I don’t’ care what the media says, companies and individuals for the most part are struggling.

Illinois has the 5th highest unemployment and it is not getting better.

Over a million VETS will return to the US looking for work. What maybe needed is some direction to help you take your business to new levels of financial success. For my readers they know that I work with every type of company from Fortune 100 to start ups. I have seen it all. So I thought why not share what I have learned in a short blog, once a week.

Myth Monday’s will share information, raise issues, destroy myths and offering insights from my experience. Whether business, travel, or health, I will share my perspective on MYTH busters.

“Don’t compromise yourself. You are all you’ve got.” Janis Joplin, Singer

Business Myths

MYTH #1 “I NEED TO CUT PRICES.” 

Clients don’t pay more than your standard prices in good times so don’t discount fees when times are bad. Cut prices now and you have will a difficult time raising them later. Instead be flexible on delivery or payment terms. Personally I do not offer open accounts. I explain that carrying balances cost me money and therefore it costs my client money.

I suggest breaking a large project into pieces so that you can bill as the work progresses and paid for as the work progresses. In my case I charge prior to starting the work so that I have the cash to negotiate with my suppliers to obtain a cash discount. This benefits everyone. If my supplier wants or accepts credit cards I use them always. Why not delay the payment for at least 30 days and receive dividends in the forms of mileage or other credits?

“I have learned to keep going, even in bad times. I learned not to despair, even when my world was falling apart. I learned there are no free lunches. And I learned the value of hard work.”

Lee Iacocca, former CEO Chrysler Corp.

RULE 1: Whenever I grant a concession I make sure I get one in return.

What we want from companies is consistency and honesty.

As a constant observer of customers, I have discovered discerning customers need more. They will pay for value. They demand good service and will patronize those companies that provide an exceptional experience. We want a clear sense of purpose, products and prices coupled with great service. I believe that every company today is a service company no matter what they make or sell. For example, Walgreens has created mega stores with a wide variety of products and new services. They also made the ‘worst’ companies for customer service. What happened?

Customers want the product of the product.

“What will it do for me?” “Will it make my life easier? “ Will it make me healthier, safer, richer, or more productive? Usefulness and great customer service is best achieved by thinking about everything as a user experience. If you start with ‘useful’ as a first principle, then put the customer need and experience first it means not getting lost in your own jargon, product development silos or legacy.

Nothing changes if nothing changes.

It means companies like banks, airlines, and cable and internet providers still have a chance if they change. And right now those companies that have lost touch with their customers are probably considering other vendors instead of subjecting themselves to terrible customer service. Comcast lost over 400,000 customers last year because of ‘poor communication. Airlines raise prices while reducing the service level of the flight experience. Don’t these companies listen to their customers’ voice?

Most recently the worst customer service lists were created.

http://www.huffingtonpost.com/2013/01/09/worst-customer-service_n_2434067.html

http://www.usatoday.com/story/money/business/2013/03/16/9-retailers-worst-customer-service/1991519/

http://www.businessinsider.com/15-worst-companies-for-customer-service-2013-1?op=1

Customers don’t always know what they want.

Creating great customer experiences is not easy. However to grow your business, customers now want to play an increasingly equal, participatory, and critical role in brand and business. They want to be heard. I know that co-creation cannot be accepted as a default solution to every challenge. Even when consumers do know what they want, empowering them to create it might not result in the most impressive solution, but we should encourage our ‘interactive companies’ to try do it better.

Customers want better products and better results.

Since its beginnings in Chicago over 100 years ago, Walgreens has become the largest drugstore chain in America. A few years ago they desired to reposition themselves as leaders in wellness. They asked, What If? Why not? What’s next? They made a ‘game changing’ decision. Walgreens invited their customers into the process.

You want coffee with your sushi?

