Surviving in a Competitive Business New Mexico College Bookstore Association Dr. Luis Ortiz EDC Executive Director/Professor LVSMEDC/NMHU.
Download ReportTranscript Surviving in a Competitive Business New Mexico College Bookstore Association Dr. Luis Ortiz EDC Executive Director/Professor LVSMEDC/NMHU.
Surviving in a Competitive Business
New Mexico College Bookstore Association
Dr. Luis Ortiz
EDC Executive Director/Professor LVSMEDC/NMHU
More than Surviving…
Competing today and in the future differentiation/innovation Doing things different Doing things better
Outline of our presentation
Our everyday business reality Cause “more than a mission statement” Employees Management Relations Customer service Your best competitive advantage The model bookstore Why not your store!
New Reality Recommendations Results “Owning our own behavior”
Our everyday business reality
Retail market Selling Merchandising Inventory Safety/Security Finance Employee Relations Customer Service
Running a Small Business
Complexities Average hours per week is 65 84% are passionate about their job
Do you have a “Cause”?
Mission Statement no a Purpose Now what?
• “we survive, but are elders tell us we were meant for much more – a higher purpose” D.J. Odawa Ingenuity – is it in you!
Great things are seldom done alone
University Core Requirements - Students
Math English Spanish History Arts Education Social Work Science Engineering Business
General Overview
Accounting Certified Public Accountants Certified Management Accountants Auditors Finance Certified Financial Planner Certified Real Estate Agent Appraisers Economics Economists (trends business cycle) Macro/Micro Data Analyst
General Overview
Marketing Marketing Research Sales Advertising Customer Service Specialist International Business International Manager International Executive Consultant Management Entrepreneurs Professional Managers
… could you please be more practical
Example one HS • 25 years 25 @ 17,000 = 425,000 UG
25
years • 25 @ 47,000 =
$1,175,000 DIFFERENCE OF $750,000
Examples two HS 18yrs. to 65yrs. = 47 years • 47 @ 17,000 = 799,000 UG 22yrs. to 65yrs. =
43
years • 43 @ 47,000 =
$2,021,000 DIFFERENCE OF $1,222,000
Thus of the 45 books they buy they are investing about 3,000 in four year with a ROI of $2,018,000
Education is the only thing that you can never lose. Dr. Sanchez
Stage of life
(infant, young, adult, and old age) Native Americans
A satisfying and fulfilling career
Life satisfaction
Management Theories
Self-fulfilling Prophecy Need Theory Goal Setting Expectancy Theory Social Comparison Theory Equity Theory What the heck does that mean to me???
Because of this!
Three basic classifications of Employees 1) Extra-Role Behavior Employees (OCB) 2) Contractual Agreement Employees 3) Sub-Optimal Employees
Performance Model
Employee Affect or Disposition 1) Entitled Individuals (+) 2) Equity Sensitive (=) 3) Benevolent (-) Organizational Activities
Job FAIRNESS Job Satisfaction Trust
Organizational Citizenship Behavior 1) Extra role (+) behavior employee 2) Contractual (min) agreement employees 3) Sub-optimal employees (-) Improved Organizational Effectiveness
Theoretical Model of Employee Work Behavior
Entitled Equity sensitive Benevolent Organizational Justice Distribution of rewards Procedure of the organization Interaction with co-workers & managers OCB Trust/commitment Job Performance Job Satisfaction Pay Co-worker/managers Job itself Policy/advancement Source:Bateman & Organ, 1983; Konovsky & Pugh, 1994; Moorman, 1991; Organ, 1988
Customer Service at NM College Bookstores
Importance of Customer Service Study and Articles of Customer Service CS a Practical Approach Steps of CS Improvement Phone Face to Face Facility Layout Discussion
Importance of Customer Service
Customer n. [kust-a-mur] The Person who makes all of our jobs possible.
A customer must perceive that they are the most important person on our premises. The customer is not dependent on us in any way and we are not doing them a favor by serving them. They our doing us a favor by using our services (products) and giving us a chance to serve them.
