Small business yes, small goals no!

A Little Help From Your Friends

2011-12-29T14:16:00.000-08:00

I recently had one of my best rounds of golf. I know that this is a small business blog and not a sports blog…or even Michael’s brag blog, but I have a point to this if you will stay with me.

Going back to this outstanding round of golf once again brings me to a few conclusions. The first is that I did not drive the ball off the tee and better than usual, my approach shots were not improved either. So why did I shoot a lower than usual this round of golf?

That is the second conclusion, simply because I putted, or “scored” better. In golf the strokes keep adding up, or another way of saying it is your results worsen the more strokes you take (mistakes made), the longer you play the hole. The score ends (goal achieved) when the ball goes in the hole.

Why did I put better then is the question? What influenced a change in my putting results?

The answer is that many times during that super round of golf I had the great fortune of having my ball close to a playing partner’s ball on the green. And, many times I got to watch that partner attempt a similar putt to mine. By observing someone else’s putt I got a great “read” on what the ball would do before I had to putt my own. Seeing the path to a successful putt did wonders to my performance. Someone else pioneered the road to success and I just followed or improved on it. I made less bad reads or mistakes and the resulting score was much better than what I would have done on my own.

That dear reader brings me to the lesson learned. To minimize your mistakes in business it is critical to model after successful entrepreneurs. It is even more crucial to have mentors and close associates that can share their experiences with you. Every pitfall you can sidestep because of an early, accurate read from someone who has been there before is a windfall.

If you truly want to play better golf, sorry….run a better business, enjoy more success…then find mentors and peers you can trust to give you that “read”. You will be vastly more successful. You will also experience a new camaraderie that can also be a game changer. But more of that in a future blog.

Score well my friends!

How I Spent My Summer Vacation.

2011-07-16T17:59:00.000-07:00

I just finished a 2,200 mile, 7 state road trip and have a few observations I would like to share with you. Though I was supposed to be on vacation, my business instincts and observations never turn off. I am pretty sure to most business people, especially small business people this is a universal trait.

During this vacation we stayed in a wide range of properties. The highest rated 5 stars (Sundance) and the lowest was unrated. I found conclusively that customer service, quality of service and my overall satisfaction had nothing to do with stars, diamonds or any rating service. It also did not have anything to do with what we paid which was true for lodging and food..

My greatest disappointment was with the “world class resort”, Sundance resort, which was not. And my greatest surprise came from a small lodge in the mountains of Utah called Red Canyon Lodge.

The single factor that clearly ruled my thought process was how we were treated by the staff. Yes, Sundance Resort is a stunning property but there we felt like we were a necessary annoyance to a very large staff. At Red Canyon Lodge we were treated like very welcome guests by a much smaller staff. Attitude from Sundance...sincerity from Red Canyon. No contest.

It does not matter so much how many millions you spent building your business when it can all be changed by poor attitude from the staff.

Don’t let that happen to your business. We all need to make sure everyone on our team are properly trained, know what’s expected of them, and most importantly wants to be there.

So how did you spend your summer vacation? Please share your story.

The Happiest Place on Earth

2011-05-26T10:32:00.000-07:00

I recently spent the day at Disneyland, Anaheim, California, where it all started. We had a terrific day in the Park. The weather was great. The attractions were great. The food was great (I do have to admit here that we ate at Club 33 which was the reason we were at Walt’s world to begin with) and in general it was a perfect day. So I would also be inclined to agree that it was the “Happiest Place on Earth”. But why is that nearly universally held to be true?

I have studied the Disney affect for many years. As a retailer, Disney is a shinning example of how to retail right. I have studied their, visual display, merchandising, marketing and guest services all in the design to improve my own company. But why do the guests feel that they are truly in a magical kingdom?

I believe it is that Disney exceeds expectations. What ever it is, they go one better. The stunning gardens and vegetation is a very good example. The flowers and plants are always at peek. Why, because they are changed out at night so the next day’s guests are presented with the optimum floral effect.

