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The Value of Service

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Old 11-26-2012, 02:16 PM   #1
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Default The Value of Service

The Value of Service

No matter what business you are in, it is hard to see a customer dissatisfied.

Small business owners, like myself, often spend an incredible amount of time searching for, evaluating and selecting the right products to offer for sale. We take catalogs detailing product specifications to read in bed, listen for our customer’s experiences and enjoy reviewing the torture testing done by others. Then we bring in a couple samples of the product and to give it our own evaluation. It can be a laborious process. However, when you and your staff can offer your customer product details and personal experiences, you create a relationship where your customer values your expertise and becomes that customer becomes your favorite type of customer – a return customer.

Such was the case with ATI’s complete polymer lower for the AR-15.

A customer and friend purchased on based on my very positive experience and attached it to his newly built AR-15 upper. Several clips in, I noticed the shoulder stock projecting at an odd angle. Popping the upper receiver, we discovered the problem. The polymer receiver’s stock ring had cleanly snapped – to our collective surprise.

Disappointed as we were, we believed the company was reputable (after all, I had written several positive reviews of their firearms and found them well made) and agreed that the true test of a purchase is how the company backs its product when something goes wrong. So the next business day we put ATI to the test.

My expectations were simple after I explained the situation to the representative: empathy that a less than positive experience was had with their product, instructions on where to ship the defective receiver for evaluation and a time expectation to resolve the issue with a replacement. Instead, the silence was thunderous and I found myself asking if the representative was still on the line. He was.

Gritting my teeth, I pulled answers from the reluctant representative. The warranty was completed for the customer online, an address to return defective merchandise was sought and eventually found and an overview of their evaluation process and time expectations were given – Thirty days to evaluate the receiver once received and another 90 days to decide whether to repair or replace the unit.

I asked that ATI pay for shipping and eventually gained a commitment for them to send a shipping label. The representative was somewhat surprised that I would ask for them to pay shipping, after all “the shipping would only be $6 or $7 dollars!” But he guessed he could get one to me in a couple of days. As of this writing I am still waiting.

At no time during the conversation did the representative express any empathy with either the customer’s distress or the position, that I as the dealer, was placed in with a valued customer. I hate to pile on the disappointment, but apparently this is not on the company’s list of addressable issues.

In a market where customer patronage is more fluid than any other point in history, excellent customer service is the differentiator between purchases with your company and the customer going down the street. No one has a market niche that is so exclusive that the customer is forced to deal with only your company or only buy from your product offerings.

Those with experience in coaching customer service representatives will recognize several poor performance indicators. The first is poor interaction training. Customers want to know that the company cares about the customer’s experience. And while many complaints and returns are the result of improper usage or unrealistic expectations, the company has the opportunity to both empathize and educate the customer while committing to a positive customer resolution.

Second is low morale or motivation. Many managers make the mistake of placing a ‘warm body’ on the telephone without considering the image the ‘warm body’ presents. Even basic interaction training and step by step customer service procedures go a long way in maintaining the company’s reputation.

And if I can offer a further bit of advice, if any of your staff is new or has poor interaction skills, separate your customer service representatives from your sales force. Many companies make the mistake of netting returns against sales thus disincenting new representatives from offering service solutions. Many would rather burn the customer than take a hit to their wallet.

Finally, poor service can be, and often is, perceived by the customer as an indication that the company experiences frequent complaints about their products. Representatives are simply exhausted at having to deal with one negative call after the other. And as customer service surveys often tell us, on average, a positive experience is relayed to one other person while a negative experience is relayed to eight.

Companies often think of the short term ramifications of a complaint or return as a hit to sales and ultimately the bottom line. They often forget that when customers rank what is most important to them when dealing with any business, service following the sale most always ranks in the top three considerations – often over price! Customers gravitate to and are willing to pay a premium for your knowledge and support if something goes wrong. Think long term.
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Old 11-26-2012, 02:31 PM   #2
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Normally I find your posts be little more than spam (and I suspect that it often is), but this post I agree 100% with. I run a small business that relies 100% on word of mouth and positive customer service.
''I won't be wronged. I won't be insulted. I won't be laid a-hand on. I don't do these things to other people, and I require the same from them."
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Old 11-27-2012, 01:21 PM   #3
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Default The Value of Service, Part II

The Value of Service, Part II

Yesterday I detailed a truly awful customer experience from the point of view of the business owner. The experience and conversation documented, customer expectations identified and the disappointing response from the manufacturer outlined.

The feedback was varied but the several I found most poignant detailed my extreme naiveté for even imagining that customer service in the firearms business could ever equal any other industry. A sad viewpoint I found distressing that anyone would simply expect poor service and quietly endue it when it occurred. Given the time, money and energy I have invested in my representatives over the years, striving for ‘World Class’ customer service that identifies your business as a trusted partner in the customer’s purpose was a natural expectation. Especially when one considers that the average firearms purchaser buys less than one firearm per year.

Charitably, the reasons for poor service in an exploding market are easy to discern. An ever increasing customer pool eager to exercise their 2nd Amendment rights before it is no longer available creates ‘out the door’ lines. Fox News reported this morning that NCIS background checks on Black Friday exceeded 154 thousand – far above any previous day. So ‘churn ‘em and burn ‘em’.

Most gun shops sport an ‘All Sales are Final’ sign. From a business point of view, returns add extra cost in a market of already extremely thin margins. The reasons supporting the ‘All Sales are Final’ policy are myriad and completely support the ‘Churn ‘em and Burn ‘em’ ethos. Buyer’s remorse over price, unrealistic expectations on how the purchase would exist in their everyday lives and confusion over how the purchase works are the top reasons for returns.

However, this policy prevents the business from identifying opportunities in how they could address the customer’s needs and create a ‘Returning Customer’. Conversations with customer over how they plan to use the weapon, their experience and overall comfort level often gives way to the most feasible ‘ytr’ (yield to representative). I don’t know that I can count the number of times the representative pitched the deal of the day following a short greeting.

Simple operation instructions or how to field strip the weapon are rarely discussed as the sale closes. Missed opportunities to include the customer in CCDW classes, range memberships and small gun safes for pistols are examples of money left on the table. Over the years I have supplied my email address to many guns shops never receiving so much as an advertisement.

Good customer service takes effort but I believe is well worth it. I hope that Business Owners will consider the possibilities in those moments when there are no customers in the store and the only task calling your name involves your high score on ‘Angry Birds’.
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