Return on the Customer
Maximum Return on your scarcest company resource If not you look short Business triad (E/M/C) Increasing their lifetime value… • Don Peppers and Martha Rogers, Ph.D.
Importance of Customer Service
The Tough Reality of Customer Service Study I Bad service • A person will tell 9 of 10 they meet about it • 13% tell an avg. of 20 Good service • A person will tell an average of 4 people about it Study II Bad service (customer tells 32 avg. others) Good service (customer tells 9 avg. others) What does a customer look for: • Value = Fair Price + Quality + CS (competitive pricing environments-university lottery scholarship making Quality and CS more important here at New Mexico College Bookstores)
Importance of Customer Service
Why a customer stop doing business 1% pass away 3% move away 5% develop other relationships 9% leave for competitive reasons 14% are dissatisfied w/ product 68% due to attitude and indifference of ONE single employee • customers stop using a business due to an indifferent employee who treated them poorly
Why focus on the customer?
Five time more likely to leave due to poor service than product quality For every 1 that reports poor service, 26 are unreported.
Only 4% will ever complain about bad service. - 96% never complain about rude or discourteous service but….
…will quietly go away and take their business else where 91% will never again buy from that business Tell their “horror story” at least 9 times 13% of them tell it at least 20 times It cost five times more to attract a new customer than keeping an existing one
Importance of Customer Service
It is no big loss - What do you lose (1 person for a lifetime of sales and their referrals)
If you lose ...
1 customer a day Spending $5 weekly
94,900
Spending $10 weekly
189,800
Spending $50 weekly
949,000
Spending $100 weekly
1,898,000
5 customer a day
474,500
10 customer a day
949,000 949,000 1,898,000 4,745,000 9,490,000 9,490,000 18,980,000 What is losing one “Worth”: Autos Industry - 200K Grocery Business - 234K Newspaper .50 * 365 = 182.50 * 40 years = $7,300 30 papers @.50=15. * 40 years $600 Yearly subscription $75 * 40 = $3,000
Study and Articles of Customer Service
Management’s Commitment Constant Rewarded Walk the talk Accountability Valued Reinforce behavior with immediate recognition
Study and Articles of Customer Service
Employee’s Commitment Consistent and fair w/ each other Accountability Positive Attitude Owning our own behavior Professional vs. personal Serving the customer
Practical Approach
Seven Steps to Successful Customer Service 1.Total Management Commitment 2. Get to Know Your Customers 3. Develop Standards and Service Quality Performance 4. Hire, Train and Compensate Staff 5. Reward Service Accomplishments 6. Stay Close to Your Customers 7. Work Towards Continuous Improvement
Practical Approach
6 Steps to Great Customer Service 1. Drop Everything to Answer Email, Phone or Whatever… 2. Do a Little Extra 3. Keep Your Promises 4. Address Problems Immediately 5. Follow Up On Problems, Questions, Etc. 6. Personalize Communications
Practical Approach
Customer Satisfaction in 7 Steps 1. Encourage Face to Face Dealings 2. Respond to Messages Promptly & Keep Your Clients Informed 3. Be Friendly and Approachable 4. Have a Clearly-Defined Customer Service Policy 5. Attention to Detail 6. Anticipate Your Client’s Needs & Go Out of Your Way to Help them Out 7. Honor Your Promises
Practical Approach
Six Steps to Excellent Customer Service 1. Impress Prospects and Clients with Professional Proposals & Documents 2. Keep in Touch During the Project 3. Guarantee Your Work 4. Learn to Manage Complaints 5. After the Project is Completed, Give the Customer A Gift 6. Stay In Touch
Sound Nice
But please get more practical!
Asset vs. Liability
Phone – Customer Service
Did you know that a caller to your employment can tell and perceive your mood and even if there is a smile on your face by the tone of your voice.
