Impact of the Recession on Customer Loyalty

Many business owners and managers will tell you that they are struggling to maintain market share and service levels to guarantee customer loyalty. This has been a trend for a number of years and particularly became difficult once the recent economic downturn kicked into full swing. To off-set the trend, companies are striving to provide excellent customer service, create moments of truth that make the customer feel special and encouraging customer service representatives and employees at all levels to exceed customer expectations.

A big challenge is that companies realized that in addition to losing customers, they were also losing profits as many middle class and some higher-income customers retrenched on spending. To offset their reduced disposable capital, consumers have changed their spending habits, stopped eating out and traveling as much, limited their entertainment budget, shopped less for non-essential items, and cut services that they considered a luxury (e.g. grass, pool, and pest control services) and started handling those functions personally. They also started doing more comparative shopping, spent more time bargain hunting, attended yard sales and consignment shops, clipped more coupons, and in many instances traded down to less expensive store items or those that were not in the “status symbol” or name brand categories.

The result of all these cultural and societal changes has been that now that customers are accustomed to the “new economic normal.” They realize that they can actually live well and be comfortable at a lower spending level and using lower quality products. They even realize that in many instances they actually happy with their new lifestyle and spending habits. As a result, even though the economy has started a slow upward movement, consumers are now remembering the economic pain they suffered and are stashing away as much as they can in the event the recession comes back.

What all this means for retail businesses, service providers and product manufacturers are that they must retool their marketing and production mentality. They are reducing on-hand inventories, minimizing staff hiring and using part-time employees or outsourcing services and re-examining the way they deliver customer service in a changing world. In particular, they are changing the manner in which they show added value to their customers in an effort to gain and retain new ones.

The changing business environment has resulted in a winning proposition for many consumers who now feel that they are in a power position related to making purchases. This is especially true in instances of major buying decisions (e.g. cars, houses, property, recreational vehicles, and other higher-end items). Many realtors and dealers have experienced a large inventory surplus due to a slowdown in purchases and tightened lending policies from financial institutions. This has created a buyers market.

By doing adequate research and coming to the sales environment with knowledge of manufacturing costs, competitive pricing, and product and service details, the consumer is now often in a position to negotiate strongly and get pricing that is not only fair but also better than they could have gotten in the past. Retailers in nearly every type of product line and business are willing to negotiate and offer discounted prices when pressured by the customer to do so. They do this because they realize that their competitors will discount if they do not and the customer is likely to walk away, if not satisfied with an offer they receive. In addition, with a global economy and access to products from around the world only a mouse click away, companies realize that they must deal or die.

From a customer service perspective, it is imperative that managers develop a customer-centric mindset and that customer service representatives and everyone else in the organization adopt a can-do/must-do attitude when it comes to communicating effectively and working with customers. They must provide the best customer service possible in any instance where there is a of customer-provider interaction. Only through such initiatives will organizations be able to show customers that they offer the best value, care about their wants, needs, and expectations, and are willing to put forth the effort to help achieve customer and brand loyalty.

About Robert W. Lucas

Bob Lucas has been a trainer, presenter, customer service expert, and adult educator for over four decades. He has written hundreds of articles on training, writing, self-publishing, and workplace learning skills and issues. He is also an award-winning author who has written thirty-seven books on topics such as, writing, relationships, customer service, brain-based learning, and creative training strategies, interpersonal communication, diversity, and supervisory skills. Additionally, he has contributed articles, chapters, and activities to eighteen compilation books. Bob retired from the U.S. Marine Corps in 1991 after twenty-two years of active and reserve service.

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The key to successfully making money as an author and/or self-publisher is to brand yourself and your company and to make yourself and your book(s) a household name. Part of this is face-to-face interaction with people at trade shows, library events, book readings, book store signings, blogging or guest blogging on a topic related to their book(s). Another strategy involves writing articles and other materials that show up online and are found when people search for a given topic related to a topic about which the author has written.