Consumers were provided tours of Walgreens’ redesigned pharmacy prototypes and asked to share their opinions. Walgreens found that consumers were looking for simple, engaging, everyday ways to take better care of themselves. So how did they find out? They asked the customer what they want. Walgreens used that feedback to deliver an experience that reflected their commitment to staying useful to customers. The results can now been seen on the corner of Randolph and State in Chicago as well as San Franciso and New York locations. http://youtu.be/2VBch1-1SD4

The new store has a bakery, custom cosmetics area, wine and hard alcohol, a produce department, cigar humidor, sushi, self-serve frozen yogurt, produce, coffee and juice bars. high end cosmetics, and a nail salon. It’s amazing.

No longer the neighborhood pharmacy, Walgreen’s delivers an exceptional shopping experience that combines products and services you could find at 7-11, Target, Wal-Mart, Staples, Lowes, and Best Buy. They have become a trusted provider, not ‘product pushers.’ When compared to their competition Walgreens raised the bar.

A desk area in front of the pharmacy brings Walgreens pharmacists out from behind the counter so they can consult with patients one-on-one. Private consultation rooms provide additional space for immunizations, blood pressure readings, and other services. Web pickup services allow customers to shop online, and self-serve touch screen kiosks let them quickly refill their own prescriptions.

Sushi is just one of the many offerings at Walgreen’s

Customers also have access to a staff member called a Health Guide, who is equipped with an iPads app loaded with health tips and FAQs. The new mega-store format has been introduced in the Chicago, New York and San Francisco, while the pharmacy experience is rolling out to all of their stores. The Chicago store has a European market feel that has made it a ‘go to’ destination for downtown office workers, tourists, and downtown high rises.

Not all news is good news.

USA Today reported that “As of December 2012, the company had more than 8,500 locations. But its wide reach has not helped the company appeal to consumers. On March 16th the report goes on to say “… stores open at least a year declined 2% in the most recent quarter, while revenue for the company declined 4.6% and earnings declined 25.5%.”

Mega stores require mega customer advocates.

The vision was not coupled with operational excellence. Customers are not happy. Is there a success or failure to communicate? Perhaps Walgreens should focus on more service and less products as they earned the dubious title of #9 worst customer service retailers based on results from the American Customer Satisfaction Index.

Bottom line: Observing consumers is usually a more effective way of discovering unmet or poorly met needs. Engaged customers and can reveal solutions that recommend real opportunities of how to be useful, increase sales and profits by offering what the customer will buy.

Customer service is not a department.

Airlines carry on about fees and so do passengers

The airlines collected $1.7 billion in fees for the first half of the year. Now both United and American Airlines charge $200 to change an airline ticket. In some cases that is 50% or more of the price of the ticket.
What are they thinking?
Why not simply say, we don’t change tickets?
Instead all they have done is annoy their current passengers and disuade new passengers from flying with them. Customer service is about service.

Remember: Customers are to be treated like real, indivdual, feeling human beings with friendliness, honesty, and respect. They are entitled to full value for their money, a complete guarantee for satisfaction, fast delivery, and accurate knowledgeable answers on inquiries. Treat them exactly as you want to be treated when you are someone else’s customer.

Unfortunatley, the trend is that  almost every large company has come up with ‘new fees’ for consumers. And for the most part the service levels have come down. Why? Wouldn’t you think that more revenue would deliver better service?

Banks now charge for paper statements, pharmacies charge for printed records, and even the ‘free’ advice offered for printers, computers, and smartphones now have a fee. Every company is now charging for services that in the past were free. AT&T charges for information even though they are a communications company. Like most of you I don’t understand why I am paying for and getting less.

Is it time for businesses of all sizes and types to consider some of these income streams to offset the rising costs of doing business?  The airlines claim that without the fees they would struggle. So how is that different from all of the other businesses that are struggling? Does charging extra fees keep customers? Airlines started charging for a first checked suitcase in 2008 and it has not stopped. It has not increased customer loyalty. Many passengers now do virtual meetings instead of the ongoing hassles created by TSA and the airlines.  Business As Usual (BAU) has become Innovation As Usual (IAU).  Innovation is the product of Discomfort. Find out what keeps your customers awake at night, find their pain.

