Competing on Service: Eleven Ways to Beat the Competition by ‘Hugging’ Your Customers

The U.S. economy is still in a deep funk, and for many small business owners that means business isn’t exactly booming. Forced to do more with much less, the small businesses that have managed to survive and even thrive during these tough times have recognized one important factor: You can’t always compete on price, but you can compete on service. And the best thing about great customer service is that providing it doesn’t cost you an extra penny.

When your competition is scrounging for customers, you have to hold yours close, and that starts with great customer service.

Today’s small business owners need to understand that cutting costs will not save their business. Remember, customers are concerned about their own financial security. When they walk into a business, they need to feel cherished and special. They need to be ‘hugged’ by great customer service. Customers don’t expect to get bottom-of-the-barrel prices everywhere they go, but they do expect to be treated with respect.

Great customer service doesn’t just happen. It starts with employees who have been trained in the science of service.


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About the Author

Edward D. Hess is author of Growing an Entrepreneurial Business: Concepts & Cases and is a professor of business administration and Batten Executive-in-Residence at the Darden School of Business, University of Virginia. He is the author of nine books, over 60 cases, and over 60 articles. His work has appeared in over 200 media outlets around the world including CNBC, Fox Business News, Dow Jones Radio, WSJ Radio, MSNBC Radio, NPR, Forbes, Bloomberg, BusinessWeek, CFO magazine, Financial Executive, Journal of Applied Corporate Finance, Big Think, the Washington Post, and Financial Times. His book Smart Growth: Building an Enduring Business by Managing the Risks of Growth was named a 2010 Top 25 Business Book for Business Owners by Inc. magazine.

Seven Secrets of Driving Customer Loyalty – and Profits

In these rough and recessionary times, it’s important to escape the commodity pricing wars and to find ways to strengthen the marketing backbone of your company. The most reliable and affordable way to achieve both these goals is by building a strong personal bond with your customers. Loyal customers see you as more valuable than a mere commodity purveyor, and can serve you as a powerful marketing arm, going out of their way promote and defend your company online and off – for free. Here are seven ways to get process started of building customer loyalty.

  1. Did you shine that doorknob? Research shows that customers remember the first and last minutes of a service encounter much more vividly – and for much longer – than all the rest of it. Make sure that the first and final elements of your customer interactions are particularly well engineered, because they are going to stick in the customer’s memory.

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    About the Author

    Micah SolomonMicah Solomon is the co-author with Leonardo Inghilleri of Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization (AMACOM Books) and President of Oasis Disc Manufacturing. His free online resource site for customer service advice is CollegeOfTheCustomer.com.