Local Versus National Answering Services

For any business shopping around for an answering service, the question arises whether to use a national answering service or one based locally. Although most people initially feel strongly one way or another, there are tradeoffs involved with each one. Before even considering these, it is always important that the service be experienced and trustworthy. Professionalism needs to be evident no matter which route you choose because any of the benefits of either local or national answering service will not mean much to your customers unless the service is skilled.

Another aspect that may come into play, depending on your needs, is price. Many useful features are offered by most services, bust some companies both local services and national don't offer a few of them. When deciding which kind of service to use, consider that many national services have been around for a long time. Interestingly, a large number of these national services once started as exclusively local services and went on to become so successful in what they do, they became large enough to service the entire country.

National services frequently utilize call centers in a variety of areas across the country, which comes in handy when local power outages or phone line problems happen. Competent national services are usually better at managing these unforeseen incidents more quickly than local services that are very much tied to local conditions. For those who provide urgent, 24-hour, or emergency service you should consider the fact that it is precisely during these times when you'll need a service most. Wouldn't it be good if the service were located outside your community? Even though most call centers have generators and battery backups, it's better for your peace of mind that they be outside your area.

Another reason it might be good to use a service that is located outside of your community is that, for certain companies, privacy issues arise when using a local service. As an example, let's say that Suzy has been having some major tax problems so she has taken on the help of a tax attorney. This particular tax attorney has decided to use a local service and Suzy finds herself leaving a message concerning her personal matters in some way with someone who may be friends or family of someone else she knows. Despite the fact that the local answering service would probably keep her matters private, the problem of people close to her knowing about her personal business does arise. If her tax attorney had utilized an answering service located outside the community, say 400 miles away, the chances of someone knowing her coming into contact with her information are virtually zero.

Something to consider however is that for a relative few sort of companies, having a local answering service is important. Maybe the answering service has to give directions and the company using them wants a local outfit staffed with other locals answering their calls for this reason. This is very rare and most people in this situation work out some sort of in-house solution. By and large, when you are choosing an service, you would do well to concentrate on important areas and not worry about how close the call centers are. When possible, try out an service for a week or so before getting an account. Many answering service providers these days, the ones confident about their own work, are more than willing to offer you a free trial.

Specialty Answering Service is a nationwide live medical answering service and call answering service provider. We answer for each client 24 hours a day and follow their instructions to handle each inbound or outbound communication perfectly.

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Product Versus Service

What is the difference?

Service sales reps will usually say it is difficult to explain their service. Ask many product sales people what their products do and you would think it must be a service. Service sales people say they must sell differently. They must get in front of a prospect. They then want to find out the needs and what is most important to the prospect. They then position their service in a way that is of value and what is most important to the prospect. How is that different to a product?

There has been this myth in sales that services are different than products from a selling scenario. When I do certificate testing for sales people, the sales rep must do a role-play in which they sell to me. Many times if the rep sells a service, then I give them a product scenario and if they sell a product I give them a service scenario. Guess what happens. The reps get into the role-play and apply their sales skills and run a successful role-play.

The only difference I have seen is in the way reps view their business. If you know what your business does well and what the value is to your customer, then the rest lies in your ability to sell. It doesn't matter what you sell - a product or service. If you are unable to explain your business and know the value of what you sell then it doesn't matter what you sell. The reason you then feel a service is more difficult is that you can't explain what you do. Yet if that rep sold pencils he would still have poor sales because even though you know that you sell pencils, you do not know the value and how to position that pencil with your clients and prospects.

Successful Service Sales

My observation of service sales reps is that they do not know what their "product" does for clients. If you are one of these service reps (or a product rep for that matter), take time with your manager or your most successful rep and ask them to help you understand the value and uniqueness of your service. Visit your top customer and ask them why they use your service and what the value is to them.

If you take responsibility for your business, then you will get yourself educated and know what makes your service something clients and prospects need in their business. You get comfortable with your service and after carefully listening to your customer and prospect needs can position your service in a way that provides value, a peace of mind or whatever it is that is most important to that person.

Product versus Service

I will sometimes play with sales people and ask them if there service offering is not a product? The insurance and financial services companies call their services products. If it is a product does it make it easier to sell? Yet it is a service. Are you embarrassed to be a service provider?

In 2001 IBM's service business surpassed their hardware (product) business for the first time in company history. We have become a very service oriented economy. If you believe selling services is difficult then you will want to look in the mirror and ask what you need to do differently. Services are a very profitable and growing sector in North America and the great reps have figured this out.

Sayers Says.........

What is the value of your product or service? Do you know enough about that value to position it in to what your prospect wants? Am I using my "Service Offering" as a way to justify my poor performance? Is my service a product or a service? Why does your customer buy from you and what is the value of your service to them?

One of the world's foremost experts in sales and sales leadership, Bill Sayers has more than 25 years of experience in sales and sales leadership. He started his career as an inside sales rep and worked his way up the corporate ladder to the level of VP of Sales at an IBM company. During that time he worked for Revelstoke Lumber, King Products, Linotype, Ryder Transportation, GE Capital IT Solutions and IBM.

The Sayers Group specializes in one on one consulting and group programs that include: Effective Negotiation Strategies; Strategic Account Management; and Professional Selling. Sayers also delivers keynote addresses on "Playing the Game - The Great Game of Sales" and "The Death of the Salesman".

He has been a professor at George Brown College teaching Personal Selling Skills to the Sports and Event Marketing Graduate Program. He is also on the faculty of Canadian Professional Sales Association and Canadian Management Centre. Bill is an Associate Member of TEC (The Executive Committee).

