Phil Anderson, commercial director at PJH Group, says customer service is the biggest weapon in the independent's arsenal, so why don't they make the most of it..?

Current trading conditions are testing us all, making us work harder and really evaluate our businesses. Rising to such challenges, responding proactively and investing time and money into your business is essential in order to survive the fluctuating market as well as come out better off on the other side.

Whether you are a retailer or supplier, great service levels and outstanding customer care has never been so critical to business success. So let's take a look at the basic rules for getting this right.

When the market is down, cost-cutting exercises are of course important, but it mustn't be to the detriment of your customer service. 'Getting it Right First Time' is a philosophy we follow and is by far the most effective and efficient way to work, offering the lowest costs to your business.

However, remember to be cautious when cutting costs and make sure they don't result in a drastic drop in service. Short-term cost savings may help today, but will they impact on the long term customer loyalty you've spent years cultivating? Remember your best customers are the most loyal ones so look after them first. It's been proven that, on average, every one loyal customer is worth over eight new ones. Many companies take this for granted, focusing too much time on prospects. Good customer service, reputation and word-of-mouth recommendation is everything, and worth much more than any advert.

Monitor yourself

At PJH, we know that many of the ways we run our business will directly affect our retailers' businesses - our sales outlets, so we have invested substantially into improving our service and ultimately the 'experience' of dealing with us.

Equally important, we monitor these service levels in order to ensure we continuously improve. Ask yourself what your customer service is like, and what customers would say about you? Successful customer service techniques used by even the largest of kbb organisations can be applied to the smallest of retail operations, and will help you ride out the storm - as well as cost very little.

Here's some other areas to look at:

Respect your customers: No matter what customer service strategies you follow, you must believe in them and have a sincere respect for all your customers.
Remember customers have a choice, even more so in a recession, and with increasing competition on product and price, the retail experience you offer must stand out and shine. Every time your phone rings or a potential customer visits the showroom, be flattered they have chosen you and do all you can to help and advise.

Customer profiles: Know exactly who shops with you. Why not create a customer database and update it regularly? Record all sorts of notes and background information, so that you can build profiles on your target audience - this will help you plan future strategies and communicate more effectively.

Communicate: A phone call to check a delivery has been made successfully will cost nothing yet it will make the customer feel valued. Create a simple checklist for every sale ensuring regular communication is made before, during and after. If necessary launch your own low cost or freephone sales number - this certainly pleased our customers! The easiest customer to win over is an existing one, so use your customer database and regularly post or email news about forthcoming product launches, sales and events. Why not incentivise them to make a purchase with free gifts or money-off vouchers?
And it's not just about communication with the customer. Everyone involved with your business - from installers to suppliers and delivery drivers - should all be kept in the loop and communicated with in a courteous manner.  

Customer feedback: Continuous feedback is essential in our dynamic market place and regular forums with our retail customers allow us to respond quickly and effectively to changing customer demands and it is not the preserve of large organisations. Whether you receive feedback via questionnaires, conversations or e-commerce channels, ensure this becomes a regular part of your strategy - and incentivise customers to respond. Record all comments, requests and complaints, and ensure you take time out each month to evaluate where you can improve, change, overcome problems or capitalise on new opportunities.

Suppliers: Choose and continuously evaluate your trading partners carefully. Suppliers with consistently good customer service will benefit your business - from reliable deliveries and high quality products, to helpful advice and an 'easy to deal with' approach. Don't allow an unreliable supplier to ruin a perfectly good customer relationship you have invested time and money into.

Training: It pays to invest in your people and their training needs. The value in the long term will again benefit those loyal customers (and loyal staff). Ask your manufacturers and suppliers what free training courses they can also offer.

Do not underestimate the enormous power of good customer service. Despite difficult trading conditions, there are plenty of opportunities out there waiting to be challenged, but you have to believe in the strengths of your business and the outstanding service you are capable of. However, it's not a perfect world and things do go wrong beyond anyone's control - but remember it's never the customers' problem. Turn problems into opportunities and devise your own 'Best Practice' ways. Remember it's all about customer service, not lip service. Yes, sometimes customers can be difficult, but if you respect their demands and make the sale, you will come out as the winner in the end.

What do you think? Email the editor direct: andrew@kbbreview.com