Retail Franchising, Increasing Your Chances of Success (Pt V)

Date AddedNovember 29, 2009 01:15:27 PM

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Continued from: Retail Franchising, Increasing Your Chances of Success (Pt IV)

But what if a customer complains? How do you deal with that?
I can tell you from experience that it's much better to end up with a 'teddy-bear' than a 'grizzly bear'. The goal of great business owners is to turn a complaint into a profoundly satisfying experience for both parties. And there's a good reason why you would do that. Research shows clearly that a complaining customer, treated well, becomes far more loyal than a regular customer who is satisfied with the service given.

But I have noticed one thing: no matter how often you tell your staff, their automatic instinct is to negotiate with the customer on behalf of the company. It is essential that you demonstrate to your staff, by example, that your intention is for irate customers to walk out of the store with a spring in their step and a smile on their face. Research clearly shows that these customers will recount the story to at least nine friends or colleagues.That's pretty cheap advertising!

As you reflect on why the complaint occurred in the first place, try to turn it into a learning process. That's how great franchises keep improving. A friend of mine who was running a chain of about 20-30 stores insisted that each store manager, over and above treating the complaining customer really well, send details of the problem (and the outcome) to his office before closing the store. Then each evening he would phone the customer from his home to ensure that the customer was completely satisfied. He was not only stamping his authority on the importance of doing things right, but he was also demonstrating that improving the relationship with a customer was a very high priority and it must be done without delay. And, at the same time, he was signifying something else.
One of the secrets of success for every great retailer is that they think about the relationship in process terms. Here's what I mean. They are concerned about greeting their customers when they arrive, making their visit memorable, finding a solution to their problem, and thinking about how they can impact them after the sale.

There are four different ways that customers visit your franchise: they are either aware of your business from a previous visit; they have sought you out on the recommendation of a friend; they have heard about you from an advertisement (or via another franchise with your brand name); or they have caught sight of you while browsing nearby. It is likely that each of these situations will occur every day, so you must work out the best opportunities to impact each customer and to make the sale.

The visual attraction of your business is one critical factor (both from outside looking in, and from the moment the customer visits your business). Your goal is to capture each customer's attention because you never get a second chance to make a first impression. That's the starting place. Next, there's the interaction with your staff - the smile, the greeting, the name, the specially prepared offer. But there's one more part to the process and this time you get a chance to make a lasting impression.

As you finalise the transaction, think abou; how you can provide a benefit after: he sale. You may simply offer to carry a parcel to their car, you may offer to deliver it, or you may provide a bounce-back offer. This is a 'special' bonus that encourages a customer to come back by providing a benefit if they return. Or even better, there may be an add-on service you can provide at the conclusion of the sale or afterwards. Try to think of something your competitors haven't done (and probably never will!). After my purchase was processed at a photographic store recently, I was given an offer (on which my name had been handwritten) to bring back one photo for enlargement at a very low price. Guess what I did?

As a franchisee, you can greatly improve your business by using you own initiative; through innovative ways that help your customers and therefore your franchise. That's what great business owners do. You can do it too!
David Jenkin can be contacted by email dhjenkin@bigpond.com and his book
What Great Retailers Do is available via www.whatgreatretailersdo.com.au