Tag Archives: customers

[AUDIO] Cooling Angry Customers

Angry customers will come into your life. The best thing you can do to be prepared is to make sure you and your crews do the very best work possible. Have a quick response time when accidents do happen. Work to understand the root cause to any accident, and correct it. Keep your emotions in check and remember, don’t argue about an issue that you know you will lose!

Learn more in today’s Learning While Listening podcast, “Cooling Angry Customer.”

 

 

[TRANSCRIPT]

Sooner or later we all run into that one customer that, if the truth were known, we would love to rip out their throat. You know the type of customer I’m talking about, the type that no matter what you did to correct an honest mistake, they would never forgive or forget you, your company, or the job you completed.

Sadly, in some of these extreme damage control situations it might be wise to take our lumps and walk away. However, there are several things you can try before throwing in the towel and licking your wounds. Let’s first create a situation that captures some of the intensity a customer might be feeling when mistakes have been made.

John’s asphalt and sealcoating company was completing a private medical clinic parking lot. On the first day of tearing out the asphalt John’s backhoe driver accidentally hit a gas line. It was an honest mistake with the gas line being a little further from the building than either the driver or John would have imagined. Mistake #1.

While the physician who owned the medical practice was upset, he seemed to understand the mistake. The line was fixed within a few hours and the practice didn’t miss a beat in seeing patients. On the second day a hot mix delivery truck backed into a patient’s car, doing several hundreds of dollars of damage. While John’s insurance would cover the car damage, it was not good “PR” for the clinic.  Mistake #2

Finally, a few days later the striping machine malfunctioned. Within a span of 30 seconds there was yellow paint sprayed on one parked car and the corner of the clinic building. The corner that was sprayed happened to be the office…of the building owner. Mistake #3

Now, while some of you are still yukking it up inside, consider any foul-ups you have had. I’m sure for some of us, John’s luck is nothing compared to what we have experienced. Anyway, what could John do in a situation like this one with the angry customer?

First, it is too late but John must ensure that all of his equipment is on a preventive maintenance schedule. The striping machine might have been operating fine but it will still need to be regularly maintained to prevent the type of accident reported here.

Second, aside from apologizing, John will need to go out of his way to see that all individuals who have been impacted by the accidents are more than taken care of. The insurance will take care of the damaged car, the painted car, and the painted building. However, if John wants to ensure greater customer satisfaction, he should be prepared to provide some extra gratuitous compensation.

Providing along the lines of a weekend stay at a nearby hotel or resort, or pay for a dinner at an upscale restaurant. One weekend at a resort or a dinner at even the most expensive restaurant in town will not replace a car but it does demonstrate the seriousness of your commitment to correct your mistakes.

Third, some of you are already thinking that this job may have to be a freebie. Well, if the customer pushes you on this item of business, you may very well have to “eat” this job. I’m not convinced that you have to do this, at least in the beginning, so do not surrender to early. Depending on the physician’s ethics, if he believes you to give in too easily, he may really take you to the cleaners. Whenever possible, try to work out a settlement that does not include giving away work.

Fourth, remain calm when interfacing with the customer. In John’s situation, he had better be prepared to “eat crow” and bite his lip as he takes in an earful from the customer. You only make matters worse if you respond angry or sarcastic. Take your beating like an adult and keep your head cool so you can think through the proper corrective steps. I remember some sound advice from my dad, “Don’t argue or fight about an issue that you know you will lose.”

Finally, the best thing you can do to calm an angry customer is to take corrective action as soon as possible. Have the painted car and building worked on immediately. This suggests having a “crisis action plan” in place for such accidents. Know who the best people are in town who can clean such messes up when necessary. Hopefully you will not have this type of run of luck very often but if you have been in business for any time at all, your day is coming.

OK…Let me give you some bullet point actions in review.

  1. Don’t lose your own temper when the customer loses theirs’.
  2. Be patient…listen first and reinforce your sincerity by taking notes.
  3. Don’t contest everything the customer says happened. They may be wrong but do not argue with them…this is not the time.
  4. Prepare by understanding exactly what happened and/or circle back around to inspect…just be patient and keep your findings to report, if they differ with the customer’s perspective, until tempers have cooled.
  5. Finally, do not avoid the customer. Be sure to take your whipping like a “man” but follow-up.  This will win their respect…someday…but do not avoid following up.