Why is the staff so helpful and downright cheerful? They are called cast members for a very good reason. When they are in front of a guest they are playing a role. That role is carefully scripted and rehearsed to illicit the desired response from the audience/guests.

So how can this apply to your business? First, look at everything you put in front of your clients with a new vision. From your business card to your store/restaurant/vehicle/etc. does each component: A Carry your message, and B. Exceed expectations?

Secondly, can every person in your organization (including you) articulate your company culture, what your company stands for, what makes you special? And even more importantly do you and everyone on your team practice and rehearse to ensure a flawless performance each and every time you are in front of a client?

If you can do and continue to do these two things you will find that not only may your sales grow, but you will be much happier with your business, your staff and probably yourself. Indeed, you will be at the “Happiest Place on Earth.”

Comments? Do you agree or disgree?

What Would You Do?

2011-05-19T14:07:00.000-07:00

You are making a pitch to a new customer. You know that two of your most direct competitors have already been in a head of you. You know that your product is very close to the others and the buyer may not even discern a difference between the three. There is very little margin to play with.

The buyer has multiple locations in multiple states and has a single distribution center. The buyer has been in business a very long time and prides their selves as being the quality player in their arena.

Based on this scenario which of the following tactics will you use to secure the sale?

A. Under cut whatever price is on the table.

B. Offer to match the price on the table and freeze the price for 2 years.

C. Low ball the price but only if bundled with another product with margin.

D. Offer co-op marketing dollars.

E. Offer to drop ship at each location.

F. Pass.

G. Something else. Which is....

Please comment on these sales tactics or post your own solution to this sales quiz.

What Is A Good Deal?

2011-05-10T10:41:00.000-07:00

What is a good deal? I guess that depends on a lot of things. When Secretary of State William H. Seward purchased Alaska from the Russians for $7.2 million he was branded a fool. Who would say today that he was wrong? Obviously, no one. It is much easier today to see the value proposition that it was in 1867.

Or, what about the stories of lawn sale or estate sale items that went for a few bucks and turned out to be rare and quite expensive pieces of art. I guess you would say that “Art is in the eye of the beholder.” No truer words have ever been spoken. Both buyer and seller looked at the same object and saw two totally different items worth very differing amounts to each. Each held a different value to be true.

And, to take this analogy even further afield....what about the value of a relationship? Yes I know there are many types of relationships. So let’s just focus on customer relationships. Do you have some customers that you do more business with than others? Most often that is the case. And it would most often also be true to say the customers that you do more business with you probably have a better relationship with as well. It sort of goes hand in hand. Give me more business and I in turn will give you more of my attention is generally the way it works.

So as you can see, there is also a value proposition to relationships. Good customers mean good relations. Pretty straightforward. But this is only part of the equation.

I would suggest that you strongly consider rethinking the axiom. I would suggest that if you really want to grow your business that you change the sequence. Reverse it. Good relationships mean good customers. Everyone would rather do business with someone they know verses a stranger, and the better you know someone and they know you, the more they can trust you, ergo: more business.

What I am saying is build the relationship first, the business will soon follow. You show you are worthy, your value proposition, and others will invest their trust in you. Give it a try; you might just be surprised at how many new friends and customers you will have gained. Now that is a good deal.

Do you agree or disagree with me? Please comment.

Hey Jude...

2011-04-04T11:45:00.000-07:00

Yes, I do mean the “Hey Jude” of Beatle fame. I went to a Beatle tribute concert tonight performed by a band named, The Fab Four. I liked the Beatles in 1964 and I still do. A quick look around the venue and it is obvious that I am not alone in my appreciation of John, Paul, George and Ringo.

