Focus on the Customer
How often have you been paying at the till in a shop when the assistant is talking to their friend and ignoring you? Or been made to feel foolish in a mobile phone shop because you don’t fully understand all of the technology? It’s annoying isn’t it? Do you ever promise yourself not to use the shop again?
And have you ever behaved the same way to your customers? Be honest, can you really say that every time you provide a service the customer has had a pleasant experience?
My preferred definition of customer service is "Customer service is about treating others as you would like to be treated yourself". What I want from a service provider is for them to understand my needs and deliver value.
Understand the customer’s needs
The first step with a potential new customer is to understand their needs. In a business-to-business environment that starts with researching their background. Easy enough these days with the resources of the internet. It means that when you do have a face-to-face meeting you have some background knowledge to start with.
When you do meet your customer for the first time, whether they are big or small, it’s important to start by asking questions. It’s a big mistake to assume you know why they want to see you. When done correctly, questioning also relaxes the customer and presents you as someone who is interested in understanding their issues rather than jumping straight in with a solution. Asking questions presents a much more professional approach. Most important, it allows you to fully understand the situation, identify how you can help and the best way to do this. Effective questioning is an art and requires practice. Start with open ended questions (what, why, where, when, who, how), then bring the discussion to a close with closed-ended questions (requiring statements of fact like yes and no answers) this confirms you have understood the issues. It is also important to listen carefully. Focus on the person and ensure you have fully understood their requirement. Relate to their issues and problems and show understanding. Perhaps give examples of other customers who have had the same problem in the past. Having understood their needs you can then propose the best solution, demonstrating why it is right and that you are the best choice to deliver it.
Lowest cost or best value
There are two winning pricing strategies; offering lowest cost or best value. But first it is important to understand what your customer is looking for. You should have established this from your research and questioning. A customer looking for lowest cost probably has a limited budget and will not be in a position to pay above this. To succeed when following a low price strategy you need to be confident that your costs are lower than your competitors and that you can offer the lowest price while still making a profit. As an aside, since the start of the recession the industry has seen a lot of companies taking work below cost in the hope of winning future business or just to keep busy. This is a suicidal strategy, proven by the number of companies that have gone out of business.
My preference would be to go for customers looking for best value. This does not mean you can charge inflated prices, especially if everyone is making the same offer. But it does mean your customer will not buy the lowest price if value is demonstrated. What you need to establish are the things that are important to the customer and the way you can deliver them differently, giving extra value. Value might be represented by less disruption, extended warranty, a free safety check and many more. It is important to understand your customer’s issues so that you can identify relevant benefits to offer.
Building Relationships
This sounds a bit close and personal, but it is about developing a dialogue with your customer. At the start of a business relationship the customer is going to be distanced and cautious. They don’t know you and have no reason to trust you. You need to demonstrate that you are reliable, competent and worthy of their trust. You will find this easier if you have been introduced as a referral, although you still have to justify their interest. Ways to build trust include giving advice and presenting case studies of past projects.
Ideally you want your customer to take your calls and read your emails because they see you and your company as worth keeping in contact with. Perhaps they will tell you about opportunities in advance, or start to include aspects unique to your business in their specifications. For the small business dealing with the householder it is more distanced, but might include dropping them a note of thanks if they recommend you to a friend or neighbour.
Becoming the trusted advisor
An extension to the concept of building relationship, this is a higher level which is achieved as a result of demonstrating credibility. Quite often it can be as a result of turning work away and saying “You don’t need to do that, there is a far simpler way to solve the problem.” This approach moves you away from the category of ‘sell anything I can’, to ‘responsible and professional’. At the larger company level being a trusted advisor can result from running an in-house seminar, or giving free advice. It is about investing time, effort and sometimes money to establish your position. Once you have achieved the status of trusted advisor you are likely to be involved at an early stage of a project, possible having the inside track against your competitors. If dealing with a householder then they are less likely to look for alternative prices and just accept your price.
