Seeds of Growth - Be Attentive

Do you know what your customers are saying about you...you better!

Kevin Stevenson — Fri, 03 Oct 2008 06:45:51 -0600

Here is a powerful example of why customer feedback is so important to your business. Events like this happen everyday...are you making it easy for your customers to tell you what they think. Think of how "deadly" this word of mouth story could have been:

"A customer, Janet, recently gave us a feedback score of 0 and wrote a long story about the terrible haircut she received. She basically said she would never come back to Fantastic Sams. I sent her an apology e-mail and asked her to call me so I could apologize live, versus just e-mail. After a short phone call, she agreed to come back to the hair salon and let someone fix her haircut. I called the salon and arranged for her to call on her way in and ensure she had absolutely no wait when she arrived. I called her after her haircut and she was thrilled. She was amazed that I took the time to follow up with her again on the phone. . Janet also sent out 3 referrals through Promoterz. She also scheduled to come back to the salon to have her hair colored! I never would have known this woman was so upset without Promoterz. Think of all the people she would have told her story to. Now she is telling a new story...how great we are! Promoterz just saved my business thousands of dollars in potential lost revenue...thank you Promoterz!"

Scott Weintraub
Fantastic Sams
Owner
New Jersey
908.806.7272

Is this happening in your business?....are you sure? You have thousands of reasons to find out.

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Perfect opportunity for feedback...lost!

Kevin Stevenson — Sun, 28 Sep 2008 14:23:27 -0600

Last night, my family and I went to a "practice" dinner at a new, well known steakhouse in town..you'd all recognize it. My daughter works there, so last night was free to family and friends of employees of the steakhouse. Obviously, not a new concept, it makes a lot of sense. What didn't make sense to me, was that no one asked us how the experience went. Love the idea of having a dress rehearsal before you expose yourself to the masses, but why not take the opportunity to get real feedback and know how everyone did.

There was no feedback vehicle offered to the hundreds of people who had a FREE meal. If offered, I am sure 90% of the customers in attendance would have loved to give feedback. My meal would have cost me $72...I would have vacuumed the carpet if they asked me to do it. I would have gladly given them a "grade" on our overall experience.

The restaurant could have learned what they needed to fix before the big opening...But nothing. No comment card, no 800# on a receipt, no invitation for feedback card ...nothing. They have no idea how good or bad the experience was for the hundreds of people who attended. ...no idea. Huge opportunity lost. Customers are your company's greatest asset...what are they saying about your business? Don't miss the opportunity to find out.

The Happiest customers tell on average 8 other people. Who are your happiest customers? Promoterz knows. Learn more

Legislating the Sun

Joe Free — Mon, 17 Mar 2008 11:17:26 -0600

I live in Arizona, in the "Valley of the Sun". This is the place where all winter we flaunt our clear blue skies, our spring training baseball, and the fact we can give our kids bikes for Christmas and they don't have to wait till April to use them. (Of course, from June to August we are all visiting family and friends in cooler climes...but I digress.)

Arizona doesn't legislate the sun. We don't participate in the daylight savings time nonsense. But most other places do which means in the summer we are at the same time as California and in the winter we are the same time as Utah.

The standard argument for daylight savings time was that it saved energy. You needed less lights, so you saved energy. It seemed obvious and everyone seemed to have bought off on it and now the nation happily believes they are doing their part in saving energy by participating in daylight savings.

But it seems that no one really looked at the data. USA Today had an article recently describing research done at the University of California in Santa Barbara that showed that daylight savings does save energy used for lighting but that it used even more energy on heating and cooling costs. So the net effect is participating in daylight savings actually uses more energy. Now this is not an article intended to start "digital fisticuffs" about daylight savings. But rather the interesting point that people and governments think they are saving energy when in fact they are expending more.

Does that happen in your business? Do you assume that your customers are happy with something you do or provide when in reality they don't like it? Remember back in the "continuous improvement" business craze of the 90s the phrase "In God we trust...all others bring data". That is still true. Get the data and know what you know.

"What you don't know might kill you" could also be "What you think you know could kill you". So the point is get some data, some fresh live real data of how your customer's feel. There are lots of ways to do that. I personally feel that Promoterz is a great way since it provides a way to continuously monitor the heartbeat of your company rather than just a twice a year "exam". But whatever you choose, do it. You will be surprised at what you learn from the ones that really know. Your competition will be doing it.