The auditorium was crowded with a wide spectrum of age groups. This was definitely an 8 to 80 fan base. Personally I was very happy to see that I was not the oldest in the audience. Everyone was having a good time rocking out to tunes that were more than 40 years old. That included my good friends Ed and Helen who were my hosts for the evening. This was the eighth time they had attended a concert by this band. They told me they thought The Fab Four was the best Beatle tribute band out there.

I’m thinking they “really like this band” to pay to see them eight times. I have never seen the same movie eight times, let alone the same band eight times. OK, so maybe I did see Caddy Shack eight times, but that is different, isn’t it?

But, I was wrong, or sort of wrong. You see Ed and Helen do love going to The Fab Four concerts but they also have gone to Rain and other Beatle cover groups. What they really love is the music of the Beatles. And so did about a 1,000 others in the auditorium tonight. What I witnessed tonight were people reacting to the messages in the songs. Love songs, fun songs, touching songs about life.

Because many in the audience were not alive during the Beatle years it could not be a generational thing. It was the fact that the lyrics touched everyone there, no matter what their age. Everyone there could relate to the songs. Songs with emotion. Songs about people.

About now you are probably saying to yourself, “I thought this was a business blog? What gives?”

I will get to my point. I think it is vital to understand this lesson from the Beatles when it comes to communicating. Whether the message is crafted for your customers or potential customers I think that it must include emotional content. A sales message that is strictly about price or product specifics is missing the mark. No matter how high tech the product offering and no matter how attractive the price if you are not connecting with your customers on some emotional level you are falling short. You must remember that in the end it is about a human being making a decision to buy your product, try your restaurant or contact you for more information. Find a way to connect with people and you will find that price, product specs and everything else is secondary.

The Beatles said; “All you need is love.” Remember that the next time you create a message to you customers. Find a way to touch them and to show the human side of your company.

Do you have any examples of how you communicate with emotion? Please share your examples by posting here.

Pickles On My Burger.

2011-02-09T10:01:00.000-08:00

I had been thinking all day long about eating a juicy cheeseburger. Have you ever had a day like that? A day when you seem fixated on one thing. I admit that it would more politically correct to have my psychic energy focused on world peace or finding the cure for cancer, but sometimes "A Cheeseburger in Paradise" is just that. Paradise!.

On my way home I pulled off into the drive-up lane of my favorite hamburger stand. I ordered cheeseburgers for Vickie and me. Hers without pickles and mine with. I like pickles.

I got to the house and immediately went to the kitchen. I pulled out our burgers and made sure Vickie’s was sans pickles and then chomped down on mine. Instead of biting into the burger I had been dreaming about I got a mouth full of pickles. Like I said, I like pickles, but upon inspection I found all the pickles on this burger to be stacked like poker chips in the middle of my burger. I rearranged all the pickles to cover the patty and settled back to eating my dinner. While I was eating I came to two conclusions.

The first was that I ordered a burger with pickles and I received a burger with pickles. Though my burger was complete as ordered there was something wrong. I kept thinking, “How hard is it to put the pickles on the burger the right way?” Slapping a handful of pickle slices on my burger demonstrated to me that the person that made my meal did not care much for the quality of his/her work, the reputation of the burger joint or my satisfaction. As a customer my expectations were not met.

The second conclusion was that I must be equally focused on delivering not just the ”pickles” to my customers but pickles just the way my customers want them. How do you do that? This sounds like a tall order. The reality it is pretty basic stuff. It starts with asking, then listening, then finally delivering.

This is applicable to whatever business you are in. Are you just filling orders, or all you giving your customers what they want, how they wanted every time? Small details like how the pickles are put on a burger can be the difference between losing and keeping a customer because it shows how you feel about your product and how you feel about your customer. It is all about meeting expectations of your customers. You created those expectations via your marketing efforts. The question is are you delivering on your promises?

What examples do you have of little things like the pickle that can make a difference? Let’s hear from you. Please post your comments.

