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Are
You Winning With Service?
In 1906, the
forward pass was legalized in football. Up to that time, the game
was exclusively physical. Teams moved the ball down the field inch
by inch, yard by yard, by brute force alone. Occasionally, a ball
carrier would break away from the pack and score a touchdown. When
the forward pass became permissible, only one team, St. Louis
University, used it. That season, they outscored their opponents
402-11.
Looking
back, it's easy for us to ask, "How stupid were these teams,
anyway?" Can you imagine having such an incredible winning
tool at your fingertips and not using it? There is a lesson for
us here. Advantages that are clear and workable for a few are often
deemed as useless or unworkable by others. Could a service strategy
be the forward pass of business?
I
don't have to tell you that service does matter.
In a study by the Strategic Planning Institute of Cambridge, MA,
companies were put into categories relevant to service quality.
Those companies in the top half of service rankings grew twice as
fast as those in the bottom half, were able to charge 10% more,
and returned 1,100% more on sales.
So how do you
get to be in the top half? Start with a simple, three-pronged strategy
that guarantees your company a competitive
advantage.
1
First, you must emphasize customer retention as much as customer
acquisition. Let's face it--acquiring a new customer is far sexier
than keeping an existing one. Conquest is always more seductive.
Watching the offense score a touchdown
is always more exciting than watching the defense prevent
them. So in business, we play this no-win game. Customers
that one company loses become their competitor's gain. The cause
for this senseless exchange is simple: existing customer bases are
taken for granted, and seemingly even punished.
Each
January, I become less and less enamored with my workout facility
when they offer a $75 membership discount to new members. From my
perspective, as an existing customer who has been loyal for no less
than nine years, I feel taken for granted, punished. What about
me? What about my loyalty? Oh, I see.
You've already got me, so you don't have to care about me anymore.
Statistics tell
us that it costs a company three to five times more to gain a new
customer than to keep an existing one. Existing customers offer
the greatest profit potential, relatively passive income, and referrals.
Your allies, your promoters are in
this base. A good service strategy includes marketing to your existing
customer base, and rewarding them for their loyalty.
2
The second prong of your strategy is building a recognizable service
brand. The goal of building a recognizable
service brand is for your customer to say, "Wow, I can't get
this anywhere else."
When I ask organizations what differentiates them in the marketplace,
I often hear that their expertise is the reason
customers select them. Many business-to-consumer companies
make this claim. In truth, the average consumer does not have the
ability to discern true expertise. If you have a shingle and a marketing
effort, competence is assumed. Where obvious
product differentiation is absent, let service set you apart.
In creating
a service brand, an organization must be relentless in creating
positive impressions. Every single interaction
with the customer must leave a good impression. Creating a service
brand therefore requires an analysis of any policy, procedure, practice
or process that affects your customers in any way. The benchmark
questions should be (1) For whom does this policy exist?
And (2) Does this procedure exist for the convenience of the company
or the customer? It also requires the evaluation, development of,
and monitoring of those employees to whom our valued customers have
been entrusted. Such an effort is not for those less than 100% committed
because this analysis requires time, effort, money and human resources.
3
The third prong in the service strategy is to make your customer
feel served. You see, there is a difference between getting served
and feeling served. To close the gap between getting served and
feeling served, attention needs to be paid to polite and respectful
communication, making the customer feel welcomed by perhaps greeting
them by name, using eye contact, smiling, projecting a positive
attitude, spirit of helpfulness and proactive measures.
To gain a competitive
advantage with a service strategy, you've gotta walk the walk. However,
it is the difference maker. Remember, the stakes are high. Your
choices are to either continue to do what every one else is doing-like
run the ball, run the ball, run the ball--or to throw a forward
pass. I have an amazing client right now. With top down commitment,
their efforts to become a premier provider in their industry are
becoming a reality. Did this happen overnight? No. Was it cheap?
No. Was there resistance from the organization? Yes. Is it an ongoing
effort to keep the initiative living? Yes.
What
are probable benefits? A premier position in the marketplace with
few true competitors. Would your organization be able to compete
with them?
The sooner you
activate a service strategy, the sooner you can start scoring touchdowns.
Go get 'em.
Joan Fox is President of Eagle Inspiration Training & Development
located in Cincinnati. She can be reached at 513-793-9582
and joan@joanfox.com. The
company website can be viewed at: http://www.joanfox.com
EDOCService,
Inc.
www.edocservice.com
Focused
Marketing for Qualified Leads
"All
for Less than the Cost of a Part-Time Employee!"
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