Helpful insights on good business practices, commercial loans, alternative forms of financing and planning your company’s future.

How to turn fuming customers into lifelong fans

January 25, 2012
Posted at 09:57 AM ET, 01/19/2012

What the —-!? We placed our order six —- weeks ago and it didn’t arrive until —- today! On top of that, you sent us the wrong —- thing! How do you sleep at night!? —-!!!

One expert says small business owners are the worst at handling conversations with irate customers, whether they take place on the phone, in person or online. (Michael Probst – AP) Not many moments are as miserable for business owners as those spent on the phone with a furious customer. Head buried in one hand, the other hand holding the receiver several inches away from your ear – there’s really nothing left to do except endure the wrath and shake it off later.

Not so fast, according to one customer service expert. On the contrary, when handled wisely, those interactions can actually turn fuming critics into loyal customers.

“Even something as simple as acknowledging the problem and admitting your company is at fault, that might be enough to give your customer a heart attack right there,” said John Tschohl, a customer service consultant and educator for more than three decades and author of a handful of best-selling books on the subject. “Customers don’t hear that sort of admission very often. Whether it’s on the phone, in person or online, you can quickly turn an irate person into an advocate for your business.”

Small business owners are “the worst offenders” when it comes to mishandling customer service problems, he said, namely because they pinch pennies when it comes to training employees on how to approach disgruntled customers – and as a direct result, many small businesses either stay small or go out of business entirely.

“One of the most important parts of providing great service is teaching people how to handle difficult situations with angry customers,” he said. “Because now matter how good your business is, mistakes happen from time to time.”

So when that angry customer does call, here are Tschohl’s six steps for difusing the situation and gaining a new advocate for your company.

1. Listen carefully: Most business owners and managers don’t actually listen to the customer, as some get lost in “all the screaming and hollering” and others simply ignore the complaints altogether. “Listening doesn’t mean completely shutting up,” Tschohl said. “It means responding with ‘aha’ and ‘okay’ and ‘I understand’ now and then, so they know you are really paying attention.”

2. Apologize, don’t blame: Your goal is to solve the customer’s problems, not enter into a debate over which party is to blame for the situation at hand. “Simply acknowledge that your company made an error and that you regret the inconvenience,” he said. “Most people never apologize because they’re afraid they’re going to lose face or because they don’t believe they were the one at fault. But that’s not the point.”

3. Express empathy: Customers will respond well to signs that you understand and care about how it must feel to be in their shoes. “A line like ‘I can understand how angry you must be that the pizza didn’t come on time, I would be pretty angry too’ can go a long way to calm the customer down and give you a chance to fix the problem,” Tschohl said.

4. Ask specific questions: Before you begin trying to solve the problem, be certain you know exactly what the problem is – the last thing you want to do is spark yet another miscommunication. “Ask the customer to go over everything with you one more time, detail by detail,” he said. “Check at the end to make sure you’ve covered all of their problems so you don’t forget to address anything they’ve mentioned.”

5. Propose alternatives: If possible, give the customer several choices when proposing solutions, allowing them to pick which option would best remedy their particular grievances. “Nearly all companies have things of high value and low cost that they can give away to the customer to make up for mistakes,” Tschohl said. “But companies don’t always take that option, and they rarely give their employees the power to offer that sort of compensation.”

6. Solve the problem quickly: Once you have come to an agreement with the customer, follow through on your part of the deal quickly and accurately. “Offer them wings right now to make up for their late pizza, or offer them a round of drinks right this second while they wait for their table,” he said. “Make an empowered decision and make it quickly.”

Follow On Small Business and J.D. Harrison .

By  |  09:57 AM ET, 01/19/2012

Allied Affiliated Funding Provides $500,000 in Start Up Financing to Texas Staffing Company

January 11, 2012

Date Funded:  1/10/12

Facility Amount:  $500,000

The Company:  This staffing company was incorporated in 2010 and just recently began official business activity via their contract with a large government contractor for the Department of Defense.  This company provides the labor to handle the maintenance, repair, overhaul or upgrade of key air, land and marine equipment.

