Giving the customers what they want

 

English: Logo of Marks & Spencer displayed on ...

Logo of Marks & Spencer displayed on products and in stores since 2007. (Photo credit: Wikipedia)

Taking a dip

The famous UK department store chain, Marks and Spencer, has reported falling sales in clothing and non-food items again.

It is sad to see a flagship high street name struggling. They always used to be so reliable for quality shirts and smart wear. I was never a big fan of their underwear though other people always swore by it.

Getting shirty

Someone (actually my Mum) was kind enough to give me some M & S gift vouchers and the other day I went to spend them in the store on (I hoped) a couple of smart cotton shirts. I browsed around the men’s department, and although I found a couple of shirts I quite liked, I thought they were expensive. To put it in context, these shirts were more expensive than I can get in the current sales of the “up-market” Jermyn Street shirt-makers. Of course they do not always have a sale, but my instinct is always to buy on value. I could not find it in M & S.

I was eager to buy. I had “free” money to spend in vouchers; yet I was not prepared to spend on what is not good value.

They can’t tell the bottom from the top

In the clothing market we have generally the “luxury” end and the cheap end. You can buy a poly-cotton shirt for £5.00 though its quality might not be great and it might not last so long or be so comfortable. However it will serve its purpose. You can buy Jermyn Street shirts in the sale or otherwise pay a lot but get quality. There does not seem to be a middle market, and M & S have not understood or adapted to that; certainly not enough for me to see value.

It is our client’s choice, but ours as well

In many businesses including mine, prospects are looking either for a cheap and reliable service, or they want to be cosseted. All too many accountants are simply too generic and undifferentiated. Clients do not feel they are getting much or any more than from the cheaper providers. Their clients want to pay less, because they do not perceive value, although perhaps some would pay a lot more to feel as though they were a firm’s only client and had their full attention at all times.

It is no good chugging along in business assuming that what you have always done will suffice for a client. The market is constantly changing. All of us have to keep selling our value to our clients according to what they actually want; otherwise they will kiss us goodbye, or leave us in a less polite fashion. And we have to choose which part of the market we want to be in, don’t we? That is not the boring middle bit, is it?

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The politics of networking or rubbing your contacts up the wrong way

iStock_000005618867XSmallI love networking. I have not been out and about for a few months for reasons beyond my control, but I do like to get out and meet people. It is not just because I like getting business, although it helps, and it is not about the joy of giving a referral. It is just great to talk to others in business and to learn from them and to hear their latest news.

However in a decade of networking meetings face-to-face I have never got involved in a discussion about politics. Politics is very divisive. People get heated. They say unkind things when they discuss an issue. There are ad hominem attacks on individuals whether in the room or otherwise. Networkers-in-person simply know better than to engage in any political discussion beyond the state of the economy, and that is usually talking about the present rather than who is responsible for it, good or bad.

So why do people in normally perfectly nice on-line forums sometimes start political arguments? It is very upsetting if one finds oneself involved, or even, as I read the other day, see one’s own views trashed by proxy. Of course I have political views. What reasonably intelligent person does not? I just do not mention them on-line except in pointing out when politicians are simply factually wrong on a subject where I have specialist knowledge.

Even reading someone else’s throwaway comment in a thread on Facebook can be very hurtful, and while it may not be intended, it can put one right off the person, even if socially you really like her / him.

It comes back to being really careful what we say on-line. As I have said before, when I got my amateur radio license or “ticket” a long time ago, we were bound by the ethical instruction not to engage in discussion of politics or religion. It was and is a good rule, and should be applied to business networking. Then we can get on with business without having our feathers ruffled by some unfortunate comment. Can’t we?

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The meaning of influence in networking

Photo by LordNikon

Photo by Lord Nikon

These days in business marketing, and especially on-line, we hear a huge amount about influence. How much influence does a marketer or networker have?

In social media, some measure influence in terms of their Klout or PeerIndex score. Actually they are very crude tools, especially Klout. What they really measure is how much we Tweet or post on Facebook. PeerIndex does index blogging, but all these tools really measure is how much noise we make on-line.

