Customer Service is being resurrected from the dead. Many markets have downsized, which has caused stiff competition. Your customers are being offered lower pricing, which is a contest to see who can go out of business first.

You can compete in that contest or provide outstanding service. Many buyers are rapidly becoming fed up with low price lures only to be charged extra for previously included services. The Air Lines are one of the best examples of this scheme. “Oh, you are taking luggage on your trip, well that will cost more. Sorry, but because of national security, you are no longer allowed to bring food on board the plane. We will be offering a sandwich and soda during the flight for only $10.”

An increasing number of customers are willing to pay and purchase more when they realize you offer better customer service. A generous return policy will cause people to purchase more of something when they know they can return the unused items. But the truth is that many of your customers will not return those items, which means more profit for you.

• More Market Exposure

If you are still relying on the Yellow Pages for customers, you are wasting precious advertising dollars, unless you are targeting senior citizens who do not own a computer. This is a continuingly shrinking market that could be gone within 10 years. Yellow pages are trying to persuade advertisers that they have the knowledge to transfer your marketing from print to the web, but it is a difficult sell, because web marketing takes a differnet set of skills.

An increased Internet presence with important information targeted toward your most profitable customers will bring in more sales. The old adage of “See The People,” still holds true. Marketing and Sales is a numbers game, but numbers along are not the key. You must continue to research your customer and place your message where it is easily accessible. Strategic partnering is especially important for smaller companies with limited advertising budgets. Who can you help, that can help you?

• Optimize Efficiency

During this recession, many employees have been asked to do more work with less help. Too often owners and managers have not acknowledged or thanked those employees for doing more. This has resulted in additional stress and many employees looking for a chance to escape to a different company with hopes that things will be better. A simple “Thank You” along with other expressions of appreciations will go a long way to building cohesiveness among your employees. Allow your employees to share and shed activities among themselves. Everyone has one or more required work activities they dread. These are very easy to spot because they go undone until they are forced. It may be filing for some, but others love to file and organize. Give your employees freedom to trade some activities. I know this is terrifying for some of you managers, but isn’t it better to allow your employees to enjoy their work? You will find that things are done quicker and with greater efficiency. Yes, some things will probably slip through the cracks at first, but that is where your management and motivational skill come into play to help your team determine how to prevent the problems.

• Give Things Away

“Buy X and get Y for Free!” We have all heard the pitch and many of us have taken advantage of some of the offers. Providing free stuff during a recession simply makes sense. Bundling products and services is also a good way to increase your sales. The freebee is to get more customers to call, come to your facility or visit your website. It’s all about traffic and more opportunities for your customers to purchase.

• Reduce Debt

Interest payments and burdensome debt can cause a business to collapse under the strain and demand for capital. It is a good idea to lessen debt before you decide to expand. Growth is always risky. It requires capital and best-made plans do not always work out. If you can reduce your debt during a recession you will be in a better place then your competition and banks will be more willing to extend lines of credit for operating capital once you have proven your ability to repay loans.

Customer Service agents need to do more then read from a script. They need the ability and authority to solve problems on the fly. They need to evaluate the situation very quickly or the call will worsen. Notice that I said the C/S agent must have the authority. Few things are more frustrating then have responsibility without authority. If your C/S rep does not have the authority, their manager must be able to offer compensation to your customer. The manager must also be readily available.

Obviously something has gone wrong or your customer would not be calling. C/S people need to be good listeners. They also need to be secure within themselves not to react to the anger they are receiving from the customer. It would be helpful to have someone who is laidback and detail oriented in this position. They want to establish peace between the customer and your company.

A controlling person is likely to argue with your customer; and a fun loving person could be perceived as not caring and further enrage your customer. Thus having your former customer vow to never do business with you again; but worse they will also tell anyone who will listen to their tale of horrors.

A good manager of this department will give out praise and use good exchanges as training examples. This will encourage the entire department to do an even better job. Remind them of their importance and continue to thank each member of your department for a job well done. Customer Service can be your tipping point to profit ans success.

Ken Bear Cole

A Second Look Business Consulting LLC

Some people would complain if you gave them a $100 bill. “ But mine is green and wrinkled,” they will exclaim. With these people, it is best to cut you losses, but first you need to make sure something can’t be done to correct the problem and retain the customer. Un-retainable customers are truly the exception. Most customer complaints are a matter of misunderstanding or an error on your part. We all make errors so don’t be too fast to blame the customers.

• First try to understand why the customer is upset. Listening and recognizing that they are upset. “I am sorry this has upset you.” It does not matter if it is your fault, recognizing their discomfort with your company will help defuse their anger.

• Offer to rectify the problem. Replace the item if it is defective. Your supplier should stand behind you and compensate you. If it is a service, offer to spend additional time. Being willing to go the extra mile should count in the mind of the customer.

• Abandon “got ya” policies. I attempted to return a TV with a broken volume control. It worked fine if I lived alone, in the middle of nowhere, but I could not adjust the volume to heat the TV in my living room. Upon returning to the store, the clerk pointed out the 20% restocking fee for returned items with opened boxes. I explained that all I needed was an exchange, but he insisted on the 20% fee. I ended up exchanging the TV at a competitor’s store. But I also filed formal complaints with the State Attorney’s Office and Consumer Affairs. The store either moved or went out of business, but I don’t see them in my community any longer.

Ken Bear Cole

A Second Look Business Consulting