Find your happy customers and put a megaphone in their hand. Learn more

Get Your Helmet Mounted Cueing System Now!

Dave Free — Fri, 16 Nov 2007 10:23:15 -0700

The F35 is an amazing jet. It can reach mach 1.6 and then stop in midair and hover while landing on the deck of an aircraft carrier in rough seas. You can see it in action here . For more than 50 years the Air Force has provided its pilots with "head up" displays so that the pilots can monitor key indicators they need without taking their view off the horizon. I guess when you are going mach 1.6 and dealing with an enemy it is pretty important not to take your eyes off the horizon. The Air Force is now testing new technology to replace the head up display specifically for pilots of the F35. According to a recent post on CNET, the new system uses infrared to actually let the pilot look right through the floor of the aircraft. It also displays the feedback that pilots need no matter which direction they are looking. The company that is developing the new technology calls it a "Helmet Mounted Cueing System."

So your business is moving along pretty fast, wouldn't it be nice to have a Helmet Mounted Cueing System to help you make better decisions? What information would you want on your cueing system? I don't think you'd want to clutter it up with important but not critical information. For example, I don't think I'd want to wander around with a copy of my latest balance sheet always in front of my eyes. The current cash balance in the bank, on the other hand, might be very useful. I don't know about you, but sometimes every second counts in getting a deposit to clear before payroll starts hitting! How about some indicator of how your customers are feeling? After all, everything we do as business owners is (or should be) about making customers happy so that they will buy from us again and again and tell their friends. Seems like knowing what they are thinking about our business and what they really want from our business should influence every decision we make. What else would you add to your HMBICS (Helmet Mounted Business Information Cueing System--got to have an acronym if we want to get any government funding!)

If you're not quite ready to pull on the Star Wars helmet (your customers might turn and run), you might check out our sponsor product, Promoterz. Right now--without government funding--you can keep a pulse on how your customers feel about your business. There is no head up display, but your customers' comments will go directly to your email so you will always be in touch and better able to take your business to mach 1.6!

The Customer/Employee is always right

Joe Free — Sat, 10 Nov 2007 11:05:18 -0700

A recent BusinessWeek article describes India's HCL Technologies unique management ratings program. In essence, each manager is ranked in several areas by those that report to them. Lot's of companies do these "360" types of reviews, but what is different about HCL is that they publish the results on their intranet for the employees to see.

CEO Vineet Nayar was rated 3.6 out of 5 for how well he keeps projects running on schedule by 81 managers that rated him, and everybody at HCL knows it.

According to Nayar "In our day and age, it's the employee who sucks up to the boss. We are trying, as much as possible, to get the manager to suck up to the employee."

In addition they have an online complaint system where anyone can voice concern over a particular issue ranging from the air conditioning to bonuses. Each of these concerns becomes a "ticket". What is unique is that these tickets can be "cleared" only by the employees, not management.

Imagine applying that to your small business. Your company is the "manager" and your customers are the "employees". What if companies posted online for all customers to see how they are ranked. What if noted problems remained listed until the company deals with them and the customer removes them.

Employee retention rates have increased at HCL. How would you like to have your customer retention rates increased? Have you asked your customers to rate you and your business? They are the only ones that know how they feel about your business.

Reicheld discovered the customer question that seems to track with the future growth of a business "Would you recommend us to your friends and colleagues?" Our service, Promoterz, helps you ask them that question with the addition of "Please provide specific comments to help us understand the rating you have assigned". You will know how your customers feel and have actionable data you can use to improve.

Perhaps small businesses should include Nayar's words in their business plan "We will try, as much as possible, to get the company to suck up to the customer!"

Unhappy customers tell on average 22 other people. If you ticket price is $50 that is $1100 in revenue. How would you like to know before they tell 22 others? Learn more

The Power of Realtime Feedback for Your Business

Dave Free — Tue, 23 Oct 2007 10:30:26 -0600

When I get in a car my goal is typically to get from where I am to where I want to be as fast as safely possible. To do that, I primarily use one gauge on the dashboard: the speedometer. Sure every few days I have to pay attention to the gas gauge and, if the car doesn’t seem to be behaving as it should I glance at the other gauges but the majority of the time it is all about the speedometer. WIth my goal being to get to my destination as fast as possible I try to keep that speedometer at (or slightly above) the speed limit.

