Consumer Relations

Successful business owners train their salespeople to develop a foundation of strong customer relationships. Why? As with every other purchase decision, individuals prefer to do business with people they like, with people who seem genuinely interested in them, and with people who really care about their concerns. So unless salespeople are willing to appropriately start and then nurture the customer relationship, customers won't return and they certainly will not refer their friends.

Some company leaders attempt to educate their sales force about customer relations by using buzzwords such as total quality management, customer satisfaction index, zero defects, client service, etc.

But what does all this really mean to salespeople?

After all, many of the veteran salespeople made it through the '80s and '90s without all the commotion about quality and service. So why all the fuss now? Is this just another fad, some passing fancy that will come and go like Hula-Hoops, disco dancing or designer jeans? Hardly. A fundamental change is taking place in customer service, and the salespeople who realize this and change with it will be the people who will be successful in 2002 and beyond.

Customers (you may call them clients or patients) are the lifeblood of any small business or professional practice. To thrive, you need not only a steady stream of people who keep coming back for more goods or services but also those people to enthusiastically recommend your business to their friends. To build a loyal following, you must do more than just give people what the law requires. Yes, knowledge of your legal rights and those of your customers is important, but even more important is not to let legal technicalities take priority over a key objective of your business: to keep happy customers coming back and sending other people your way

Let's say you own a dry cleaning business, and a customer complains that her white blazer came back with a slightly pink tint. Legally you could respond to that customer in a number of ways:

"The problem is scarcely noticeable. You're being fussy."

"How do I know the blazer wasn't like this when you brought it in?"

"Didn't you see our sign? We're not responsible for any problems once you take the cleaned garment from the shop."

"That's a two-year old blazer. Used clothing isn't worth much. I'll pay you $20 for the damage--not a penny more."

"I've never had this type of complaint before. I want to send the blazer to an independent testing lab to see if the fabric is substandard. If it is, it's your problem--not mine."

But a wise businessperson won't stand on his legal rights. Instead, he might respond by saying: "I'm sorry this happened. We use state-of-the-art cleaning processes, but apparently something went wrong. In any case, we guarantee your complete satisfaction. Since we can't fix this type of damage, let me know the purchase price of an equivalent new blazer."

By having an enlightened attitude, you also will have happy customers. If you give your customer the benefit of the doubt and do more than what's legally required, she will most likely keep coming back to you, bringing hundreds of dollars of business. She will not only remain a loyal customer but also probably tell her friends about you and recommend that they patronize your business.

Choosing to respond to dissatisfied customers with a strictly legalistic approach may get you into trouble. If you had offered to pay only $20 for that customer's two-year-old blazer, your customer might have taken you to small claims court and perhaps have won a few dollars more. But what's worse, that customer would never have taken any more cleaning to your store and probably would have told others about your inadequate service for years to come. She might have even complained to local better business and state regulatory agencies. So while you might choose to act like a tough businessperson who knows your legal rights and never lets customers rip you off, in the process you might just lose many thousands of dollars of business.

Whether you run a restaurant, a hardware store, or a sand and gravel business, if a customer complains about your product or service, don't quibble. It's much smarter to point to your customer satisfaction policy as you eliminate or reduce the charges--and maybe even give the customer something extra as a reward for putting up with the problem. Maybe you won't make any money on that transaction; you'll probably even take a small loss. And yes, once in a blue moon someone will take unfair advantage of your policy. So what? When you consider the good feelings that customers will have about your business--and the fact that you'll receive positive rather than negative word-of-mouth from everyone you treat generously--it's a bargain. Consider, too, that a customer whose problem you resolve is unlikely to complain to any agency or board with power to license or otherwise oversee your business. Anyone who has had to cope with an investigation knows that even if the complaint that triggered the inquiry has no merit, the process can be worrisome and, if lawyers are involved, expensive.

DEVELOPING A CUSTOMER SATISFACTION POLICY

Whether you're selling products or services, go further than is legally required in anticipating and responding to the problems of your customers. How you do this depends in part on the nature of the products or services you offer. But for starters, consider the policy of Eddie Bauer--a highly successful national company that sells outdoor goods through its catalog and retail outlets:

Our Guarantee: Every item we sell will give you complete satisfaction or you may return it for a full refund.

Our Creed: To give you such outstanding quality, value, service, and guarantee that we may be worthy of your high esteem.

Whether customers ever have to return anything to Eddie Bauer for a refund or not, the company manages to instill a sense of confidence in its products through this policy statement. By reassuring customers in advance that all problems will be resolved quickly, Eddie Bauer's good customer service is a marketing advantage.

Some department store chains such as Nordstrom's also have built solid businesses based in large part on their guarantee of customer satisfaction. But the big-time operators are not the only ones who successfully use a customer