Asking for customer feedback is only one piece of the puzzle. You can’t forget to take action and improve your business based on what you learn from feedback and your own observations.

My business uses a mailbox service for our post office box. The other day a publisher sent me a book to review. I took the “you have a package” card from my mailbox and handed it to the girl behind the counter.

She searched diligently for my package but couldn’t find it. She pulled in the manager to look for it as well. Neither was successful.

Since I didn’t have any information about the sender, package, or courier service, I couldn’t jump over the counter and find it myself.

At the time, the staff didn’t really know what to do with me. I said I would contact the sender and get some details on the package.

A few days later, we got a call from the mailbox service that my package had been located.

When I went to pick it up, I asked what had happened. She told me that they were implementing a new logging system to prevent accidents like this from happening again. In so doing, they located my package at the bottom of a stack of boxes.

Don’t Let It Happen Again

While the initial confusion of my lost package was disturbing, the mailbox store recovered nicely. The key lesson learned is that they realized the mistake and implemented a new process to prevent the same issue from happening again.

Everyone makes mistakes. Your business will too. Great companies learn from their mistakes, identify the problem, and change their process to prevent recurrences of the same problem. Inefficient companies are plagued by the same issues over and over again. Customers will tire of such incompetence over time and move on to do business with the company that does learn from its mistakes.

You need your customers to be honest in their business dealings with you. Your company’s financial health and long-term viability rely on honesty in your transactions.

Mark Twain commented on honesty:

Honesty is the best policy - when there is money in it.

source

Money is a powerful force that can affect people’s behavior for good or bad. So how can your company encourage honesty?

Honesty Shouldn’t Be Hard

This past week as I was reviewing our bank statement, I noticed that there was a $600 deposit last month that we didn’t make. The statement didn’t give any details of the source of this amount.

I called the bank to inquire about this mystery deposit. After about 15 minutes on the phone the agent couldn’t help me resolve my issue but told me to talk to the check fraud department.

When I immediately called the fraud department I navigated through the phone tree just to find out they weren’t open yet.

Later that day, I called the fraud department and again waited on hold for quite some time before being helped. I reviewed the details of the deposit again and was told they would investigate it and get back to me.

That afternoon, the fraud department returned my call and told me that the deposit was a clerical error. I asked if the proper owner of the deposit had inquired about the money. They hadn’t.

It shouldn’t take more than an hour making multiple phone calls to correct someone else’s problem.

Encourage Honesty

The majority of people want to do the right thing. Make it easy for them to do it! I had to jump through a lot of hoops to get a clerical error fixed that was in my favor to begin with.

If the process for getting something done right is too complicated and time consuming, even the most honest of us will just give up trying.

Acknowledge Honesty

Honesty should be the foundation of your interactions with customers. However, sometimes customers do something like give back extra change, or tell you that you undercharged them, that not everyone does. In these cases, you should recognize that the customer did something out of the ordinary.

During my phone calls with my bank, I had to ask if other people reported extra deposits to their accounts. They told me “not usually.” Since this was such an odd occurrence I was surprised to be treated like just another caller.

Appreciate Honesty

Thank your customers when you catch them being extraordinarily honest. Tell them that you understand it took some extra time and effort to do the right thing and that both you as the company and any other customers affected are grateful for their honesty.

During our summer vacation this year at Bear Lake, Utah we enjoyed their famous raspberry ice cream shakes.

Rumor had it that most of the raspberries aren’t even grown in the Bear Lake Valley any more. This is despite the fact that they have an annual Raspberry Days festival!

So why not just close up shop?

Because people are expecting raspberries when they go to Bear Lake.

So what happens when your product or service depends on something that disappears or is no longer grown or manufactured locally?

You import what you need.

Customer expectations have been established that you’ll provide a particular product as you’ve always done. If you run into supply chain problems, your customer’s expectations don’t automatically dry up. They still want your product.

The Bear Lake ice cream stands and other local businesses helped meet customer demand by importing raspberries from elsewhere. They still make shakes. People still buy them and everyone is happy.

When your business hinges on having the “original” ingredient that you’ve always had, you should start planning your contingencies now. What will happen if you lose that key supplier, principle employee, or real estate lease?

