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Entries in Competing (38)

Doing Business By Accident Is Over

The age of doing business by accident is over. Clients and customers have so many choices today that you can’t expect to just show up, throw your briefcase on the table, and grab an order.

Now, is this a doom-and-gloom scenario, stating that there’s no more opportunity out there? Of course not. In fact, there’s more opportunity out there today than ever before. I really believe that no matter how successful you are right now, you have an opportunity to be more successful than you’ve ever been before.

There’s just one catch: In today’s competitive world there is no more margin for error.The companies and the people that will succeed today, tomorrow, and on into the future are the ones who will be willing to do everything RIGHT.

I know that as a client, customer, or consumer I can buy almost anything I want from the Internet and I never have to talk to you! So the question now becomes, what is it that you are willing to do for all your clients, customers, and prospects that creates so much extra value that it is more beneficial for them to buy directly from you than to just click on their computers?

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In other words, how are you differentiating yourself from the competition?

I think the single biggest question I have for you is this: What are you really selling?

Are you just selling whatever will get you the fastest commission, or are you selling extraordinary quality, service, convenience, and value? Are you just selling the first thing out of your bag, just to get your boss off your back, or are you selling “Save me time and make my life easier”? Are you just selling whatever the customer thinks they want and need, or are you selling knowledge, expertise, information, and education?

Are you just selling stuff? Are you just selling what everyone else is selling? Because if you are, I can click on my computer and I can buy stuff from the cheapest guy in town.

Get out there and sell some value.

How To Lose 1 Million Customers In 3 Months

Everything happens for a reason, especially in business. Companies don’t go out of business or lose customers for reasons totally beyond their control: there’s always a reason.

Most likely their service stunk; or they had really bad management. Perhaps their prices were out of whack with the value, or lack of same, they provided. But believe me; it has nothing to do with bad luck, bad economy or competition. As with anything else in life, when things aren’t going the way you hoped they would, your best bet is to look in the mirror. That brings me to Sprint.

On MarketWatch, there was an article last week titled, Sprint loses more money, customers.

The article began:

Sprint Nextel Corp. on Monday said it lost more than 1 million of its most profitable customers (about to be 1 million and 1, I might add) in the first three months of 2008 as the company’s net loss widened in the most recent quarter.

Sprint has lost millions of customers to rivals in the past few years owing to poor customer service, a less appealing selection of phones and snafus related to it’s $35 billion purchase of Nextel in 2005.

Chief Executive Daniel Hesse, hired in December, has already taken a number of steps to improve the company’s financial performance and its relationship with customers.

Well, you could have fooled me.

I have been a Sprint Wireless customer for over 5 years, which definitely puts me WAYYYYY above average. However, as it stands right now, I will be an ex-customer when my contract runs out in February of ’09.

I have four cell numbers under contract; one for each member of the family. This last contract started back in May of 2006. It had 2100 anytime minutes per month, unlimited nights and weekends, no roaming charges and was a “Fair and Flexible Plan,” meaning if we went over our minutes we would only be charged $5 for each 100 minute overage.

A few months later I realized we didn’t need 2100 anytime minutes (I use Skype far more than my cell; better value), so I downgraded the plan to 1400 anytime minutes per month. Little did I know (because nobody ever bothered to tell me) that when I changed my plan Sprint extended it another 2 years, meaning instead of my plan expiring in May of ’08, it won’t expire until February of ’09.

On top of that, when I received my latest bill I noticed that I was charged twenty cents per minute extra for going over my minutes: What happened to Fair and Flexible?

So I called Sprint Customer Service, something I really hate doing, because there’s never any way to do it quickly. I was told that when I changed my plan I lost the Fair and Flexible component because that service was no longer being offered at that time (Probably because it was a good thing for the customer). I asked how come I was never notified of this at the time and naturally I received a stupid answer. I was also told that Sprint no longer offered the Fair and Flexible plan (remember this part; it comes up later).

