Monday, May 7, 2012

Some Very Worrying Facts About SMB Customer Service

Travelling back to Paris recently, I experienced the full range of “customer experiences” – as I inevitably always do – and it is interesting to compare the declining standards of customer service in the UK with the almost non-existent standards in France. In fact my perception is that North America is suffering from the same maliase.

Maybe someone should share with these companies what I am about to share with you …

Did you know that one unhappy customer tells 10 to 15 others about their experience? If it’s really bad they’ll tell the whole world.

For every complaint that could be made, around 20 people don’t bother. This means 20 lost opportunities.

If you handle a complaint badly or with a ‘couldn’t care less’ attitude or, worse still, if you hide behind the ‘rule book’, you will lose that customer for good.

You can’t afford to lose even 50 cents because this will mount up according to something known as the “multiplier effect”

The Income Multiplier Effect:

Example:
A potential customer goes into a leisure center which was built last year. The center is trying to build up its customer base. It employs 50 staff, part time and full time, who haven’t received much training in customer service and complaint handling.

The customer asks about booking a gym session for later that day. He doesn’t receive a positive reply and the receptionist’s attitude is very much ‘take it or leave it.’ He shrugs and walks away.

How much has the centre lost in potential revenue?
• $10.00 primary spend – the price of a gym session
• $10.00 secondary spend – a drink, sandwich, possibly a swim, etc.
• $500.00 potential membership fees.

He will tell at least seven people about his bad experience so $520 x 7 = $3,640 It is easy for a small amount of lost income to multiply to dangerous proportions.

Make It Easy For Your Customers To Complain:

Customers may well want to tell you they’re unhappy about something but they either:
• Feel uncomfortable about doing so
• Don’t know how to
• Don’t have time; it’s easier to let it go

So, give them a choice of mechanisms. For example:
• Simple questionnaires with pre-paid postage
• Telephone help line
• Customer service points
• Exit surveys – face to face questions
• Comment cards

Let them know it’s not a waste of time!

What are you going to do with the information? File it away? Shred it for next year’s Christmas decorations?

One company I know maintains a whiteboard in the reception listing the key comments/complaints made by customers, with a note of the action taken, or to be taken and by whom. Customers really feel they are part of the product and service improvement team.

Customers need to know what’s in it for them if they do complain.

Respond quickly to complaints. If you give a number to ring, make sure someone is always there to answer the phone. Reply within two days if that’s what you promised to do.

Have an “escalation procedure” which allows for the more serious complaints to be dealt with by a senior member of staff. Directors need to be accessible; hiding away simply creates suspicion.

Summary:

Unfortunately, when compared over time, the customers’ interest levels increase while the vendors’ interest levels tend to decrease. This creates a “relationship gap” and is due entirely to complacency.

Fact: It now costs fifteen times as much to locate and sell to a new customer as it does to an existing one. That reason alone, should act as sufficient incentive for us to attempt to build brick walls around the relationship in order to deter predatory competitors – and there are plenty of them out there.

By: Jonathan Farrington 

Sunday, May 6, 2012

Changing your life by changing your mind

By Sherry

Most of us feel upset and resentful from time to time, and for some that feeling seems to almost always be with us. The word "resent" means literally to refeel, so those who carry resentments are simply replaying unhappy times in their lives over and over again. One lady I worked with at one time kept saying to me, "But how can I feel happy when my husband is gone." I would usually tell her that she could feel sad that he was no longer with her, but she could begin to let go of the constant feelings of grief. She insisted that wasn't possible. She would tell me that no matter how engrosing whatever she was doing was, she would also be thinking of how much she missed her husband and about all the things she wished she had done differently in her life with him..

It is very difficult to shift our thinking from one channel to another, but it can be done with lots and lots of practice. The process can begin with the realization that no matter how hard we work at it, we can not change reality. My patient's husband was not going to come back, and she would never be able to change the way her life with him had been. By spending so much of her energy resenting the fact that he was gone, she was in effect poisoning the current monments in her life. We talked about the fact that her husband would not have wanted her to think that way, and gradually she began to see that she could begin to shift her thinking to more positive thoughts.

