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Building Customer Inventory by Steve Cloward
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Building Customer Inventory by Steve Cloward

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The Northfront Entrepreneur Alliance is a entreprenuer networking association in Northern Utah. This presentation was given on 08.31.11 by Steve Cloward, an expert on customer service. ...

The Northfront Entrepreneur Alliance is a entreprenuer networking association in Northern Utah. This presentation was given on 08.31.11 by Steve Cloward, an expert on customer service.
He discusses how to build your "customer inventory" through better customer service.

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  • The integrated circles encompasses, builds upon and supports each interior circle. If any circle is weak or non-existent, the small business is prone to failure. The Northfront Pro Series is designed to strengthen each Integrated Circle and help a small business not only survive, but to grow.Circle 1 - Product or Service A great product or service is a necessity for a successful business. The product or service must fill a need or solve a problem for potential customers, and as result it must convert those potential customers into loyal customers. Selling the product or service to a customer is worthwhile only if there is a high gross profit margin adequate to cover operating costs and provide the owner a return on their time and investmentCircle 2 - StrategyThere are many definitions of a business strategy, but for a small business we define it as “The determination of the market or markets a company will compete in, and how it will do that to achieve profitability and growth.” The strategy will determine if a business has potential for fast growth or if it must compete head-to-head with competitors for each dollar in the market. A poor strategy can doom a great product or service, but a great strategy can make a mediocre product or service look great. The strategy must provide the best growth potential for the product or service.Circle 3 - Best PracticesBest practices must support the strategy of the company and must span the complete value-chain beginning at the product creation through to product delivery. A weakness and any part of the value-chain can be disastrous when competing against strong competition. If the company strategy creates a strong differentiation from the competitors, the best practices can be designed to support slow or rapid growth. Circle 4 - Customer ServiceCustomer service is the long-term differentiator. Any product or service, best practice, or strategy will not last forever. Competitors will always find ways to eventually take customers from a market leader. They implement best practices, they can copy your strategy, but customers service is the ultimate battle ground to maintain customers and grow a business. It will not assure rapid growth but it can assure stability and it can tie that customer base to your company and make it very difficult for the competition to drew it away.

Building Customer Inventory by Steve Cloward Building Customer Inventory by Steve Cloward Presentation Transcript

  • Customer Service for Small Business
  • Introductions
    Steven P. Cloward
    Public and Private Company Executive Management
    President and CEO Big O Tires for 16 years
    Franchising
    400 Big O Retail Stores
    Small Company Ownership
    Developed and Owned 8 Grease Monkey Quick Lube and Car Wash Locations
    Currently own two, both in Grease Monkey’s Top 10 in Car Count and Volume
    Director Northfront Business Resource Center
    Director of DATC School of Business
  • Customer Service for Small Business
    • Customer Service is one of the most important functions in a small business and one of the most overlooked. View slide
    • It spans all functional business departments and every individual employee. View slide
    • If one department or individual fails it can completely undo the work of everyone else in the company.
  • The Pro Series - Integrated Circles for a Successful Small Business
    Pro Series Process
    Integrated Circles
     