Phone – Customer Service
Phone Etiquette Company’s name Employee’s name How may I (help, serve, assist) you Listen • • jot the callers name down – and use the callers name in the discussion many times if possible When wanting a different person (it is ok to ask – May I inquire as to whom is calling (and or the issue)? • If placed on hold (example: Sorry for the wait that department is working on a deadline – May I please take a message explain) Transferring Calls (always give the call the extension number in case they need it later) Thank them for calling!
Customer Service Factors
Telephone Service 13% Tone of Voice Content 87%
Face - Customer Service
Face to Face Respect Kindness Consideration Empathy Friendly and effective service Honesty and feelings of pride Use examples to assist customers
Customer Service Factors
38% 7%
Face to Face
55% Body Language Tone of Voice Content
What you they say!
Help me first Can I speak with your manager You people never get it right Not what I ordered It was on sale My statement is messed up You never have what I want I need that by the end of the day You can bend the rules What are you a 3 rd grader
What to say!
Secret weapon words “I am sorry” “for you” “I am sorry that happened I understand can I fix it for you (Mrs. or Mr. Garcia)” Empathy Permission Personal Service Lack of customer trust must be viewed as a challenge to serve them Good customer service build trust
What to never say!
“NO” or I can’t Don’t blame me It is not my fault I have not had my break That customer didn’t know I just work here I can’t wait to get out of here I hate my schedule/computer
What to never touch!
Religion Sex Politics Smile Pleasant • • Offer no opinion Thanks for you interest Professional • I consider that personal
When “yes” is not an option!
Never say “no” I will try Lets explore some options I want to be fair to everyone Consistency does matter Show empathy Note* Let them talk and vent
What are customers/employees?
Are Customers Next in lines NIL No Problem – are they A nuisance A bother An interruption or are employees Rude Disrespectful Aloof Indifferent Fake Not sincere
Customers always win!
“Make no mistake about it in the long run I will win” • The Customer I don’t make a scene Bad attitude I can forgive just not forget We have choices - local & online Note* it is never the person it is the organization
What do they want?
Understanding & Caring Attitude Tactful Respectful Empathetic Caring Courteous Enthusiasm Friendliness Nurturing Helpfulness Upbeat Pleasant
What do they want?
Problem Solving Ability Knowledgeable Professional Good judgment Responsive Resourceful Persistent Thorough Accurate Committed Quick Thinking
Facility - Customer Service
Facility Layout - Customer service area Comfortable Visional designation between work and customer area Everything that you can use Build trust with customers w/ service Reinforce the need of treating customers right Tickets Scheme – have a plan Give employee all five tickets at start of the month Employees give their peers a ticket when they see them performing great Customer Service or “going beyond the norm” with Teamwork
Customer Service - Ask yourself
Is it really a pleasure to serve them?
Do you treat them as individuals?
Do I remember them by name?
Do I care to see a smile on their face?
Do I like to customer satisfaction in their eyes?
Since you know what the Customer Feels
Smile and make eye contact Acknowledge the customer Neatness of workplace People come first Problem solve for the customer Be genuine and sincere Say your welcome (not no problem) Thanks customer for choosing to do business with your organization
Leadership
Fitting the right people in the right places Empathy Vision – Why not!
The model bookstore Why not your store!
Big box Online mega-store Exploiting your space on their dime
What is our Niche?
NM Students Nationwide 15 million in Higher Ed Highest Trained – Experts Poisoned Pen – in AZ Instant Review
Model is your Store
It is on hand or short time to get Staff has a cause CS Attractively Arranged Targeted age groups sections Inviting – what to spend some time Coffee shop Post Office
The three R’s
Wholesale business Digital – e-books to Podcast Competitive knowledge Ask engage the customer Technology Web development Real Partners (Students and Profs) Events
The three R’s
Computers to order and compare www.bestbookbuys.com
Engage the Department and Manager Customized value added products Reasons to come in Events (250 at AZ bookstore) Students learn differently Tap that market
The three R’s
Coffee shop Hangout Wireless Alumni - Graduation Sale to each on their time Gift Cards Drawing/Tutoring/School pride Entertaining Environment
Enjoy your conference
Thank you!
www.drluisortiz.com
“Owning our own business behavior”