If you’re unprepared, disaster could strike. Be prepared.

Customers will come to your business seeking a solution. They need help with a problem that you are aptly suited to solve. Many times they will rely on your expertise because they don’t fully understand everything about your product, service, or industry.

Do More Than a Customer Could

Our ongoing struggles with Logoworks have been frustrating and time consuming. We hired them to create a logo for our company in the hopes that we’d get an amazing logo like those shown on their website. However, many of the revisions we saw were of clip art quality. Our early revisions even had us asking, “Could we have just done this ourselves?”

Those are words you never want your customers to say. When you are competing in the marketplace, it isn’t just against your rival businesses. Customers may choose no one and do it themselves.

Your deliverables must instill confidence in your customers such that they are reassured they made the right decision in hiring you.

You’re the Expert

Your job as the “expert” is to translate the customer’s needs, situation, problems, and requirements into a valid, working solution. You must leverage your history with similar clients, industry knowledge, and training to fill in the blanks of your customer’s requests. A customer may not even know the right questions to ask. You must make sure those questions get asked and answered properly.

Taking Customer Feedback

Customers may offer suggestions or request changes. You, as the expert, must weigh those inputs with what you know about the entire process and product. Don’t take a customer’s feedback literally unless you fully understand the reasoning or problem behind it.

It is acceptable to tell a customer you shouldn’t do something if you can explain why it is a bad idea. When countering a customer request, don’t make it an emotional argument. Instead, focus on what the results would be if that exact feedback was implemented.

New Possibilities

Take customers’ feedback and then offer them alternatives or solutions that expand on their input and combine it with your expertise. This way you keep them on the right track while still incorporating their requests.

On a previous project, we had Lea Alcantara design our logo. She did a fantastic job of communicating with us and taking our inputs and creating something well beyond what we could have imagined. Lea truly is an expert and goes beyond simply doing what we told her to do.

Do you give customers exactly what they asked for? Or do you take that and give them something better?

My wife and I have been struggling with creating a logo for our company. We decided to try Logoworks. Despite their quick response from the public relations department, we’ve had nothing but trouble with the logo process.

One of our principle frustrations is that our ideas and input don’t seem to make it to the designs we keep getting.

The entire process seems to be designed to complement the technological age we live in. You tell the website what you think about the logo design options and a few days later, some new revisions are returned for your review. It kind of makes you feel like you’re standing at a vending machine, waiting for your treat to pop out.

Despite us enumerating our frustrations and even escalating them to a project manager, the logos we keep seeing always make us say, “You’ve got to be kidding me.”

We’ve asked our project manager if we can talk to the designers to discuss the concepts. The response was “No, that isn’t part of our business model.”

People Want Personal Interaction

Logowork’s business model sticks a middle man, or complete automation, between customers and designers. Naturally, this can lead to a lot of things being lost in translation.

This type of business model may facilitate a greater volume of transactions. However, it sacrifices the personal interaction that many customers crave and need.

More customers will fall in love with your company if they make a personal connection to your store, product, or employees. The more isolated a customer feels, the less likely that long term relationship will ever form. You become a commodity and customer loyalty ceases to exist.

Business Priorities

Is your business model set up to help customers or help your bottom line? Short term focus on revenue and income may alienate customers and prevent long term growth. A solid foundation of quality customer-centric service will naturally bring in more revenue and earnings.

Think about something that you have to do that is always a pain. Something that you don’t like to do, don’t look forward to, but always have to do. Your pain points can very well be business opportunities.

The voluminous amount of regulations, laws, taxes, requirements, licensing, restrictions, and inspections the government imposes on its citizens can be overwhelming. Many of us grudgingly take care of all these items, as painful as they may be, because it’s the law.

These same pain points offer incredible opportunity for businesses. If your business can solve some of the pain of dealing with the government, people will pay you for the effort.

Identify the Pain

In the great state of Texas, we have to get our cars inspected every year. This is usually a very painful process.