Cross Selling
Cross-selling is the process of selling additional products and services. The most obvious consumer example is the offering of extended warranty with a domestic appliance. While this can be irritating for the customer on occasions, when done correctly it can add value to the sale and provide your customer with additional service. While on a domestic visit look for other areas which might require work; an external safety light or adding double sockets. A free safety check can also identify opportunities. Handled well it will be seen as a benefit by your customer. But be careful not to appear to be pressurising or tricking them into buying.
Customer Satisfaction
I hope that it is obvious that customers have every right to expect good service. If they are happy they will invite you to do more work for them and they will recommend your service to others. Also be aware that in this modern digital age, if they are not happy with the service they receive it is very easy to tell a large number of people quickly via the internet. So focus on delivering a quality service first time round, and when the job is complete follow-up to make sure they are happy with the service they have received.
Once a project is completed make a call to confirm everything was satisfactory and to resolve any problems. This also provides an opportunity to start the conversation about new project opportunities.
Focus on the Customer
In summary, focus on your customer; understand what their needs are then deliver these in a way that differentiates you from your competitors and gives good customer value. That could include cross-selling, which adds to the benefits your customer receives and increases the value of your work. If your service is good, you will get repeat business and referrals, you may even become a trusted advisor.
Marketing initiatives for the medium-to-large contractor
Understand your Customers’ Needs
It’s important to understand your customers’ issues and what they are likely to want from a contractor.
- Research their background. The internet will provide plenty of information. Visit the corporate website, look for articles about them. If you subscribe to a project leads system this will give details of other projects and key decision makers.
- Phone and ask for some background. Use questioning to understand exactly what they want from a contractor.
- Value or Lowest Price; decide which your customer is looking for. Is this the right type of business for you?
Delivering Value
With what you know about your customer what can you do to deliver value? Think how you could do things differently to take out cost. Present these as benefits, with extra emphasis on areas which your competitors cannot provide.
Build Relationships
- Identify the key decision makers and influencers in your customer’s organisation. Go beyond the purchasing team. Involve others from your own organisation.
- Present your company as “The Experts” by providing technical information and advice.
- Make them aware of project successes, especially examples of how you have saved other customers money.
Deliver Excellent Customer Service
- If you do a good job, other work will follow. Ensure that everyone in your organisation understands this.
- Keep your customer informed and ensure key people in their organisation know of your success. Just because one Project Manager is happy don’t assume everyone else knows. However if one Project Manager is unhappy them probably everyone else will know!
- When a project is complete make a point of contacting all of the decision makers and influencers to check they were happy. Take the opportunity to ask what other projects they are working on where you could become involved.
Marketing initiatives for small contractor
Understand your Customers’ Needs
- When you meet a customer gather information about their needs by questioning.
- Look around and note the condition of the building and any other requirements they might have.
Lowest Price or Best Value Customer
- Understand if they are looking for lowest cost or best value. Decide if this is the right project for you.
- If adopting a value approach only present relevant benefits.
- If lowest cost, make sure there is enough profit in the job to justify your time.
Build Relationships
- Reassure customers, look for areas of common interest. e.g. Admire their garden.
- Support your claims with testimonials.
- Give advice on certain issues without charging.
- If they recommend you send them a note of thanks.
Deliver Excellent Customer Service
- While in their home, treat it with care and respect.
- Keep any promises you make.
- A few days after the job is complete call back to check everything is OK.
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Chris Ashworth co-authored the ECA report “2021 Vision”. He has worked in the construction industry for over 30 years and is founder of Competitive Advantage Consultancy which provides strategic marketing services to the construction industry. He is a fellow of the Chartered Institute of Marketing, a member of the organising committee for the Chartered Institute of Marketing Construction Industry Group (CIMCIG) and a regular contributor to industry journals including Construction News, Building, RIBA Insight’s bulletin and VoltiNEWS.
First Published: Jan 2012, ECA Today
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