Progressive Distributor

Customers: Service the heck out of them

by Dan Beaulieu

Do you know how much it costs to get a new customer? Do you know how long it takes, or how much effort goes into getting that first order?

Sales professionals say a face-to-face sales call, on average, costs $500.00. That's not a special call to that rare customer in Europe or Asia. This is a sales call in your own territory. Think about that for a minute.

Now think about how long the entire process takes. There's lead generation and selection, prospecting, cold calling, literature send outs, follow-up calls, the first quote, the second quote, the third quote, and the fourth quote. Then finally the first win – that precious first order.

According to my conservative estimate, that process takes six months to year. A minimum of six months, and that depends what market you are in. For example, in the military or medical markets, it takes much longer. In fact, in those sectors, it’s not unusual for that first order to take years.

But wait, there’s more. Consider the advertising, trade shows, sales travel, entertainment, and all those presentations. Including all of these very legitimate activities, you can run up to well over $10,000 for that first order. Surprising isn't it? And that's just to get that first order!

To make this investment pay off, you now have to service this customer. This is a one-time audition. If you fail, if you make an error, if your product or service is less than perfect, if your order is late, if the customer doesn’t like your attitude, and you fail to please them in every way, then it can be over.

Everything you've done, all that time, effort and money – your blood sweat and tears – will be for naught. And it could be months, if not years, before you get another shot at that customer.

This is why you have to focus serious time and effort when it comes to providing service to your customers, especially if you want to keep and grow your new ones. Service is what it is all about.

In the words of Jeffrey Gitomer:

Service is the reputation for the next sale and the basis for a loyal customer. Great service wins customers. Great service grows customers, because great service creates repeat business.

If you want to stand out in any business, you have to exceed the expectations of your customers. Find out what customers want and give it to them. Whatever market you are in, there are always weaknesses. Take the furniture industry for example. Why does it take so long to order furniture?

I few years ago, we bought a new couch. It was a good one and we wanted to get the fabric and pattern that would fit our newly decorated living room. We ordered it in May, but it was not delivered to us until July. That’s more than eight weeks! Why? It wasn’t really customized. The sofa was a standard sofa, we just wanted different fabric, but it took eight weeks for the company to get it to the customer.

I smell a real niche here. Think about how easy it would be to stand out from your competitors in this market.

Another one we’ve all wondered about: when will the guy who packages hot dog buns match the number of buns per bag to the number of hot dogs in a single package? Whoever does this will really shine. Think of the possibilities for this bread company’s advertising!

Keeping customers is also about another thing: an unbelievably important intangible called attitude. What is it like to work with your people? Are your customers happy? Are they treated with respect? Do you ask them what they want, and cheerfully do all you can to give it to them?

Even if your company delivers a great product, you need to ask yourself these questions:

Are you difficult to work with? Do you like to tell your customer how the final product should be built, rather than asking them how they want it done? Do you act as though you’ve met the enemy and he is your customer? Do you feel like everything would really be great in your shop if it weren't for those damn customers? If so, your company will fail.

Quoting Gitomer again:

Customer service is not about who's right or wrong, it's about how you react to, respond to and handle the problem. Ultimately how you handle the problem determines the fate of your relationship.

As you service each customer, ask yourself, “Am I providing service the way I like to receive service? Like Nordstroms, or L.L. Bean? Or am I acting more like the local Department of Motor Vehicles?”

To perform well is one thing; to perform well and delight your customers with an outstanding attitude is another. Doing so will make your company great.

Dan Beaulieu is a sales and marketing expert who knows how to win new business with targeted strategies and communication plans. He founded D.B. Management Group after serving as a top sales executive for three major fabrication companies. To learn more, visit: www.dbmpcb.com, or contact him directly at danbbeaulieu@aol.com.

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