I rented a car the other day with a new feedback mechanism that completely changed the way I drive. The car was the Nissan Altima Hybrid. I don’t own the car ( the car I own is more of a truck—it has a V10 and can easily pull up the mountain into Flagstaff at 85 mph—but that’s a post for another day and perhaps a different blog). I ended up driving the Altima because the rental car company gave me a free upgrade. I drove it for 4 days in the bay area. The hybrid Altima is rated at 42 mpg. It’s got all kinds of high tech stuff under the hood that switches back and forth between and electric power and the combustion engine and delivers great efficiency. All that stuff is very cool and seemed to work very well, but the thing that saved the most gas for me was a new gauge they added to the dashboard. The gauge was a real time mpg indicator. It was cool. I could always see exactly what kind of mileage I was getting. If I pushed the pedal down to pass, the mpg indicator would drop down into the the 8 to 9 range. When I coasted down a hill it would shoot up to 80 to 90 mpg. I found if I kept it steady I could get to a nice cruising speed and still be getting over 40 mpg.

That one additional bit of information completely changed the way I, the proud owner of a V10, drove. Yes, I still wanted to get there as quick as I could but I found myself balancing that goal with the goal of maximizing my mileage. Now I know that each time I fill up I could do the little calculation and figure out what kind of mileage I got, but the fact is I don’t. Why? Because by that time, the decisions have already been made. I admit it, I am short sighted, but I have never filled my tank with gas, calculated my mileage and said, “Hmmm, I better drive slower.” On the other hand, the real time mgp gauge on the Altima had me driving slower—not always, but certainly more often,

How does that apply to your small business? What feedback mechanisms do you use to monitor the success of your business? Traditional accounting measures are like calculating your mpg after the fact. Everything is history. Sure it is a good number to know, but by the time you know it, it may be too late to influence the behaviors that need to be changed to improve it. Forward looking indicators like sales forecasts and other budgets are more like the speedometer, but even these indicators don’t give what you really need to run your business. What you really need to run your business (in conjunction with the other measures) is a realtime indicator of how your customers feel about your business. You need realtime customer feedback. You may think you know what your customers feel, want and need, but I can guarantee you that unless you are asking your customers and listening, what you think you know is wrong. I can also guarantee you that, just like the realtime mpg gauge changed my driving behavior, realtime customer feedback will change your behavior and the behavior of your staff for the better. Give it a try, you will never go back.

Anybody know where I can get an aftermarket mgp gauge for a V10?

The Negative Impact of Word-of-Mouth

Dan Crites — Mon, 21 May 2007 18:23:06 -0600

I listened to a story on NPR this afternoon about the negative impact of bad word-of-mouth, you can listen to it here. Very scary. This is part one of a two part story by Wendy Kaufman, hopefully the second part will bring out the positive aspects from good word-of-mouth.

The basis for the article comes from research by the Wharton School of Business. They found that 1 out of 2 customers has a customer service problem when they shop. Worse is the fact that they then tell friends, family, and colleagues about it and embellish the story in the retelling. The overall result is that 1/2 of those that hear the bad news story won't shop at those places they heard about. Ouch! Those that improve on the situation certainly create a business advantage.

It goes to show the need for businesses to hear from their customers, the bad news as well as the good. Hearing the bad news you can make efforts to correct the situation so that bad embellished stories won't be spread. You even have the opportunity to turn a detractor into a promoter. You can also get to the root cause and fix it to reduce future bad experiences.

More happy customers. More repeat sales. More referrals. Learn more

To Save or Not to Save?

Dave Free — Thu, 18 Jan 2007 18:40:13 -0700

I was talking with a friend recently that works the customer service phones for the company she is with. She mentioned that her company expects her to solve any customer's problem in three minutes or less. That sounds like a policy created by someone trying to save a few bucks while thousands of potential sales walk down the street to the nearest competitor. She did mention, however, that earlier that day she had taken a call from a customer that was a personal friend of the founder. After running into several brick walls with the fulfillment department she mentioned the issue to her manager and was told, "Do whatever it takes. Just make that customer happy." Apparently the policy at this particular company is "3 minutes for customers. Whatever it takes for friends of the boss."

