surviving in a competitive business new mexico college bookstore association dr. luis ortiz edc...
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Surviving in a Competitive Business
New Mexico College Bookstore Association
Dr. Luis OrtizEDC Executive Director/ProfessorLVSMEDC/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 realityCause “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
Education Social Work Science Engineering Business
Math English Spanish History Arts
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 = $1,175,000DIFFERENCE 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 = $2,021,000DIFFERENCE 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 Employees1) Extra-Role Behavior Employees (OCB)2) Contractual Agreement Employees3) Sub-Optimal Employees
Performance Model
Employee Affect or Disposition
1) Entitled Individuals (+)
2) Equity Sensitive (=)
3) Benevolent (-)
Trust
Job Satisfaction
OrganizationalCitizenshipBehavior
Improved Organizational Effectiveness
Organizational Activities
JobFAIRNES
S
1) Extra role (+) behavior employee
2) Contractual (min) agreement employees
3) Sub-optimal employees (-)
OCB
Organizational Justice
Job SatisfactionJob Performance
Trust/commitment
Theoretical Model of Employee Theoretical Model of Employee Work BehaviorWork Behavior
Source:Bateman & Organ, 1983; Konovsky & Pugh, 1994; Moorman, 1991; Organ, 1988
Distribution of rewardsProcedure of the organizationInteraction with co-workers & managers
PayCo-worker/managersJob itselfPolicy/advancement
EntitledEquity sensitiveBenevolent
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 resourceIf not you look shortBusiness triad (E/M/C)
Increasing their lifetime value…• Don Peppers and Martha Rogers, Ph.D.
Importance of Customer ServiceThe 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
If you lose ... Spending
$5 weekly
Spending
$10 weekly
Spending
$50 weekly
Spending
$100 weekly
1 customer a day 94,900 189,800 949,000 1,898,000
5 customer a day 474,500 949,000 4,745,000 9,490,000
10 customer a day 949,000 1,898,000 9,490,000 18,980,000
It is no big loss - What do you lose (1 person for a lifetime of sales and their referrals)It is no big loss - What do you lose (1 person for a lifetime of sales and their referrals)
What is losing one “Worth”:Autos Industry - 200KGrocery Business - 234KNewspaper .50 * 365 = 182.50 * 40 years = $7,300 30 papers @.50=15. * 40 years $600 Yearly subscription $75 * 40 = $3,000
Management’s CommitmentConstantRewardedWalk the talkAccountabilityValuedReinforce behavior with immediate
recognition
Study and Articles of Customer Service
Study and Articles of Customer Service
Employee’s CommitmentConsistent and fair w/ each other AccountabilityPositive AttitudeOwning our own behaviorProfessional vs. personalServing the customer
Practical Approach Seven Steps to Successful Customer
Service1.Total Management Commitment2. Get to Know Your Customers3. Develop Standards and Service
Quality Performance4. Hire, Train and Compensate
Staff5. Reward Service Accomplishments6. Stay Close to Your Customers7. Work Towards Continuous
Improvement
Practical Approach
6 Steps to Great Customer Service1. 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 Steps1. Encourage Face to Face Dealings2. Respond to Messages Promptly & Keep Your Clients Informed3. Be Friendly and Approachable4. Have a Clearly-Defined Customer Service Policy5. Attention to Detail6. 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 & Documents2. Keep in Touch During the Project3. Guarantee Your Work4. Learn to Manage Complaints5. After the Project is Completed, Give the Customer A Gift6. 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
87%
13%
Tone of Voice
Content
Face - Customer Service
Face to FaceRespectKindnessConsiderationEmpathyFriendly and effective serviceHonesty and feelings of prideUse examples to assist customers
Customer Service Factors
Face to Face
55%38%
7%
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 3rd 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?
Tactful Respectful Empathetic Caring Courteous Enthusiasm
Friendliness Nurturing Helpfulness Upbeat Pleasant
Understanding & Caring AttitudeUnderstanding & Caring Attitude
What do they want?
Knowledgeable Professional Good judgment Responsive Resourceful
Persistent Thorough Accurate Committed Quick Thinking
Problem Solving AbilityProblem Solving Ability
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 bookstoreWhy 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 – ExpertsPoisoned Pen – in AZInstant 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 comparewww.bestbookbuys.com
Engage the Department and ManagerCustomized value added products
Reasons to come inEvents (250 at AZ bookstore)
Students learn differentlyTap 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”