Posts Tagged ‘customers’

Roll Up Your Sleeves and Jump In!

Friday, October 16th, 2009

We’ve all had that boss over the years that had no clue what really went on in their business. They spent so much time locked behind their office door that they became extremely removed from the day-to-day happenings of the business they worked so hard to build. It’s an unfortunate situation and one that can usually get way out of control resulting in lost customers, lowered revenue, service failures and disgruntled employees. The sad part is that these bosses usually “open the door” a little too late and spend tons of their time in defensive mode trying to clean up the messes that landed on their plate from “out of nowhere”.

Roll Up Your Sleeves And Jump In!There is an easy way to fix things like this and even prevent them from happening in the future. The simple fix is to open the door, roll up your sleeves and jump in with the crew. As a boss of a wonderful group of very talented people, it’s extremely easy and enjoyable for me to do this. These great people are a part of my family and I don’t want them to do anything that I can’t do or have not done myself.

To be honest, it’s quite a bit of fun to get back to the basics of your company and deal directly with the front line situations. Recently, I spent the day with the customer service group at my Houston Courier Service, Hot Shot Delivery. I answered calls, tracked packages, took orders, communicated with drivers and talked with tons of customers. It was a great day and I vowed to myself to experience this process more often. In just one day on the front line, I learned about a recurring service request that could turn in to a new service offering. I also learned some quick short cuts when working through our system as well as great insight about what motivates my employees.

I did not stop there – I jumped in with one of our drivers and spent the day making deliveries. That gave me the chance to see a day in the life of our delivery drivers. The traffic problems, their interaction with our customers, the challenges they experience and, again, what motivates them as independent contractors were all witnessed during my delivery day adventure.

As it seems to be in many areas, communication is the key. Opening the lines of communication with your employees can make things so much better for everyone and the way to do that is to walk in their shoes. See what they are going through each day and they are more likely to talk to you about their ideas for improvement and feel like an important part of the team.

Now don’t get me wrong, it is still extremely important for you, as the boss, to work on strategy, marketing and the “big picture” of your company. These are areas that can facilitate long term growth and additional revenue streams. Just find a balance between the two and you will see that your company will benefit greatly.

So, be sure to take some time and figure out how you can get more involved with the team. Your entire organization will notice, appreciate and communicate with you – which is a win-win for everyone!

Until Next Time,

Eric

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Back To The Basics

Friday, June 5th, 2009

Often I find myself talking about business with people all over the city. Whether it’s at my favorite restaurant, my dry cleaner, with my family or at sporting events. I can ramble on about the current state of the economy, my Houston Courier Service or problems owners are facing in industries across the board.   I’m realizing a common theme these days in the discussions. The theme is a problem with Cash Flow. We all seem to suffer from cash flow problems at one time or another in the life of our business, but these days – it is a much more common problem than it was just a few years ago.

Recently, I started to take a look at my own company to determine what, if anything, needs to be changed or fixed to lower our internal concerns of cash flow. I figured there were some basic areas that I needed to look in to and those were: Receivables, Bad Debt Issues, Too Much Overhead and the biggest – Low Profit Margins.

cashflowpiggyToday, I’m going to chat about Low Profit Margins. I see this so often in my industry. Perhaps it is because we are service-based vs. product-based or perhaps its because we are all competing for the same business. Either way, by taking a good look at my customers,  I was able to see that not only was I not profitable on some customers, but I was actually LOSING MONEY! When you consider the costs associated with deliveries which includes the delivery drivers, the taxes (don’t get me started on the taxes), the gas prices, the customer service group, the technology costs for order placement-tracking and reporting, the costs associated with the building, etc… – things start to add up.

Now, I’m not suggesting that in this tough economy we go in and start raising prices across the board, but I am saying that we need to all be aware of the necessary margins associated with our particular type of business and keep that in mind when bringing in new customers.  Often, companies don’t include all areas of cost when bidding on new work.  Bringing in new business that generates cash, but is not profitable in the long-run, is a sure-fire way to go out of business.

You may find that you have multiple divisions within your business. Some may be more profitable than others – put your focus there. And bring in customers that understand the value of the service that you are providing. Customers that won’t haggle with you over a few pennies difference. Instead of price haggling, explain why your service is better than the others and don’t budge on your pricing. Your goal is to continue to price your business in a way that keeps you in business. Good customers respect that and understand your need to make a profit.

I know that running a business is more than a full-time job. So, when you are swamped with decisions to make, operations to run, employees to manage, books to keep and new customers to get – remember this – get back to the basics. Ensure your receivables are not out of control, you are not running with too much bad debt, you don’t bite off more than you can chew with your overhead and that you price your work in a way that is profitable. Because at the end of the day, Cash Flow is KING.

Until Next Time,

Eric

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Through The Eyes Of Your Customer

Wednesday, March 25th, 2009

If your workload looks anything like mine, you are usually so involved in the day-to-day tasks of running a small business that sometimes you forget to look through the eyes of your customer. To put it simply, you can’t afford to ignore this perspective for long. Because in this cluttered marketplace, an unhappy customer will usually take their business elsewhere.

So how do you make sure that this doesn’t happen? Here are 5 tricks to get the real skinny on your company’s customer service capabilities.

1. Call the 800 number – Try a couple of different tactics each time that you call. Angry, confused – throw everything at them including the kitchen sink!

2. E-mail Customer Service – Make sure you think about how a customer would write this e-mail because you don’t want to be obvious in your “mystery-shop Email”.

3. Answer the Phones – There is nothing better than just talking to your customers and seeing what kinds of needs they have. Make a trip to the call center a regular event.

4. Contact Random Customers – Pick a few customers that you never have interaction with and give them a call. Not only will they appreciate the time that you took to call them, I bet they will give you tons of great information.

5. Check Your Website – Visit your website and make sure that it is easy to get customer service contact information. Also, ask a family member or friend who has never been on your site to review it. You might be surprised what you are missing.

If you are at the top of the organization, this is a great way to keep your finger on the pulse of your business. It is all too easy to get disconnected when you don’t talk to customers every day. And a little warning, this could have some personnel kick-back because no employee wants Big Brother breathing down their neck. So, I recommend sharing your findings with your top managers and brainstorm a way to reward your staff for the good findings and create an action plan for the areas that need improvement.

Remember – if it’s not perfect – fake it till you make it. Before you know it, that exceptional level of customer service will not be an act, it will be a genuine part of your company philosophy. Good luck!

Till Next Time,

Eric

Hot Shot Delivery, The Houston Courier Service

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