Many people allow their thinking to get stuck in certain tracks, and they come to believe that it is not possible to change this. Their take on life is that they feel what they feel, and there is no way to feel differently. In recent years, science has come a long way toward proving that what we think determines what plays out in our lives. It doesn't do so directly, of course, or we would all be winning the lottery all the time. But when we think we are helpless to change our thinking, we find that is true in our lives. When we begin to think about all the ways we might be able to shift our thought processes, we find we can do that occasionally. Since practice makes perfect, we find that our ability to change our thinking can grow.

To give you an example of how this words, I will tell you that my parents lived through the "great depression" just prior to my birth. It colored their lives and I grew up thinking that no matter how much I had, it was never enough. Eventually I realized that my thoughts were always of scarcity, so scarcity was what I attracted to my life. I worked very hard at shifting my thoughts to abundant thinking. I would get mail from many worthy causes asking for donations. In the past, I always felt that I did not have enough to give funds away. Slowly I sifted my thinking to the realization that I might not have much, but I had more than many others, so I opted to share the little I had. Since I was sending out abundant thoughts into the universe, the abundance in my life grew and grew.

If you have decided you want to learn to control your own thoughts (which will indeed change the way you view life and the people in it) you can begin by taking baby steps and progress from there. Whenever, you find your thinking is going around and around like a hampster on a wheel, tell youself that you would like to change the way you are thinking. The way that works best for me is to ask for help from a power greater than myself. I simply say, "Please help me not think this way." It helps if you have some more positive thoughts available. Think about something for which you are grateful. Think, perhaps, about the reward you will give yourself when you have achieved a change in thinking. Above all else, do not be discouraged when your thoughts shift back into an old rut. Simply allow yourself to be aware that this has happened, and try again. It will work if you work at it.

Friday, April 27, 2012

Finding the Best Business to Start Right Now!

Finding the Best Business to Start Right Now!
Sure, follow the hot new-business trends. But also make sure your new business has the three traits that most often lead to start-up success.
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Over the past few years, I have spent a lot of time at workforce centers holding free seminars for dislocated workers on how to successfully start a small business. I have done this seminar more than 50 times, and in each session, I invariably get asked the same question: "What is the best business to start right now?"

The meaning behind this question is clear. The person asking the question is looking for the perfect business based on current growth trends and economic issues.

Looking for Recession-Proof Trends
I answer this question two ways. I usually start by explaining that various social or cultural trends can provide opportunities for business startups and even "recession-proof" businesses. For example, businesses that provide services to help aging seniors live more in dependant lives are a smart bet because the target market is growing rapidly.

Similarly, "green" businesses are being positively received right now. (The problem with "green" businesses is that many don't have a sustainable business model and can require a lot of start-up capital: just look at Solyndra!) Pet-related businesses also seem recession-resistant. For some reason, people will continue to spend money on their pets even when they are in financial trouble.

But be warned: Trends are important, but they can change rapidly. My experience in the video rental business taught me that.

Three Traits That Predict Startup Success
The second way I answer the question is to explain that any business can be a good business to start if it has three particular traits:

First, the business should have a significant competitive advantageover the competition. That means you can separate yourself from the pack and quickly gain exposure with prospective customers.

Trait number two is a business owner with vast experience in the industry. Deep experience flattens the learning curve and helps avoid unpleasant surprises. In many cases, the business owner's reputation can help the startup gain traction quickly.

Third, the business should be able to get to positive cash flow quickly. In today's credit markets, if your small business can't show how it will get to positive cash flow in the first 3-6 months; it will be difficult to obtain funding. Almost all investors and bankers want to see positive cash flow in at least the first year, but what they're really looking for is positive cash flow in the first quarter or two.

If your new business idea follows current growth trends and it possess all of three of these traits, it's likely a great business to start right now.

