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Service: The Small Business Competitive Edge

Tuesday, June 28th, 2011

The recession has forced many businesses to make changes to their business plan in order to survive. Recently, the most popular change involves cutting costs wherever possible. In order for the small business owner to stay competitive, good quality service is the key.customerservice0628

Larger companies can afford to pay less attention to service because they can offer lower prices, a problem for the small business owner who doesn’t have the massive budget of a major corporation. However, customers who receive bad service will tell twice as many people about it. This can hurt any business, no matter how low their prices are.

Here is where the smaller businesses stand out by offering better service than the competitors. According to Jim Bush, executive vice president of World Service American Express, “American consumers are willing to spend more with companies that provide outstanding service, and they will also tell, on average, twice as many people about bad service than they (tell) about good service. Ultimately, great service can drive sales and customer loyalty.” The advantage to small businesses: a loyal clientele base willing to spend a little more for superior service, and be happy about it!

An article in The Christian Science Monitor gives the small business owner three pieces of advice to follow in order to show customers they are willing to go that extra mile and provide an amazing experience the customer will not soon forget.

First, hire people who have customer service experience and are enthusiastic about providing it. Second, communication is key—whether it’s between employees and customers or employees and yourself. And third, make sure to promote an honest environment. People don’t like to be misled or lied to. Remember, bad news travels twice as fast as good news.

To read the entire article, please click here.

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