Keep ’Em Coming Back!
By: Dave Clossey / T.J. Tedesco
For: The Binding Edge
Published: Winter, 2002

Binderies, finishers and loose-leaf manufacturing companies need to perpetually pursue new business. However, it’s vitally important to keep the customers you already have, especially during troubled economic times. But before we go any further, let’s consider why customers leave in the first place.

In a study conducted by the Forum Corporation, buyers were asked why they ended relationships with vendors. Sixty-nine percent of respondents said their decision was based on either lack of contact and individual attention or poor service. A separate study conducted by the Office of Consumer Affairs in Washington yielded similar results: sixty-seven percent of participants ended business relationships due to “poor treatment.”

Take a look at some of the reasons why customers switch vendors. They include: poor product quality, changes in ownership, bankruptcy, uncompetitive prices, etc. However, all of these factors combined are not as compelling as poor service. For this reason, today we will concentrate on why customers leave and focus on ways to keep them coming back, again and again.

Reasons For Leaving
You may be thinking, “These numbers don’t represent my company.” Hopefully they don’t, but do you really know? Don’t assume your customer service level is top-notch simply because you haven’t received a bevy of complaints. After all, there’s only one way to find out how good your customer service really is … ask your customers!

The Forum Corporation study asked respondents to give examples of poor customer service that ultimately led to the termination of vendor relationships. The answers ranged from “undependable performance” to “lack of ethics,” which admittedly is a pretty broad range. But, most fell somewhere in the middle: frustration, ineffective sales rep, not living up to expectations, etc. All of these answers scream the same thing: we want more personal attention!

See if the following is representative of your company’s typical follow-up call. About a week or two after a job is completed and delivered, a CSR, salesperson or other company representative calls the client and asks if they’re satisfied with the job. After getting a “Sure, everything was fine,” the conversation ends. Exactly, what did you learn?

The fact you placed a call in the first place is a nice gesture – certainly better than no call at all – but if you carefully examine what happened, probably nothing of substance resulted, either for you or your client. If something was blatantly wrong with the job, they probably would have let you know. However, in hectic work environments such as ours, many people won’t be thinking of your past performance when you call out of the blue. In short, it’s very easy to get a “false positive.”

You’re on the wrong end of the transaction to know exactly how well a job went from the client’s perspective. In order to better serve your customers for the long haul, invest the time to discover what they really want. Whenever possible, and at a minimum of at least once a year, a senior team leader from your company should visit every significant customer, regardless of geographic convenience. A lot of tough questions should be asked and “active listening” principles should be wholeheartedly embraced. This will help create irresistible customer relationships and significantly improve your competitive situation. Your sales visits won’t take much time out of your customers’ schedules and they’ll appreciate knowing that you care!

It’s easy to call a client to see how things went when you have a pretty good idea that they’re happy with you. However, unchallenging situations like these tend to lead to uninformative conversations – unless the pot is intentionally stirred. Dig as deeply as possible to uncover hidden resistance. Ask questions that reveal how customers view the level of service you provide. Consider questions such as:

1. Has our service been consistent for you this past year?
2. Please name other vendors of yours that do a better job in servicing your needs. What do they do that’s better than us? Who sets the service standards in the graphic arts industry? (Note: These other vendors don’t have to be your competitors.)
3. Name something about our company or services that you’d like to see changed. (“Nothing” isn’t an acceptable answer. If necessary, prompt them with suggestions like: faster estimate turnaround times; more samples; or, not being placed on hold.)
4. If there’s a problem, are we easily approachable and quick to suggest reasonable solutions?
5. Do we pay attention to your specific needs?
6. Do our people listen and truly care?

Give customers ample opportunities to think about your services from several angles. Let them offer any input they have. Perhaps you’ll find that most are perfectly happy with the level of service they receive from you. By prompting people to voice concerns, they’ll feel more comfortable doing business with you.

Give Them What They Really Want
Getting answers is just the beginning. The information you receive means nothing if you don’t do something useful with it. If customers suggest changes, make sure you follow through – as long as their suggestions are reasonable. If not, provide an explanation as to why not. At least they’ll know that they’ve been heard.

If you find that customers are happy with their treatment, but would like faster turnaround times for instance, maybe an upgrade in some aspect of your operation is in order. Are they having communication problems with a sales or customer service rep? Consider switching the account to someone else. A fresh perspective may be just what’s necessary to jump the relationship to a whole new level. Luckily, most customers aren’t looking for much of a change – just a tweak here and there.

One thing you can always do is provide more useful information. A main reason why people continue to buy finishing services from their existing post press vendors is that they know they’ll lose a reservoir of useful knowledge if they leave. This goes beyond solving production issues. Since education is so important, add value by always distributing nuggets of information to keep the learning process alive.

For example, if an existing client thinks of you only for traditional case binding, let them know about other kinds of binding styles, such as cased-in Wire-O. Or, if you’re thought of for only folding, teach their key business influencers about your gluing capabilities. Keep your business relationships fresh by teaching your customers alternative solutions for their problems. Show them quicker and more-cost effective ways to get their work done. The result: You will win top-of-mind positioning … and they’ll keep coming back!

T.J. Tedesco is a “hands-on” marketing, sales, coaching and training consultant to the post press industry. He is the author of Binding, Finishing & Mailing: The Final Word, and Win Top-of-Mind Positioning, both published by GATFPress and available at Amazon.com. T.J. can be reached at (301) 294-9900 or tj@growsales.com.