This article was not easy to write. Why? Because looking at John’s situation as my own, I realize that I might not be able to do anything that would convince the customer to use my company again. Then again, considering that I might do some of the reconstructive things mentioned in this article, perhaps the customer would at least realize that I took full responsibility for mistakes made.

Angry customers will come into your life. The best thing you can do to be prepared is to make sure you and your crews do the very best work possible. Have a quick response time when accidents do happen. Work to understand the root cause to any accident, and correct it. Keep your emotions in check and remember, don’t argue about an issue that you know you will lose!

 

[VIDEO] Overcoming Customer Objections

When thinking through how to overcome customer objections, its important to remember that objections are normal! No one wants to spend more money than they have to, or make investments in areas that they can’t personally see as being necessary. However, this can be overcome with planning and strategy. Today’s leading contractors are able to find customer “hot buttons” and cracks in their own business strategy to find ways to push back against customer objections without alienating key clients.

In just 2 minutes, learn five tools you can use to overcoming objections from customers!

REMEMBER: You can watch all of our 2 Minute Drill series at videos.pinnacledg.com, and you can download the Pinnacle Development Group App to watch your training videos on any iOS, Android, or Windows device.

 

 

New Revenues From Old Customers

From marketing we understand that it takes less money to maintain our customer base than it does to develop new customers. It also means you can increasingly see new revenues from old customers as a key aspect of your future growth. While this seems to make sense for businesses that produce or sell “perishable” products like food, clothes, maybe even cars, I always found it rather difficult to apply this thinking to construction.  Boy was I wrong!

In more than twenty years in the construction industry, both as a contractor and consultant, I have realized time and time again the reality of increasing business from my number one “prospect”…my current customer.  Yet I continue to get requests from contractors on how to grow their revenues through developing new and creative business development strategies to capture new customers.

Now, we certainly need to maintain an effort to drive new business but too many opportunities slip by us to increase our revenues, and our profits, with those customers who we have performed work for in the past.  Let me share a few techniques and approaches that may help you to raise your revenue this year by going back to a proven “fishing hole.”

Gain the Vision of Your Customer

New Revenues from Old Customers

Photo courtesy of www.freedigitalphotos.net

Getting a clear picture from your customers about what their building or project objectives are should be an effort made during the selling phases leading up to the first sale.  If the project is commercial, will there be additional concrete needs?  What are the expansion projections?  If the job is for a residential customer, will the customer be looking at additional add-ons or improvements in the future?  Don’t be timid when it comes to identifying future opportunities that your customer may be looking at in the future.  If you don’t ask the customer might mistakenly assume you really aren’t that interested in more work.

Strive to “Partner” on the Development & Budgeting Effort

Nothing ties a contractor to a customer better than having been part of the actual development phase of the project.  Whether you can assist the customer develop a more inviting patio design or you can provide a more efficient method to put the columns in place, being part of the development of any project gains you greater respect and long-term opportunities.  Likewise, working as the financial consultant on developing a practical budget with your customer allows you to get close to the real emotional side of paying for the project.  Once you enter the “inner sanctum” of the customers financial world there is little else that they will be shy about discussing with you.

Personalize Your Follow-up and Stay-in-Touch with Customers

This combination of efforts continues to be the leading reason why more contractors fail to new revenues from current customers.  Follow-up moves to contact the customer about work that is in process to see how they are doing and what they are thinking.  If the customer shares their desire for additional work in the future follow-up gives you license to call or e-mail them on a consistent basis to keep your name and desire in front of them.  Even if you have sales people who made the sale it is important that you contact the customers.  Often, an owner brings even greater interest and intensity to the relationship.  Many contractors will send out generic thank you cards and letters, perhaps even putting new customers on their newsletter receiving list.  While these efforts keep your name out there they are not of the personal nature that brings greater “likeability” to you and your company.  Touch your customers…personally.

