customer retention

Sales Lessons From The Hot Tub

by Karen Jackson | on Apr 12, 2016 | 12 Comments

Our hot tub died in late February. An untimely death given we were still in the clutches of winter, but my family enjoyed 20 soothing years from it so I couldn’t be terribly annoyed.

“Karen, why are you telling me this story?” you ask. Because of what happened when I went to replace it! There are important sales lessons to be learned. Take a few moments to consider the buyer journey….

I immediately called the store that sold us the tub 20 years ago and that has been servicing it all along. After determining that the repair cost was 50% of the original price, it seemed prudent to purchase a new one, so I asked for a quote to replace it. The sales person emailed me a quote and brochure for the model that was effectively the 20 years later version of the original tub. Then there was silence – no follow up call or email.

Without a conversation or email exchange, he’d left me alone to ruminate…. “Do I really want the same thing? If I’m going to fork out the cash, ought I think a bit grander in terms of features and functions? Yes, this brand was reliable for 20 years. But it was pretty basic in terms of features, with a minimal number of jets and few customizable settings. Surely other options exist.”

But the salesperson hadn’t asked me any questions about my needs or desires, didn’t probe about my priorities or my budget parameters. He already “knew” me and offered a solution based on my need profile of 20 years ago. He also took literally my request for a “replacement” hot tub.

Like a watching a B-quality horror movie, I hope you’re already recognizing the signs of disaster for the salesperson.

Much had changed about me as a buyer in 20 years: My body aches more after skiing – hell, after sitting; I have more discretionary income; I now spend more on services and products that bring me peace, joy or time. Equally important, when I bought my first hot tub, I’d just finished building the house it resides at. I was financially stretched after the investment and went for basic, basic, basic on the hot tub. My needs and desires today are entirely different.

Left alone, I decided to research alternatives, and walked into another local provider. Hot tubs are a luxury item and this salesperson understood that completely. (That’s why 20 years later, they’re referred to as “spas.”) “Tell me about….” He said. And then he began to explore my pain points, desires, ideal outcome. He asked me questions, offered product choices that mapped to what he’d heard from me, and relayed a couple of purchase stories about clients similar to my profile. An hour later I walked out with a purchase order and he held my deposit.

It’s a B2C story but it applies to B2B purchasing decisions. In B2B, while the “B” represents business, business buyers are real people with emotional needs and personal agendas. Did you spot the mistakes made by the sales person? These are the important takeaways for your sales people:

• Beware of making assumptions about current customers, especially when selling products / services that are not high frequency transactions. You may think you know them, but things change and they won’t always share.
• Always probe for what has changed in the buyer’s universe since their last purchase.
• Don’t assume their request is what they really need or want; probe for pain points, desires and ideal outcomes just as one would for a new customer.
• Cost is rarely the leading decision factor, unless one is competing in a hyper commoditized space.
• Use closing questions to clearly understand concerns or objections, potential new competition, and the vision match between your solution and the customer’s desired result.
• Gain commitments for next steps. Always.
• Never leave a customer alone with a proposal for an extended period of time. There’s no firm rule on timeline, as scenarios differ based on complexity of solution, but anything longer than 1 week is a mistake.
• Follow up is an important element of the sales cycle, both to retain control of the process and make the buyer feel cared for. If you don’t pay appropriate attention to the customer, another vendor will.

If this seems basic to you, reevaluate. I witness sales people for multi-million dollar companies make these mistakes regularly. The good news is that there’s a solution. The development of sales process and play-books that leverage best practices, combined with training and coaching of the sales team, ensures that your company won’t lose the next hot tub – sorry, “spa” – sale.

P.S. I love my new spa. 🙂

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Driving (or Losing) Revenue Through Customer Experience

by Karen Jackson | on Oct 29, 2015 | No Comments

Starbucks CEO Howard Schultz famously said the company’s success was not about its coffee, but rather, “It’s about the experience.” These simple words are profound. People (whether in the form of an individual consumer or a business) buy from companies that create a delightful experience. Schultz knew that in any given town or city there was little demand for another coffee shop. But he understood there was a demand for creating a community experience that involved coffee.

The recipe for Starbucks phenomenal growth was in large part due to its focus on the ingredients needed for delight: well-trained and personable staff, wi-fi, music, comfy chairs, attractive display cabinets with fresh food, consistent quality and seasonal menu offerings. Customers came, returned, and increased their spend across product lines – and bought gift cards for friends and family, increasing the number of delighted customers in the most organic way possible.

This experience-centric approach is not exclusive to the B2C world; B2B companies such as Salesforce.com, American Express and Constant Contact leverage customer experience for competitive advantage. They understand that robots aren’t making purchasing decisions in B2B, people are. The context of the company doesn’t eliminate the fact that emotion is a key buying factor.

But too few companies understand the importance of customer experience and its correlation to revenue generation. Companies focus on their sales team’s impact, but not on the myriad of other touch points their firms have with the customer, both pre- and post-sale. And often, when sales people bring back experience issues to operations, they’re met with deaf ears. Ignorance is not bliss, for when the customer experience is ho-hum, difficult, or blatantly negative, there is no incentive for their loyalty, much less to rave to their colleagues or friends about their experience. The door is open to a competitor who offers delight. As Gary Vaynerchuk drives home in his book The Thank You Economy, business leaders better “care – about your customers, about your employees, about your brand – with everything you’ve got.”