It is the same with off-line networking. We may put out our message to the room and we may do so in a very loud voice. We might go to every networking meeting there is in our area and eat breakfast out every day of the week. However it does not mean we will get loads of business.

The confusion is between, on the one hand, being seen everywhere trilling our message on Twitter or over our scrambled eggs, and on the other, our networks actually listening to us and taking notice because they believe we have something to offer. It is easy to shout the loudest and most often, but more difficult to get over our message that we are people to be trusted with business.

We do not want our Tweet or a fried breakfast message being taken with more than a pinch of salt. We need to be genuine, sincere and ourselves to get that trust, don’t we/

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Service continuity, customer expectation and being as comfortable as an old shoe

 

Think about the customer's needs!

Think about the customer’s needs!

Our regular clients expect from us an excellent service and it is up to us to live up to their expectation. That does not mean that we never change what we do for them. In the last decade, advances in technology have allowed us to make improvements. We can email documents (in my case accounts and Tax Returns) which means we can be even quicker, and to use nineties jargon, provide a smarter service.

Of course not all clients are computer literate, so we still provide them with paper copies of what they need, and even if they do like to communicate by email but want us to provide paper copies of everything, of course we oblige. We have to sacrifice the odd tree to keep the customer satisfied, but it is our business and therefore in our best interests to do so.

What clients do not like is change. I do not like it either when new Government impositions oblige us to involve our clients in red tape, but we have to live with it.

What the customer does not like to experience is a change of service where they do not get what they had before, but something different. It is rather like I feel in the supermarket when I enjoy a new range of tea they have or like their bran flakes, and then suddenly they no longer have those lines and I have to buy something else. There is a feeling of dissatisfaction, and I look in other supermarkets to get what I like. So clients might look to another provider to replace what we might have stopped giving them and which they really liked.

Clients do not like change. They like the comfort of being able to rely on a service like an old shoe.

We should not be resistant to advancing our business practice, but don’t you agree change should not be for the sake of change?

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Ethics, business and psychopathy

Is my prospect a psychopath?

Is my prospect a psychopath?

Professor Kevin Dutton has a book out called “The Wisdom of Psychopaths”.  I have not read it yet, but Professor Dutton has been promoting the book in the media, and has applied the psychopath test to various historical figures such as Henry VIII, Sir Winston Churchill and Oscar Wilde by having historians or their biographers complete a questionnaire on behalf of these famous people.

In layman’s terms, a psychopath is characterised as an individual who is incapable of feeling guilt, remorse or empathy for their actions; they can be charming and charismatic, but they are ruthless in achieving their aims. Fortunately they are not all serial killers, which is just as well as apparently there are quite a few around. However the concept of ethics will be alien to them

In profiling towering personalities no longer with us, Professor Dutton finds an amusing way of promoting a book, and in his media material professor Dutton suggests that psychopaths may make very good surgeons, lawyers and soldiers.

I am quite sure psychopaths can be very successful business people, and will often rise to the top of multinational companies, some of which they will have created themselves. I am also quite sure that a client of mine in a past life is a psychopath. He is probably a billionaire now. He is brilliant with the media, but as someone who had to deal with him one-to-one on personal matters, I know that he is the most unpleasant, rude and ghastly person I have ever met in business. Quite apart from business confidentiality, I could not name this character because, unlike the historical figures, he is still alive to sue, and with his personality traits he certainly would.

Professor Dutton tells us that there is a spectrum of psychopathy which we are all on, but fortunately not all of us are on the high end, (any more than all those famous were, Henry VIII aside). I scored rather low, which means I will not be running a global empire by this time next week, but it led me to think that we need different attributes for different sorts of businesses.

Many of us have businesses where it is important to have a genuine relationship with our customers. We need an empathic understanding of their particular individual needs, and that understanding is also important in building trust in our network to gain business through our contacts, as well as giving referrals to them. Perhaps the people in our networks who are purely “takers” are higher on the psychopath scale, though I would expect clever psychopaths to do enough to gain a little trust from us until we know them well.