1) Innovation is how we make money from creativity.

As a consultant and speaker my customers’ inquiry often starts with the question is “How much do you charge?” My response has been refined to ask them a question in return…”Is that your only consideration?” “If I offer to speak for $1 does that mean I am hired?” Of course not.  We have been programmed to ask about price before we require value. Don’t fall into that trap. Don’t quote a price without explaining the full range of services. Start with 100% of what you offer. Explain your competitive differentiation. Answer these questions: Why should I do business with you? What is the value you bring to me? What’s in it for me (your customer)?

2) People don’t default up.

They want the best and have been programmed to expect the best to cost more. Better costs more. Uncommon Wins. Yet the rate of delayed or mishandled bags grew to three bags for every 1,000 passengers in February from a rate of 2.64 bags in the same month last year, according to the federal agency. Complaints against the airline industry jumped to 899 in February, a 30% increase over the 693 complaints in the same month in 2012, according to federal statistics. Bottom line: Fees went up. Delays went up. Lost bags went up. Complaints went up. Service went down.

3) Customers still want value. They want to know that what you provide to their audience is relevant, timely, usable, etc. I can’t charge by the number of people in the audience, or the time of day, or the day of the week, or can I? Or should I? Of course not. No one would stand for it, yet we all accept the way large companies force fees upon fees. You want to pay for an invoice on the phone instead of using the Internet there is a fee. Often we see that ‘cash’ prices have a discount so that the retailer does not absorb the credit card fees. Is it time to rethink your fee structure? So why do we all default to the fees? Because our world has shifted.

4) Everything has it’s price, but what is the value?

The following are currently the most widely used optional airline services according to the Airline Tariff Publishing Company:

Baggage • Seat assignments • Unaccompanied minors • Pets • Travel Insurance  • Lounge passes • Upgrades • Meals and beverages • Ground transportation • Inflight entertainment/WIFI

Rather than introducing lots of new services, airlines are busy figuring out new ways of selling them to take the most money out of your pocket that they can. Is that a good plan? Can this pricing model sustain itself? The sad answer is yes. If you want to fly you have to pay. Is there any choice? If you want a printed board ticket, either print it at your home or office, or expect to pay for it. You want to watch a movie or use WIFI there is a cost.

Boarding passes are no longer free

It’s time for each and every business to rethink how they do business. What are you worth? Are you selling or telling your customers what you offer? Do you provide enough value so that price is not an issue or are you like the airlines trying to squeeze out everyday no matter what the negative reaction is to your pricing model?

Blankets are now offered for rent.

In learning from the airlines I am suggesting that you learn what not to do to your customers. Instead bundle your products and services. What would happen if one airline went back to the time when a blanket was free? Printed tickets were free. And show your customers that you are still their best choice because you offer price/value not price/annoyance.

Southwest Airlines continually resists following the big carriers into the ‘fee game.”

However, to be competitive they altered the service that they provide. Airlines such as Air Canada and Delta already are offering passengers trade-offs such as reduced fares, if the passenger opts out of accruing frequent flyer miles or getting seat assignments.

Give them more than they expect and you will create customer insistence instead of resistance. Let’s create services that will be appealing to a large number of our customers so that they will want to buy without thinking about our competition.

5) Great customer service is all about bring the customer back.

As long as the airlines continue to escalate their ‘fees’ passengers will find more ways to stay home, fly less, etc. Don’t let the add-on fees create a barrier between you and your customers. Here’s what I learned from the airlines. Airlines are assigning you a “value score” based on your frequent flyer status and other variables so their pricing for various services, including those bundled options, could vary by customer.

The airlines use the fees to offer perks to their frequent flyers. Now they offer value for loyalty…and that’s the important lesson. Today loyalty continues to erode in every business relationship. Customers are looking for the best deal not the best service, or product. Yet there are companies that don’t follow that trend. Buy an Apple product and you get the Genius Bar to help you. Shop at Nordstrom and they will accept the product return without question. Today customer value the product of the product.