Host Customers for Your Company’s “State of the Union”

Once a year you should host a breakfast or luncheon where you invite some of your better customers to share with them your firm’s direction and commitment to your customers.  This is a good time to invite your customers to share their needs and expectations about where they are going.  I’ve facilitated many of these luncheons, often called “Lunch and Learns,” for contractors across the United States and the response is always very positive.  You can always hold more than one of these luncheons a year and simply better segregate the customers you want there.  The customers actually enjoy the luncheon since they will often fall into conversations with other customers who have also enjoyed your company’s work results.

Provide an Incentive to Repeat Customers

Certainly, many customers appreciate an incentive from a contractor who they have given work to in the past.  An incentive might be a percentage discount on upcoming work to be performed, a “pass” on a deposit that is often required of new customers, or a higher priority in scheduling upcoming work.  While the financial incentive might be the hook with customers whom you have just completed one or two projects the long-term customer may simply appreciate knowing that you will move their job up a little sooner on your schedule when possible.

Continue to Provide Before & After Photos

One mistake contractors can make is to discontinue giving past customers photos of their projects.  This is a subtle way of telling the customer that you don’t have to work that hard to keep their business or that you might be taking their business for granted.  It is just as important to maintain the same energy and sales effort with customers that you have done five or fifteen projects for as it is with the brand new customer who you are trying hard to impress.

Ask Customers for Referrals

This networking technique is especially important for contractors who work with residential customers.  While the home owner who needed a drive way or patio poured and finished might not own other homes or buildings they very often have other friends and relatives who trust their judgment to use you for their concrete needs.  Asking your customers for referrals is really part of “Sales 101” for sales and estimators but is often neglected.  Too bad because for those sales professionals who do ask for referrals every time they sell a job they increase their revenues 40%-60%!  This technique is a great way to grow your revenues through turning your existing customers into sales people and door openers for your company.

Introduce Your Customer to Other Building “Partners”

[pullquote]By keeping an open ear you might just hear something that could allow you to play “broker” between two potential partners that would only naturally look at you to do the construction portion that you specialize in providing.[/pullquote]

This technique may be more doable with commercial clients but there is a growing number of building owners who are looking to further their investments and ownership of buildings by looking for partners who might share some of the financial and management risks.  The conduit common to such an arrangement could very easily be you!  This gets back to the need to understand what your customer’s vision is for their own company growth and their resource situation.  By keeping an open ear you might just hear something that could allow you to play “broker” between two potential partners that would only naturally look at you to do the construction portion that you specialize in providing.

Do Quality Work!

One thing is certain, if you do not perform quality concrete work for your existing customers you fail to get new revenues from old customers.  All the greatest marketing and customers service tricks in the world cannot make up for poor quality.  You can increase the likelihood of driving up revenues from existing customers by doing a great quality job the first time.  If you and your work crews are not 100% fanatics about performing quality then you would be best served by getting this part of your company fixed first.

Just Ask for It

Do you really want to increased revenues from old customers?  There is only one thing that will do this in the end and that is to just ask for the business.  Even the customer whom you have had a great relationship wants to be asked.  No one likes to be taken for granted, even your most loyal customer.  When you are having that morning cup of coffee with a long-term customer and they talk about that new construction job they want to get started on in the next year, don’t assume that they already have your name written in as their contractor of choice.  Ask them for the work and let them know that you want their work.

Increasing your revenues can certainly be done without a lot of extra marketing and advertising costs.  Treating your current customers well and taking a sincere interest in their future will open many doors to repeat work.  Sure it may cost you a dinner a few times a year, maybe even a round of golf or some tickets to the ball game but this is still small potatoes compared to digging and scratching everywhere possible to find new business.

If you are doing some of the items listed above then go back and measure how successful any technique has been to increasing your revenues.  Can you see a direct correlation?  If not, perhaps you may need to rethink and adjust the effort to capture more opportunities to win additional business.  It is possible to realize new revenues from old customers but it will take working many of the ten techniques and approaches shared here.  Go back to your “old” customers and consider renewing your commitment to their future success.