Service Lesson: The Really Hard Stuff is the Soft Stuff

2011-01-18T17:07:00.000-08:00

Tom Asacker, business author and speaker, said, “People will forget what you say, but they will never forget how you made them feel.” The question we always need to ask is…”How am I making my customers feel?” The bottom line according to Tom is this, “The really hard stuff is the soft stuff”. It’s the feelings of your customers and employees.

I certainly have been the recipient of some really good “soft stuff”. Not the least was a restaurant that stayed open just for my wife and me on a very special wedding anniversary where we were running incredibly late. The place was empty. We were the only customers in the entire restaurant, and they kept the whole staff on to make sure we had a memorable night. That was for our 15th wedding anniversary...our 40th is only a few months away! How's that for a lasting impression!

So with that in mind…please share your extraordinary customer service experiences by posting a comment here.

The Customer is Always Right…right?

2010-12-14T13:20:00.000-08:00

I can’t tell you as a retailer, how many times that I have heard that statement. I heard it from retail consultants, read it in trade publications and heard it from the lips of virtually thousands during my nearly 50 years in retail. I even had the fortune to see it not just as a catch phrase but as a core strategy during the years I called on Nordstrom buyers. Nordstrom being the poster child for being the ultimate, customer centric retailer. I have my own amazing stories to add to fabled tales such as the customer that returned an automobile tire to Nordstrom which was gladly accepted without a receipt, or the fact that Nordstrom does not sell tires!
Nordstrom department stores certainly put their money where the mouth is when it comes to “The customer is always right.” This holiday season Kohl department store is promoting something similar with a “no receipt necessary” policy. Is this a strategy that you should include in your business?

It certainly depends on what business you are in. There are of course many products where it would be impossible to restock or return the item to inventory to be resold because of health issues or quality assurance. But, there is a more basic question at hand that goes beyond the just the return of merchandise. What about meals in restaurants, movie tickets for disappointing movies, or a cruise on the Love Boat that did not have an amorous ending? The product or service was consumed/used and a request of a refund in submitted. Is the customer right, no matter what?

We have all heard stories of the customer that purchase an expensive gown, wears it and then returns the garment. Was that customer right? What about those scammers that find a way to abuse the system…your system, are they right?

Does the customer is always right set the standard for customer service or open the door for abuse?

What do you think? Let’s hear from you on this subject. Please post your comment.

To Gift, Or Not To Gift...

2010-11-15T11:39:00.000-08:00

Yes, the topic for this month’s Talk segment is the question to give holiday gifts to your staff or not? Before you start screaming Bah Humbug and conjuring visions of the Ghost of Christmas Past, please hear me out.

First, this is a topic that has habitually come up this time of year. Second, though the question comes up often it never comes up in formalized business seminars, meetings, training sessions or webinars. This is the kind of conundrum that is quietly whispered from one exec to another. Anyone that has a supervisory or management position has it on their mind. Anyone that owns a business must live with it either way because there is no “upper management” to lay it off on as an excuse.

So, here are the pros and cons of giving holiday gifts to those that are either your direct reports or that you employ. The “cons” are:

1. Is each individual in the organization or your department treated equally? Do some deserve a “special gift” and others just “the gift”? You can see a bad dynamic beginning already.

2. How much do you spend? Should the spend be tied to the profitability of the company? Is it a gift, a thank you, or is it like a bonus or profit sharing? Again, a bad dynamic for future years.

3. If it is a “holiday gift” then whose holiday is it? You may have individuals who do not recognize the same holidays as you. Just because you are the boss does that really mean that you can make this call?

4. If you start this gift giving tradition, what happens when you have a bad year and can not afford to give gifts of the same value as past years, or you can not give gifts at all?

5. If you had to cut expenses by laying people off, how do you then justify spending for gifts?

Ok, now I will give you the “pros” before start calling me Ebenezer Scrooge.

1. Holiday or no holiday saying “Thank You” is never a bad thing, especially to the people that make you look good.

2. Creative gifting can be a great tool to inspire creativity from the whole organization. Make your gift giving unique and memorable. Something your staff would never think of themselves.

