Customers Expect Products to Work

The other day I had a discussion with a distributor regarding what his customers expect when they purchase and use a tool.

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.

Complaints are a Source of Revenue

The best and least expensive sources for new product or service ideas knock on your door every day. They are begging to lend you their expertise free of charge. It might a new application for an existing product or an idea for a related item you could add to the product line. Maybe it’s an improvement that could make a product easier to use, less expensive to produce or more valuable to the consumer. Pay attention to them.

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!”

Social Media is a Marketing Tool, Research It and Use It.

In its early days, the World Wide Web was used by academics and engineers to exchange data quickly and cheaply. That was way back in the early nineties. In its inception and even for a few more years, most companies viewed the web as a source of entertainment and something of a novelty. Comments like “Why would we ever want to get involved in techie stuff like that?” and “It’s a temporary thing” were common. Those who embraced the technology and marketing power of the web then, like amazon.com, Google, Apple and eBay, are internet powerhouses now.

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.