Photo (CC) by Quinn Dombrowske, on Flickr

Success for a small business means watching your pennies. Margins are usually small, sales are often weak, and there is little or no cushion available to absorb a mistake.

It is also true that small business owners must not get so caught up in watching pennies that they miss the holes that are leaking dollars. Harry Barnes, in 1942, referenced this as “penny wise and pound foolish.” And I have discussed this idea in two previous columns, Follow the Money and Chasing Bright Shiny New Things.

Yet a recent experience suggest that you also need to consider customer perception of your efforts to minimize costs. This may sound funny but here is my story. Consider this picture.

Our refrigerator has a mechanical issue. When the service rep came out, he diagnosed the problem (we hope but that’s another story). The parts weren’t available locally s0 he ordered them to be shipped to us. He will be coming later this week to install them. What we received are the three envelopes shown along with the items you see. As near as my wife and I can tell, all three mailings came from the same location. Two came one day and the third a day later. Each envelope had postage for a pound but all the items weighed only about 7 ounces.

This may have been an effective and efficient way for the company to handle this. But to me, the customer, I’m asking “REALLY?”

Effectiveness and efficiency form part of your business image. We applaud companies that portray, through words and actions, a mission of customer service. Think of the places where you do business. This concept is probably part of why you go where you do.

I might even go further and suggest  we may pay a slightly higher price for a company that demonstrates efficiency than one where we get the cheapest price but its operation is somewhat helter skelter. My rationale would be that the well organized company can probably find a way to bring their costs down while the second company may offer a bargain today but we can’t see how they will be there tomorrow when we need service or want more.

I don’t know where the balance point is between being efficient and your company’s rating on customer service.  My purpose is to remind you that these concepts, efficient, effective and perception, are intertwined.

Developing an on-going sustainable business means finding that balance for your business.

Photo (CC) by Sean MacEntee, on Flickr

Buzz words, the hot topic – You know what I am talking about. Go to a networking event and just listen.

As you listen, there is a good chance you will hear certain words, tactics, techniques or ideas brought up and discussed several times. These same words are ones that you are probably also seeing in print or on the Internet.

The first time, and maybe for several more times after that, you probably have no idea what people are talking or writing about. And you may ask yourself, why should you care?

The need to care is that these hot topics are a sign of the changing landscape surrounding your business. Yes, it’s true that many of them are not relevant to your operation or that the idea is not a trend but simply a fad. But one, two or more are a rich nugget for the potential development of your business.

These new ideas represent change, change desired by your customers and/or suppliers. It offers insight into what they need or want. It reflects their potential behavior if you can meet the expectations.

But listening and analyzing is not enough. You need to take action. Without implementation, the time you spent in this activity adds nothing to your bottom line. It is only a cost.

As you find ideas that seem to hold promise, you need to:

• Dig deeper – Learn more about the idea, technique, or tactic.
• Check with others who have already implemented it
• Plan the launch
• Do it

Buzz words – Find AND IMPLEMENT the nuggets among the rubble.

Photo (CC) by Ninlan Reid, on Flickr

I just had a recent experience that reinforced the importance of customer service.

A recent trip to our basement found water on the floor by the water heater (How many of you can relate?). The plumber was called. They came out. Upon a brief inspection, they informed my wife that it wasn’t the water heater, our basement walls were leaking. The story is much longer but that’s the main point.

A week later, after examining the walls in several ways, I proceeded to carefully inspect the water heater. The evidence strongly suggested that was the problem. Re-contacted the plumber, they came out, replaced the water heater and no more water.

So in this transaction, where were customer service moments?

Listening to the customer comes first to mind. Now I appreciated the fact that they offered a second opinion and didn’t want to do an expensive job that might not solve the problem. But maybe you need to “go the extra mile.” In my case, it wasn’t easy but my re-inspection of the heater finally found water drops a couple inches off the floor and a line of rust coming down the inner liner.

Next, don’t assume that a nod by the customer that they understand really means “they understand.” If you are dealing in a technical area, you may want to ask them to repeat key parts of your message and help them walk through the issues. When talking with the customer make sure you talk in laymen’s terms and not in technical language.

In my case, another customer service moment was missed when they failed to acknowledge they didn’t get it right the first time. We all understand how life goes. So if you do have to go back, make sure you take the chance to talk about the issue. Some research suggests that customers may have more positive feelings towards the company in those times where you need to return to a job than those who got what they wanted the first time.

Finally, learn from every customer encounter. Replay the situation and see what you might have done differently. If you have employees, you may want to discuss it as a case study with the group. (The first couple of times you may want the example to be something you did to show it can happen to anyone or pull this one out as it is anonymous).

Remember that for every customer service issue you hear about, there are probably 10 more that you never learn about; instead, the customer just disappears.

Customer service is the bedrock of your business. Selling once to a customer makes money. Developing a lifetime relationship based on customer service builds a business.

Photo (CC) by SEO, on Flickr

Recently, my wife and I decided to be a local tourist. We took a couple of days to go visit local historical sites that we had never seen before.

Our trip took us into some very small North Dakota towns where we decided to spend the evening. We found our lodging using a smartphone.

The next morning it was time for breakfast. Imagine our disappointment when the online results took us to a café that was being rebuilt. The next town did not show anything available but we took a chance that the gas station might have something. When we pulled into town, we noticed there was a grocery store/bakery. The sign on the door said it would open in about 10 minutes. So we waited. The result was some tasty baked goods, coffee, orange juice as well as the hot dogs, buns and potato chips we wanted for lunch.

We asked the owner why she wasn’t online. Time was one issue. The second issue was being accurately shown on the map. There was a listing for her store but, as the town did not have a zip code, the location was in another town 16 miles away. Her business was listed in a city website directory but it didn’t have any information about what was offered or hours of operation.

We used our smartphone two other times on the trip, both times for directions. The results were correct once and incorrect the second time.

So what’s my point?

Your business, whether large or small, must have an online presence. At a minimum, you must get on the map in the correct location. You should also ensure that someone can get some idea of what you offer and when you are open. All of these basic items can be done from a simple static website. Yes, this was a tourism situation but I think I am like many other people using my phone to search in my home community as well as when I am traveling. And younger people depend even more on mobile devices.

An alternative might be working with your community website to get that basic listing but, remember, you have no control over that site. Making changes can be difficult and if no one regularly maintains that site, your information can be out-of-date and of little use to the consumer.

The idea of developing an online presence can be a scary prospect. To help you understand why it is necessary as well as the language and basic elements you need, the Power of Business and a group of Extension educators have developed information to walk you through the process.  You can find three free resources here. While some of the information is industry-specific, most of it is generic and can help any business owner.

So what are you waiting for? Don’t let customer pass you by. Let them know you are there with your online presence.