In his book “Clients for Life,” Karl shares with the reader his personal experience in building a stable and highly profitable business. For thirty years, he has increased his capital by almost 50 times.
The book itself is interesting. Some thoughts are paradoxical. Basic ideas can be stated in your own words, conditionally in the form of the “Ten Commandments”.
10. Do not chase a one-time sale, make customers return
Karl insists that profit is not how much money the customer left in the store, but how much money he brought to this store for his whole life. So: do everything so that the client is satisfied and comes to you again and again.
There are many ways. One of the obvious: to choose ten customers who brought the greatest profit on a one-time purchase, and a week after the transaction to call them. Thank you for your purchase; clarify whether they are satisfied; ask what can be improved in your company.
9. System, not smiles
A smile is good. Have you seen how McDonald's managers smile? It’s nice, it makes the customer happy. Satisfied now, during a one-time purchase. But what's the use of a smile if something goes wrong? The customer may rejoice at the time of purchase - but if the sandwich turns out to be raw, he will not return here anymore.
Quality work is much more important. Remember the innkeeper Palivets from Schweik? He openly rude to customers - but his room was always full. Because the beer was always fresh, and the food is incomparable. Rude, of course, should not be, but beer should be fresh.
8. Promise less, do more.
The obvious idea: it’s better to do more than the client expected. He will be pleased. But there is a nuance: you won’t outsmart yourself, and you won’t get out of the skin.
There is a trick: promise the client a little less than you actually do. To promise too little is also bad, because it scares buyers. But in your opportunities to give a little more than you promised.
The same applies to rates. Put in the price tag a percent price tag 10 more than your business plan - and make a discount. By the way, not everyone is asking for discounts, but this is not a reason not to offer them at all.
7. When a client asks for something, your answer is “yes”
We are now not at all about the principle set forth by Dale Carnegie. His recommendation “always smile” and “always say YES” refers to the primitive manipulation of the interlocutor.
The thing is different: you must be prepared for any course of events. If you have “Plan B”, if you are confident in stocks and know the state of the warehouse exactly, you can answer in the affirmative. And the customer will be satisfied.
There is a saying "the customer is always right." This is not so, of course. But even if the client is obviously wrong, still assent to him - he will surely turn to you again.
6. Overclock your controllers - and, in general, eliminate OTC
Paradoxical advice? Who will monitor the quality of the goods? And who will control the logistics and respond to customer reviews?
The answer is simple: each employee in his place must know the quality standards and be able to control them. In addition, an employee who feels personally responsible for the result works better. And under the supervision of the controller, he prefers to hack and blame everything on the overseer.
Moreover, the competent organization of the business process itself contains internal feedbacks. If they exist and work, the quality will be ensured automatically.
5. No complaints? Something is wrong
Complaints are good and helpful! It is customer complaints that tell you what can be improved in the company. Listen to complaints, do not take matters to extremes.
If there are few or no complaints at all, this is a very alarming signal. The fact that we have dispersed the controllers and the customer service department does not mean that customers are happy with everything. The feedback mechanism is probably not working. The client may be unhappy, but just too lazy to "mess with these scammers."
4. Measure everything
Everything can be measured in business. Numbers are the blood of your feedback within the company. You should clearly see which changes have improved performance and which have not (or even worsened).
Performance measurement motivates employees. The measurement of technological parameters establishes feedback with the technologist. Measuring ad performance makes budget planning easier. Even customer reviews can be measured!
3. Salaries are unfair
Treat your employees not as slaves, but as full partners. Nobody will simply work for a penny. The saying is true: “it is also necessary to do a little harm.”
Hiring cheap staff is more expensive. One highly skilled craftsman will do more and better than three penny stupid.
Move away from net salaries, use a flexible bonus system. The employee’s fine demotivates, while the award inspires optimism. The better a person works, the more he gets.
2. Be polite
The rule is not as obvious as it seems. Politeness in communication with the client and staff is not just the norm of business ethics. Courtesy allows you to resolve difficult situations most effectively. And with the normal course of events, it will give the partner optimism. Do you remember that employees are your partners? And with customers, and so everything is clear.
1. Steal ideas from competitors
But this advice is pure provocation. Of course, stealing is not good. But there will be no trouble if we look at a competitor, how is the sales process organized? The production cycle? Finally parking?
That is what the Japanese did. Now we see what this leads to. This is what the Chinese are doing today - and the result is obvious. Even information about other people's mistakes is useful because it will allow you to prevent them yourself.
Never stop there. Remember that competitors do not stand still. As the Queen said in Carol's Looking Glass, “you need to run as fast just to stay in place, but to get somewhere, you must run at least twice as fast!”