A few of my own recent vendor interactions illustrate what goes wrong when leadership forgets (or doesn’t care about) the customer experience:

  • Landscape company’s voice mail greeting: “Your call is very important to us but we’re not in the office right now, so please call back tomorrow.”
  • Empty restaurant at lunch time where the host seated me and my guest at a small table next to the wait staff’s station.
  • Doctor’s office A/R voice mail greeting: “Sorry, the person who takes payment information is out this afternoon; please call back tomorrow.” That was after the invoice instructed me to, “Call the office to pay by credit card” instead of providing an easy mail in form or web payment option.
  • Letter from my credit card company’s fraud department asked me to call but provided the wrong department’s phone number. For good measure, the person I reached gave me the correct number but couldn’t transfer me and said I must re-dial.
  • Countless supplier websites where it’s difficult to find the information I seek.

These experiences send a variety of subliminal messages, among them:

  • “You’re just not that important to us.”
  • “We’re super sloppy about our work.”
  • “Our financials are shaky and we had to cut back on staff.”
  • “We run our business based on our needs not yours.”

A customer who experiences this lack of caring may stay on, but with few recurring transactions and no referrals. At worst, and more often, they run screaming to another provider who understands the power of customer experience.

CEO’s should be up at night with the fear that their customers and prospects are having these experiences. Excluded are companies with rock bottom pricing as their value proposition; the customer consented to give up service in exchange for price performance. But few businesses operate on that model and probably not yours. More likely, you couldn’t afford to sell your product at a price low enough for the customer to forgo the experience. The damage shows up as an inability to convert prospects, low customer retention, inability to upsell and negative reviews. It’s not too hard to find a new landscape company, doctor, restaurant or credit card provider. Or, accountant, cloud services provider, architect, IT consultant, etc. There’s always another game in town.

How do you solve? Begin with an audit of your organization, all departments included, not just those that are customer facing. After all, incorrect invoices reduce the quality of the customer experience. Scrutinize processes and systems to understand their impact on the customer. Review practices and scripts for all customer facing positions. Identify the customer experience you provide before the buyer has even converted from prospect to customer. Ask these questions:

  • In what ways are we hard to do business with?
  • How complicated is it to engage with our people, processes and materials (website, shopping carts, marketing collaterals, forms, etc.)?
  • How closely do we fulfill on our promises? Are we saying we’re one thing but being another?
  • Have we created a culture of caring and are we hiring people with the DNA to act accordingly?
  • Is the customer experience integrated into our values statement?
  • Does everyone in the organization understand their impact on the customer?
  • Have we established and trained everyone in standards of performance?
  • Does everyone that touches the customer have the training and the authority to solve a problem?

Get your entire workforce involved in this inquiry. Empower (and reward) teams to find the issues and solutions. Ask your customers for their perspectives. Make Schultz’s mantra, “It’s about the experience” a core element of your business strategy. You can close the gap between customer fail and customer delight. Revenue growth depends on it.

 

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The Power of the Handwritten Note

by Karen Jackson | on Feb 05, 2014 | 7 Comments

One of the least expensive, most powerful tools in a sales person’s toolbox is a note card. Add a pen, 10 minutes and a modicum of thoughtfulness; presto – you have a thank you note.

Yet so few bother. And that’s just plain crazy. Because everyone knows it’s much more expensive to find a new customer than to keep an old one.

It’s hard to defend any rationale behind why the majority fail on this most basic of social interactions. Too hectic? Too lazy? Too convinced that an email is good enough? Worse yet, are we really just too self-absorbed?

Whatever the reason, if this shoe fits, wear it. Customers deserve better. It’s not to suggest that they aren’t receiving whatever goods or services they paid for. It IS to suggest that they don’t receive enough appreciation for choosing us, collaborating with us, risking for us, and forgiving us when we screw up.

I’m not talking about a perfunctory, “thank you for your business” note. Those can be churned out by anyone. I’m talking about taking the time to say “thank you for trusting me / collaborating with me / making this project such a success” – whatever ought be said that makes it personal, meaningful and specific. A message that conveys you value them enough to bother – via a notecard, in ink, by your hand. Believe me, it’s powerful. And, when your competition tries to knock you out of the incumbent’s box, your customer will think, “I care too much about my relationship with ____ to make a move.”

Who deserves your thank you note today? Get cracking. Mine are waiting for tomorrow’s mail. Yes, you need a postage stamp.

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It’s About The Experience

by Karen Jackson | on Mar 05, 2012 | 4 Comments

These four words from Howard Schultz of Starbuck’s [SBUX] fame should keep CEO’s up at night. OK, leaders of those rare companies with a one-of-a-kind product and a significant barrier to entry can go back to sleep. Everyone else better stay up until they understand how important those words are to the health of their company. continue reading »

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1 Basket is Definitely Not Enough

by Karen Jackson | on Nov 07, 2011 | 4 Comments

Let me start by saying I love Seth Godin.  He’s brilliant, a human with a head-full of knowledge and the unique ability to turn complex ideas into ones we mere mortals can wrap our heads around.  Seth turns conventional wisdom upside down, pokes holes in truisms, discovers insights through some alchemy that few of us possess.  In fact, I’ve just applied for his upcoming Medicine Ball Session in December and am holding my breath that I’ll be selected.  But I have to say, 1 basket is definitely not enough. continue reading »

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