McDonald's 60 Second Guarantee???

Recently I popped into McDonald's for a quick lunch. When I pulled up to the drive-up window to pay, the clerk handed me a 60 second sand timer.  She told me they offered a 60 second guarantee that from the time you pay to the time you pick up your food would be less than 60 seconds, or your meal is free.

I though, wow, that is a neat twist on customer service where you get actively involved in the process, plus showing you how efficient they are at moving traffic.  After I paid I sat there watching the sand slowly go through the glass.  Part of me hoping the sand would run out so I would get a free meal, while a part of me rooting for them to beat the clock.

As I sat there watching the sand slowly seep through the tiny hole in the two sides of the glass I noticed the person in front of me appearing to be doing the same.  McDonald's had gotten everyone's interest in this simple little tool that involved the customer, just like social media.

Time continued to move forward and I noticed cars were only slowly moving forward.  There appeared to be no hope they would meet the 60 second deadline.  There was still one car in front of me when suddenly the sand ran out.  Their 60 seconds was up.  I felt bad for the team as they worked so hard to make the time, but maybe it was just an unreasonable time to meet.  Maybe they really never had a chance to meet it, especially at 12:00.  Should they have used a 90 second, or even 2 minute timer.   I would still be happy to have my food in 90 seconds and be excited they actually beat the time, for real.

At last, I pulled up to the window to have the lady hand me my food.  I know they tried hard to meet this deadline, but just could not.  Should I ask for my free meal since they did not deliver?  How many other people asked for their free meal.

As I handed my timer to the lady, I quickly turned it over so it showed there was still plenty of time left, and said with a smile, you beat the clock, good job and drove off with my happy meal.

Don't forget, the Roanoke Regional Small Business Development Center (Roanoke SBDC) is here to help with our free no-cost business counseling services for small businesses and entrepreneurs.  For more info on what we can provide, go to www.RoanokeSmallBusiness.org

This Should Be You Annual Business Plan

I know when you read my topic about doing a business plan, you probably looked the other way thinking "I don't have time for a business plan", or "why do I need one anyway?"

Many business owners think a Business Plan is for start-up businesses, or for someone needing money.  They might think "I am neither so I don't need any sort of business plan."  Of course they would be wrong.  Things change and believe it or not, your business needs to change.

When I was running my business, every January I would sit down and write my business plan for that year. It was a strategic plan as much as a business plan, but the terms are insignificant.  The point is that you need to do some sort of planning every year.

I think simple is always better, so how can I make a simple business plan?  I believe every business every year needs to look at three items, and thus this is my simple annual business plan for your small business.

1) Your Industry: Every industry is changing. If you sell multiple products, products grow, products shrink.  Take for example the video rental business.  10 Years ago the video rental business was strong, Blockbuster was going crazy and the independent stores were doing well.  Now you can't find Blockbuster, or an independent video rental business anywhere.  If you were in the video rental business six years ago you should have been looking to see what is going on in the industry before you signed a 10 year lease on your building.  The question now is, what is the video rental business 5 years from now, is it your business???

2) Your Competitor: Competitors come, competitors go.  Some business owners just say "I don't have any competitors"  or "I don't worry about the competition, they should worry about me".  Hey, that is what Blockbuster was saying in 2008.  Every business owner should know exactly who their competitors are and complete an annual SWOT analysis (an assessment of your businesses Strengths, Weaknesses, Opportunities, and Threats).  What are competitors doing, have they added new services, have they changed their pricing structure, have they gotten rid of services? What are they doing different, how are they advertising their business?  You really want to know what your Opportunities and Threats are before you lose those opportunities, or before the threats sneak up from behind and destroy you.  Again, ask Blockbuster why they didn't invent Redbox or Netflix?