It’s what the product does to make life easier, more productive, healthier, peaceful, etc. No one cares how a smartphone is made. They care about what it can do for them. At what cost?

6)  Customer service is not a department…it’s an attitude.

Some airlines don’t turn on the heat during cold weather to save money and then charge to rent a blanket. Forcing the consumer to spend money for items such as carry-ons, receipts, copies of cancelled checks, and other perceived ‘requirements’ that make doing business with you difficult will result in consumers seeking other alternatives. You want to be the first choice, not the last.

From AT&T to Comcast, gas stations to onsite service calls, CITICORP to Bank Of America, costs have gone up and the service has gone down. Is anyone happy with their cable television provider, cell service, long distance, dealership auto repairs, out of warranty appliance service, or their ‘service’ providers? Customer satisfaction is at an all time low. Call centers in Asia, supervisors that are never available, even the US Post Office forgot the James Farley Post Office inscription: Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds. Really?  I have found nothing about the USPS to be close to this commitment. Send a package and find out it wasn’t delivered. Now try to process a claim. They have so many hurdles to overcome you simply stop using them for anything but snail mail.

Got a complaint?

Airline complaints:  http://www.airlinecomplaints.org/

Bank or Financial Institution:  http://www.federalreserveconsumerhelp.gov/

Wired and wireless Telephone, cable television: http://www.fcc.gov/complaints

And if you need some help making a more informed decision of what airline to fly, or to avoid try this reference chart. It’s just a little extra something from me to you because I am never closed to my clients.

http://slimg.com/sc/sl/graphic/u/ul/ultimate-guide-to-airline-fees.pdf

Send me a postage stamp and return address label in an envelope marked

D-A-T-I-N-G Your Customer  c/o James Feldman 505 N. Lake Shore Drive • Suite 6601 Chicago, IL 60611

and I will send you this  5 1/2″ x 8 1/2″ laminted two sided card at no additional charge. It’s a great reminder to help create Customer Insistence.

Send me a postage stamp and return address label in an enveloped marked                      D-A-T-I-N-G Your Customer c/o James Feldman 505 N. Lake Shore Drive   Suite 6601              Chicago, IL 60611

Establishing Credibility

Rules For Success

Things to do to keep your clients coming back for more

Customizing Your Customer

We all need brand new ways of problem solving. Today, unless you dare to think differently you competition will. Managers must come up with new ways to manage daily tasks and routines. So what am I telling you that you don’t already know? Find a better way by discovering innovation that makes you more efficient in doing what you have always done, by improving your innovative approach by being different. How about something simple like writing a thank-you notes. People don’t take the time to write anymore. Simply taking the time to thank somebody who waited on you, some one in your industry or even a fellow employee means you are different. Simple? Not really! We all know what to do.

Books, tapes, TV shows, seminars all tell us how to lose weight so why are we the heaviest country in the world? The answer is simple…we are all the same. Don’t’ follow the crowd. The crowd is gaining more weight each year. Today little time is spending planning a meal when you can grab a ‘supersized’ burger on the way home from work. How do you fight back…Dare To Be Different?

Less than a decade ago if you said you were going to check your Blackberry the quizzical looks would have been prevalent. Then Blackberry became the business standard. Now it more likely that IPHONE and ANDROID are the first choice. The rate of progress is doubling every decade. Soon computers will outperform the brain in almost every category of logic, problem solving, and conclusions. You must take the initiative. When you Dare To Be Different you might fail. Failure is the second cousin to Success. Learn from failures. No one that has succeeded traveled down the path without some detours, some failures, some mistakes, but they learned from them. Ask questions.

Call your customers and ask them what they need. Ask you suppliers what they see their products being used for and ask how they would use them to make new products or create new services. Create mavericks…people that ask “What If?”
Find a better way to do something. Cater to client demands because they will tell you what they need that is not being fulfilled by your competition. All you have to do is ask and then simply do it.

Remember to create something that will have an impact on people’s lives-whether personal or corporate.