Now, to add insult to injury, Sprint announced a couple of months ago that as a service to their customers, in their latest effort to stop the bleeding, they will no longer penalize customers and extend their contracts just for changing their plans.

Now here’s a real pet peeve of mine!

Don’t you just hate it when companies treat new customers better than they treat their long term loyal customers? Cellphone companies are notorious for this.

So now I’m really ticked and I’m going to complain. I decide I want to write a letter to Daniel Hesse, the new CEO, since he claims he wants to improve the company’s relationship with its customers.

But now there’s a problem: I go to the Sprint website and nowhere on that website is there an address for their corporate headquarters or even an email address for the CEO. I guess Mr. Hesse, like so many other executives of bad companies only wants to improve customer relations if he doesn’t actually have to be in contact with any of us.

So once again I called customer service, only this time I started my stop watch. I told my story to the Customer Service Rep and the first thing he said was, “Let me see if I can get you back on the Fair and Flexible Plan.” I know what you’re saying, “I thought the Fair and Flexible Plan wasn’t being offered anymore,” and you’d be right to think that because that’s what I was told.

Don’t you just love it when two people from the same company tell you completely different stories? Remember what I said at the beginning; there are always good reasons why companies fail.

Naturally, I couldn’t get the Fair and Flexible plan but that didn’t matter; I wanted Sprint to do something for me or I would cancel my service when my contract was up. This young man said he couldn’t do anything for me but would transfer me to someone who could and he put me on hold while he went to contact that department.

After about a 5 minute wait I was put in touch with a woman who had no idea what I was calling about. Wouldn’t you assume, as I did, that when the first person said he would transfer me to someone who could help me, then put me on hold while he contacted them that he would have relayed the problem to them? Well, you, like me, would have been wrong. I had to tell my story all over again (another pet peeve).

Now I had been on the phone with Sprint for 24 minutes and had accomplished nothing, so I said to this woman, “Look here’s my story, the other person I spoke to said you would help me. I don’t have time to stay on the phone with you anymore, I’ve wasted enough time already. You have all my information. If you want to do something for me, call me and let me know.”

And I hung up...

It has now been over 24 hours and I haven’t heard from Sprint. What’s the odds that I never will? Probably, 1 to 1? Like I said before and I’ll say it again: there are always very valid reasons why companies fail.

Amazing Customer Service In Academia!

Delivering extraordinary customer service is not hard. It doesn’t take any amazing skill or talent. It’s very similar to playing great defense in basketball. Both take a high level of commitment, desire, communication and buy-in from everyone on the team as well as every level of the organization.

The only reason a company or organization would deliver lousy customer service is the same reason the New York Knicks play lousy defense. Not enough people on the team care; from the top on down.

Just recently, I came across extraordinary customer service in academia! Yes, you heard that right; the ivy-covered, sheltered-from-reality world of academia. You and your company now have no excuse.

My daughter Emily will soon be completing her junior year of high school and has started her college search. I suggested to Emily that she check out High Point University: a small liberal arts college in High Point, North Carolina. She agreed and we signed up for a campus tour.

I suggested it because I happen to know the new President, Dr. Nido Qubein. Dr. Qubein is not an academic. He is a highly successful businessman, entrepreneur, speaker, and author with a high-energy, can-do, no excuses attitude. I figured if anyone could create a unique, cutting-edge atmosphere on a college campus, this was the guy.

Dr. Qubein became president of High Point University three years ago. What he inherited was not pretty: a failing institution that was bleeding money and losing students. What he has done in the last three years is nothing short of remarkable.

  • He raised over $100 million in the last 2 years.
  • He made the decision that everyone at High Point would understand that students are customers.
  • He told his professors that their biggest responsibility was to be in the classroom, be accessible and educate students.

Everyone who works for the university is friendly, accessible and gives you the impression there’s no task too tough to handle. Dr. Qubein wants every student to have an extraordinary experience in a fun atmosphere. Let me take you through our tour in order for you to really appreciate it.