I would not want another client who was a ruthless psychopath. I have had one or two who were up the scale, took all I gave, tried to milk me for extras for which they were not prepared to pay, never referred me in all the years of exemplary service, and seemed surprised when I said I thought our relationship was at an end.

I need to like my clients and hope they like me too. Don’t you think it is great when your customers think of you first when asked to recommend someone who does what you do?

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Insuring your business future

iStock_000020557146LargeSome businesses are unique to the individual. If you are a successful writer, then what the clients or readers are buying is you. There are other businesses which are all about the owner; for example, performers such as actors, artists, designers. If the work is so original and cannot be done by someone else, then the income is dependent on the business owner, and that might be you.

Suppose you cannot work for a while. You are ill, really sick. Will your income dry up? You can get insurance which will provide you with an income for a certain period while you get back on your feet. Why wouldn’t you do that, because it gives peace of mind?

Perhaps your business is not unique, but it is your business with a flavour of you? If you could not work, the business would still suffer, even if you have several employees or subcontract a certain amount of work. Of course you should also insure against your getting sick, but you can also get insurance to pay for someone to run your business while you are recuperating. If you never get well enough to work again (perish the thought) you will still have a business to sell.

You might have an employee who is vital to your business. Suppose she has a health problem and has to take months off work. Have you insured your business against losing her services for a while, so that you are able to bring in someone capable of filling her role temporarily?

If it is you who are ill, you need to get treated as soon as possible and get back to work. Do you have health insurance so that you can get treated quickly?

I am not an insurance salesman. I do know that having insurance is not only vital for peace of mind, but is an important lifeboat when the unexpected happens and you have to face a nasty health issue.

Are you insured?

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Take a break!

Deckchair happinessWe know that work stress can burn us out  even when we are young.  One of my colleagues had a serious breakdown through stress when still in his twenties.

Of course it is important to get on in our working lives and do our best, but we are not at our best if we drive ourselves into the ground. Apparently “Generation Y” workers born between 1980 and 1993 are getting badly stressed in their jobs or when trying to get better jobs by climbing the employment ladder.

Working is important, because we all need money to get on. However, if we do not look after our health and fitness we will not be able to work. We all need to have a break during the day, and take time off for holidays to recharge.

The world will not fall apart if you are away from work for a short while. If you must check your email on a day off, make one time in the day to deal with it (no more than an hour) and then relax with a book, or go windsurfing, or whatever takes your fancy.

You will feel much better for it, and be a more effective worker when you get back. You know it makes sense, don’t you?

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Ethics, confidentiality and loyalty in business

 

Old-fashioned spy equipment

Old-fashioned spy equipment

Once upon a time

My first job was with a bank which operated mostly overseas. When I joined I signed an oath of secrecy and promised not to divulge any aspect of a customer’s affairs. Having done that, even as a junior person, theoretically I could look at the dealings of any of the customers with accounts in London. In practice, I could certainly look at their current account by helping myself to their ledger card which would be in a box in the next office by the desk of the person who typed the accounts up on an old NCR 32 Accounting Machine  I started work very young and the bank did not even have its first computer.

Incidentally the only ledger card I checked regularly was my own as not quite £12 a week did not go far even when I started work.

Secrets

I guess there was very sensitive information available to me. Certainly we looked after the affairs of an overseas Prime Minister to whom I was introduced at around the age of twenty. No one at work would have thought of revealing anything about a customer to a newspaper or anyone else. My Mum and Dad worked in banks and we did not even discuss our employers’ customers between ourselves.

I was working in tax way back then too. We would speak to and write to people in the Inland Revenue (as it was called). All the Revenue employees had signed the Official Secrets Act and were also bound not to reveal confidential information to anyone except the taxpayer concerned, or to us as the customers’ agents.

I am sure that the Revenue employees, like we in the bank, took their oath and responsibility seriously.

Trusted guardians

Coming back to the present, we in the tax profession still take our responsibilities as guardians of private information very seriously. If required by any agency to divulge sensitive information, we would ask the client for permission except in very specific areas relating to the Money Laundering Regulations where fraud might be suspected.