If you need help building an author platform, branding yourself and your book(s) or generating recognition for what you do, Make Money Writing Books will help. Bob’s popular book addresses a multitude of ideas and strategies that you can use to help sell more books and create residual and passive income streams. The tips outlined in the book are focused to help authors but apply to virtually any professional trying to increase personal and product recognition and visibility.

The Role of Eye Contact in Customer Service in a Diverse World

by Robert W. Lucas

The Role of Eye Contact in Customer Service in a Diverse World

It has been said that the eyes are “the windows to the soul.” Eye contact is very powerful. This is why criminal investigators are often taught to observe eye movement in order to help determine whether a suspect is being truthful or not.

In most Western cultures, the typical period of time that is comfortable for holding eye contact is 5 to 10 seconds, then an occasional glance away is normal. Looking away in many cultures can often send a message of disinterest, or dishonesty, or lack of confidence. If either the length or the frequency of eye contact differs from the “norm,” many people might think that you are being rude or offensive. They might also interpret your behavior as an attempt to exert power or as flirting.

Other potential nonverbal problems when dealing with customers can be caused by looking down before answering questions, glancing away continually as your customer talks, blinking excessively, and other such eye movements can create a negative impression.

In any case, your customer might become uncomfortable and may react in an undesirable manner (for example, becoming upset or ending the conversation) if you use eye contact in what they perceive as an inappropriate manner.

As with all other aspects of workplace interaction in a multicultural customer service environment, do not forget that cultural values and practices often influence the way in which people communicate and interpret message signals.

Just as you send messages with your eyes, your customer’s eye contact can also send meaningful messages to you. A customer’s lack of direct eye contact with you could send a variety of messages in a westernized culture. It might send messages such as a lack of interest, confidence, trust, or dishonesty, depending on how you interpret those cues. For example, if you are watching a customer shop and notice a quick loss of eye contact each time you try to engage the customer visually, the customer might be nervous because he or she is shoplifting, or the customer simply might not want your attention and assistance.

As with any other form of nonverbal communication, always look for clusters or multiple cues before interpreting the meaning and deciding on a course of action. This is because you are dealing with humans whose background, gender, personality, culture and various other factors can easily impact their intent. If you filter based on your own personal beliefs or background, you can potentially cause a service and/or relationship breakdown with your customer.

Customer Service Skills by Robert Lucas

About Robert C. Lucas

Make Money Writing Books: Proven Profit Making Strategies for Authors by Robert W. Lucas at Amazon.com.

Four Tips for Delivering Customer Service in a Diverse World

by Robert W. Lucas

Four Tips for Delivering Customer Service in a Diverse World

The world is much smaller than it was several decades ago. More expendable income, ease of travel and technology have closed the distance and communication gaps that were formerly in place. As a result, you are likely to encounter customers from various cultures and backgrounds at any time during your workday. If you prepare for this inevitability by increasing your cultural awareness, recognizing the value of cultural differences and expanding your knowledge of cultural nuances, you are less likely to run into conflict or encounter misunderstandings.

The following are four tips for potentially preventing service breakdowns when you are dealing with customers from cultures different from your own.

A key point to remember is that the concept of treating others as you would like to be treated (a value common in many religions—e.g., The Golden Rule) can lead to service breakdowns. This is because your customers are unique and may not value what you do or want to be treated as you do. To better ensure service success, find out what customers want and treat them as they want to be treated. This concept has been termed the Platinum Rule by Dr. Tony Alessandra.
Always ask your customer his or her preference for being addressed rather than assume familiarity and make the choice yourself. The latter can lead to a service relationship breakdown since, in many cultures, formality and use of titles and forms of address are important to a person’s value system.
By being aware of the time values that you and your customers have and proceeding accordingly; you can reduce your own stress level when dealing with customers or clients from other cultures. In many cultures, arriving half an hour or more after a scheduled event time is an acceptable social custom. If you arrive on or ahead of time, you may actually offend someone or catch them unprepared.
Do not point out the mistake if a customer makes an error or is wrong about something (e.g., improperly fills out a form or uses an incorrect word when speaking). Instead, take responsibility for correcting the error or clearing up the misunderstanding (e.g., “I am sorry that these forms are so confusing. I have trouble with them too.” or “I apologize that I did not clearly explain what you needed to do to get a refund.”). This strategy allows you to assume responsibility and helps them avoid embarrassment (save face). It also sends a non-judgmental message that you are there to assist them.