Many mechanic shops will have the official state inspector sign displayed on their buildings. However, since that isn’t their primary business, the sign is usually in place to lure you in for more pricey services. These shops are usually busy with other more valuable customers or the inspector isn’t always on site. These businesses neglect the small inspection sale even though it could lead to bigger opportunities.

Every year I have to find a car shop that will inspect my car. I usually have to visit one or two places before I find one with the inspector working that day. Then I have to wait an hour or more for the inspection to be done. This process is too frustrating and always makes me procrastinate my inspection to the last moment.

Solve the Customer’s Pain

This year was different. I discovered a small service station called “Sticker Stop.” Their tag line claims they are the “Home of the Ten Minute Inspection.” That, based on my past experiences, sounded too good to be true.

I asked a lady sitting next to me in the waiting room if they really only took ten minutes. She said “pretty close.” I asked if she had visited Sticker Stop before. She had and said they did a good job.

My experience was equally as great. I was in and out in less than ten minutes. I took me longer to drive to and from their shop than I was actually there.

Niche Focus on Problem Solving

Sticker Stop is succeeding because they do one thing and they do that very well. Their laser sharp focus allows them to serve a niche that itself was created by the legal requirements of driving in Texas.

What pains do you encounter that a business could help alleviate? The bigger the pain, the bigger the opportunity. Solve that problem and people will not only be happy, but will gladly spread the word to their friends.

When you greet customers with enthusiasm, they can’t help but get excited about their experience with you.

Last Saturday I stopped by a Krispie Kreme Doughnuts. Their “hot light” was on, meaning they were making fresh glazed doughnuts. If you stop in during that time, they’ll give you a free one!

If that alone weren’t enough to get me excited, this Krispie Kreme made for a very pleasant experience. When I walked into the store, I was enthusiastically greeted by the man behind the counter. He offered me a free doughnut and then proceeded to help with my order.

Every step of the way, he had a big smile on his face and was very pleasant and upbeat in his demeanor.

How could a customer not leave there totally happy and ready to come back for more? It’s no surprise that Krispie Kreme was highlighted in the book Creating Customer Evangelists.

Do customers get excited when they drive by your store?

What happens when they go inside and start talking with your employees?

Enthusiasm and positive excitement are contagious and will help your customers leave with a great experience.

Businesses have an ethical and moral obligation to meet their responsibilities and care for customers.

Recent news reports have mentioned phone company Sprint is firing 1000 high maintenance customers. While that may be a sad tale, the customers will probably survive and move on to another carrier.

What happens when a customer has a major dependency on a business? What if that customer’s life depended on the business?

My grandfather has been in an assisted living center in Raleigh, North Carolina. Because of his age, he has lost a lot of his physical and mental capabilities. His dependence on his care providers is significant.

Would you “fire” my grandpa? I’d hope not! However, that is exactly what Pine Tree Villa in Raleigh did.

According to the local News and Observer report:

The operators of a West Raleigh adult care home, Pine Tree Villa, have told residents they have 30 days to move out, paving the way for renovations designed to attract a better-paying group of residents.

The more than 50 residents of the facility on Duraleigh Road heard the news in meetings last week. But state and county officials said the oral notice violates state rules that require homes to tell residents in writing and give them 30 days warning.

…

“Some of these residents can’t handle the constant change — routine is everything,” said Holly Harper, who heads the [resident] association. “One of my tablemates has been in tears. She’s up at the nurse’s station and crying and wanting someone to tell her it’s OK.”

Harper said Friday that staff members, faced with the shutdown of Pine Tree Villa, have begun to neglect residents

You may decide that your business would be better with different clientèle. That is fine. However, you have certain obligations you must fulfill.

Obey the Law

The meeting at the care facility presented a “get out now” message to the residents. This obviously didn’t meet the 30 day written requirement.

Even if you have no moral code of conduct, the legal system is in place to help keep you somewhat on track. You can not violate the laws and regulations governing your business and its dealings with customers.

Be Honest

Once word got out about the meeting, some publicity and pressure got applied to Pine Tree Villa. They then composed a letter, back dated it, and sent it out to residents.

Be honest, even though the truth hurts. Trying to rewrite history in your favor will never work. The truth will eventually be exposed.