To receive our free "How are you Playing The Game" Scorecard and a 45 minute one-on-one session with Bill Sayers, info@TheSayersGroup.com. Bill's book Funnels & Forecasts - The Great Game of Sales is available on Amazon.

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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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Business Exit Strategies - Internal Transfers Versus External Transfers

Most business owners believe that an 'external' sale of their business is their only (or at least best) Exit Alternative. Typically this is because business owners know that their employees and/or fellow family members don't have the type of money required to secure a successful exit plan for them. So often times, business owners approach (view or see) the topic of Exiting a business as meaning that they need to sell their business to an outside buyer with enough money to pay them what they want.

So while an 'external' sale is intuitively appealing, it's my experience that an understanding of 'internal' transfers will help open up a very good dialogue with a business owner so that they can understand all their options and make a well informed decision. In fact, analysis of an 'internal' transfer of the business can be a powerful alternative to a business owner looking for an Exit Strategy. And, depending upon the business owner's motives, it may be the best alternative available.

'Internal' transfers of ownership in a business are often times overlooked because they are not intuitively understood by the business owner and/or the business owner's advisors. So let's examine some of the 'internal' transfer methods that are available to a business owner to illustrate the benefit of a well-conceived Exit Strategy.

'Internal' transfer methods include Employee Stock Ownership Plans (ESOP) Transfers, Management Buyouts (Sales to Family and Management), Gifting Strategies, Private Annuities, Family Limited Partnerships, and Charitable Transfer Strategies. The three (3) primary differences between these 'internal' transfer alternatives versus (and the) 'external' transfer alternatives are:

the corporate assets, including future cash flows, are leveraged to achieve these strategies;
the driving force behind these 'engineered' strategies is a business owner's motive of passing the business to someone other than an outside buyer, and;
the business owners will frequently be considering tax planning and estate planning along with their Exit Strategies. 'Internal' transfers, as a general rule, allow for more flexibility in these areas than 'external' transfers.
A business owner considering an 'internal' transfer can set the price and terms for the transfer and say to their family and/or management team, "Here is what I want/need for my business". For this reason, 'internal' transfers are often referred to as 'controlled' transactions because the business owner is working with 'assets' that they already possess in structuring their Exit from the business. So if those 'assets' are sufficient to achieve that business owners' goals (based on their motives), then it is worthwhile to examine an 'internal' transfer.

This is in sharp contrast to a business owner attempting an 'external' transfer because they are often subject to a process that includes outsiders investigating their potential investment in the 'Target Company' and then telling the business owners, "Here is what we are willing to give you for your business". So, the Exiting business owner can expect to lose quite a bit of control over the process. And, because many business owners possess a unique psychological mix of independence, intelligence and control orientation, losing control to an outside buyer often leads to 'choppiness' in a deal.

Mergers and Acquisitions professionals will often advise business owners that if the business owner wants to set the price for the deal, then the outside buyer will be setting the terms for the deal. A deal is struck when each party is 'equally happy'. Or, as one dealmaker said, every successful 'external' deal is a "little miracle".

So, one will naturally ask, "What's the downside of an 'internal' transfer versus an 'external' transfer"? Quite simply, negotiating with family members and key employees can be inherently dangerous. These individuals (and their advisors) will require detailed and confidential information from the business owner in order to fully understand all the risks inherent in owning the business - really no different than the 'external' buyer. And of course, most business owners are not anxious to share all their information with their employees; it goes against the nature of the relationship amongst workers and owners.

So then, how does one go about negotiating an 'internal' transfer? The answer is "very carefully". And, the most cautious first step that a business owner can take is to engage an intermediary - which can be any one of the existing advisors to that business - to assist with the transaction. Having trusted advisors involved in the process raises the level of objectivity and lowers the level of emotions when negotiating the transfer.

Because, after all, if the 'internal' transfer does not work out, it will not add a lot of Value to the business to have [further] frustrated employees due to that business owner's own doing. It's easier to place blame for a failed transaction with a third party advisor so that all parties involved can amicably return to the business of running [and not transferring] the business.

Yet another downside to an 'internal' transfer is the loss of potential for extraordinary gain on the transfer. As a general rule, 'external' buyers for businesses include 'Strategic' (or industry) buyers and 'Financial' (such as Private Equity Groups) buyers.

A Strategic Buyer of a business stands to offer the selling business owner the highest total Value in buying the business because that buyer can apply 'synergies' to the valuation of the deal. In other words, a buyer who is already in the same business as the seller, can eliminate duplicate expenses and acquire new customers for their existing products. These 'synergies' help raise the Value of the transaction to the Industry buyer, and a good M&A intermediary will argue for the sharing of those synergies with the selling business owner. This synergistic value is likely not available with an 'internal' transfer.

So to summarize my original point, a business owner who wants to Exit their business should be aware of the various methods by which an Exit can be directed. Thereafter, consideration should be given to that business owner's motives. In other words, what is most important to that Exiting business owner and how can it best be accomplished?

An Exit Strategy is defined as 'The written goals for the succession of a businesses' ownership and control, derived from a well thought out and properly timed plan that considers all factors, all interested parties, and the personal goals of the owners in a manner and time period that is accommodative to the business, its shareholders, and potential buyers.' Accordingly, knowing the pros and cons of 'internal' and 'external' transfers is a critical step in establishing an Exit Strategy.

Exit Strategies are hard to design and even harder to properly execute. I am pleased that you are pursuing a pro-active interest in Exit Strategies because a pro-active approach to an Exit Strategy is the only approach to a successful Exit Strategy.

© 2007 John M. Leonetti

Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide exit strategy planning services to business owners as well as education and training programs for professionsal advisors. To learn more about John's Exit Strategy Services and his recently published book, "Exiting Your Business, Protecting Your Wealth", visit ExitingYourBusiness.com

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