For hundreds of other tips on effectively interacting with customers who have various cultural values, gender differences, abilities, and other diverse characteristics get a copy of Please Every Customer: Delivering Stellar Customer Service Across Cultures.

About Robert W. Lucas

Make Money Writing Books: Proven Profit Making Strategies for Authors by Robert W. Lucas at Amazon.com.

Impact of Demographics on Consumer Spending

by Robert W. Lucas

Impact of Demographics on Consumer Spending

The world is shrinking as millions of consumers from various cultures and demographic backgrounds come together. In an age of lightning-fast technology and the ability to get onto a plane in the morning and be in another country within twenty-four hours, the likelihood that a customer service representative will deal with someone from a different background who looks, sounds and thinks differently from them is almost a given. With these encounters comes huge revenue generation opportunities, but also big challenges in how to effectively provide service to individuals from various backgrounds.

Like many parts of the developed world, consumer behavior and the overall buying power of various ethnic groups in the United States has grown. According to one study done by The University of Georgia’s Selig Center shows that “…Over the 19-year period (1990-2008), the percentage gains in minority buying power vary considerably by race, from a gain of 337 percent for Asians to 213 percent for American Indians to 187 percent for blacks. All of these target markets will grow much faster than the white market, where buying power will increase by 139 percent.”

Other sources contend that women are also a force to be reckoned with in the retail environment. Female consumers account for a majority of buying decisions on consumer products and services in many areas, including everything from automobiles to healthcare. Many of the increases described are due to more representation of these groups in the workplace and at higher levels (e.g. management), higher education levels and better access to workplace opportunities for minorities (e.g. training, promotions, and transfers).

Various diverse groups are also having a major impact on global markets, especially in the United States where a report on http://www.marketingresearch.com “…estimated the buying power of gays and lesbians exceed $835 billion and projected the gay and lesbian population to exceed 16.3 million people by 2011.” In addition, people with disabilities spend billions of dollars on goods and services. Some estimates for online spending by this group alone top $10 billion dollars a year.

Add to the numbers you just read the demographic of the newest generation of shoppers – Generation Y (also known as Millennials, teens, Tweeners, and Twenty-Somethings) born between 1978 and 2000 with nearly eighty-four million members in the United States alone. According to Kit Yarrow and Jayne O’Donnell in their eye-opening book Gen Buy: How Tweens, Teens, and Twenty-Somethings Are Revolutionizing Retail, this demographic group spends over $200 billion dollars a year and it is estimated that in their lifetime, their consumption will top $10 trillion dollars.

Obviously the recession slowed the number of sales being made worldwide. Even so, with the types of economic power being wielded by various ethnic, age and other diverse groups, service providers should plan accordingly and be prepared to meet the needs of each group of customers.

What this means is that by gaining knowledge about values, beliefs, motivators, history and other factors that can influence someone’s behavior and perceptions, especially related to those of different diverse categories, you can better prepare to serve them. For example, there is a potential for distrust when some people of different cultures or groups with a history of negative relations (e.g. Caucasian and African-American or North American Indian, Chinese and Japanese, Israeli and Palestinian, Christian and Muslim) come together. As a service provider, if you are aware of potential negative perceptions, you might modify your approach to providing service in a given situation.

For more information and suggested strategies for serving a global customer base, get a copy of Please Every Customer: Delivering Stellar Customer Service Across Cultures.

Who is Robert C. Lucas?

Make Money Writing Books: Proven Profit Making Strategies for Authors by Robert W. Lucas at Amazon.com.

Creating a Service Culture

by Robert W. Lucas

Creating a Service Culture

Most workers do not realize that everyone in the organization, from the CEO down, is in the service business and is responsible for helping create and maintain the service culture. This means that whether you world with external customers (people who contact you and pay for your products and services) or internal customers (people who work in other areas of the organization, and to whom you provide or get information and services to allow you to do your job) you are a service representative to others.