3. Giving everyone the same gift and then giving an additional, more personalized gift to an individual(s) that have done an exemplary job during the year is a powerful statement.

4. People talk. When your direct reports or employees sit around the living room with friends and family watching bowl games they talk about gifts received, including the gift you gave. This is an opportunity to show that you are a good company or great supervisor to work for.

5. Company culture is very important. A culture of giving can be a positive attribute that pays dividends.

There are certainly more reasons to give or not to give than what I have listed here. The question is what do you do? Let me hear from you on this topic.

Happy Holidays!

Are You Afraid of Cotton Balls?

2010-10-28T16:32:00.000-07:00

How about clowns, snakes or things that go bump in the night? OK, I realize that most people are not afraid of cotton balls, but if you are one of those who are, then your fear is real. That person’s fear of cotton balls is just as real as someone else being terrified of spiders. So what is your fear(s) when it comes to your business?

Maybe it is public speaking, or maybe you are not comfortable in social settings like networking events. Just know that you are not alone. Most of us find that we must overcome our fears if we want to be successful in business. Behaviorist talk about adaptive verse nature style and it often shows up on DISC profiles in CEOs.

Last week was the 25th anniversary of our business and as such caused a moment to pause and reflect on the journey. One of the most profound bits of self-realization was that I have overcome (OK, well maybe “come to terms with” is more accurate) many of my personal fears. I still don’t like public speaking, but I do it all the time. I still feel uneasy at first in new groups but by using learned techniques I have found a way to be effective.

The bottom line here and the point of this month’s “Talk” article is we must face our fears if we want to be effective in business. It does not happen all at once but you can gain control of the fears that have up to now had so much influence on your growth and productivity. There is help out there such as Toastmasters for fear of public speaking and there are other such resources and support groups for other business related fears. But the first step starts with the desire and courage to face your fears.

Take a moment now and make a list of your fears. Be real, be honest. Then next to each fear write the date when you want to be free from each.

You my friend are now on your way to being a better leader, more effective businessperson and a much happier human being.

Happy Halloween!
Michael Sawitz, CEO

Carmel Apple Latte Please.

2010-09-13T08:40:00.000-07:00

I am standing in line once again at my local coffee place. The guy in front of me gets to the counter and the barista says, “Your usual?” The guy nods and hands her his coffee debit card and then moved to the end of the counter to wait for his “usual”

While I was waiting in line I was perusing the menu list and noticed several new seasonal offerings. When I got to the front of the line and it was my turn to order the barista asked me if I would like to try the Pumpkin Spice latte or the new Carmel Apple offering. I went for the Carmel Apple. I paid my tab and then moved down to the end of the counter to wait for my new taste sensation to be concocted.

As I slowly sucked down my coffee drink I began to think about both transactions. Mine resulted in a verypleasurable experience with my new got-to-have another one seasonal special versus the guy in front of me that was not offered the special at all. He seemed OK with the whole thing. I think he probably would not have bought a seasonal special in place of his “usual.” Actually, I probably would not have purchased the seasonal special if I was not asked if I wanted one.

So, why was I asked and he was not? Was he slighted? Or was I because the barista did not recognize me from my numerous prior purchases?

Then I realized the real loser here was the coffee house owner. Why? Simple. The seasonal special was $2.00 more that just a cup of coffee. If the business served 400 customers per day and 10% were like me and responded to the suggestive selling the result would be an additional $29,200 per year.

Knowing your customers buying preferences is crucial to growing a profitable business. Knowing who is a regular and what they generally want and having it ready for them even before they ask can be a shinning example of terrific customer service. But, as you can see from my example in this case extraordinary customer service may stifle growth if you are making assumptions for your customer. Can you think of examples like this in your own business? Do you have situations where you are not asking for the order? Do you have regular customers that you continue to fill their orders and do not suggest new products or promotions?

