Here’s a thumbnail sketch of what he said they want:

• An exceptional price
• A functional tool
• An extensive warranty

I understood the first two, but an extensive warranty? What exactly does that mean?

Here’s some speculation:
• The manufacturer stands behind the product
• The product is good enough to warrant
• When it breaks, they’ll replace it

When it breaks, they’ll replace it.

Anything made by man is destined to break. But, if a customer expects it to break, something’s wrong.

The distributor went on to explain that his current tool supplier will replace any tool, regardless of how old with a new one, no questions asked. He continued that he suggests his customers keep two of each tool on their truck, one to use, the other as a backup.

When one goes bad, the tool rep doesn’t even want to see it, he “orders a replacement and throws the bad tool away”. Whatever happened to manufacturers that want to inspect “bad” tools as part of the constant improvement process? I’ll tell you. It’s not worth the freight because the factory is more than 7,000 miles away.

It appears their business strategy is: “build an adequate product, price it low and load up the customers with them”.

It took Detroit decades to realize that top quality is an investment worth making. Superior quality earns terrific market share. Adequate products get you from 65% market share to 22%.

Customers will pay a little more for quality products and services. Not a lot, but they will pay more. Oh yeah, don’t think you’re kidding them when you reduce the amount of cereal or ice cream in the container; that’s a shell game

US manufacturers face numerous challenges in order to stay ahead of overseas producers. Quality, regardless if you are providing a product or a service should not be surrendered in order to stay competitive. Find new processes and designs; seek out new suppliers with better technology; do not compromise on quality.

Leap frog your competitors with quality. It’s a time tested true investment in your business.

Are these people engineering consultants or CAD software designers or ergonomic experts? Well, yes and no. They are consultants, designers or product experts but they don’t necessarily do that for a living. Who are they? They are your customers calling to issue complaints or, on occasion, to offer product advice. People who use your products are probably more expert in the value and pitfalls of your products than you.

In the 1988 movie, Big, Tom Hanks plays Josh Baskin, a kid who wishes to become big and, overnight, gets his wish. Josh wakes up to find himself in his twenties without the knowledge or baggage that 15 years of life brings with it. He somehow becomes an executive with at toy manufacturer and in a product development meeting other executives describe a new toy proposal. Demographics, market research results, iterations of the design, revenue projections and the finished product idea are poured over and discussed. In the middle of the presentation, Josh Baskin, in his innocence says, “I don’t get it. Where’s the fun?” (The toy doesn’t interest the child, the consumer.) An “aha” moment. Someone who would actually use the product offers their input and the executives are confused and flabbergasted.

Sometimes we get too close to a product design or are so convinced that we are right, we forget the customer. They call, get lost in “press 2 for customer service” limbo and yet they persist. They write, they email and still we don’t tap into their expertise. But they insist on trying to get our attention. For every person who calls, countless customers don’t bother or hang up. The people who get through, those passionate few, have valuable information and deserve our attention. How should we “till this fertile ground”?

Ask and engage.

When a customer calls, solve their problem, (that’s obvious) but once that’s done get them talking. They want to be heard. Ask them:

• Why did you purchase our product instead of another?
• If you could make any improvements, what would they be?
• How do you use our product?
• What have you used in the past to perform this task? Brand? Cost?
• Etc, etc, etc.

The items above are some thought provokers. Put together a list of probing questions that are germane to your product or service for your customer service reps to ask. The key is to encourage your reps to have a dialogue with callers and keep it related to the product or task. Get them to write down notes and analyze every conversation. Look for similarities. Just like your products, services and brand, stress quality of the conversation not quantity. If your customer service reps are on a timer be sure it’s a benefit to the customer not an “efficiency” tool.

Want to take it to the next level? Especially if you are in business to business sales, gather contact information with heavy users, form a customer council and regularly contact them for ideas.

If you want to churn through customers and dispatch their “complaints” as quickly as possible, be my guest. But if you use customer calls to dig out information, you’ll discover, as Yosemite Sam used to say, “There’s gold in them thar hills!”

Your business may not be web-based but no one can afford to overlook the new World Wide Web opportunity: Social Media. Facebook, YouTube, LinkedIn, Twitter, Delicious, Digg, Squidoo, flickr, etc. etc. are all examples of your future, whether you like it or not. Once again, as it was with the internet, early adopters will be in the forefront.

Internet marketing opportunities are now obvious. Every viable company has a website. The numbers vary depending on the source but most surveys agree that at least 60% of all business purchases begin with web searches. Email blasts, when used judiciously and with receiver’s permission in advance, are one of the most effective and least expensive marketing tools available. These days, websites and emails are so familiar we take them for granted. They are necessities.