By: Bob Voss
If you need any help, assistance, or advice don’t hesitate to contact us. We Can Help!

MBD Team

Wednesday, April 25, 2012

CRM Success by the Numbers - Part 7: Too Many Numbers – or Balls – in the Air

The CRM success goals you set should be measurable, achievable and agreed upon by the firm’s key CRM stakeholders. They should also be relevant. In a law firm, that means saving time, solving problems or, best of all, increasing revenue. Most importantly they should be limited in number. If you try to keep too many CRM success balls in the air, you will often end up dropping them all.

Here are some relevant goals that I’ve seen firms set – and achieve:
  • Clean up just one list for an upcoming mailing or event – and then another – and another
  • Categorize a group of contacts such as competitors or vendors so that we don't inadvertently invite them to our next event
  • Get one BD-focused Practice Group to enter their reimbursable business development activities with prospects
  • Print reports of marketing activities with top Clients to provide at the monthly client team meeting
  • Input industry information or codes for the firm’s top 100 (or 200 or 500) Clients so that lists can be generated for industry-focused publications or events
  • Build an expert witness database for the litigation group
  • Create some specialized fields for firm personnel records to track languages, education or expertise for pitches
  • Here’s a particularly (or not) relevant goal for quite a few firms: this year, let’s fix the holiday card list.

 Fixing that one may just pay for the CRM system. Better get started in August though…

Sunday, April 22, 2012

Lifetime Annuity and Retirement Annuities are Big Financial Deals for Retirees

By Robert Cook

If you are on the verge of retirement and are worried about your financial condition post retirement then the best option would be to invest in annuities because they provide a financially secured retirement life by offering a steady flow of income for the rest of your life. Retirement offers a permanent break from work and not from life. It is the time to lead a relaxed and happy life. However, you can be relaxed and happy on when you have a financially secured condition. So invest in Lifetime Annuity and be relaxed and happy after retirement.

Lifetime Annuity can be defined as a contract between the insurance company and applicant. After taking up this scheme you can be assured of a steady income for your entire life regularly. Further, there are many policies of this scheme such as single life policy, joint life policy and period certain policy. In the first policy you will receive regular monthly income for lifetime.

However, it is to be noted that only you can avail the benefits under this scheme until you are alive. In the second policy of Lifetime Annuity you can provide financial security to your spouse even after your death. But the income that is received here is less than the single life policy. In the third policy you can provide financial support on monthly basis to a beneficiary in case of your premature death for a period of time mentioned by you in the contract.

Besides this you can even opt for Retirement Annuities. For investment in these you will have to make a payment to the insurance company initially. Then after a certain period of time you will receive payments depending on the returns on the money invested by you. This payment can be on periodic basis or on regular monthly basis. Further, it is to be noted that the returns received by you will depend on the amount of money you have invested and the type of annuity contract chosen by you. Apart from these there are personal factors as well which play an important role in deciding the amount of money that will be received by you from Retirement Annuities such as age, health and sex of the person. Hence, this scheme enables the retired people to lead a relaxed life without any financial worries.

Therefore, if you have a decent sum of money for investment then nothing can be a better investment scheme than Retirement Annuities.

Saturday, April 21, 2012

Critical Thinking Strategies in Decision Making

By Steve Jones

Problem Analysis Article

Critical thinking is an essential part of everyone's daily lives and is not reserved for just the workplace and/or school. "Critical thinking is valuable in many contexts outside the classroom and the workplace" (Bassham, 2002, p. 27). The simplest decisions can have huge affects if the critical thinking process is not used. The problem described below is a good example of how small choices can impact an organization and its members in a detrimental way. The reader will see the product of what happens when the critical thinking process is left out and decisions are made on a whim.

