Showing posts with label Common. Show all posts
Showing posts with label Common. Show all posts

Friday, 12 August 2011

What is Good Customer Service? Common Misconceptions of Good Versus Bad Customer Service


On an average day, most people will deal with a customer service representative anywhere from one to five times. Some customer service experiences are classified as "good" while other are disdainfully referred to as "bad". If someone experiences what they would consider good customer service, they typically just about their day as if nothing out of the ordinary happened. If this same person experiences bad customer service, they will not hesitate to tell everyone who will listen. Typically I ignore the latter of the two for one very important reason: does anyone really know what good customer service is?

Having worked close to ten years as a customer service representative and manager in multiple industries, I have experienced my fair share of customers who were not happy with me. And to be completely honest, very few of them really had any cause to be upset. They called me ready to fight.

Past Experience Can Lower Expectations

In some cases, previous instances of truly poor customer service can leave one with a bad taste in their mouth regarding customer service representatives, and cause them to go on the offensive from the moment they get someone on the phone. I'll give you an example: years ago I joined a gym and signed up for some personal training sessions. After a while, I found that the sessions were too expensive and I really didn't have much time to attend them, so I decided to cancel the service. It took me at least an hour of dealing with the original salesman, his manager, and the general manager to finally get it resolved, and even then I had to pay a cancellation fee. They tried to convince me to sign up for a cheaper plan, postpone my sessions instead of cancelling, and even take time off from work to make more time for the sessions. Absurd.

A few months ago I found myself in a similar situation with a different gym. The trainer sessions were not going to be worth the money and were ultimately going to conflict with other things that I had going on. I called the gym, already in a foul mood because I was expecting a fight with whomever I had to speak with. Much to my surprise, the first person I spoke to simply cancelled the sessions, no questions asked. Here I had gotten myself pumped up, ready to lay into the first person who gave me a hard time about my cancellation, and it turned out to be one of my most enjoyable customer service experiences.

Customer Service Is About Perception

However, often times what a customer considers "bad customer service" really is not bad at all, it is simply their perception of the situation. The furniture industry is a classic example where a customer's misconception of what customer service really is can lead to them deciding that they have received "bad customer service".

When I worked in the furniture industry I often found myself dealing with people who would, scream, yell, and even insult me because of a clearly written policy in place. For instance, furniture deliveries are typically given a four hour time window in which the drivers will arrive. This is an industry standard simply because everyone's house is different, so there is no telling how long each delivery will take until the drivers get there. Deliveries are arranged geographically to enable the drivers to complete as many stops as possible, so a specific time of day is not guaranteed. The concept of delivery time frames and how they are scheduled was explained to every customer as they bought their furniture and again when their delivery was scheduled. Of course, for some customers, this simply was not good enough. Despite being told twice before, and having the written delivery policy attached to their sales receipt, they somehow had it in their heads that they were different from every other customer, and could pick their time of delivery. While we were open to the idea of trying to accommodate them, often times it was impossible when the trucks were already loaded. Those phone calls typically ended with "this is bad customer service", "I will never shop with you people again," "this is NOT how you run a business," or my favorite, "I'm going to tell all of my friends to not shop here."

Common Misconceptions

There are two common misconceptions about what customer service really is. The first is that a customer service representative's job is to do everything the customer says, no questions asked. This is absolutely not true. A customer service representative's job is to provide service to the customer and assist them in any way they can, but like any other organization, company's have guidelines that their employees must abide by and specific rules that apply to customers. An employee's inability or refusal to break these rules should never be viewed as poor customer service. In many cases, rules are put in place to protect the customer. In the case of a medical supplies retailer, a large portion of their items tend to be non-returnable due to hygiene reasons. When it comes to products such as toilet seats, shower chairs, and bathing aids, this policy makes perfect sense. However, despite this policy being clearly posted for customers to see before purchasing the item, it does not stop an alarming percentage from attempting to return the items anyways. Even though they know the product is non-returnable, and they would never consider purchasing an item of that nature that is used, they still believe that the retailer should take the item back if they decide they do not want it anymore. And if the retailer refuses, the consumer perceives the situation as "bad customer service".

The other misconception is that a customer service representative's job is to take verbal abuse from the customer. This behavior is completely unwarranted, and to be completely honest, immature. Problems are never solved by yelling, screaming, or insulting the person on the other end of the phone. 99 percent of the time, the person the customer is speaking to is not at fault for the reason they are calling in the first place. Whether a customer has had a bad day or previous bad experiences with a company, it does not excuse them to take out their frustrations on the first person who picks up the phone. Countless times I found myself hanging up on someone because they have crossed the line and resorted to personally insulting me because they were not happy with the company.