The Issue:  This company needed start-up capital in order to fulfill their contract, meet payroll, and grow their business.  The company was not eligible for a bank line of credit due to being a start-up and having a single account concentration. 

The Solution:  This client was referred to Allied by an existing Allied client.  Factoring was the perfect financing solution for this company since they are a start-up and do not yet have any solid financial history.  In addition, Allied was able to work with the single account concentration. 

The WinThis “Funding by Allied” will enable the company to easily meet their payroll and grow their business, all while building a proven financial track record in hopes of eventually qualifying for a bank line of credit. 

Market research can help boost sales

January 10, 2012

Market research, customer insight — they both mean tapping into a business’s greatest resource: Its customer base.

Private U.S. businesses across all industries saw an aggregate sales increase of nearly 7 percent last year, according to a financial statement analysis by Sageworks Inc. But many companies are still struggling to grow revenue in the sluggish economy, and they’re looking for new ways to do that.

One possible way is to use customer insight. You knew your customers well when you first started a business, but customer needs have probably changed at least somewhat since then. Gaining insight from customers can reassure you that you’re on the right track, or it might point you into a new growth area for the business. It can also help you decide how to spend precious dollars on marketing.

Here are four ways you can use customer insight to boost your sales:

1. Communicate. “Talk — even informally through a quick phone call — with customers to discern the real value they get from your service or product, and brainstorm with them about tangential offerings you could add to fulfill another need or want,” says Libby Bierman, a Sageworks analyst. “Long-time customers are more likely to view you as a business partner than just a vendor and would like to help your business succeed, especially if it means they might have first access to your new product or service,” she says.

2. Uncover pain points. Examine how your customers currently consume your product or service. Can you make that process easier for them? “Reducing friction points — learning curves, waiting periods, paperwork, delivery charges, and so on — in the customer experience will encourage them to use and recommend your business more often,” Bierman says. “For example, eliminate one of their trips or calls to your business by adding online ordering.”

3. Tap their expertise. Invite customers to your internal business meetings. Make them part of the process, whether it is product development or product/service reviews. This can improve the quality of ideas presented and improve the way customers think of your business.

4. Get the scoop with a survey. Send confidential surveys to clients and ask them how the business might better meet their needs. The surveys should ask both specific and general questions around how to improve services. By getting information from clients, the business will be able to better meet needs, which increase sales/revenue over time. SurveyMonkey offers free software to help you run a basic survey, and there are many other providers as well.

Mary Ellen Biery is a research specialist at Sageworks Inc.

Allied Affiliated Funding Closes First Factoring/ABL Transaction of 2012

January 9, 2012

Economy and Financial

Date Funded:  1/6/12

Facility Amount:  $5,500,000, including a $1.5M inventory line of credit and a $500K purchase order facility

The Company:  This is a privately held corporation based in California that has been in the business of wholesaling health and beauty aid cotton products since 1994.

The Issue:  This company is a returning Allied client that originally factored with Allied from 2006 through 2010. They left Allied in 2010 when they obtained a traditional bank line of credit. However, they discovered within a year that factoring was a better fit for their business due to Allied’s more flexible financing structure and entrepreneurial spirit. Allied’s financing does not require any restrictive financial covenants.

The Solution:  This client reapproached Allied for financing.  In addition to a factoring facility, Allied also provided a $1.5M inventory line of credit and a $500K purchase order facility. Allied’s strong customer service levels, broadened asset based product offerings and flexible financing options encouraged this company to return.

The WinThis “Funding by Allied” will provide the company sufficient working capital to meet their budgeted growth for 2012 while offering less stringent, more flexible terms. 

Allied Affiliated Funding
Corporate Headquarters

5151 Beltline Road, Suite 500
Dallas, TX 75254

Tel: 972-776-5300
Fax: 972-404-9955