As wrong as that policy may be, at some level every company probably needs to come up with some criteria for deciding which customers are worth saving and, more importantly, ensure that the best customers get all the attention they need. But how do you decide who the best customers are?

The chart that accompanies this post was taken from a recent article in the alumni magazine from my graduate school. The article provides some great suggestions for setting your criteria. You can read it here.

One word of caution: as you try to determine who your most profitable customers are don't limit the analysis only to past purchases. A customer who buys little from you but tells hundreds of friends can mean much more to your bottom line than a customer that spends a lot but never tells another soul. That pauper may actually be a prince!

The average American consumer discusses brands 56 times a week. Are they discussing yours? Learn more

Complaints Happen

Dave Free — Thu, 30 Nov 2006 15:24:53 -0700

If you are in the service business--for that matter if you are in any business--no matter how hard you try to be perfect, sooner or later a customer is not going to be pleased with the service they receive. The inevitability of it shouldn't discourage you from trying to be perfect, but when a mistake happens the recovery should become job #1.

That dissatisfied customers tell their friends is a fact. How many they tell on average varies depending on the study referenced but it is somewhere between 4 and 10. One study notes that those they tell are 5 times less likely to come to your business than the original dissatisfied customer. Ouch.

But there is hope. According to Restaurant Hospitality "Rule-of-thumb numbers show that roughly 60 percent of complaining customers will eat at your restaurant again if you resolve their service issue, and almost all customers (96 percent in some studies) will come back if you solve their problem to their satisfaction and do so quickly."

What is the best way to resolve issues? Hospitality cites a study called “An Examination of Guest Complaints and Complaint Communication Channels: The Medium Does Matter!” out of Cornell University School of Hotel Management. It concludes that nearly fifty percent of unhappy guests want to talk to the boss. Free drinks and comp meals are nice, but what they really want is to let the boss know.

So how easy do you make it for your customers to let you know about the service? You can't always be in your business. Do you make it easy for them to contact you? You might be surprised what you learn and you will certainly have the opportunity to "save" good customers.

Plug from our sponsor: The Promoterz system is one easy way to make sure customers always have a direct link to you and you have a direct and convenient way to respond to them. The system invites every customer to provide feedback online and immediately notifies you and your managers of feedback as it is received.

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more

When "I don't know" is a Good Answer.

Dave Free — Wed, 15 Nov 2006 12:26:17 -0700

Had a chance to go to lunch with Tom Miller yesterday. Tom has been in the franchising industry for years and is an Executive Vice President with Murphy Business. In his own estimation, he is a "legend in his own mind." Actually, he has an extraordinary sales record and is considered The Authority on franchising throughout the business brokerage community.

As we talked about the selling process, specifically to small business owners, he noted that in the "early days" he sold direct mail. He learned quickly, that nobody wanted to hear about his business, but they loved to talk about their own. So when he'd meet with a likely prospect and they asked what he was selling, he would respond, "I don't know yet. Tell me about your business." As he learned about the business, it became obvious if there was need--and what he was selling.

So how much do you know about your customers' or your potential customers' businesses? Is learning about them part of your sales process or are you more focused on making sure they learn about you? Are you learning enough? According to Tom here is a key indicator: "If you need a closing technique you haven't learned enough."

Find your happy customers and put a megaphone in their hand. Learn more

Customers Need Time to Learn

Dave Free — Wed, 11 Oct 2006 14:47:11 -0600

I had to make a late night run to our local grocery store the other night (thumb tacks for a seventh grade school project). After finding the thumb tacks I was disappointed to get to the front of the store and find that the "self-checkout" lines were closed. The only option was to go through a "normal" check out line. There was no wait but I was still disappointed.

Why is that blog worthy? Because when the self-checkout lines first got installed, I detested them. I hated that voice commanding me to put my groceries in the bag and refusing to let me do anything else until I did. I also detested having to wave my box of spaghetti (yeah, I still call it spaghetti--not pasta) five or six times over the bar code reader at every angle conceivable to get it to read. And I really hated trying to find my produce in all the little pictures (felt some kind of test).