Customer Service Tips

So what is good customer service? Good customer service consists of several things that combine to make the ideal customer service experience.


1. Clear, precise explanations: An upset customer is typically an uninformed customer. In the case of the furniture company, a customer should get a thorough explanation of how the delivery process works. Never assume that the customer already knows. If you cannot do something for a customer because a rule is in place, clearly explain to them why it cannot be done. In the case of the credit card company, the representative should explain to the customer that regulations regarding account changes are in place to protect the cardholder and the credit card company from fraud.

2. Calm, polite demeanor: If a customer service rep does not sound polite on the phone, or simply is not nice to people, they need to find another job. The way a representative sounds when speaking to a customer will directly affect the way the customer speaks to them in return. A good customer service representative addresses the customer respectfully, only using their first name if given permission, and NEVER raises their voice. A customer service rep should never try to talk over a customer, nor should they raise their voice if the customer begins to get louder. No matter who seems to win a shouting match between a customer and a representative, the customer service rep has lost by being drawn into it.

3. Pay close attention (write it down if needed!): The worst thing a customer service representative can do is not pay close attention to the customer they have on the phone. It is important they put away all distractions and listen to the customer carefully, writing down notes if needed. A good customer service rep does not need to ask the same question more than once.

4. Under-promise, over-deliver: This is an old saying but will always ring true in the world of customer service. A large part of how a customer views their overall experience will be based on the expectations that were set. If a situation requires the customer service rep to call the customer back, it is important to allow enough time for the call back. A good representative will never exceed the time in which they promised to call the customer back, and will always give themselves more than enough time. The same goes for when products are being shipped to a customer; if the time in transit is typically 3-4 days, quote the customer 4-6 days. If the product arrives sooner, the customer will be even happier, and perceive their experience as "good customer service."

5. Clearly posted policies: This is especially important for internet-based retailers. If a product is non-returnable, it is the responsibility of the retailer to post that in a place that customer can and will see it before the item is purchased.

The customer-client relationship is a tricky one, especially when it comes to determining what good customer service is and what bad customer service is. The key is for both sides to remain patient with each other and keep in mind that they need each other equally in order to achieve their overall goal: a good customer service experience.




Richard Chandler is a product researcher writer for an online business by day and a freelance writer by night. For questions or comments, Richard can be reached by Email or at his blog page, http://computarded.wordpress.com





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Monday, 25 July 2011

Selling a Small Business: Seven Common Mistakes Entrepreneurs Make and How to Avoid It


Do you want to sell your small business? Or you are already in the process of selling your small business? If any of the criteria above best describes you, then read on as I share with you seven common mistakes you must avoid when selling a small business.

Selling a small business is a process every entrepreneur wants to experience but unfortunately, only few will build a business that will worth selling. There are several reasons why you would want to consider selling your small business either now or in the future but I won't go into the details here. I have already written an in-depth article highlighting why entrepreneurs sell their small businesses.

But in this article, I will be dealing strictly with seven common mistakes you must avoid when selling a small business. If you are still interested in learning this now; then follow me as I share with you below common business mistakes you must avoid when selling a small business.

Selling a Small Business: Seven common mistakes entrepreneurs make and how to avoid it

1. Impatience

Impatience is usually a common mistake most entrepreneurs make when selling a business. They want to exit the business and the want to do it fast. Being impatience can affect your deal negatively because your potential buyers need time to go over the deal and if you add pressure on them to sign the deal; they will smell a rat.

When selling a small business, it's advisable you keep calm and hide your nervousness or impatience. Even if you are under pressure to sell; don't act desperate as this could scare away prospects.

"Patience; this is the greatest business asset. Wait for the right time to make your moves." - J. Paul Getty

2. Indecisiveness

Are you sure you want to sell your small business? How much do you want to sell? Who have you decided to sell to? These are questions you must put to rest before putting up your business for sale. If you don't find the answers to the questions above ahead of time, you are only avoiding a stumbling block that will get back at you in the heat of the process.

One untold fact in the process of selling a business is that there's going to be behind the scene politicking; whether you like it or not. After putting up your small business for sale, there might be a couple of prospects; which will invariably result to a bidding frenzy and behind the scene lobbying.