    Customer ServiceLong-Term Differentiator
    Management
    Finance
    Marketing
    Sales
    Technology
    Legal Environment
    Supports
    Strategy
    Strategic Planning
    Growth Potential
    Your Business
    Product or Service
    Idea to Concept
    Concept to Launch
  • Customer Service for Small Business
    Every small business owner or manager needs to focus on designing, developing, and implementing a sound customer service program using the limited resources available.
    If a customer isn’t happy with the product or service and/or if he or she was treated poorly it can cost the company significant dollars in future sales and reputation. 
    On the other hand, a happy customer will lead to many new customers and establish a valuable reputation for a company in the market.
  • Customer Service for Small Business
    If marketing is the fuel for your business then customer service is the octane…..
    The higher the octane, the better your business will run.
    It affects word of mouth marketing,
    It affects your credibility and reputation and
    Excellent customer servicehelps to
    establish you as a brand.
  • Customer Loyalty-Key To Business Success
    Customer retention has always been one of the most cost effective ways to increase business revenue.
  • Customer Loyalty-Key To Business Success
    According to the international consulting firm Bain and Company, you can increase profits by as much as 95%
    through increasing retention by
    as little as 5%.
  • Customer Loyalty-Key To Business Success
    Repeat customers spend 33% more than new customers.
    Referrals among repeat customers are 107% greater than non-customers.
    It costs six times more to sell something to a prospect than to sell that same thing to an
    existing customer.
  • Customer Loyalty-Key To Business Success
    Customer retention is not only a cost effective and profitable strategy, but in today’s business world it’s essential. This is especially true when you remember that 80% of your sales come from 20% of your customersand clients.
  • Customer Loyalty-Key To Business Success
    With these statistics I am wondering why most marketing and sales campaigns are designed for the new customer.
  • Customer Loyalty-Key To Business Success
    If organizations fail to focus their efforts on servicing current customers while spending excessive amounts on acquiring new ones, they are wasting their efforts
    and much of their revenue.
  • Customer Loyalty-Key To Business Success
    Customer
    Satisfaction
  • Customer Loyalty-Key To Business Success
    100% Customer
    Satisfaction
    Guaranteed
  • Customer Loyalty-Key To Business Success
    On the surface, it seems like a logical business conclusion: Keep customers and employees satisfied, and an organization can expect to earn their long-term loyalty and enjoy increasing sales and profitability. Right?
  • Customer Loyalty-Key To Business Success
    In a recent Harvard Business Review article, (it was) noted that between 65% and 85% of customers who defect said they were “satisfied or very satisfied” with their former supplier.
  • Customer Loyalty-Key To Business Success
    What’s the solution?
  • Customer Loyalty-Key To Business Success
    Customer
    Loyalty
    Key To Business Success
  • Customer Loyalty-Key To Business Success
    Customer Satisfaction
    Does NOT equal
    Customer Loyalty
  • Customer Loyalty-Key To Business Success
    Quite simply, in order to retain all your customers and increase your sales, you need to go beyond customer satisfaction and develop the rapport and relationship that will make your customers, life long loyal patrons.
  • Customer Loyalty-Key To Business Success
    Exceed The Customers Expectations
    You must move beyond mere customer service. You need to “to strike with awe and wonder.”
    Awe!
    Wonder!
  • Customer Loyalty-Key To Business Success
    • POS: Positively Outrageous Service
    • CUSTOMER ASTONISHMENT
    • Give em‘ the Pickle
    • Customer Delight
  • Customer Loyalty-Key To Business Success
    Customer Delight requires that all of your team is on board and customer policies parallel expected customer service standards.
    Customer Delight requires that you empower you employees sufficiently to allow Delight to occur.
    Customer Delight requires that you adhere to one very basic premise: “The Customer is always right”
  • Customer Loyalty-Key To Business Success
    Jeffrey Gitomer:
    Customer Satisfaction is Worthless,
    Customer Loyalty is Priceless.
    Every company’s universal mission statement should be:
    “Treat every customer is such a memorable way that when the transaction is complete, the customer tells someone else how great it was.”
  • Customer Loyalty-Key To Business Success
    List of basic customer service ingredients needed to take a customer from Satisfied to Delighted :
    Understand the need for developing customer relationships...
    Stay in touch with your customers…
    (I was no where in the area and I thought I would stop by and see ya.)
    Find out what they are thinking…
  • Customer Loyalty-Key To Business Success
    List of basic customer service ingredients needed to take a customer from Satisfied to Delighted :
    Find out if they are satisfied and if not why…
    Know how to solve your customers problems...
    Exceed their expectations…
    Train and empower your employees to do the same…
  • Customer Loyalty-Key To Business Success
    • Long Term Loyal Customers:
    Have larger average tickets and shop you more often
    Are less price sensitive
    Are more forgiving of your mistakes
  • Customer Loyalty-Key To Business Success
    Long Term Loyal Customers:
    Are much less likely to react to your competitor’s ads
    Retaining existing customers is considerably cheaper than acquiring new ones.
    Are your best form of advertising
  • Customer Loyalty-Key To Business Success
    Apostles vs Terrorists
  • Customer Loyalty-Key To Business Success
    Apostles:Spread the “Good Word”
    Terrorists: Spread the Word
    Apostles:Share with 4-8 others
    Terrorists: Share with 10-20 others
    Apostles: Recommend you to others
    Terrorists: Recommend anyone but you
  • Customer Loyalty-Key To Business Success
    Apostles: Are created by consistently exceeding the customers expectations.
    Terrorists: Are created by failing to handle the original problem.
    A Converted Terrorist or dissatisfied customer will many times become your most long term loyal and vocal supporters.
  • Customer Loyalty-Key To Business Success
    “Grows and matures with the Customer Relationship”
    Customer Loyalty:
  • Customer Loyalty-Key To Business Success
    Customer Relationships
    While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base.
    Companies that fail to nurture and retain their customer base ultimately fail.
    Relationships are strongest when they become personal.
  • Customer Loyalty-Key To Business Success
    Customer Relationships
    The bottom line is that one of the key components in marketing and business growth is to spend the majority of your time and effort nurturing customer relationships by consistently exceeding their expectations and looking for opportunities to prove how important they are to your success.