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Barry Moltz

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BAM – Success!

by Guest Author on November 24, 2009

Customer service has been turned upside down by the self-sufficiency and immediacy of shopping and buying products and services on the Web. Our self-help culture has been transformed into a self-service culture with customers able and willing to do much more for themselves. At the same time, we are becoming accustomed to the benefits and good feelings that we experience online through automated buying experiences that can be customized and personalized to our schedules, locations, tastes, buying patterns, and desires.

More than ever before, the transactional relationship between the seller of products and the buyer of those products is critical to companies’ overall profitability. Except for economic monopolies, only companies that deliver excellent customer service make money. In this increasingly transparent world where so many products and services are viewed by consumers as commodities, providing exceptional customer service becomes the only sustainable competitive advantage for creating customer loyalty. The harsh economic realities that every business faces today and for the foreseeable future make this even truer.

First, It is important to debunk the twenty common myths of customer service (We call this BAM!)—from “The customer is always right” to “Customer service means the same thing to everyone” to “Companies achieve customer service by under-promising and over-delivering.” Customer service myths run the customer policies of many companies without anyone even questioning them. Unfortunately, this ensures that customer service will only be a “bolt-on” and not a part of the DNA of that company. Inside the DNA of most companies is where customer service needs to be in order to retain profitability.

We need to replace the myths with a tactical approach that shows companies how to make more money through attitudes and actions that will help their customers feel satisfied in good times or bad. In profitable companies, delivering BAM!-good customer service measurably increases revenue, reduces cost, and makes doing business much more enjoyable for us and for our customers.

Bad treatment so permeates American business that many of us don’t realize how little customer service there actually is until we go into the rare place that treats its customers like kings. Why do we as consumers put up with bad customer service? Assuming there is a choice to get the product or service somewhere else, are we too lazy to make a change? Is the barrier to exit too high? Or have we been lulled into expecting and accepting less and lowered our standards accordingly?

We always tell businesses that what is critical for their growth is a sustainable competitive advantage. Unless yours is an economic monopoly, every business needs something that will keep customers coming back when someone smarter with deeper pockets comes into their business space and tries to squish them like a bug. We can’t rely on patents or other such legal maneuvers. No, we need to rely on customer service for our customers to stick with us and keep coming back. In fact, through social media, customers can also not only tell 7 people about their good or bad experiences with your company, but 10,000. Customer service has now become just plain good marketing.

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Barry has founded and run small businesses with a great deal of success and failure for more than 15 years. A nationally recognized expert on entrepreneurship, Barry has given hundreds of presentations to audiences ranging from 20 to 20,000. He has taught entrepreneurship as an adjunct professor at the Illinois Institute of Technology, and he has appeared on many TV and radio programs such as The Big Idea with Donny Deutsch and The Tavis Smiley Show. Author of three books, his latest book, “BAM! Delivering Customer Service in a Self-Service World” shows how customer service is the new marketing.

B-A-M!: Delivering Customer Service in a Self-Service World is available now.

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Did you miss Sabrina Parsons on Friday’s Business Insanity Talk Radio with Barry Moltz?

Not to worry – Listen to it here: Business Planning, Innovation and Your Career

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Barry Moltz has founded and run small businesses with a great deal of success and failure for more than 15 years. He’s also the author of “Bounce! Failure, Resiliency and the Confidence to Achieve Your Next Great Success”. He is an enthusiastic speaker and teacher on entrepreneurship.

The 11 things that matter in a Business Plan

What problem exists that your business is trying to solve. Where is the pain?

What does it cost to solve that problem now? How deep and compelling is the pain?

What solutions does your business have that solve this problem?

What will the customer pay you to solve this problem?

How will solving this problem will make the company a lot of money?

What alliances can you leverage with other companies to help your company?

How big can this business get if given the right capital?

How much cash do you need to find a path to profitability?

How will the skills of your management team, their domain knowledge, and track record of execution will make this happen?

What is the investors’ exit strategy?

Please remember, the business plan is basically an “argument” where you need to state the problem and pain, then provide your solution with supporting data and analogies.

Barry Moltz

www.barrymoltz.com
Twitter: barrymoltz

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Our guest author today is Barry Moltz. Barry has founded and run small businesses with a great deal of success and failure for more than 15 years. He’s also the author of “Bounce! Failure, Resiliency and the Confidence to Achieve Your Next Great Success”. He is an enthusiastic speaker and teacher on entrepreneurship.

8 Things You Need To Start a Business During a Recession

1. Sell Painkillers. During difficult economic times, people only buy when they are in pain or have a very great need. Focus on selling the painkillers in business not vitamins. Understand who is in pain and who has the money to solve that pain. Understand who solves that pain for them now and why they will switch to you. (hint: the answer can’t always be price!)

2. Find Lunatics Like You. Business’ ideas are meaningless. It’s all in the execution which means that it’s only about people. Find the people that you want to start a business with and stick with them. Build a strong personal and professional support structure — you will need it.

3. Show Me the Customers. Forget about the fancy business plans or the extended analysis. Go out and ask prospects “Will you buy my products?” That answer will be the only one your business needs.

4. It’s Cash Flow, Stupid. Get customers to pay in advance or with cash when they buy. Start-up business is about your cash flow not profit. If you can get your customers to pay a deposit or pay you when you deliver your product your company will be stronger.

5. Pick the Niche. In the beginning, focus on being the best at delivering one thing. Don’t stretch yourself and your resources too thin.

6. Give Crazy Customer Service. Outstanding customer service, unless you are a utility company, is the only sustainable competitive advantage. Do it!

7. Be Cheap. It’s your money. Spend no dollar before its time. Find resources that are both variable and available. Don’t grow yourself broke by increasing your fixed overhead costs.

8. Don’t Bet the Farm (or any other part of your property). Many times, businesses need to evolve and change. Don’t bet all of your money on the initial vision of your company. Keep some of your money in reserve in case you need to alter your direction.

Barry Moltz
www.barrymoltz.com
Twitter: barrymoltz

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