“What We’ve Learned Over the Last Decade” Part 1
Aramini Management is celebrating its 10th year in business. It has been an interesting, and valued life journey. I say that because while I learned first hand what it means run a business, it was also an opportunity to expand my universe of experiences and relationships. Learning is life-long and the biggest thing I’ve learned is that staying static can result in failure as you are constantly moved out of your comfort zone to engage new people, industries, technological change and business trends. The following are some critical learning points that we would like to share with you to hopefully add to your insights in managing and building your business:
- Stay alert. Know what is happening in the marketplace and developing trends. The internet impacted all industries, one way or another. Banking, for example, has experienced a significant drop in branch traffic as people bank online. That means that banking staff, who were uncomfortable selling or did not sell previously, must now possess effective cross-selling and interpersonal skills to maximize the contact time for those customers who do walk into the branch or contact call centers. In response, we developed a sales training program for the non-seller to assist banks in transitioning their branch and call center staff to become comfortable in selling.
- Keep antenna up. When people are speaking “listen” as they could be telling you in the most casual conversation what there challenges are. As we were sitting in a coffee shop, an owner of a music distribution company mentioned he was having a challenge integrating sales management software into his organization’s routine, I offered for free to walk them through the applications, which eventually developed into a six month project to build their strategic plan and reorganization.
- Be patient. I learned early on that my sense of urgency was not necessarily aligned with the prospective client’s timeframe. This was the case with a very successful law practice. It took nearly two years for us to begin their branding and advertising project. A potential customer could be genuinely interested in your service but are busy meeting their own customer needs.
- Handle rejection: make no assumptions and take nothing personal. You and your business are essentially one in the same. It is very easy to take it personally when a prospect decides not to buy your product or service. The likelihood the rejection is just a business decision. Stay objective. The same people who reject you could be your next referral source. After not using our services at his former company, a vice president of sales who moved to another company, contracted us to assess their call center business practices.
- Assess probability. Assess the probability that the project will move forward by gauging the prospect’s level of commitment. Determine who the decision makers are and what the decision making process is. Are they talking to anyone else? We overlooked the competition being in the mix and were surprised when an advertising agency selected another consulting practice to assist them in developing criteria to evaluate projects based on improved ROI.
Please look for Part 2 in next month’s newsletter.
Improve First Contact Resolution To Keep Your Customers
How can you help prevent your customers from switching to the competition? Accenture’s “Customer 2020” research of consumer trends over the past 10 years found that:
- 80% of the consumers surveyed indicated that they could have been retained primarily if their issue had been resolved on their first contact with their provider
- Even so, over the past five years, first contact resolution remained the top frustration factor
Aramini Management recommends the following to improve first call resolution practices:
- Develop and track first contact metrics.
- Incorporate call-handling quality and service resolution standards among all employees.
- Define service incidents and track the number of occurrences.
- Establish service escalation procedures when issues cannot be resolved at the first contact level.
- Track escalation rates: which service issues are being escalated to the next level and why?
- Institute a resolution follow-up time period for those concerns that cannot be resolved at that time and advise the customer when they will contacted.
- Measure customer quality assurance allowing customers to confidentially rate their service resolution experience.
- Establish business etiquette standards for telephone and email ensuring everyone adopts the proper way to take a message, hold and transfer a call, and frame an email.
Wal-Mart’s Plans Are About Customer Engagement. Are Yours?
Your first reaction when Wal-Mart CEO Doug McMillon announced pay raises was probably the belief that negative publicity forced Wal-Mart’s hands to make the changes. No one would argue that bad press could be a contributing factor. The wage increase would also better position them to compete with other retailers such as Target, TJ Maxx and Marshalls for qualified workers in a tightening labor market.
A closer look suggests their primary mission is to overcome disappointing sales results by growing sales through improved customer engagement and the overall customer experience. Changing compensation was one tactic within what McMillon called a “package of changes” that included training, onboarding of new employees, and work schedules. Training will include people leadership skills, teamwork, merchandising, retail fundamentals and communications. The plan can reduce turnover costs through improved employee retention.
Does customer engagement matter? Gallup’s John Fleming and Jim Asplund say yes in their book Human Sigma. They provide extensive research documenting the relationship of employee and customer engagement in benefitting an organization’s financial outcomes. They state that “companies whose products, processes and people deliver excellence at every customer touchpoint are less vulnerable in the marketplace” and “more resilient” during difficult economic times.
What’s the takeaway? I recommend the following business practices:
- Live customer engagement: make it a core value for your organization – not a program – but a way of behaving involving personal choice and ownership.
- When developing social media and digital channels, don’t overlook the continued importance of your employee’s customer service, sales and interpersonal skills in successfully engaging the customer.
- Ensure employees possess a depth of product knowledge. Your customers may have already done research online about your products and services. Don’t put yourself in a position jeopardizing customer confidence by knowing less than them.
- Measure customer quality assurance and satisfaction by providing customers with the opportunity to rate their experience with your products, interactions with your people, and when accessing customer service and support.
- Reinforce a culture where employees are neither territorial nor work in a silo- they know the organization’s structure, total picture and product processes to ensure knowledgeable referrals or to expedite problem resolution.
- Hire the right people and reward employees that value teamwork and demonstrate positive customer-centered relationships with each other.
“Defining Your Business and Personal Brand”
In my prior post “Why Do You Exist?” I wrote that Lego CEO Jorgen Vig Knudstorp asked that question when he initiated Lego’s transformation leading them to quadruple growth over the past ten years. He commented that Lego had “lost its way in terms of its own self-identity” and needed to clarify “what is Lego uniquely about” to develop strategy and properly align resources to the market.
In that piece, I listed a number of benefits gained for the established business owner, senior manager, those starting a new business or job seeker in answering that question. The following will help guide you in initiating a business or personal branding exploration process to establish a branding narrative and strategic foundation.
- What is your mission? Career objective?
- What are your values and operating principles that you will not compromise?
- What are your products/services? Competencies? Skill-sets?
- What examples represent the impact that your product, service or skill offers?
- Describe your target: profile client, prospective employer. What are their needs? What can you help them solve?
- Why would a customer buy from you or an employer hire you?
- What makes you memorable? What distinguishes you from the competition? Your uniqueness?
- What are your employees telling you about what your customers are saying?
- What does your network (customers, co-workers, employees, friends) already think of you or your business?
- What qualities do you want them to associate with you or your business?
“Why Do You Exist?”
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Jorgen Vig Knudstorp, CEO of Lego asked that question when he initiated Lego’s transformation leading them to quadruple growth over the past ten years. He commented that Lego had “lost its way in terms of its own self-identity” and needed to clarify “what is Lego uniquely about” to develop strategy and properly align resources to the market.
There are a number of positive outcomes when answering that question -whether you are an established business owner, senior manager, starting a new enterprise or looking for work – here are a few potential benefits:
- Clarifies your company or personal brand for you to effectively be its advocate and marketing champion
- Defines your customer
- Links your business operation to your target market
- Creates your marketing narrative and story
- Ensures your employees communicate a cohesive and consistent message to customers and prospects
- Positions you for your job search strategy and interview preparation
- Learn what your network (customers, co-workers, employees, friends) already think of you and your product
- Get at why a customer buys from you or an employer hires you
- Communicate and live qualities and values you want associated with you and your business
In my next post scheduled for March 2015, I will provide you with “key questions” help guide you in initiating a business or personal branding exploration process to help you clarify “Why You Do Exist?”.