Connect with us

Business News

The one customer service mistake all businesses should avoid

(BUSINESS) Customer service is paramount for every business, but this one mistake handicaps so many and can be fixed so easily.

Published

on

car dealership business customer service

As both an entrepreneur and business coach, I’m cursed with the proclivity to recognize areas for improvement in any businesses that I visit – even as just a customer. I wait in lines, stay on hold and watch mistakes happen, all the while dreaming of how I’d create a better customer service experience.

Case in point: I recently accompanied my girlfriend, Pam, on a trip to a car dealership – and what should have been a simple transaction turned into a nightmare, all because of customer experience.

Throughout the entire experience, I witnessed from the sidelines numerous small mistakes that, if resolved, could widely improve the processes of that car dealership and grow its business. But it wasn’t these small mistakes that did the most damage. Because of just one critical error, they will never know what they did wrong.

With over 180,000 miles on her current car, Pam knew that the time had come to replace her trusty and reliable vehicle of many years. She liked her current car, so she decided to simply replace it with a new version of the same model and brand. The only change would be a new color. To make the transaction even easier, she sold her old car to a friend and she didn’t need financing, opting to use her local bank for financing or pay cash.

Based on the above, I assumed that the car shopping experience would be extremely quick and painless. We contacted several dealers in the area and gave them the exact specifications of her new car and asked them to respond with their best price. Simple, right?

After receiving responses from three dealers in the area, Pam made the decision to go with the dealer closest to her house. They had the exact vehicle she wanted, although it was at another location, so it would take a few days to receive. And their price was almost identical to the lowest price received. They even said they would match a 0% interest financing offer that another dealer had offered to attract her business. Her next step was to head to the dealership and fill out the paperwork. We decided to do it on the way out of town for the weekend, because it was going to be so easy.

Upon arrival, she was told that she had to meet with the financing person and there was one customer in front of her. She was reassured, “It will be a short wait…” It turns out their definition of a “short” wait was several hours.

Multiple times, she asked what could be done to shorten the wait. Surprisingly, even if she decided to pay cash, their process required that she visit with the finance person. As she later found out, that was because the finance person’s goal was to upgrade her on insurance, financing, warranties and other add-ons – despite the fact that she clearly told her salesperson upon arrival that she did not want any of those add-ons.

Her only request was a quick experience, which they failed to deliver.

Upon finishing her paperwork with the finance person, my girlfriend was approached one last time by the salesperson as she headed out the door. He said it was “really important” that he go over one last detail of the transaction in his office. He proceeded to review the survey that she would receive from the manufacturer about her car-buying experience. He handed her a pre-filled out version of the survey with certain areas highlighted with the exact score he wanted her to provide so he could get his “full commission.”

He explained in great detail that his pay was directly related to the score on the survey. He even bribed her with some all-weather floor mats she noticed earlier in the day but decided were too expensive. He said the mats would “magically” be in her car when it was delivered – a small token of his appreciation for filling out the survey per his instructions.

All in all, the customer service experience was less than satisfactory and was riddled with mistakes. But, it was the salesperson’s mistake that most seriously hurt the business. Can you spot it?

As I watched the conversation about the floor mats unfold, that desire to help businesses improve struck me, and I realized that the incentive structure put in place by the dealership was going to prevent them from getting the real information – the true survey results – they needed to improve their business. (Which is too bad, because they really need to improve.)

A lesson that I always share with the businesses and leaders I work with day to day is: Incentives are a powerful tool to motivate team members, but if they get in the way of honest feedback or inspire teams to chase “rewards” instead of true business success, they can also have unintended consequences which put the brakes on the growth of organizations.

After a few additional hiccups in the process, my girlfriend finally received her new car… with the all-weather floor mats. She’s very happy with the car, but disappointed with the car-buying experience.

And unfortunately, because of the dealership’s decision to connect pay incentives to the survey, the dealership and manufacturer will never know the truth.

Certified Petra Coach Rob Simons draws upon his 25 years of experience as an entrepreneur, brand expert and business coach. Rob founded PixelWorks Corporation in 1993 to serve the interactive advertising industry and in 1996 he founded Toolbox Studios, Inc., one of the most respected branded content marketing firms in Texas. Rob sold Toolbox Studios in 2015 to focus exclusively on business coaching, which includes certification as a Gazelles International Four Decisions™ coach. An active member of the Entrepreneurs’ Organization (EO), Rob is currently a “Master” EO Strategy Summit Facilitator and an EO Accelerator Instructor. In 2007, the San Antonio Business Journal named him one of San Antonio’s “40 Under 40.”

Continue Reading
Advertisement
1 Comment

1 Comment

  1. Pingback: Buffer's four-day workweek experiment: Boost or bust?

Leave a Reply

Your email address will not be published.

Business News

Keep your company’s operations lean by following these proven strategies

(BUSINESS) Keeping your operations lean means more than saving money, it means accomplishing more in less time.

Published

on

keeping operations lean

The past two years have been challenging, not just economically, but also politically and socially as well. While it would be nice to think that things are looking up, in reality, the problems never end. Taking a minimalist approach to your business, AKA keeping it lean, can help you weather the future to be more successful.

