Managing your Business, Managing your Customer

Workshops Proposed Date

Introduction workshop / The Food & Drink Sector

31st October

PR, Social Media & Events 14th November

Pricing & Profitability 9th January

Best Practice Visit 21st January

Product Evaluation / Product & Market Testing

20th February

Product & Business USP 6th March

Managing your business, managing your customers

27th March

Packaging & Labelling 24th April

Investment, Grants, Funding & Business Growth

15th May

Creating Development Plans 5th June

Workshop Programme

Knowing your customer

50% of UK companies

• Are not sure who their most profitable customers are• Therefore, don’t know which ones matter most to their business• Don’t know where tomorrow’s competition is coming from

Knowing your customer

What do customers like?

• Good service – are we catching on?:• Service• Emotional connectivity• Energy• Integrity• Spirit• Creativity

Exercise 1: What do you expect as a shopper?

• As a private shopper, note down the top five basic requirements that you require from your prospective supplier e.g. retail store, restaurant, hotel, garage showroom etc

What do you expect as a shopper?

1. Everything to be clean2. Good product range3. Polite attentive staff4. Helpful, well trained staff with excellent product knowledge5. Value for money – benefits must out-weigh the sacrifice6. Good atmosphere/ambience7. Efficient service and attention to detail8. Good first impression9. The feeling that I as a customer matter10. Accessibility of product

Knowing your customer

What do customers dislike?

• Empty gestures• Lack of energy• Lack of connection

• Example: Caledonia Bank• Your own good examples – what characteristics did you use /

display

Personal Relationships

• Communication said to be• 7% content• 38% vocal• 55% physical

• Personal Relationship• What you say• How you say it• Appearance• Impact

Personal Relationships• Importance of the Customer

“A customer is the most important visitor on our premises, he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.”

Personal Relationships

• Scenario planning• Do you have a strategy for the following?• Customer at the till and phone is ringing• Customer queues• E-mails• Returning a call

• What is your best customer’s preferred method of communication?

Personal Relationships

• Expectations• Are you listening?• How do you know?• How does your customer know?

• You cannot listen while talking, or while distracted• Can you summarise what they have said?• Allow silence, empathy and patience

Personal Relationships

• Four elements of customer care• Attitude• Skills• Approach• Knowledge

• Think about a checklist for your customers. What would you do under each heading

Personal Relationships

• Four elements of customer care• Attitude• Skills• Approach• Knowledge

• Think about a checklist for your customers. What would you do under each heading

Exercise 2: Complaint Handling

The facts about complaints

• A typical business hears from only 4% of its dissatisfied customers; the other 96% just go quietly away and 91% of them will never go back.

• A typical dissatisfied customer tells more than eight people about his or her problem.

• Seven out of ten complaining customers will do business with you again if you resolve the complaint in their favour and, if it is resolved on the spot, 95% will do business with you again.

Reasons why retail business customersare unhappy

- Indifferent treatment- Poor quality- Poor service- Grievances not settled to customer’s satisfaction

• In a market where customers are surrounded by choice, it is vital that we do not allow manageable irritations to drive customers away

Customer Complaint Handling• It is almost inevitable that, at some stage, you will receive a

customer complaint.

• Don't assume that a customer complaint is a negative experience because, if handled well, it can be a valuable asset.

• It’s a great opportunity to turn an unhappy customer into a loyal customer.

Customer Complaint Handling• Some businesses believe that if they don't receive many

complaints, their customers must be satisfied ~ Wrong!

• Only a few customers will complain to you. The majority will not return to your business and will tell others of their bad experience.

Customer Complaint Handling• Whether you win or lose customers can depend on the way

you handle their complaints

• Put the following points into practice:• Train your staff to handle complaints well • Make it easy for customers to complain • Welcome customer complaints • Deal with complaints promptly.

The Good News• The benefits an efficient complaints handling system can

include• Fewer mistakes and less time spent fixing them • Improved product quality • Better understanding of customers' needs • Happier customers • Greater customer loyalty • More customers through word-of-mouth advertising • Less time and money spent attracting customers• Improving business reputation

How to handle complaints• Take time to handle complaints when they are first made.

• Prompt action will be more likely to satisfy the customer. • The faster a complaint is resolved, the less time you'll need to

spend on it.

Be sympathetic and calm• Acknowledge there is a problem and that it may be annoying,

inconvenient or unfortunate.• You may not believe the complaint is justified but

remember that, although they may not be ‘right' in your opinion, they are telling you because they are unhappy. Their complaint is an opportunity to retain their custom.

• Stay calm. This may be difficult if the customer is angry or has an irritating manner, or if the complaint seems trivial, but getting angry will only make it worse.

Identify the problem• Find out the exact problem.

• Listen carefully to what the customer is saying, empathise with them and make sure you understand by checking it out with them.

• Ask what they want you to do for them.• Don't assume. • Write it down.

Decide what can be done• Where the complaint may be unjustified, you still

need to make the customer happy again to keep their business. • A simple explanation may be all that is needed.• Sometimes, even if you are not legally required to do so, it may be

worth doing more to keep the customer. E.g. If a customer is entitled to replacement, you may be willing to offer a refund if that is what the customer wants.

• Consider how important these problems are to customers. Try putting yourself in their place!

Fix the Problem• Tell customers what solution you can offer and make sure they

understand. • If they accept your proposed solution, act on it straight away.• Make sure there is always someone available to speak to

customers about their complaints. If a customer is promised a return phone call, make sure it happens.

• If it is not possible to do anything immediately, tell the customer when it will happen and keep a record of your commitment.

• Do what was agreed and finalise the matter with the customer.

• Never make promises you won't be able to keep.

Keep a record

• Keep a written record of the complaint and what you have agreed to do.

• Record all contact about complaints, including whether they were face-to-face, by telephone or in writing.

• Remember that simply filling out a complaint record form does not solve the problem.

Thank you

See you on the 24th April