Recognition: A Free Business Builder

"When a customer enters my store, forget me. He is King." John Wannamaker

Dear Dr. Adams,

We own a small dry cleaning store in a local shopping center and need some advice. Our sales are too low. We do not have much money to spend on advertising. We have tried coupons in our local weekly paper but nothing seems to help. Some days are busy, but too many are slow. Some so slow we get nervous. When I ask other merchants in our center, they tell me that business is fair. What ever that means, we are tired of struggling to meet our bills each month, is there anything we can do? I read your column each week looking for answers. I budget our cash, I watch out for any unnecessary expenses, but our sales are just not enough to make the kind of money we need.

Yours Truly Roger, the Dry Cleaner

Dear Roger,

Your situation is not unique. Low sales volume is a common business problem and a major cause of failure. It sounds as if you are surviving, but shy of your expectations. If you have pared your expenses, looked at your pricing to see if you are not too generous with discounts, freebies, etc. You are right in focusing on ways to build your sales volume to boost your income. If, as you write, your ad budget is limited (and if you have any money at all for advertising), here are my thoughts.

First of all, what do you know about your customers? Are they local homemakers, young professionals, students, seniors, etc.? If you think about it, each type of customer may have a particular reason for using your services. And these reasons may give you a clue about what brings them in your front door.

Next, look at what else motivates your customers. Is it your pricing structure? Is it your location? Is it the quality of your work? Is it your service? Is it your personality? Think about the possible answers. Relate these answers to your personal shopping habits. You may find a helpful hint or two.

Roger, I have posed a slug of questions, all aimed at discovering and understanding your customers' motives. Entrepreneurs who are ignorant of their customers' shopping habits and needs usually have a tough time succeeding. You can waste many ad dollars if you do not know how to zero in on your customers profile. To use a trite sales cliché, you do not sell refrigerators to Eskimos.

The success of most service businesses such as yours is customer loyalty- They keep coming back! What do you know about customer loyalty? It does exist for those entrepreneurs who know how to cultivate and appreciate its importance. And it is the wise small business owner who avoids the efficiency experts approach to marketing such “take a number” if you want service, or the automatic telephone systems telling you to press one, press two, and so on, an experience that will raise your blood pressure. In my opinion, such an impersonal approach for your business is suicide. You do not build loyalty by offering customers a frustrating experience.

If you want some immediate success without spending a dime, try this suggestion. Roger, what is your favorite sounding word? Not a silly question- it is your name. And anyone who utters your name is showing you recognition. Yes, recognition of you as a person, an individual-someone with wants and needs. We all thrive on it. Moreover, it is one of the easiest and most effective sales tools in business world.

To cultivate customer loyalty, give them a reason to use your service. We all like bargains and low prices- but we like to feel recognition and appreciation even more. We like to do business with people who know us, who appreciate us, who have an understanding of our needs. We like to do business with people who are honest with us, keep their promises and when we have a problem help us with it.

In a sense, fall in love with your customers. Romance them. Yes, there are customers who are always looking for the edge and will “nickel and dime” you every chance they get. Nevertheless, you know who they are--and they will follow the lowest price or the best deal regardless of how your treat them. And when you lock horns with these “rug dealers” just say no. And you know, some come back.

Roger, put your customer first and build your business one customer at a time. Train and insist that every employee treat every customer with the utmost care. Pay attention to the interaction of your employees to everyone who enters your front door. If you discover problems such as rudeness, lack of attention, lack of interest, jump in and correct the situation. Bear in mind, that in the retail business, word of mouth advertising can build your business, and word of mouth complaints can kill it.

Copyright 2003 Dr. Paul E Adams, Professor Emeritus Business Administration Ramapo College of New Jersey, internationally syndicated columnist and author of “Fail Proof Your Business: Beat the Odds and be Successful” (available Amazon.Com). If you have questions or comments, contact me: drfailproof@earthlink.net