Here are some tips to help you trim the fat without putting profits above people.

Automate processes

Artificial intelligence frees up human resources. AI can manage many routine elements of your business, giving your team time to focus on important tasks that can’t be delegated to machines. This challenges your top performers to function at higher levels, which can only benefit your business.

Consider remote working

Whether you rent or own your property, it’s expensive to keep an office open. As we learned in the pandemic, many jobs can be done just as effectively from home as the workplace. Going remote can save you money, even if you help your team outfit their home office for safety and efficiency.

In today’s world, many are opting to completely shutter office doors, but you may be able to save money by using less space or renting out some of your office space.

Review your systems to find the fat

As your business grows (or downsizes), your systems need to change to fit how you work. Are there places where you can save money? If you’re ordering more, you may be able to ask vendors for discounts. Look for ways to bring down costs.

Talk to your team about where their workflow suffers and find solutions. An annual review through your budget with an eye on saving money can help you find those wasted dollars.

Find the balance

Operating lean doesn’t mean just saving money. It can also mean that you look at your time when deciding to pay for services. The point is to be as efficient as possible with your resources and systems, while maintaining customer service and safety. When you operate in a lean way, it sets your business up for success.

Continue Reading

Business News

How to apply to be on a Board of Directors

(BUSINESS) What do you need to think about and explore if you want to apply for a Board of Directors? Here’s a quick rundown of what, why, and when.

Published

on

board of directors

What?
What does a Board of Directors do? Investopedia explains “A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors.”

Why?
It is time to have a diverse representation of thoughts, values and insights from intelligently minded people that can give you the intel you need to move forward – as they don’t have quite the same vested interests as you.

We have become the nation that works like a machine. Day in and day out we are consumed by our work (and have easy access to it with our smartphones). We do volunteer and participate in extra-curricular activities, but it’s possible that many of us have never understood or considered joining a Board of Directors. There’s a new wave of Gen Xers and Millennials that have plenty of years of life and work experience + insights that this might be the time to resurrect (or invigorate) interest.

Harvard Business Review shared a great article about identifying the FIVE key areas you would want to consider growing your knowledge if you want to join a board:

1. Financial – You need to be able to speak in numbers.
2. Strategic – You want to be able to speak to how to be strategic even if you know the numbers.
3. Relational – This is where communication is key – understanding what you want to share with others and what they are sharing with you. This is very different than being on the Operational side of things.
4. Role – You must be able to be clear and add value in your time allotted – and know where you especially add value from your skills, experiences and strengths.
5. Cultural – You must contribute the feeling that Executives can come forward to seek advice even if things aren’t going well and create that culture of collaboration.

As Charlotte Valeur, a Danish-born former investment banker who has chaired three international companies and now leads the UK’s Institute of Directors, says, “We need to help new participants from under-represented groups to develop the confidence of working on boards and to come to know that” – while boardroom capital does take effort to build – “this is not rocket science.

When?
NOW! The time is now for all of us to get involved in helping to create a brighter future for organizations and businesses that we care about (including if they are our own business – you may want to create a Board of Directors).

The Harvard Business Review gave great explanations of the need to diversify those that have been on the Boards to continue to strive to better represent our population as a whole. Are you ready to take on this challenge? We need you.

Continue Reading

Business News

Average age of successful startup founders is 45, but stop stereotyping

(BUSINESS) Our culture glorifies (yet condemns?) startup founders as rich 20-somethings in hoodies, but some are a totally different type.

Published

on

startup founders average age is 45

There’s a common misconception that startups are riddled with semi-nerdy, 20-something white dudes who do nothing but sip Nitro Brews and walk around the open office showing off the hoodie they wore yesterday. It turns out that it’s extremely rare that startup offices resemble The Social Network.

However, the academic backdrop for the real social network story (AKA Harvard), produced statistics that will serve to put the aforementioned misconception to rest. According to the Harvard Business Review, the average age of people who founded the highest-growth startups is 45. Say what?! A full-fledged adult?!

In fact, aside from the age category of 60 and over, ages 29 and younger were the smallest group of founders that are responsible for heading the highest-growth startups. I guess you can accomplish a lot when you’re not riding around the office on a scooter all day.

The study also found that older entrepreneurs are more likely to succeed. The probability of extreme startup success rises with age, at least until the late 50s. It was found that work experience plays an important role.

Many will argue, “Well, what about someone like Steve Jobs?” You could easily argue right back that it took Jobs until the age of 52 to create Apple’s most profitable product – the iPhone.

The study continues to answer questions like, why do Venture Capitalist investors bet on young founders? This goes back to the misconception at the start, and there’s a notion that youth is the key for successful entrepreneurship. Wrong.

There is also the idea that younger entrepreneurs are likely working with less financial options, so it may be common for them to take something from a VC at a lower price. As a result, they could be viewed as more of a bargain than older founders.

“The next step for researchers is to explore what exactly explains the advantage of middle-aged founders,” writes Pierre Azoulay, et al. “For example, is it due to greater access to financial resources, deeper social networks, or certain forms of experience? In the meantime, it appears that advancing age is a powerful feature, not a bug, for starting the most successful firms.”

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!