"Computers cannot make decisions involving values and risk preferences. Here, human judgment is required" (Bazerman, 2002, p. 5); hence, the primary problem being that the Person in Charge (PIC) is not familiar with scale read-outs and therefore requires the assistance of the Mass Production Engineer (MPE) to complete the task safely and successfully. Due to a serious lack of judgment, miscommunication, and role ambiguity the uploading process had to be shut down in order to avoid a safety hazard. This series of problems violated safety measures and had the potential to negatively impact the companies bottom-line.

When the Spacecraft was being transferred from tooling to the transportation cart the PIC alerted the Manager that there was a problem, which led to the operation being halted. Once the Spacecraft was off-loaded, the PIC, Quality Inspector, Quality Engineering, Vehicle Engineer, and Manager assessed the situation. An Incident Report and an Electronic Process Anomaly Record were generated and an immediate investigation was launched. All personnel involved in the situation were interviewed and all data was collected. Additionally, photographs were taken of all the pertinent tooling and flight hardware.

The goal was to get to the root cause of the problem. The objective was to prevent this situation from recurring and to disseminate the findings to the enterprise. A Root Cause and Corrective Actions (RCCA) method, using Six Sigma, was used to frame the problem. When the RCCA committee gathered, a brainstorming session was initiated to obtain maximum information. A problem statement was formed and the background of the problem was investigated, which led to the exercise of containment actions. The result of the investigation was documented using a fault tree, of which the root causes were determined. Corrective actions were assigned to the responsible parties and estimated completion dates were announced; all findings and actions were implemented. All information and findings were then disseminated to the enterprise. The process was concluded when the Corrective Action Board documented all lessons learned in order to help the enterprise be proactive in all future activities.

The problems encountered with the PIC and MPE have made the organization liable for physical injuries and monetary losses. Due to the lack of judgment, product knowledge, and the breakdown of communication the organization is now required to thoroughly investigate the matter. The organization also has to invest additional time and money toward the formation of a Root Cause and Corrective Action Team. Additionally, the organization has the added expense of cross-training and offering continuing education in order to reduce the risk of the same problem happening again.

The problem that occurred is easily resolved, but if left unchecked the problem can cause further problems that affect the organization and its members. The decision-making models show many methods of solving problems, but mostly that the circle of improvement goes on. The company could implement an "always at your station" guideline, among others. The guideline, however, is not going to help the team solve the underlying problem of bad judgment. If common sense is used, the problem will be solved immediately. If the employees have difficulty using good judgment the team could possibly implement additional safety training as a reminder of how to stay safe.

The causes and forces of influence are relatively intangible because they have their root in the minds of all the employees involved in the operation. A foundation must first be laid in order to prevent similar incidents. The foundation, in this case, will indeed be a large quantity of paperwork, which includes many different forms and reports. Once proper information has been gathered and organized the information will then need to be disseminated and incorporated into existing procedures, and more notably, into the minds of the employees. The main force needed to accomplish the desired influence will be primarily monetary. Money is needed because physical documents, training, and man-hours all come at a price. Although money can and will fix the problem, funds must be carefully allocated and controlled.

Calibrating, training, and communication are some measurements that can be used to prevent reoccurring problems. To ensure the scale read-out is working properly, the scale should be calibrated once a month and logged for tracking purposes. The PIC and MPE should be aware of each other's job responsibilities in order to reduce role ambiguity; therefore, additional training should be given to both. Because the PIC and MPE are required to work together as a team, each party needs to remain in constant communication during lift operations; abandoning ones station is not an option. Furthermore, the PIC and MPE should ask questions when in doubt; this will help to reduce safety hazards.

One of the most effective methods for measuring a desired result is constructing a checklist of all the necessary procedures to be carried out. The checklist would consist of observations of proper calibration, lifting technique, communication, and all other necessary procedures. In order for the checklist to be properly evaluated it should be completed and carried out by an objective observer. Monetary resources are undoubtedly tight in the organization; therefore, said resources should be periodically monitored. However, the identity of the person doing the evaluation should be kept confidential. The criteria should be based on the checklist of all the necessary procedures including dynamic communication. The organization should conduct an example lift with a top PIC and MPE, wherein every employee is required to observe and thus base his or her actions on. A history of flawless execution of the procedure would be used to determine a successful outcome.