"The best thing to invest in your business is your time. To schedule, plan and use time effectively, know your turf and know your objectives. Assess the obstacles and opportunities, then devise your strategies." - The Mafia Manager

If the above situation arises, then you must be prepared to take a stand and decide who gets the deal. You must also be clear and strict on your terms and conditions; you must stick to your agreement. No one wants to deal with an indecisive seller; an indecisive buyer is rather preferred. If you have a reputation for changing your stance when under pressure; then let your most trusted business team member oversee the deal.

"Before making an important decision, get as much as you can of the best information available and review it carefully, analyze it and draw up worst case scenarios. Add up the plus or minus factors, discuss it with your team and do what your guts tell you to do." - The Mafia Manager

3. Not doing a personality checkup

"It takes 20 years to build a reputation and only five Minutes to ruin it. If you think about that, you will do things differently." - Warren Buffett

Are you a person of integrity? Do you keep to your words? Do you have a strong positive personal brand? These three questions must be answered before you even put up your small business for sale. In an article I wrote previously, I stressed the need to invest in your own personal branding. I also explained that your personality can be a leverage for you in the world of business.

I have seen entrepreneurs raise billions of dollars in capital simply because they are trustworthy; meaning they have business integrity. I have also seen small businesses sold for millions and even billions of dollars because of the reputation of the entrepreneur behind that business.

So before putting up your small business for sale, make sure you conduct a thorough personality checkup because your buyers will definitely do. Does your personal name reflect a positive or negative image? Do you have friends and associate who are reputable? Can your business partners vouch for you? How easily can you get an endorsement from someone of high reputation?

These are some of the questions that must be answered during your personality checkup. As a piece of advice, if you know you have a bad reputation; don't be the lead dog in the sale of your business. Instead, let your selling team be led by someone of high reputation; it will get you a fair deal.

"The most important thing in your business relationships is your reputation for honesty. If you can genuinely and sincerely fake honesty, you will be a success. Never doubt it." - The Mafia Manager

4. Showing potential buyers the weakness of your business

When negotiating a deal to sell your small business; be strategic. Know your objectives and capitalize on your business strengths. To sell your business successfully and get a fair deal, you must emphasize your business strength or competitive advantage occasionally; not its weaknesses.

Hide your business weaknesses but be prepared to defend it should in case the buyers hits on it. If possible, tactically divert your buyer's attention away from your business weaknesses. There's nothing wrong with this act; it's strictly business.

You have done your calculations so it's left for your buyers to do theirs. If they fail to spot your business weakness, then it's to their own detriment. You just make sure you keep it that way; it's business.

5. Inadequate Legal checkup

Inadequate legal checkup is a common mistake made by most entrepreneurs when selling a business. You must strive to avoid this mistake because it's deadly. One thing with this mistake is that it can earn you a lawsuit, financial losses or loss of certain rights.

To make sure you don't end up committing this blunder, I will advice you hire an external attorney or legal practitioner to go through your legal framework; it will save you in the long run.

6. Shallow paper work or auditing

Before ever listing your business for sale; you must make sure you have thoroughly gone through the paper work. You shouldn't bother with paper work preparation; I think the accounting department should handle that. But you must sit and review this paper works thoroughly with your accountants. You may even go a step by bringing external auditors to pick holes in your paper work.

It is better external auditors pick holes in your financial statements or paper work than your buyers. As a last note, you should try to have some numbers, business ratios and business statistics off hand. This will prove to buyers that you know your business in and out.

"Know your numbers' is a fundamental precept of business." - Bill Gates

7. Letting the cat out of the bag too early

Until the final papers are signed and business assets transferred; don't spill the beans. Not to your friends, not to your employees and not even to your family. Only trusted men, who will add value to sweeten the deal should be made aware; you core business team as well should be involved in the deal.

Don't spill the beans; don't let the cat out of the bag. Don't, don't, don't. The result of revealing the deal before it is concluded might be more than you anticipated. Revealing that your business is on sale may lead to demoralization of your employees because they will be more concern about their welfare than your business.

Spilling the beans may also earn you some unnecessary competition, unsolicited publicity and media misinterpretation. Or worst still, you might end up with several lawsuits dangling on your neck. So once again I repeat, never let the cat out of the bag until the deal is sealed.

As a final note, I believe you will find these points I have made useful. So when preparing your business for sale; be sure to avoid these common mistakes and I will see you at the top.




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