It does not matter whether your work for a large multi-national organization or a small business, the principle is the same; nor, does it matter if your title is Customer Service Representative or CEO. You are the “face” of the organization when interacting with others. By the way, this applies when you are standing in line in your uniform or with a company nametag on at a fast-food restaurant at lunchtime and someone asks a question or complains about a situation with your company. What you do and say next reflects on you as a person and as a representative of your organization. Depending on how you handle such situations, you can project a positive professional image or can come across as someone, or an organization, with whom the person does not want to patronize. If you forget this point, you potentially lose customers and revenue for your organization. That means fewer dollars for raises, benefits, training and upgraded equipment or supplies to do your job.

Exactly what is a service culture in an organization? The answer is that it is different for each organization. No two organizations operate in the same manner, have the same focus, or provide management that accomplishes the same results. Among other things, culture includes the values, beliefs, norms, rituals, and practices of a group or organization. Any policy, procedure, action, or inaction on the part of your organization contributes to the service culture. Other elements may be specific to your organization or industry.

As an employee, you may communicate the culture through your appearance, your interaction with customers, and your knowledge, skill, and attitude. The latter element is crucial in your success and that of your organization.

As a service provider, if you take a job just to have a paycheck without buying into the service culture and supporting the goals of the organization, both you and the organization will lose. Each person in an organization should strive to help build strong customer-provider relationships

For you to be successful in the service industry (or any other for that matter) you must take ownership of your roles and responsibilities and show commitment to doing the best you can every day that you go to work. Even further, you must project a positive attitude when you are not at work as well. All the time, your goal should not be to deliver the best customer service possible.

A big challenge to any organizational culture comes in the form of social media. Many people have become a victim to careless comments that they placed about their organization, supervisors or peers on Facebook, LinkedIn or other social media site. Think about the number of times you have heard friends “bad mouth” their boss, organization, products, and services. Did their attitude toward their job inspire you to want to patronize their workplace or apply for a job there? If you were to take the same approach in sharing information about your organization or the people in it, there can be a negative effect on you and the organization. What you do or say around others in any environment sends a powerful message about you, your level of professionalism and your organization. If you cannot support your employer; quit and find a job where you can. To do less is being unfair to yourself and your organization.

The bottom line is that contributing to the service culture of your organization is the responsibility and everyone else who works there.

For more ideas on how to provide excellent customer service and help create a positive customer service culture, get a copy of Customer Service Skills for Success.

Customer Service Skills for Success

by Robert W. Lucas

Customer Service Skills for Success – Tips for Delivering Excellent Customer Service

In one of my books, Customer Service: Skills for Success, I feature how-to strategies on topics for customer service representatives that can assist in moving from good customer service to excellent customer service delivery. By applying strategies found in the text, customer service professionals can enhance their knowledge and skills and make them more successful in delivering service to all types of customers.

In the chapters of Customer Service: Skills for Success I cover the concepts and skills needed for success in the service profession. Strategies provided to readers include listening techniques, verbal and nonverbal communication, using technology to deliver service, addressing the needs of internal and external customers in any business environment, how to build customer loyalty and what to do when service breaks down and they need to recover. I also share experience and tips on how to use positive global service strategies for dealing with diverse customers.

Here are three tips for ensuring better service delivery to your customers:

If you seek trust; communicate it through your words and nonverbal cues.
If your supervisor empowers you to make decisions, that means he/she trusts your ability to handle various issues. Do not take this trust lightly. Before taking action, stop, weigh alternatives, and then resolve the situation to the best of your ability in order to send a message of competency and professionalism.
Unhappy people are still either customers or potential internal or external customers when they contact you at work. Your goal should be to try to serve them effectively them so that they return for future products or services. If you fail at this goal, you and your organization or department will potentially suffer financial and prestige loss.

I am always interested in hearing what is working and what is not in organizations related to customer service. If you have ideas, suggestions, tips or cutting edge practices in the professional that you would like to share with others, please comment.

For ideas and information on how to improve your own customer service skills, get a copy of Customer Service Skills for Success by Robert W. Lucas.