3) Marketing: The last area to look at is your marketing.  Believe it or not, marketing has changed over the last 20 years.  Believe it or not, Yellow Page and Newspaper advertising isn't the only means to reach customers.  If you are not aware there is this really cool thing out there that is pretty cheap and can easily reach many customers.  It's called the Internet.  Be sure you have a website, make sure it stays current and relevant.  Look at Social Media, be sure you are evaluating other Internet marketing ideas.  Also evaluate where you are spending you current marketing dollars, and does it make sense.  Are you marketing to your current customers?  Most businesses should be spending more than 50% of their marketing budget marketing to their existing customers.  Are you doing that???  Each Year marketing will change, be sure you are keeping up.

That's it.  If you follow these three steps every year you will be a more focused, and stronger company and ready to fight another day!

Fine is a 4-Letter Word

How many times has a waiter asked you how your meal was and you just said "Fine," even though it really wasn't what you were hoping for? Have you ever had the waiter question you about your answer???  I know I haven't.

In my last post I talked about getting "Devoted Customers".  Part of getting devoted customers is making sure every experience the customer has with your business is memorable, exciting and personal.

We have all heard the statistics that only 4% of customers actually complain when they have a problem, which means 96% of your customers who have a complaint just leave.  These surveys also state that these unsatisfied customers tell on average 14 other people.

I find it hard to believe customers that have a true complaint tell just 14 people.  Most probably they tell 14 people before they leave the store. These customers are texting, posting on Facebook, Tweeting, and then when they get home they are posting a negative review on Google, YP, Yelp, Yahoo and anywhere else they can.  In today's technological times, upset customers aren't telling 14 people, they are telling 14,000 people!

So what can your small business do to keep this from happening, and really getting those great devoted customers you really want?

1) Setup systems whereby customers can easily comment, both positively and negatively, about their experience.  From simple solutions, such as comment cards given to each customer, to pre-paid postage cards, to even cards (or tent cards for retail and restaurants) that have a QR code that take them to an online survey.  Best would be to use all of these.

2) Send out surveys to customers from time to time just to find out how about their experience with your business.

3) Know how to recognize dissatisfied customers.  Just like the customer at the restaurant whose meal was "Fine", recognize speech, body language, etc. and if you see something that just does not seem right, ask probing questions to find out the customers real feelings.

4) Really get to know your customers so they understand that you really really want to know when they are not happy, or even whey they would like to see something different, new, etc.  Make customers understand the importance you place on customer feedback.

As a small business, or entrepreneur, don't stick your head in the sand! You want to know what your customers are thinking. You want to know their comments, complaints and suggestions.  Develop systems and train employees so you can develop those true Devoted Customers!

Are You Ignoring Bad Online Reviews?

The other day I was doing my normal reading of blogs, etc. and notice a statistic that I found quite interesting, but a little disturbing.

72% of Bad Reviews Online Are Left Unanswered.

I don't know whether this number is correct or not, but the point is that many negative reviews are left unanswered. I know this first hand because I have left some that have become ignored.

So, should you ever ignore a bad online review?  I am sure some people will say yes, but I am not one of them.  These are my tips for online reviews:

1) Find Customer: First, find out who the customer is that posted the review.  Reach out to them offline and attempt to solve the issue.  If it is resolved, ask them to remove or modify the review.  Even if it is not completely resolved, just the act of reaching out may cause the person to modify their review to be a little more positive.

2) Fake Review: If the review is flat out wrong, or obviously posted by a competitor, etc. make a simple statement that you would like to understand the problem this customer has. If you have no idea who the customer is and cannot determine when the problem occurred, add that you would be willing to discuss this if they would come forward. This puts the reviewer on the hook to further clarify the problem, or look as if it was fake.  Most people reading the review will figure it out that this is a fake or untrue review.

3) Post Response: If there are circumstances surrounding the incident, or issues, then let others know.  Maybe it was right after a fire and you were out of chicken, or if you had half of your staff out because of a funeral. Maybe the customer was drunk and you had to call the police? Just make sure you provide only facts, not your subjective comments.

4) Be Positive:  No matter what, try to stay as positive as possible and keep from the urge of telling the person off.  The last thing you want to do is start fighting with a reviewer online, as this will be a back and forth brawl and you will certainly come out the loser.  Thank the customer for their comments and apologize that they were not satisfied with whatever it was.