All too often we confuse customer service with the sales process, or emphasis one over the other. To grow a profitable business you need both. Without an active sales process there would not be any customers to provide extraordinary customer service for. And without execution of an extraordinary customer service program there would be fewer and fewer customers to sell to.

Do not miss the opportunity to make additional sales to your existing customer base. This is the quickest and most effective way to build sales. And often your customer will thank you for your attention. Give it a try!

If once upon a time could start now...

2010-08-09T13:48:00.000-07:00

If once upon a time could start now...what would it look like? A silly question? I don’t think so.

If you don’t have a clear picture in your mind of what you want to achieve, you have very little chance of ever living out that dream. Call it “imagery”, “self-hypnosis” or the “power of positive thinking” the label does not mean anything. Whether you do it or not means everything.

Napoleon Hill in his classic Think and Grow Rich had it right; "What the mind of man can conceive and believe, it can achieve". Don’t get me wrong. You need a business plan. You need skills. You need resources. You need drive. But all of that is wasted if you can not clearly see in your head exactly what success looks like. Visualize it and believe it with all your passion is the ticket. That is how you will achieve your goals.

Michelangelo said that he saw the finished statue in side the block of marble and all he did was to remove what did not belong. Simple really. If you can clearly see your goal. Impossible if you can’t.

You have the opportunity to achieve your goals, To reinvent yourself. To create. To do anything you really want to do. Start by answering the question: If once upon a time could start now...what would it look like?

What is the cost of a cup of coffee?

2010-07-14T12:04:00.000-07:00

I was standing in line the other day at a local coffee house. I was waiting in a line that was about 8 or 10 people deep. A few feet away were people in a different line. Those in the second line were customers who only wanted a cup of coffee, where those in the line I was in wanted anything else on the menu.

Two things became very clear to me as I was waiting for my morning "fix" of a steaming hot Latte. The first was that the other line was moving much faster than the line I was in. That bit of information is actually not news at all since somehow I always choose the wrong line to stand in. I have an uncanny talent for getting in the slowest line at the movies, checking out at the supermarket, at my bank or any other place where I can stand waiting to give someone my hard earned dollar.

The fact that the other line was moving faster is not the focus of this month's Small Business Talk. The revelation that I had while standing in that slow moving line was that the other line seeming to get better service. I am not saying that the customers in the "regular line," where I was, were not getting good service. My point is the customers in the fast moving "express line" were actually spending less money per transaction than those of us in the regular line, but we had to wait longer. Point being; what kind of a message is being sent by the use of the express line? Could it be that this particular establishment values the small, quick commodity sale over the larger, high value/high profit sale? Is management saying that the $2 coffee customer is more important than the $4 latte or the coffee and muffin or coffee and breakfast sandwich customer? It does not matter what the intended concept was. The result was that a clear message was being sent to those of us in the regular line that we were not special, or at least not as special as the coffee only customer. That violates the number one rule in dealing with the public; that is, all customers are special.

The question for you is, "What mixed messages are you sending in your business? What can you change in your order process, work flow or customer service that would clearly shout that you believe all customers are special?"

So, that was my first revelation that morning.

My second thought was that my mind focuses on too many negative thoughts before I get my much needed caffeine. Or, is it that I need to go back to just ordering coffee in the morning, so I too can use the express line?

If any of this makes any sense to you? Or if you have created solutions to this type of customer service challenge? Then please share it with others.

Please weigh in with your take on this issue and post your comment on my blog. Let's hear from you.

Michael

Middle-Age Entrepreneurship Is On The Rise

2010-06-17T11:58:00.000-07:00

Middle-age entrepreneurship is the leading demographic in new business start-ups. "More than 80% of all start-up businesses in the United States are launched by people over 40 years of age," according to research by the Kauffman Foundation, a private entrepreneurship organization.
Over the next 20 years, it is estimated that nearly 80 million baby-boomers are expected to retire. For some, the decision to start a business is a reality of not having the resources to retire in a manner of their choosing. For others, it is the excitement and challenge of finally owning their own business. Either way, this demographic is a huge driving force in the American economy.