Apparently my fellow shoppers felt the same way, because every time I was ready to check out, there were lines at the normal checkouts and nobody was using the 4 self-checkout machines. Maybe it is just me, but I hate doing nothing and I hate reading about what Brad and Angelina are doing to break Jen's heart and about who is too fat and who is too skinny. In fact, I hated it even more than the self-checkout process so I started using self checkout.

Just like anything new, there was a bit of a learning curve but it got easier. In fact, I think I can safely say I'm now as fast as Sandra down on cash register 3! Here is the amazing thing: I'm not alone. It is rare now to not see a line for the self-checkout machines. It turns out the machines gives us just what we wanted in the first place: faster checkout (or at least the perception of faster checkout).

The lessons? Well, first a better implementation of the checkout machines would probably have hastened their acceptance, but beyond that sometimes customers need time to learn and get comfortable with new innovations. Had store management reviewed the self-checkout performance after the first three months I'm sure they would have been seen as a dismal failure. Next time you're planning an innovation in your customer experience, don't forget to include learning time.

Customers who feel that you are listening to them are more likely to recommend you to a friend. How do your customers know that you are listening? Learn more

It's not easy not liking tomatoes

Joe Free — Tue, 19 Sep 2006 13:05:13 -0600

For those few of you out there that don't like tomatoes you know what I'm talking about. "Why don't you try this fresh one from the garden? They are so good!" But the result is always the same, once the slimy seedy acidy insides hit my mouth its over.

I know all the arguments for liking tomatoes..."How can you like salsa, ketchup and spaghetti sauce and not tomatoes?" Sorry, they taste different.

Put yourself in my place. Everytime you order a burger you have to special order, and half the time they blow the order so you are picking off the tomato yourself. Like that's easy...the carcass comes off pretty well but the seedy sludge left over reminds me of trying to wipe up...well, it is too gross to specify. (Let just say it happens when kids have eaten then you drive through a winding canyon.)

Ever try to get a salad without tomatoes? There is no pulling those out, the tomato fluids are lost in the forest of lettuce, just waiting to get you.

I would like to love tomatoes, I have tried, honestly. I would love to have a life where I enjoy them. But I don't. No one seems to accept that. There is always a bit of judgment as you tell them you would not care for tomatoes.

I heard once that they were a member of the nightshade family. A very deadly plant. Ever wonder who tried those first? "Hey, Eb, give these a try..."

My favorite places to eat are those that are happy with a "special order" or the ones where you have to pay extra for tomatoes (why should I pay the tax for others tomatoes?).

OK, this is going somewhere. The point is we all have different tastes and preferences. And no matter how much we educate or communicate, those tastes and preferences remain. And trying to change them is like trying to teach a pig to sing, it wastes your time and annoys the pig.

Think about your business. Do you have customers that prefer things a little different than the rest? Do you have policies or people that just refuse to change.? This is a great chance to give them a bit of your own "secret sauce" where you show them you take care of the customer. Sometimes things shouldn't be changed for the special case, but if your competitor will change for them you know where your customer will be.

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more

How will you be viewed?

Joe Free — Fri, 15 Sep 2006 14:45:15 -0600

I love optical illusions. It is fascinating how our minds can be tricked. The good folks at grand-illusions have a dragon illusion that you can download and build yourself. Here is a video showing the illusion in more detail.

This seems to be another example of the brain assigning a symbol to something (see earlier post) to make processing lots of information quicker. In this case, it seems the brain "knows" that if a dragon is looking at us that its nose would be closer to us than its eyes. It is called the "Hollow Face Illusion".

Just as our brain can interpret what we see as two completely different views, it appears it does the same thing with people. For example, let's say you are looking at a playground and you see a child climbing up a slide. You also see an adult in the shadows hiding behind a nearby tree peeking out and watching the child.

If you don't know this adult chances are you will remember being taught "stranger danger!" and you will immediately become suspicious that this might be a predator. However, if you knew this adult you would assume that they are playing hide-and-seek. Two completely different conclusions from the same situation. Obviously, previous experience colors our perception.

Inevitably you, or someone in your company, will make a mistake. At that point your customer's view of you will determine the conclusion they draw. If you are a stranger they may view the mistake as a callous disregard for customers from a company that only cares about its profits. However, if they have had several good experiences with your company they will be more likely to give you the benefit of the doubt.