One unique characteristic of social media is that it is conversational. Web sites tend to be informational; communication is limited. There may be a chat room or instant messaging with the service department but it is restricted.

On social media sites, pretty much anything can be written, said and viewed by millions. It’s non-stop back & forth, give & take. Subjects can range from what people did last night, newest restaurants, news items—everything, including your market, your products, your services and your company. It is very powerful regardless of whether it’s in your favor or not.

Content control is an important factor with social media. You must control the conversation before you or your company becomes part of the noise.

Millennials (those born since 1985) seldom use email or phones for communicating. Most communication (except with their parents) is done through texting using cell phones or messaging through the social media site Facebook. There are three options on Facebook: instant messaging, private messaging or wall posts. Cell phones with keyboards designed to facilitate texting are common. One skill used extensively in high schools is texting with one thumb. You keep the phone in your purse and use one hand for texting. (Many students believe that their teachers have not caught on to this). Specialized phones are now being introduced that facilitate messaging through Facebook (see the new phone called Kin for more).

The long and the short of it is this: If you expect to continue to grow your business, get up to date with social media. It’s a whole new medium that is ripe with marketing potential. Start by setting up a company Facebook page; as with your website, keep it up to date. Let people know who your company is, what it does, who works there, what it stands for, etc. Take advantage of LinkedIn. It’s designed beautifully to promote companies and their people. Start up a Group dedicated to your market, product or service. You’ll be surprised how many customers and potential customers will join the group. Once the group is established, the relationship building can begin. When group members feel they are receiving benefits from belonging, participation increases and you’ll have a chance to soft sell your company and ideas. Call it advertising, PR, promotions, whatever you want. But fund social media activity.

Chances are your competitors are not taking advantage of this opportunity yet. If you can beat them to the punch, your company will look much savvier and you will have an advantage.

Get on board now. The ticket price is cheap and the potential is great.

Birth rates and the corresponding population in particular age groups can have a profound influence on your business. A lot has been written and reported about the various characteristics of Baby Boomers (born 1945-1964), Generation Xers (born 1965 – 1984) and Generation Yers/ Millennials (born 1985-2010). Some people argue about the particular dates. However, there is no doubt of the significance in the numbers. Here’s a chart of live births in the U.S.:

Baby Boomers have had a tremendous effect on the U.S. economy due to sheer numbers and affluence. Gen X, on the other hand, represents 12% fewer people than Boomers. So if your business depends on customers between the ages of 35 and 45, guess what, for the next ten years, the total number of your customers will be steadily decreasing. Look at the chart. On the other hand, if you depend on customers between the ages of 20 and 30, hold onto your hat, it’s going to be a great ride. Those numbers are accelerating at a tremendous clip.

In fact, Millennials represent a group that is larger than the Baby Boomers.  Understand!?!  More people and more spending power.  At least 20% more people but unbelievable spending power.  This is a generation with divorced parents.  So, they’ve grown up with four parents (two biological, two step parents) and eight grandparents; all doting on them and trying to out do each other with gifts for the kids.  Millennials have had lots of stuff, want lots of stuff and want it now.  Be careful, surveys indicate they are brand neutral.  However, if you can tap into their wants, you will cash in.

Obviously, there are more factors that could have a positive or negative effect on your business. We’ve all seen the effect recessions can have. Migration (whether other countries or other states) to or from where you are doing business will also change things.

However, there is no denying that, if you look at the big picture (economists call that in the macro view), age range trends are predictable and it’s important to study them.  Your business depends on it.

I sold products to Ford Motor Company and requested permission to use the Ford logo on the “Key Customers” section of our web site. Ford sent me their logo guidelines in the form of a 165 page binder full of restrictions and requirements. All the information in the binder was valid because Ford saw the necessity to protect the appearance of their logo. If Ford does it, so should you.

Especially in small companies, it’s easy for people to design their own fax templates or email signatures. Sometimes in the process they change the color of the logo or stretch the height or width. The result is inconsistency; that’s dangerous. Select the exact color(s) according to the Pantone Color System. In case you haven’t heard about it, the Pantone Color System establishes specific numbers to specific colors. So if you specify to a printing company that your logo should be Pantone 282, for example, it will always be that same blue. When selecting the color shade talk to a printer. One may be easier or less expensive to print. Avoid exotic colors like metallics. They look great on the printed page but cannot be reproduced on a web site. Remember, keep it consistent regardless of the medium. So, once selected, cast it in stone.

The logo dimensions must also remain consistent. If the original design is 4” X 2” keep the 2:1 ratio the same. Don’t allow any deviation. It’s easy to stretch or shrink it to fit on a fax cover sheet or email signature. That’s okay, as long as the ratio remains unchanged. Publish you logo specs and provide a file or files to everyone with specific instructions as to its use. Include sample email signatures and provide a template for fax cover sheets.