There is currently a fashion for so-called whistle-blowers to go public with sensitive information. In business or in the public sector, surely one would have to suspect serious wrongdoing; otherwise any malpractice ought to be pursued internally or directly with the police?

The clean kitchen

Quite why someone working for a government intelligence agency, whose business is spying, should actually find it necessary to explain to a newspaper how that agency is spying and what they are spying on is hard to understand. Surely one’s first responsibility is to one’s employer? If you do not approve of spying (or banking or tax planning) do not work for an organisation which does that thing.

We should all uphold the law in our work and should never be involved in any wrongdoing. Beyond that, our loyalty must be to our employer (including Government if that is whom we work for), our business and most of all to our clients. Otherwise, if we can’t stand the heat, we get out of the kitchen and keep our own counsel.

Do you agree?

 

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Do you supply your services 24/7?

Is Generation Y in front?

Is Generation Y in front?

As a professional person it is important to respond to clients’ questions promptly. Gone are the days when generally a client would write a letter and would be happy to have had a reply within a week. Now they mostly expect a reply to an email fairly promptly, by which I mean within hours. However I was surprised to see in an article that “Generation Y” accountants (born between 1980 and 1993) were best placed to deal with modern clients demands because “Greater use of mobile devices and online technologies is leading to clients expecting more support outside of the traditional nine-to-five working hours.”

Of course I am ancient compared with “Generation Y” people. In my early working life, people wanting an answer to an urgent query picked up the telephone.. Everyone had access to a telephone, even if they had to walk to their street corner and enter one of those strange red boxes with windows. Actually all our clients had a land-line in their house.

It is true that with a smartphone (I have one), a computer (I have several), a tablet (got one of those too) anyone can be in touch with their clients and answer a query at one in the morning. However, is that wise? Should anyone, ancient like me or in her twenties, be answering client queries at all hours? Even young people get tired, might have had a glass of something and would have a much higher risk of making a mistake.

Young people get stressed and ill from work pressures too. I have seen it all to often. A close and able colleague of mine of twenty-something had a complete breakdown over pressure of work.

Yes, people expect answers and quickly. Yes, we should do our best to respond promptly even if to ask for more time to think. But no, none of us should be available day and night because we need our time to relax and rest, our downtime and our sleep, otherwise we will never be at our best.

I see clients out of hours by arrangement and am open to talking to clients in New Zealand via Skype at crack of dawn if needed, and by appointment, but otherwise if someone messages me in the evening they really do not expect a reply within minutes, especially not a technical one.

It is down to time management and discipline and even Generation Y will have to ration themselves otherwise they will not get to be as old as I am. Even being on-line most of one’s waking hours should not mean working most of one’s waking hours.

Maybe I am old-fashioned. On the other hand, perhaps my experience has taught me better time management. I think the conclusion of that article was nonsense, but do you agree with it and think it was Sage advice?

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Losing an ungrateful customer

Dropping the Pilot (Sir John Tenniel)

Dropping the Pilot (Sir John Tenniel)

Usually we are not happy about losing a client. Sometimes it is our own decision of course when keeping them on is not cost-effective. They might be very demanding but will not reward us by agreeing a higher fee. It might be that we do not have a good relationship because we seem to have a clash of personalities. We are all human and have particular sensitivities. If I am no longer comfortable with a client I will gently suggest they find someone else.

Now and again, a client will drop us without telling us first. We may well have given them quite exceptional service (well, we should have done) and there is no explanation forthcoming. The first we hear of our lost relationship might be when we hear from our successor if we are told at all. I think that someone not telling us directly we are not required any more is very rude, especially when we have worked so hard to make sure we met their every requirement.

Of course we have to get over it even though we have “The quiet sense of something lost.” as Tennyson might have put it. If clients will not tell us why we are being dropped it might be because our replacement is a personal friend to whom they feel an obligation. It might be any sort of frivolous reason.

We just have to be dignified as Bismarck was portrayed in the famous Tenniel cartoon “The dropping of the pilot” and accept our fate. After all, we have other clients. We will get new ones too and there is no time to waste on regrets. We get over it.

Have you been shocked to be jilted by a customer for no reason you knew?

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