Surviving in a Competitive Business New Mexico College Bookstore Association Dr. Luis Ortiz EDC Executive Director/Professor LVSMEDC/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 reality l Cause “more than a mission statement” Employees Management Relations ¢ Customer service ¢ l ¢ The model bookstore l ¢ Your best competitive advantage Why not your store! New Reality Recommendations Results l “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 l 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! l Great things are seldom done alone l
University Core Requirements - Students ¢ ¢ ¢ Math English Spanish History Arts ¢ ¢ ¢ Education Social Work Science Engineering Business
General Overview ¢ ¢ ¢ Accounting l Certified Public Accountants l Certified Management Accountants l Auditors Finance l Certified Financial Planner l Certified Real Estate Agent l Appraisers Economics l Economists (trends business cycle) l Macro/Micro Data Analyst
General Overview ¢ ¢ ¢ Marketing l Marketing Research l Sales l Advertising l Customer Service Specialist International Business l International Manager l International Executive l Consultant Management l Entrepreneurs l Professional Managers
… could you please be more practical ¢ Example one l HS 25 years • 25 @ 17, 000 = 425, 000 l UG 25 years • 25 @ 47, 000 = $1, 175, 000 DIFFERENCE OF $750, 000 ¢ Examples two l HS 18 yrs. to 65 yrs. = 47 years • 47 @ 17, 000 = 799, 000 l UG 22 yrs. to 65 yrs. = 43 years • 43 @ 47, 000 = $2, 021, 000 DIFFERENCE 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 l (infant, young, adult, and old age) Native Americans ¢ A satisfying and fulfilling career ¢ Life satisfaction
Management Theories Self-fulfilling Prophecy ¢ Goal Setting Expectancy Theory Social Comparison Theory ¢ Equity Theory Need Theory ¢ ¢ What the heck does that mean to me? ? ?
Because of this! Three basic classifications of Employees 1) Extra-Role Behavior Employees (OCB) 2) Contractual Agreement Employees 3) Sub-Optimal Employees
Performance Model Employee Affect or Disposition 1) Entitled Individuals (+) 2) Equity Sensitive (=) Job FAIRNESS 3) Benevolent (-) Organizational Activities Trust Job Satisfaction Organizational Citizenship Behavior 1) Extra role (+) behavior employee 2) Contractual (min) agreement employees 3) Sub-optimal employees (-) Improved Organizational Effectiveness
Entitled Equity sensitive Benevolent Theoretical Model of Employee Work Behavior Organizational Justice Distribution of rewards Procedure of the organization Interaction with co-workers & managers Trust/commitment Job Satisfaction Pay Co-worker/managers Job itself Policy/advancement OCB Job Performance Source: Bateman & Organ, 1983; Konovsky & Pugh, 1994; Moorman, 1991; Organ, 1988
Customer Service at NM College Bookstores ¢ Importance of Customer Service ¢ Study and Articles of Customer Service ¢ CS a Practical Approach l Steps of CS Improvement l Phone l Face to Face l Facility Layout l Discussion
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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 resource If not you look short l Business triad (E/M/C) l ¢ Increasing their lifetime value… • Don Peppers and Martha Rogers, Ph. D.
Importance of Customer Service The Tough Reality of Customer Service ¢ Study I l Bad service • A person will tell 9 of 10 they meet about it • 13% tell an avg. of 20 l Good service • A person will tell an average of 4 people about it ¢ Study II l Bad service (customer tells 32 avg. others) l 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 l l l 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…. l l ¢ …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 l It is no big loss - What do you lose (1 person for a lifetime of sales and their referrals) 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 What is losing one “Worth”: Autos Industry - 200 K Grocery Business - 234 K Newspaper. 50 * 365 = 182. 50 * 40 years = $7, 300 30 papers @. 50=15. * 40 years $600 Yearly subscription $75 * 40 = $3, 000
Study and Articles of Customer Service ¢ Management’s Commitment Constant l Rewarded l Walk the talk l Accountability l Valued l Reinforce behavior with immediate recognition l
Study and Articles of Customer Service ¢ Employee’s Commitment Consistent and fair w/ each other l Accountability l Positive Attitude l Owning our own behavior l Professional vs. personal l Serving the customer l
Practical Approach ¢ Seven Steps to Successful Customer Service 1. Total Management Commitment 2. Get to Know Your Customers 3. Develop Standards and Service Quality Performance 4. Hire, Train and Compensate Staff 5. Reward Service Accomplishments 6. Stay Close to Your Customers 7. Work Towards Continuous Improvement
Practical Approach 6 Steps to Great Customer Service 1. 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 Steps 1. Encourage Face to Face Dealings 2. Respond to Messages Promptly & Keep Your Clients Informed 3. Be Friendly and Approachable 4. Have a Clearly-Defined Customer Service Policy 5. Attention to Detail 6. 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 & Documents 2. Keep in Touch During the Project 3. Guarantee Your Work 4. Learn to Manage Complaints 5. After the Project is Completed, Give the Customer A Gift 6. 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 l Company’s name l Employee’s name l How may I (help, serve, assist) you l 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) l l Transferring Calls (always give the call the extension number in case they need it later) Thank them for calling!
Customer Service Factors
Face - Customer Service ¢ Face to Face Respect l Kindness l Consideration l Empathy l Friendly and effective service l Honesty and feelings of pride l Use examples to assist customers l
Customer Service Factors
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 3 rd grader
What to say! ¢ Secret weapon words l l ¢ “I am sorry that happened I understand can I fix it for you (Mrs. or Mr. Garcia)” l l l ¢ ¢ “I am sorry” “for you” 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 l Pleasant l • Offer no opinion • Thanks for you interest l 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 l l l ¢ Next in lines NIL No Problem – are they A nuisance A bother An interruption or are employees l l l 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 ¢ l 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? Understanding & Caring Attitude l l l Tactful Respectful Empathetic Caring Courteous Enthusiasm l l l Friendliness Nurturing Helpfulness Upbeat Pleasant
What do they want? Problem Solving Ability l l l Knowledgeable Professional Good judgment Responsive Resourceful l l Persistent Thorough Accurate Committed Quick Thinking
Facility - Customer Service ¢ Facility Layout - Customer service area l Comfortable l Visional designation between work and customer area ¢ Everything that you can use l Build trust with customers w/ service l Reinforce the need of treating customers right ¢ Tickets Scheme – have a plan l Give employee all five tickets at start of the month l 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 bookstore Why not your store! ¢ Big box ¢ Online mega-store ¢ Exploiting your space on their dime
What is our Niche? ¢ NM Students l ¢ Nationwide 15 million in Higher Ed Highest Trained – Experts Poisoned Pen – in AZ l Instant Review l
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 compare l ¢ Engage the Department and Manager l ¢ Customized value added products Reasons to come in l ¢ www. bestbookbuys. com Events (250 at AZ bookstore) Students learn differently l Tap 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 l “Owning our own business behavior”
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