5) Answer Positive Reviews:  I don't understand why more businesses don't post comments to positive reviews. If a customer posts a good review about your company why not post a response such as "Thanks for your nice comments, really glad you stopped by and we appreciate your business, please stop by again"

6) Solicit Reviews: Of course the best thing you can do to offset a bad review is to have many many good reviews.  Do you have systems setup in your business whereby customers know how to leave a review on Google, Yelp, YP, etc?  Why not make up a little card that explains how and ask customers if they like what you did if they would leave a review?

Small Businesses have a unique and really inexpensive marketing tool.  Using Reviews to your advantage by not only answering negative ones, but commenting on positive ones and also asking for reviews.  Take the time to follow these rules and you will see results.  Remember, people like to hear what other people have to say about your business much more than they want to hear what you have to say.

Is Customer Satisfaction Enough for Your Small Business???

I was recently working on a presentation about customer service and while doing my normal research  I found some very interesting information. Probably the most profound statistic I found was about customer satisfaction:

"86% of customers who go with a competitor express total satisfaction with the previous company"

This got me thinking. If great customer service is what we are always talking about in small business,  yet 86% of our customers are willing to try someone else, is customer satisfaction what we are really looking for?

Lets take a look at really good companies such as Southwest Airlines, Amazon.com, Nordstrom, Zappos and even Starbucks. Do they have satisfied customers?  Yes, but their customers are not only satisfied, they are "Devoted Customers".  The customers only shop at their stores unless they really can not get what they want, another business is always a second choice.  They are also the "Brand Advocates", who talk up your brand to other people.  These are the customers you want.

In my research I also discovered 44% of customers state their buying experience as Bland, Boring and Impersonal.  And we wonder why 86% will try someone else.

These are 8 steps you need to take to get these "Devoted Customers"!!

1) Create Excitement! Not only about your products but your brand, your people, etc.

2) Listen to your customers! Really be sure you are giving your customers exactly what they want and asking them for their input. Make them feel part of the "Team"

3) WOW them! You have to WOW people so when a customer shops at your business, they go "WOW, that was an awesome experience!"  How many times have you been WOW'd by a business??  I know it is rare for me to be WOW'd by a business, but when I am, I am committed to them.

4) Go Beyond Expectations! Many businesses talk about their great customers service, but the ones that really stand out are the ones that deliver to their customers much more than they ever expected.  Give the customers something they did not expect.

5) Build Relationships! Customers really like doing business with friends, or people they like.  You and your employees need to get to know your customers.  Know your customers by name, know where they work, their families, and make note of when something exciting happens. This isn't just about sending a birthday card, it is about telling customers you heard their child just made the honor roll, or just came in first place, or they just got a promotion, etc.

6) Make sure every experience a customer has is positive! Don't every let  a customer have a negative experience about your company.  This applies not only when they are buying, but also your accounting department, your website, your marketing and even your delivery person.  Make sure every touch point is a positive one.

7) Reward Your Best Customers! Don't you just hate it when you see a great special being offered to new customers for the company you have been loyal to for years.  Nothing wrong with giving enticements to new customers for signing up, but don't forget about the loyal customers who help you get where you are at. Award them from time to time something special and unexpected, these gifts will pay you back in more loyal customers.

8) Hire, Train and Keep Motivated Employees! A book I read many years ago was 'The Customer Comes Second."  This is a great book about in order to treat customers right, you have to have a good motivated staff who wants to provide and knows the importance of providing great service.  To accomplish this you should setup systems that allow customers to easily comment about employees, and then have reward systems in place for great service.

As a small business owner, or new entrepreneur, you have a big advantage over larger competitors.  You can really get to know your customers, you are a member of the community, you can really listen to your customers and thus respond quicker to what they want.  Be sure you use this to your advantage as a small business owner.

In the next post I will discuss the importance of really understanding your customers.  Stay tuned!