Is your business positioned to capitalize on this new wave of entrepreneurs? Do you have products or services that can be utilized by middle-age entrepreneurs? Is this important demographic group included in your marketing mix?

Or are you a candidate yourself for owning your own business? If you do not have a concept or dream for a business you have secretly wanted while you were working for someone else, then franchising may be the best route for you. It has been for me and for thousands of others who have found there is life after your current or last career.

You don't need a higher education degree or specialized knowledge to start a franchised business. The beauty of franchising is that you are provided a proven system. It's your job to use that system to create wealth and a new life for yourself.

I chose an industry that is positioned to greatly benefit from this projected wave of new entrepreneurs. The millions of new business owners will need support services that AIM Mail Centers is uniquely qualified to provide. If you are a baby-boomer who has started your own business, we welcome you as a valued customer. We can help you grow your business.

If you are not sure what type of business is right for you, I will extend an invitation to you to explore our business opportunity as an AIM Mail Center franchisee. Let's talk.

Please weigh in with your take on this issue and post your comments below.

Does It Take A Crisis To Create A Leader?

2010-04-20T15:06:00.000-07:00

Moses, Abe Lincoln, Winston Churchill, and even Steve Jobs are acknowledged as great leaders, but only after being tested by turmoil. So the question is; “Do great leaders arise out of the ashes of pending defeat and soar into the sky “faster than a speeding bullet”, or were they great leaders before their call to duty?

History exposes how many superior leaders were initially failures as leaders and in many cases also failures as human beings. Alcoholism, drug use and other human failures are a common occurrence among the list of extraordinary leaders. Ulysses S. Grant, Winston Churchill both come to mind as boozers, yet both are regarded as extraordinary leaders of their times.

That creates a side question of; “Is it OK to be an alcoholic or drug dependent if you are still good at what you do?”

Back to the original question; “Does it take a crisis to create a leader?” Are there great leaders that were not born of conflict?

This is a classic debate between nature vs. nurture.

Please weigh in on this one. Let’s hear from you.

Link to a Small Business Pod Cast

2010-04-06T12:19:00.000-07:00

I have been following http://www.blogtalkradio.com/smallbiztrends recently and have found some really timely topics on small business. Check it out for yourself.

I Trust You Today...But Will I Trust You Tomorrow?

2010-03-23T18:33:00.000-07:00

So the Prius has a mind of its own and accelerates out of control. Yesterday my blog was highjacked and redirected all visitors to other sites because of a widget I downloaded from Google. Case in point...both failures were delivered by up to now World Class companies. Toyota earned more accolades for quality than any other car company and Google wrote the book on how to build a global quality company. We consumers trusted both companies above all others in their respective areas of expertise. Trusted that is until we experienced a failure.

Now don’t misunderstand me. I am not equating sticking accelerators that have caused death and destruction to my malware issue. The damage to life and limb from faulty cars is extremely serious. What I would like to discuss is how quickly reputations can change. How instantly Toyota’s seventy years of brand building is wiped out. How two days ago I was singing the praises for Google and today I say how did they let that happen to me? Or another example; how Enron was marked as an evil empire when in reality it was a handful of greedy executives whose bad deeds branded tens of thousands of valued employees and the entire company.

When companies we trust let us down the public’s reaction is usually swift and widespread. We refuse to do business with them. We make them pay for their sins by withholding our dollars. Retribution is meant to be catastrophic and final. Make them pay.

When we lose trust in a company we are done, but when we lose trust in an individual we generally give that person a second chance. In fact, we have built much of our societal values around giving people a second chance. Learn from your mistakes, right?

So, why are we not as forgiving to companies when they make a mistake? What is your opinion? Please post a comment.

Does Anybody Really Know What Time It Is?

