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Posts Tagged ‘competitive advantage’


From the GrowSmartBiz Conference: Customer Service as a Differentiator for Small Businesses

November 12th, 2010 ::

‘There is a general cultural of bad customer service in this country.”

Barry Moltz began his presentation, Customer Service Is the New Marketing, at the GrowSmartBusiness Conference on November 5 with the above statement.  As a prolific author and sought-after speaker on entrepreneurship (he has started three companies and founded an angel investing fund), Barry focused on the incredibly important role customer service now plays in a company’s growth and success.  (His engaging and entertaining presentation was based on his newest book, BAM! Delivering Customer Service in a Self-Service World.)

As he alluded to in his presentation, small business owners have a competitive advantage over large companies because we consistently deliver exceptional customer service to our clients.  I can only name three large companies that have built their cultures around customer service: Apple, Zappos, and Nordstrom.  (Maybe this is a trick question, but are there any others you can add to the list?)

Following are excerpts from Barry’s presentation, per my furiously scribbled notes:

“In a world with no boundaries, the only sustainable competitive advantage is excellent customer service.

‘There are a lot of myths associated with customer service.  These myths have to be busted, because the customer is not always right.  Under-promising and over-delivering is not a customer service strategy.  Unhappy customers are not part of doing business.  Customers do not only care about low price….

“Good customer service is whatever a customer says it is in a particular instant on a particular day.  Instead of asking, ‘How can I help you?’, ask ‘How can I make your day better?’

“To ensure your customer service is as good as it can be, put together a customer service manifesto to clearly explain what your customers can expect from you. It should include the following:

  • Deliver on what you promise
  • Listen to your customers
  • When things go wrong, be reachable
  • Resolve issues in a reasonable amount of time
  • Admit mistakes
  • Empower employees to resolve issues
  • Make it easy to stop doing business with you (in direct contrast to cell phone and cable companies, as Barry pointed out)
  • Don’t charge nuisance fees or surcharges
  • Treat your customers with respect and dignity
  • Don’t change the rules without prior notification (cough—credit card companies—cough)

“To get useful feedback from your customers, ask the following four questions:

  1. Why did you choose to do business with us?
  2. Did anyone do a good or bad job servicing you?
  3. Do you plan to use us in the future?
  4. Can you tell any friends, colleagues, or business partners about our business?”

The New Business Plan

June 11th, 2010 ::

As I’ve mentioned in this space before, I did not write a business plan when I started my business.  One of my strengths is also one of my weaknesses: I am terribly impatient. I like to do; I do not hem, haw, and stall.  From my point of view, writing a traditional business plan is a total waste of time for small business people like me. I am a one-woman shop, registered as a sole proprietor, and happy to stay small for the time being.  Traditional business plans are for companies that need a lot of financing, are highly scalable, and entering a competitive—or soon to be competitive—marketplace.

(Before you start posting comments about the importance of having some kind of plan in place, keep reading.  I do agree that it is absolutely important to articulate your business goals, the competitive advantage of your product(s) or service(s), and your sales and marketing strategy.  I will even admit that I wish I had done two things when starting out: researched my competition so that I priced my services appropriately from the get-go, and really thought about which industries I’d prefer to work with and which projects I enjoyed writing and editing the most so that I could build up expertise faster in those areas.)

The always provocative Seth Godin recently wrote a great blog post on a modern business plan.  He argues that traditional business plans are boring and simply demonstrate the ability to do as expected.  His business plan would include only five sections: Truth, Assertions, Alternatives, People, and Money.   Based on his outline, I think his idea of what constitutes a good business plan would be much more useful for people starting and running small businesses.  Seth’s modern business plan really gets you thinking about how to be an entrepreneur and create something new and of great value, rather than just a small business owner who is doing something that’s already being done.

Truth: This part lays out the way your industry operates, for good and for bad, right now.  What needs are there, who are your competitors, how have they succeeded and failed?  Include short case studies or stories, spreadsheets, charts, graphs, whatever it takes to illustrate your point(s).

Assertions: As Seth describes it, this is the heart of all business plans, because this part describes what you’re going to do and how that is going to change things.

Alternatives: Because everything we hope to do doesn’t always work out, this section describes your back-up plans.

People:  No resumes here.  Write what characteristics you and your team possess to ensure things keep moving forward when things are going well and when things are not going well.

Money: This section is exactly what it sounds like.  It’s the part that puts me to sleep, but it is vitally important to know how much money you need to be viable and how you plan on spending it.