Monday, April 11, 2011
Do You Get Satisfaction In Creating Satisfaction?
On Facebook and Twitter; our website and LinkedIn...every week I'm asked about the secret of success in both choosing a franchise business but also, after investing, in ownership, what is critical to success? I've learned what that means to the asker, "How do I ensure my success, in the way that I define it (and further I am not going to reveal what that means to you!)"
The short answer is there is no one answer to ensure your success...in ANYTHING!
Life happens...the improbable occurs...the impossible bears down on us and then, as if what we do not control isn't enough looms heavy, we ourselves make all types of boneheaded decisions!
Security is NEVER...EVER assured...EVER!
We did a whole video with statistics and proof that a job/career in America is no longer secure. You can no longer trade loyalty for security with a corporate position. You might as well chalk up the potential of losing your job (fired/downsized/outsourced/canned, etc. etc.) to a span from the possible and improbable to the drop dead assured to happen; you will lose your job if you work for someone. You will also lose the next one too. It's a statistical fact.
So, is business ownership, overall, that much more rosy? YES! World's so.
...with some very significant "ifs" and here's one: How much do you or would you enjoy serving a customer base? If the answer is you could and it is possible and, further, that you do not feel universally that, "Business is great except for the people!" then you have a major shot at business ownership success.
Client satisfaction is of massive value in business ownership. Paperwork isn't. Systems are only important inasmuch as they work to serve the client/customer needs.
In our world you have client relationships. The transaction with the client either occurs within a relationship or it doesn't. If it doesn't then you will have to create transactions anew each time a warm body shows up. Moreover, if you aren't treating your people in a way that shows you value the exchanges with them you will be fighting upstream against an ever increasing body of knowledge through them that says, "working with this clown isn't worth the effort!" Not cool.
In customer service training they talk abut the "lifetime value of a customer.” In this scenario making a major refund doesn't matter nearly so much because that value when projected over 3, 5, 10 years becomes inconsequential and, in business, you must always take the long view over the short term value proposition. But, and as you can guess by what I've said previously, even if you’re only going to deal with a customer one time, if you approach it as a relationship, you’re much more likely to develop a "fan for life!"
When I am asked what components help to make a decision to go into business, how you feel about producing satisfied customers is at the top of the list. The guy who answers me, "I like creating solutions," usually is more about the process and not the people. That isn't enough. The one who answers they love the thrill of the hunt, securing that first deal; what they think of as "the victory" really has no vision. Business owners, large and small, must have vision. What might a right view of customer service look like?
How do you know if you are a customer service kinda guy or gal? How can you tell if you have a component necessary for small business success? Let me suggest 5 components of a necessary caring customer service attitude:
1. Integrity: Integrity is always defined by the customer to mean that you had communicated an outcome and you have fulfilled that promise. Do you communicate intentions and get agreement on expectations with the people around you? If the answer is "yes" then you will be viewed as having integrity and have a most significant component of customer service.
2. Knowledge: Again, from the customer's perspective do you understand your offering and have you, to the clients satisfaction, communicated its purpose and value proposition to their satisfaction? I know it's frustrating when you go to a company and can’t get answers to the most basic questions. Your ability as the owner to have a singular response that can be easily communicated to both client and employee is fundamental. Do you have the capability...the ability perhaps, to effectively communicate so there is little misunderstanding? You might have customer service skills and the ability to train them.
3. Create a relevant culture: A company’s culture gets transmitted from the top down. As the owner YOU are that top! Your team will only treat your clients as well as they view your treatment of those customers. As important they will rarely treat customers any better than you, as their boss, treat your team! Do those who report to you, both inside and outside your family view you as fair, pleasant, respectful in your dealings with them? You might be a quality customer service individual and that goes a long way to building a business and retaining clients!
4. Training: This is a place where franchising shines. If your business calls for employees, then it calls for employee training. However, your personality can circumvent good training materials and practices. If you are one of those who sort of slaps your direct reports against a wall, leave them to their own devices and see if they stick to it, you are going to waste resources and money. Proper and continual training is it's own reward in that you gain satisfaction as you watch your team gain confidence and develop pride in the enterprise. However, the major payoff of greater sales and significantly stronger customer retention will elevate your revenues while reducing your expenses.
5. Empower your employees beyond the expected: Nordstrom's Department Stores are known for exceptional customer service. This happens because of the chain of hiring, training, internal relationship building between leadership and associate (customer service) personnel and how it influences how adequate and empowered everyone feels. Comparatively a Nordstrom employee develops more than 50% higher revenues and 12% great profit margins and a major component of this is a culture of empowerment. Do you communicate, train, encourage and exhort individuals in your life? If you do you might have what it takes to lead and create a successful business climate.
What is the key to success? Success is a building with many doors and many locks. One key is quality customer service. As you review the 5 components, ask yourself, "Do I have those abilities?" Then, ask a few people who know you their opinion. Then, do some soul searching! Until next time...
John is a 30-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Vision Reach and can be reached at docfranchise@gmail.com. or direct office 480.838.1641