By all means, encourage your people to use the logo whenever possible. It’s all about exposure, recognition and (I can’t say it too many times) repetition.

There are numerous, obvious reasons a buyer turns to the web. Two are crucial: speed and product specifications. But everyone is different and customer dynamics should dictate what information is contained on a site. Customer dynamics should, but do they?

I am not the market for my product. The data I think is important about my product or service may not be what my customer is seeking. An old adage still rings true: A customer walks into a hardware store and is reviewing drills. There’s a lot to consider: Brand, power, battery capacity, price, etc. But the customer ultimately doesn’t want a drill, he wants a hole!! The drill is a tool to create the hole.

What are your customers trying to do when they begin the buying process? What is their pain point? What problem are they trying to solve? How do they use the internet? These items must be addressed on a web site. One thing is certain. The quicker they get to the answer, the quicker they will buy. If it’s not quick enough, they’ll be on a competitor’s site in a flash.

When I begin a search for an industrial product, I want to see that product page, not a picture of the CEO or a manufacturing plant. Eventually I may want to learn more about the company via a Company Info tab. But initially, I want detailed information on product applications and uses. I may even want CAD drawings and prices.

What is your customer looking for? You must know. How quick and easy is it to find on your site? Ask someone who is unfamiliar with your web site to hunt down that info. If it’s tough for them, it’s tough for your customers. Make it easier and you’ll experience improved web results.

Wait a minute. Web results? Who tracks them? How?

If you consider your web site a sales tool, you should hold it accountable as such, just like you would a sales rep. What’s your web Return on Investment? A good place to begin is with Google Analytics, a free service with so much data it can be intimidating. But sign up for it anyway and begin spoon feeding yourself. Not sure how to find Google Analytics? Google it!! Ha! Why spend time and money on your web site if you can’t determine its ROI?

There’s a lot of talk about SEO (Search Engine Optimization), improving web traffic to your web site using unpaid techniques and moving your listing hirer up on Google results pages. You can improve web traffic by catering to your customers’ needs. There are three major ways that prospects will search:

1) Company name–if most prospects search for your specific company name congratulations, you’ve got a strong brand and need to protect it (more about that in subsequent blogs).

2) Product or service—that’s when they know specifically what they need. If your product or service is clearly defined with plenty of detailed specifications, your site address is more likely to appear higher on the search results pages.

3) Problem solution—they know their problem but don’t know what’s available to solve it or, at least, to help. This is the toughest to address but can be the very lucrative. The best way to address it is a Frequently Asked Questions list based on what your support people are hearing from customers. Do not base it on what you think prospects should know. It’s what they are actually asking.

One important point on SEO, search sites automatically scan the internet continuously for changes in web sites and specific terms. So the more you change the words on your site, the better. Major changes are not necessary, just a tweak here and a tweak there can do wonders. Also, the automated systems cannot see static catalog pages or photos of pages unless they are tagged. Basically, use active text and copy on your site; otherwise you won’t get the action you need.

The era of the “pitchman” is over. You’ve got to present the value of your product and how it will solve the customer’s problem and/or save her time and money. If you can’t or won’t listen for the pain point, you’re dead. And guess what. If you ask the right questions they are more than willing to tell you.

Get them talking with relevant, open ended questions—questions that are not answered with yes or no. “What are your greatest challenges? What do you look for in a new supplier? Who’s your best supplier? Why?” You get the idea. They should be talking at least 75% of the time.

One of the greatest challenges for a veterinary doctor is figuring out where it hurts because animals don’t talk. Let your customers tell you where it hurts first, diagnose their problem with them and then find a solution, not before. Once again, listen, diagnose, solve–in that order.

Doris VanDoren Ph.D., a Marketing professor of mine from Loyola University Maryland told our class a story one day. She was selling at her dad’s Chevy dealership and an elderly couple walked in. Doris sized them up and immediately went into her “Impala” pitch, “lot’s of room (you could fit 8 people in an Impala back then and not because people were thinner), huge trunk, smooth ride, etc. etc”. She hardly let the customers get a word in edgewise. They listened, said they’d think about it, thanked her and left. A few days later she noticed the same couple in her dad’s office signing a deal. That made her happy; since she handled the initial pitch, the commission would be her’s. Once the couple left the show room, she learned from her dad that she would not get the commission. When she asked why, her dad simply said, “Watch them drive off”. Doris tried to get them to buy an Impala; the car they wanted, bought from her dad and drove off in was a Corvette! She lost the commission because she concentrated on her pitch and not the customers wants. Doris did not listen.

