Competitive Edge

Because quality service is an effective `selling` tool, it is also a long-term competitive advantage. In fact, often it is the only competitive advantage available to companies in a service economy, in which many competitors provide essentially the same service.

Virtually all customers make buying decisions based on the service they receive from a company. When service slips, sales fall, it is that simple. Conversely, even small improvements in service can result in increased profits.

We live in an era where the only difference between many products and services is discernible; to customers, often it is no more than a distinct difference in service quality. That difference, that margin, is manifested in a friendly low-key feeling of approval, for products or service.

THIS IS THE COMPETITIVE EDGE.

Market Dominance

We all know that customers are real `people` and that customer service should have as much recognition and influence over decisions as financial and statistical considerations. When we have pooled all this together, we are well on the road to achieving a competitive advantage and even market dominance that means money.

All companies are run on statistics and financial figures but they should also value customer service. After recently reading a book on how the Japanese conquered quality, I was not amazed at the outcome, quality of the Japanese was not just the reputation of statistical control, making them so strong in manufacturing top quality products. In fact, the Japanese do not run a company on figures alone, as they have stated many times, companies will go under because the most important figures are not there. In other words, Japanese companies have full statistics on all areas of business.

Studies that have taken place on manufacturing companies and service companies have stated that it is constantly found that manufacturing firms often are more committed to service than our so-called service firms. If a manufacturing firm accepted the failure rate in its service that a service company does, it will be out of business in a short time.

The reason that manufacturing firms are more committed to service, I think, is that they have a limited number of customers. Service companies, on the other hand, wrongly believe that customers are unlimited. Lose one and you can always get another one!

Unfortunately, I do not believe this philosophy, as in this day and age, even service companies cannot believe that customers are unlimited and therefore people rely on good customer service to keep their customers.

Benefits of Service

To clarify the value of quality service, we can say that service retains the customers we already have, attracts more customers and develops reputations that induce customers and prospects alike to do business with you in the future.

Satisfying customers, who then recommend your company to business colleagues achieve this objective and acquaintances and who, by their comments, develop and then augment the positive reputation in the business market place.

Summary of Benefits

Benefits of quality service are condensed in the following list:

• Customer loyalty- an increase in market share, return on sale, increased sales and profit.
• More frequent sales, repeat business, larger sales and order upgrading and re-ordering.
• Higher customer count and more new customers.
• Savings in marketing, advertising and promotional budgets.
• Fewer complaints in an environment receptive to complaints, the more complaints resolved, customers stay.
• Positive company reputation.
• Differential.
• Improved morale and productivity because your customers respond positively to you.
• Improved relationships-you talk to each other because you are in good moods, you are all doing good work and you enjoy what you do.
• Fewer grievances, absenteeism and tidiness.
• Lower turnover of staff.

Customer Loyalty

One of the greatest benefits of Customer Relationship Management is Customer Loyalty. This is true because most business is repeat business. Loyalty is an edge against your competition’s erosion of their customer base.

The better the service, the bigger the customer base. The loyalty of your customers, who continue to buy products and services, is the foundation for long-term success.

Customer Service Saves Money

Not only does customer-satisfying service make money, it also saves money. Keeping customers, you see, reduces marketing expense. Money unexpended on marketing equals profit retained.

Professional customer service programmes enable companies to reduce marketing expenditure because fewer customers are lost. The competitive edge on pricing at this present point in time does make some products and services uncompetitive, but this is not through the service you offer but due to uncompetitive pricing structures. Although good service may cost money, it will not cost as much as a major annual recruiting drive, if you are to add more Sales personnel.

10 Ways to appreciate Customers:

1. Obey the golden rule (do unto others, as you would have them do unto you).
2. Use praise (be generous and others will respond in a positive manner).
3. Be sincere (a customer’s trust depends on your sincerity).
4. Use the customer’s name (everyone enjoys being recognised).
5. Be a friend (it takes one to know one).
6. Smile (it’s the best way to hear what the customer is saying).
7. Listen (it’s the shortest distance between two people).
8. Give (the customer will see and appreciate the value received).
9. Think `you` instead of `I` (conscientiously use the word and you will already retain your sense of humour).
10. Care for the customer (actions speak louder than words).

Customers - what they want:

1. To feel important.
2. Sincerity.
3. Integrity.
4. Honesty.
5. Trust.
6. Pleasing environment.

To Help Customers, You need to:

1. Believe in your products and service.
2. Be convinced of their needs.
3. Avoid showing anger.
4. Remain courteous.
5. Remember they want benefits.
6. Ask questions.
7. Give them full attention.
8. Say ‘thank you’.

Conclusion

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