If your customers only hear from you when you are selling something you are missing out on a chance to build trust and change from being a stranger to a friend. Why not send a non-salesy greeting to them on their birthday, let them get to know you, it is good insurance for future mishaps and it is what friends do.

The Happiest customers tell on average 8 other people. Who are your happiest customers? Promoterz knows. Learn more

Would you recommend Cingular?

Dan Crites — Fri, 15 Sep 2006 07:01:33 -0600

Yesterday my bill from Cingular arrived. Two months earlier I had added my daughters phone to our family plan. For the first month a new phone gets free, unlimited text messaging which allows you to figure out which messaging plan to sign up for. Let me tell you that teenage girls text a lot!

After the first month I got on Cingular's web site, logged into my account, and changed her texting plan to allow MANY text messages, 3000. Turns out that's just enough. But, when the phone bill arrived yesterday it showed that I didn't change the plan so the text portion of my daughter's phone bill was $170. If you're wondering, that represents 2700 text messages in one month (busy fingers).

I called Cingular, 611 on my cell phone. I explained to the customer service rep how I got on the web site and made a change to my plan to accommodate my new rapid texter. She checked the records and found out that I made a change to the account but that I ended up with the same plan. To me that means "no change" but they have record that I did something that day. She said she would refund half of the $170, not because she had to but to show good faith. "I don't have to do this sir". She didn't believe that I made the change. By-the-way, if you didn't already know, Cingular has a website that frequently has problems. Well, at least that's been my experience over the past 1 1/2 years.

While having this discussion with the customer service rep my Cingular call just dropped. It makes a sound when that happens, "da-da-da-da-daaa".

I called right back, got a different rep, and told my story again. She listened. She checked and found out that I had the same plan before and after the "change". Then she said "I'm making changes to your account sir, I'm post dating your text package to the date you tried to make this change". Then she took care of the overage and other assorted things she needed to do to get it to all work out so that my bill would be correct.

THANK YOU!!!

Cingular is an immense company. I won't argue that Cingular is a good wireless provider or not. Mostly it's worked well for me but a bad experience with them and I would be pushed to change providers, it's hard to have a lot of loyalty to a mega-company. It's hard unless they deal with you correctly in all circumstances The experience with the first rep wasn't good, it was exactly what I had feared would happen. That coupled with the extra $170 and other fruity action from their web site and I had plenty of reason to leave Cingular's service. Had this story ended there I'd be with another wireless company right now. But, one customer service rep made all the difference for me. She made it all right, over the top of the first one and other bad experiences I've had with the company. A huge company and one person in it makes the difference. A remarkable person.

I don't talk about my cell phone company unless something gives me reason to, whether it's good or bad. It's good this time and I'm telling others. I'm using a megaphone (this blog) to do it. If Cingular were my company... I'd be rich! No, no, no. If Cingular were my company... I'd find out who my happy customers are and give them a megaphone to tell their friends about how great a company I have.

If you have a company you should do the same with your happy customers. Find out who they are and give them a megaphone to tell their friends about what a great product or service you have. You can do it and you should do it. If you need help with the finding and the megaphone you can get it here.

Promoterz is the hands-free, word-of-mouth marketing service that takes care of the details so you can focus on business. Learn more

Whitewashing fences today...

Joe Free — Mon, 11 Sep 2006 15:48:07 -0600

Quick, how many words can you come up with to describe this photo? If you said pool, child, kid, water, goggles or blue you and I would have just made 100 points at one of Googles latest projects.

Remember how Tom Sawyer made whitewashin' the fence so tempting to those passing by?

It seems Google might be doing something similar to label images they have indexed.

Here is how it works. You push a button and get paired up with a partner. A 90 second timer starts and you each are shown the same picture. You type in as many descriptions as you can. As soon as you have a description that matches you are shown another image. Each image you match is worth 100 points. At the end you can even hover your mouse over the images and see what your partner guessed.

I think it is brilliant. Not only are they getting free work from people, but they are discovering what people really think when they see an image. Oh yea, it is also fun.

Think of your business, is there a fun way you could get feedback from your customers helping you whitewash your fence?

(By the way my current record is 900 points in 90 seconds)

The average American consumer discusses brands 56 times a week. Are they discussing yours? Learn more