Is that all there is to selling? Of course not. This only scratches the surface. However, nothing is more basic for successful selling than having sharp, active listening skills.

Bloomberg News says, “Companies with fewer than 500 employees helped lead the economy out of the four recessions since 1980”. Read the entire article at  http://www.bloomberg.com/apps/news?pid=20601109&sid=apZULWyXpqhE

Historically, companies with fewer than 500 employees accounted for 64% of net new jobs created between 1993 and 2008, according to an SBA analysis of Labor Dept. data. http://www.businessweek.com/smallbiz/content/mar2010/sb2010034_032664.htm

As a result, small businesses and small business owners can now be empowered. Many states are beginning to create grants, tax credits and low interest loans for small companies.  Everyone should take full advantage of these programs. Also, this tells me that some lawmakers are willing to help. Getting the others on board takes some effort.

This positive press regarding small businesses is an opportunity to talk with local, state and federal lawmakers about your priorities because they will listen! A good strategy is to review some national and local trade associations in your sector, local Chambers of Commerce, etc. See if their ideas and objectives match up with yours. If they don’t, keep looking, if they do,  join. 

Better yet, get appointed to a committee or two.  If you can’t afford the time for that level of participation or if you cannot make their meetings, at least join. Pony up some dues money and support the cause.

Many local associations have terrific state lobbying efforts that are helping you now. Throw them some support and some ideas.

Also, when times are good and money is flowing, it is very difficult to receive the proper permits for building, improving, expanding, etc. No one sees the urgency. Today’s economic conditions create an atmosphere where local governments are more amenable to approving these projects quickly. They want the tax revenue and jobs that would be generated.

If you are planning any type of project that requires special permits at any time in the future,  investigate whether you can get the permit now with an open ended completion date. You’ll save yourself time and aggravation when it’s time to begin.

There are advantages to lean economic times. Take advantage of every one possible.

A favorable economy fosters this behavior. A rising tide raises all ships. When economic times are good the numbers look great and everyone strives to support the current business model and ignore opportunities. Hey, why rock the boat?

It isn’t until the tide recedes that we see the rocks; when the rocks become a danger, true captains emerge.

Leadership comes in many forms. Leaders may be products, ideas, people, etc. They don’t necessarily come from the top, they come from below and they don’t surface from committees. Committees tend to mitigate risk. Unless the new idea is much better than the worst case scenario with the current program, the new idea will fail.

What to do? As Admiral Grace M. Hopper said, “It’s easier to ask forgiveness than it is to get permission”. Press ahead and gain acceptance one person at a time. Build a team of believers. If it’s a great idea, it will prevail. Impress this philosophy among subordinates.

Anyone who says “we’ve always done it this way” and believes that it justifies inaction should walk the plank!

Have we all gone crazy? Why is it so difficult to get questions answered quickly by the people who know the answers, the manufacturers or designers of products? Customers are the most valuable information resource available and the quality of their experience in interacting with a company is a primary source for word-of-mouth promoting (or trashing) of that company. Every time a customer hangs up in frustration another opportunity is lost and depending on the voracity of the individual, the company is being set up for a round of bad mouthing. Due to the everlasting nature of email, social media and blogs, the customers’ poor experience will never go away. The marketplace is brutal to lousy performers and deservedly so.

It’s a top down attitude. Poor customer service is a direct reflection of the priorities and objectives of top management. Of course, no CEO is going to say, “Our most important goal is to provide the worst customer service possible”. But if customer input is never solicited or, when solicited, is never analyzed, the message is clear. When the customer service and/or tech support departments are never asked what’s going on in the trenches, the message is that customer is not important.

Quality customer service is not an expense; it’s a source of revenue! When customers’ problems are addressed and solved to the best of the ability of a company and done quickly, everybody wins. In the long run, it takes less time and the customer is more likely to continue as a valued buyer and source of revenue.

Now, I’ll grant you that customers can make outrageous claims and allegations. They can be rude and vicious. But chances are, if they are listened to and shown a little empathy for their pain, they can be satisfied.

Simply acknowledging the problem can go a long way. I’ve witnessed some great customer service replies like: “I’ve never heard of that happening before” and “that could not be” and “you’ll just have to wait” and “you’ve got to understand”. We can’t act like W.C. Fields selling them circus seats behind the elephants and telling them they’ll like the view. How about a little compassion? The customer may not always be right but we’ve got to listen to them, acknowledge their plight and make every effort possible to solve their problem.

It’s too easy to think short term and write the customer off. But unless you’re strategy is to disassemble the big top and set it up in the next town looking for more suckers, you’ve got to treat every piece of customer input like the gold that it is; record it, track it, analyze it and act upon it.

Don’t forget. Existing customers are the easiest targets for more business. Take special care of them.