First Emily, Linda (my wife) and I pulled into the visitor parking lot. Now each parking space has an electronic sign. We found our space and the sign read “Welcome Emily Greshes.” Remember, it’s those small unique touches that people remember.

Next we walked into the admissions building where up on the wall was another electronic sign welcoming all the students who were there for the 2PM tour. Each student was greeted by a separate admissions counselor. Pretty amazing since there were about 10 to 15 students there for tours. She briefed us on the university, told us what would happen on the tour, answered our questions and then turned us over to our tour guide. Our tour guide took us around campus in a golf cart, with two other students and their parents.

What we saw was amazing...

The grounds were perfectly groomed with beautiful flowers everywhere. While the university is 80 years old, there isn’t a single building (dorms included) that isn’t either brand new or completely renovated.

Class sizes are no more than 20 students per class. The entire campus is wireless. The new School of Business building was designed to be exactly like the Harvard School of Business. The dorms look like hotels. A freshman girls dorm had two, three and four bedroom apartments with a kitchen, dining area, common area and bathroom. The bedrooms were singles and each apartment accommodated 2 people per bathroom. The dorms had lounges on each floor with flat-screen televisions, leather recliners and games like foosball.

Now for more of those unique small touches...

In today’s crazy world, I’m sure many of you (like me) worry about security on campus, especially those of you with daughters. At High Point U, the campus police are right in the middle of campus next to the Student Union. If you get back to campus late one night and can’t find a parking spot near your dorm all you need to do is drive over to the campus police; they will take your keys; valet park your car for free and shuttle you to your dorm.

There is an ice cream truck that drives around campus dispensing free ice cream. We met the driver: he’s the Student Body President! They’re lucky my son Michael doesn’t go to school there or that truck would be out of business. There are also outdoor kiosks on campus that will dispense hot coffee, hot chocolate, and breakfast snacks for FREE to any student who is rushing to class and didn’t have time for breakfast.

The new Student Union has an outdoor pool with a hot tub (Emily was sold). Since High Point is the furniture capital there are leather recliners all over campus. Linda was so impressed she asked Dr. Qubein if she could apply for admission.

Needless to say, enrollment is soaring and better yet, so is retention. And just in case you’re wondering, and I’m sure you are, the price represents one of the best values in America for a private school.

It’s amazing what an organization can do when everyone is on the same page and is committed to the same thing! If it can be done in the stodgy, resistant-to-change halls of academia, it can be done anywhere.

Entrepreneurship: It's About Getting What YOU Want

I'm writing to share with you two great examples of entrepreneurship from a chapter of my book, The Best Damn Sales Book Ever. I also highly recommend a great new book, The One Minute Entrepreneur, by Ken Blanchard and Don Hutson. It is an exciting story about the trials and tribulations of business. You can take part in their special offer by clicking here.

...This is an excerpt from Chapter 15 of The Best Damn Sales Book Ever:

When I ask,“Why did you get into sales,” or “Why did you go into this kind of business,” I’ve had way too many people say, “...Because I heard you can make a lot of money in sales,” or, “I heard you can make a lot of money in this kind of business.” I know people who have made a lot of money doing things where others would turn up their noses.

You’ve probably never heard of a man named Randy Repass. He was like so many other people in that he had a job he was disappointed with at a Silicon Valley technology firm, so he turned to his love of boating for relief from the cold, impersonal nature of the high-tech industry. In 1968, working out of his garage in Sunnyvale, California, he began selling nylon rope by mail order under the name West Coast Ropes. Occasionally, adventuresome customers would even drop by to pick up their orders in person.

“I decided from the beginning that I wanted to take care of people,” says Repass.“The high-tech industry didn’t provide me with an effective way to do that. But the boating industry gave me the opportunity to really enjoy my work and interact with customers who shared my interests. I was having a blast and building a business at the same time.”