Fulfill Your Responsibilities

The week before this “get out” meeting, my grandpa experienced deteriorating care. He wasn’t bathed for a week and was stuck in the same clothes everyday for that time.

You have a commitment to care for your customers! The ship may be sinking, but you don’t have to take them with you.

Ease the Transition

If you find you must dismiss customers, help them find a replacement. Give them alternatives, help them move, and pay the transition costs. There are several ways you can make that transition less painful.

Critical Customer Service

Certain services like health care, education, emergency services, utilities, and senior care centers (among others) have customers whose lives literally depend on them. These service providers are given an even larger responsibility and trust to care for their clients.

If you signed up to run a business in these critical areas, you’ve promised to live a higher law. Pursuit of short term financial gains to the detriment of your customers can have life and death consequences. Choose wisely.

If you could guarantee the business of a large group of people, would you?

I’m taking my team out to lunch to celebrate our recent successes. I figured since we have a large group (17 people) that I should make reservations.

I called Olive Garden and asked if they could accommodate a group my size. They answered yes. However, they don’t take reservations. Seating is first come, first serve. I doubtfully responded, “even for a group my size?” Unfortunately, the answer was yes.

I finished that call and immediately called Carino’s Italian Grill. I asked the same questions and was cheerfully greeted and warmly welcomed. They gladly took my name and information and got us reserved for our lunch.

Many companies have special rates, arrangements, or even treatment for large groups of customers. Why? Because they understand that earning the business of a large group will guarantee a large volume of revenue. If it weren’t for the group, a company may have to struggle to earn the business of that many isolated individuals.

When individuals in a group enjoy their experience with your company, they will return with their family or friends later. Thus properly serving groups can create new, loyal customers for your business.

Don’t let company policy, or even logistics hinder your ability to look at serving customers on a larger scale. However, before you take the leap into serving larger customers or accounts, you’ll need to be able to deliver what you promise.

Just as a group of customers can turn into an army of great word of mouth, that same group can also spread the nightmare stories if you fail to serve them well.

Get your logistics in order, and encourage larger groups or accounts. You’ll find that they can generate a large portion of your revenue with only a fraction of the labor needed to serve that many individual customers.

Doug over at Service Untitled asked me if my glass was half-full.

He asked four questions:

1. How full is your glass?
2. What kind of glass is it?
3. What’s in the glass?
4. Reasons for #1, #2, & #3?

So I’m going to answer them and give the answer to #4 as I go along.

1. How full is your glass?

It is full because I just filled it up!

How full is your business’ glass?

When you think figuratively about your business and how full is that glass, you could easily apply the concept to numerous things:

• revenues
• inventory
• number of customers
• sale opportunities
• new products in your R&D pipeline
• accounts payable
• accounts receivable
• employee morale
• customer retention and loyalty

Depending on how you view your glass in these and other categories, your business outlook may be full of opportunity, or hitting a dead end. The key is that you can measure where you are currently and can identify what’s next.

2. What kind of glass is it?

A reused (yes, I washed it) plastic cup from Rudy’s BBQ. Why? Because I love Rudy’s and their cups are durable and suited to reuse.

What kind of glass is your business?

If your cup is cracked and failing, whatever it holds will soon be all over your desk. Your business is the same way. This reminds me of the Broken Windows Theory. If little things start to look bad for your customers (like an unclean store, hard to find employees, etc.), it will be perceived that there are bigger problems. Those little broken windows (or a cracked cup in our case) will drive away customers.

3. What’s in the glass?

Water with the remnants of a few ice cubes. Water is my liquid of choice to stay hydrated.

What’s in your business glass?

When you were a kid, did you ever fill up your cup at the fast food restaurant with a little bit of every soft drink? You usually got quite the flavor combination! Sometimes it was great, but other times it was awful.

We use a glass to hold something we want to continually drink from over a period of time. Your business should have its cup full of products, customers, and employees that will continually replenish and nurture your company into the future.

These four questions were started off by Terry Starbucker. To keep the meme going, I’ll pass them along to a few fellow 9rules members: Rohit, Brandon and Natalie. Is your glass half full?