2010-02-20T12:41:00.000-08:00

One origin of this question is obviously from the Chicago tune which bemoans the fact that most of us are rushing around too fast and furious to stop and “smell the roses”. So what does that mean to those of us in small business? As I type this question I notice that it is 1:36 AM on a Saturday night. My guess is that I am far from being alone in this activity. Most of us in small business fit one or both of the following descriptions.

A. I have so much on my plate that I seem to work around the clock.

B. I am so passionate about my business that I can’t get enough of it.

Either way, we tend to work more hours than those who “have a real job” {BTW: That phrase really bugs me!} So, if you and I are working at all hours of the day and night...how important is it be able to meet your customer’s needs beyond the normal business hours?

Remember the phrase “Bankers hours”? Yes, there was a time when banks were only open from 10:00AM to 5:00PM and not on Saturdays. Not only are banks now open on Saturday, but are inside of supermarkets with long hours or are available to you 24/7 online. Consumers have responded to the added hours and ease of access in a major way.

Jim Collins in his important book, Good to Great, shares the story about a building supply firm that created a way for their key customers to access road repair materials after hours. The around the clock access to road repair materials was a major differentiator and helped the firm outpace competitors.

What are some of the steps you can take to give your customers what they want...when they want it?

Or, as a consumer what products or services do you wish you had access to on your time schedule?

Let’s hear from you. Please post a comment.

Do the clothes make the man, or does the man make the clothes?

2010-02-06T13:12:00.000-08:00

I am a Business Coach to a team of marketing students in their senior year at one of our State Universities. The students are working on several projects contracted by various private enterprises. While preparing the students for a first meeting with their respective clients the issue of appropriate dress came into play.

I was quite surprised when there rose a general uproar in the classroom at the mention of coats and ties for the men and the women should “dress like ladies”. Even after discussions centered a round first impressions...

"You never get a second chance to make a first impression" Will Rogers

and, showing respect for the client/professionalism/competent image and a whole host of other reasons why the students needed to depart from their flip flop and holey jeans look when visiting the offices of the organizations that had hired them; there was still a lack of understanding why? They were saying; “What does how I look like have to do with the job I am about to perform? In other words; Isn’t it about the content?” This statement is coming from a generation that has been raised to embrace diversity and individual uniqueness, both admirable traits. And they are right about the fact the “content is king”.

So here is the question. Is it the old school approach of “Dress for Success” and “When in Rome do as the Romans do?” Or, is it as the students believe; “It does not matter what I wear, what is important is if I deliver the goods or not?”

Let’s hear from you on this issue. Which approach do you use in your business?

BTW: For you old schoolers:

“Clothes make the man. Naked people have little or no influence on society.” Mark Twain

Outrageous Customer Service, or Poor Customer Service?

2009-11-10T08:16:00.000-08:00

Bill Gates and Warren Buffet often vacation together. On one occasion they went to China. Wherever in the world Warren Buffet travels he always brings his favorite beverage, Cherry Coke. On this specific trip Buffet and Gates left the luxury hotel they were staying at to take a rented yacht down the Yangtze River. Some hours into the cruise it was discovered that Warren Buffet’s inventory of Cherry Coke had not been transferred from the hotel to the boat. The captain radioed the hotel which immediately dispatched a staff member with a case of the soft drink. The hotel person headed down river to catch up with the boat in a rented cab. When the cab came to the end of the paved road and the boat was still further down river the hotel person paid for the use of a bicycle and quickly loaded the case of soft drinks in the basket and headed off to the find the boat. Eventually he sighted the yacht, paid a fisherman to row him out to the boat and delivered Mr. Buffet’s Cherry Coke.

Question: Is this an example of extraordinary customer service on behalf of the hotel and the diligent and resourceful staff member? Or, is this a case of poor customer service by the hotel for not transferring the soft drink in the first place?

Let me know what you think. Have you had a similar customer service challenge in your business?