Repass also saw an opportunity to improve the way people shopped for boating supplies. According to Repass, he was frustrated by the experience of shopping in local chandleries for the parts he needed to outfit his modest day-sailer. “Boat supply stores in those days were usually dark, disorganized places staffed by a couple of salty but indifferent clerks who preferred swapping sea stories with one another to helping customers find what they came in to buy.”

Repass’s dissatisfaction led him to open the first West Coast Ropes store in Palo Alto, California, in 1975. From that one store, a love of boating and a commitment to helping rather than selling enabled Randy Repass to build West Coast Ropes into West Marine, the world’s largest boating supply retailer.

I’m sure that selling tires for a living doesn’t seem like the road to riches or the coolest way to make a living, but don’t tell that to Paul Zurcher.

Mr. Zurcher (I don’t think I’ve ever called him Paul, and even though he’s one of the most genuine people I’ve ever met, I don’t really think I could) left the Armed Forces right after serving in World War II. Having grown up on a farm in rural Indiana, the only thing he knew was that he didn’t want to be a farmer. With the help of a $2,500 loan from a local businessman who took a liking to him and believed in him, Mr. Zurcher bought a one bay service station. As his business grew, he branched out into selling tires. Treating every customer as special (as every customer is), his tire business grew and today Zurcher Tires, more commonly known as “Best One,” is one of the largest retailers and wholesalers of tires in the United States, with stores all over Indiana and the Midwest.

Mr. Zurcher, now in his 80s, is as active in the business as ever. While he certainly doesn’t have to be—his sons, along with other family members and executives, do a great job of running the company— he loves being there as much today as he did 60 years ago.

You know what? You can make a lot of money doing anything, if you really love it and put everything you’ve got into it. Loving what you do is what is going to get you through the hard times when there is no money coming in. It is also the one quality that can help make you great at anything you do.

Never Give Up In Down Times

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In my last entry, “A Recession Is Coming And I Can't Wait!,” I wrote that recessions and down economic periods are the best times to do business because most of the competition gives up.

As expected, there were some very good comments. Normally, I would leave it at that; but one of the comments was so good, I wanted to make sure you all got to see it. It’s from a woman named Davida Roth and I think she sums up the prevailing attitude, because she’s on the front lines witnessing it. Here’s what she wrote:

Mr.Greshes

Thank you so much for this article. I am an Independent Consultant with Mary Kay Cosmetics and I'm finding that many Consultants in my area had already started to mentally close the figurative doors of their business due to their fears over the economy. Especially since the purchase of cosmetics and skincare is often made with discretionary/ disposable income and for some women it's even a luxury purchase.

I didn't know how to address their concerns and frankly was finding myself getting antsy and anxious every time I even heard a news report on the coming recession. Every "No" that I used to be able to brush off, now seemed to confirm my worse fears. Already, reading and re-reading this article has helped to bolster my flagging confidence and I'll be able to encourage my sister Consultants as well.

Thank you for taking the time to write this post and of course for sharing it with us.

Does that sum it up or what? First of all, WE ARE NOT IN A RECESSION; and there’s a real good possibility there will not be one, but it doesn’t matter! As you can see from Davida’s comment, it’s our own fears that create these self-fulfilling prophecies.

Do you really believe, even if there is a recession, women will STOP buying cosmetics and skincare products? What about all the millions of women who go to work every day, will they stop wearing make-up or using face cream? Yeah, and I think I’ll stop showering because my water bills are getting too high. Sure, maybe they’ll use less or buy cheaper brands, but with so many salespeople giving up, there will be more business out there for the rest of them.

I’m sure glad my article posted at the exact right time and I was able to help Davida as she was about to succumb to one of the biggest obstacles in the world: negative people!

Don’t let negative people stop you. They’re just looking for an excuse to not have to try as hard. Your efforts to keep doing business while ignoring the nay-sayers are less likely to inspire them than it is to make them try harder to stop you, so as not to make them look bad. Your only solution is to tell them, “Either join me and come along for the ride or get out of my way!"

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