Alternative solutions include the PIC and MPE taking into consideration that each party will inevitably make individual decisions; however, when said decisions affect all aspects of the operation, each party needs to communicate his or her thoughts because one wrong decision could wipe out the entire operation and/or cause physical injury. "Tough decisions can produce bad outcomes no matter what precautions decision makers take, because key factors that influence the outcome is often governed by chance events. Bad decisions occur when foreseeable events are not recognized and managed" (Nutt, 1989, p. 42). The MPE could have avoided the risk of safety hazards by determining the scope and limitations before leaving his post, as the MPE had more experience and was directed to assist the PIC. Making a decision implies different alternative choices to be considered, but the key is to choose the solution(s) that best fits with company's goals and desires.

In conclusion, the MPE's bad judgment was due to his lack of critical thinking skills. Using a decision-making model, even in the simplest form, may have prevented the problem from occurring in the first place. Sometimes, when minute decisions are made, one may think that he or she does not need to analyze said decisions thoroughly; however, the above example proves otherwise. This example should help many understand why the critical thinking process is so important and how even the smallest of choices can make a tremendous impact.

References:
Bassham, G. (2002). Introduction to Critical Thinking. In (Ed.), Critical Thinking: A Student's Introduction, 1e (pp. 1-65). New York, NY: The McGraw-Hill Companies.

Jones, S (2012) http://www.study-aids.co.uk/busman/busman_essays.html

Bazerman, M. H. (2002). Introduction to Managerial Decision Making. In (Ed.), Judgment in Managerial Decision Making (pp. 5-29). New York, NY: John Wiley & Sons, Inc.

Nutt, P. C. (1989). Preventing Debacles by Improving Decision Making. In (Ed.), Making Tough Decisions: Tactics for Improving Managerial Decision Making (pp. 1-43). New York, NY: John Wiley & Sons, Inc.

Friday, April 20, 2012

Controlling Your Personal (Mental and Emotional) Energy

By Dr. Bob Rausch

Seven Rules for Increasing Mental Energy

It's all about what you tell yourself

Your boss just declared that you made a huge mistake on an important project. What you say to yourself afterward makes a world of difference in your attitude, performance, and energy. Every thought you think and every emotion you feel requires energy. Cars use gasoline. Light bulbs use electricity. Your body uses an unlimited supply of the energy we are all provided. How you choose to use your energy is up to you. The truth is that you drain more energy on mental and emotional issues than on physical ones. Here are seven rules to help you maintain higher mental and emotional energy.

1. Practice the Universal One-Third Rule. Psychologists have stated that no matter what you do there is a One-Third Rule. One-third of the people like what you do, one-third of the people don't like what you do, and one-third of the people don't care what you do. Just remember that, "People do things for their own reasons, not for yours."

1. Define the Focus of Importance. When you are working with others get your focus very clear. It's easy to spend too much energy worrying about what someone thinks of you. Keep the focus where it needs to be, on the other person. One way to achieve focus is to recite this statement: "It's more important what I think of you than what you think of me."

1. Depersonalize disappointments. This is about business, not your self-esteem. Life is not always fair, so love and help people, but do not allow them to define who you are or your level of success.

1. Reframe Energy Drains. People can't affect the outcome of your experience unless you let them. Nothing that is pushing against you takes effect unless you push back. Reframe the situation. "When you have an uncomfortable situation ask, ‘Is there something I can learn from this."

1. Evaluate the Energy Drain. Did you hear something negative or take something negatively? Your level of energy will determine how you hear information. When you are low on energy you are more vulnerable to feeling defensive.

1. Delete clutter. Develop a behavioral trash bin. If a behavior doesn't teach or offer you something, delete it and send it to your behavioral trash bin.

1. Celebrate your successes. Don't be modest. When you do well admit it to yourself. Celebrations are energy refuelers.