees.  "Our number one goal is to provide outstanding customer service… Rule #1: Use best judgment in all situations. There will be no additional rules.”  In essence, Nordstrom’s gave their employees, no matter what their level, the freedom to make customer service decisions based on the client’s needs.  If a customer needed a cab, they would walk out of the store and hail one to the curb.  If a customer spilled coffee on their jacket, the Nordstrom employee would make arrangements to have it dry cleaned.  Clever sales staff kept records of the measurements of businessmen, along with a color chart, so they could pick out a suit, shirt and tie then have it tailored and delivered without the businessman stepping foot in the store.  The Nordstrom staff became extremely innovative in the ways they would try to outperform the expectations of the client.  It became known as the Nordstrom Way.

But what happens to customer service in the middle of a recession?  Everyone has to drop their prices to compete in a recession, right?  Employees lose their jobs and those left behind are asked to do more with less.  The little extras go by the wayside in order to stay alive.  How can customer service still have an impact in hard times?

File this under "small things have the biggest impact in life”.  I recall learning a customer service business principle from my father, who was a ceramic tile contractor.  He always taught me to do the little extras and people will not forget you.  In the midst of the recession of the late 1970’s, much like today, new construction projects slowed down.  It is not a good idea to be in the ceramic tile business if no one can afford to build.  Yet, he always had work.  Most of it came from referrals because he did outstanding work, but the real secret was the time he took to talk to his customers at the end of the day.  While my brother and I cleaned up the workspace and loaded our truck, he would take time to engage the customer in conversation.  He would look for ways to help them.  Part of it might be giving them advice, but many times he learned about other things that needed to be done around their home.  It was never large jobs, just the ones that no one else would do.  Before you knew it, we would be washing windows, taking out the trash, planting shrubs… you name it.  No one forgot him and he never lacked work because he knew how to make an impact by doing simple menial tasks that others would have tossed aside as not their job.

One of the things I try to stress to my clients is that customer service is intricately linked to marketing. We can be very clever in marketing your business. We can build a web site that will win design awards. We can produce ads that will make everyone aware of your products. We can print literature that will capture everyone's attention. But if you have crummy customer service, all the slick marketing will be for naught. If you think of marketing as a boat taking you across a lake, lousy customer service is like firing a cannonball into the bow of the boat. Glub, glub, glub! Down she goes.

Even in the middle of a recession, people still expect to be taken care of by the companies they hire. Going beyond the call of duty in customer service need not be costly, but it must be valued by the customer. Simple things like taking the time to listen and be courteous can go a very long way. If you can help your customer with the small things in hard times, it will come back to you. 
 

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