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Just what is your small business's reputation?

Posted: March 4, 2011

Let's face facts. Most small businesses cannot beat the prices at the dollar store, and they will never be larger than Walmart. So what important tool do small business owners have that will differentiate them from their competition? Customer service. In large part, how people feel about your customer service will establish your reputation.

All too often, owners tend to take their business's reputation for granted. In their hearts they know they are providing the best possible product and service to their customers. I have yet to see a business plan stating that the business will offer a shoddy, overpriced product sold by an indifferent and inconsiderate sales force.

Ask any small business owner and he or she will tell you that they offer their customers a superior product at the lowest cost with the best possible customer service around. This is the mantra heard every day. If this were indeed the case, then why do some businesses prosper while others close down after a short period of time?

The problem occurs when your customers do not share your viewpoint. Have you gone out and surveyed your customers on what they think about your business? When was the last time this was done? If problems were noted, did you correct them? Or did you just write them off as one of those "troublesome customers" who will never be satisfied?

Back in the 1970s a commercial for a nationally branded shampoo demonstrated that each user told two friends, who told two friends...until the screen was filled with users all extolling the virtues of this product. Sounds farfetched, you say? Not so. People can, will and do talk about your business. And in today's Internet world, they can reach a much larger audience than just their immediate circle of friends.

Just look at YouTube, social networking sites such as Twitter, Facebook and MySpace, and others communications tools. Today's consumers have the ability to seek out and compare you with countless other competitors, either around the corner or around the world. All they need is a keyboard and they will become your harshest critic or your most passionate advocate.

You need to know what they are saying. Here are some simple steps to ensure your business enjoys the highest possible reputation in the marketplace:

  • Survey your clients. Seek out their opinions at every possible opportunity. Have a clearly defined and easy-to-use tool they can access so you can learn what they are thinking.
  • Be proactive in handling problems. If a problem arises, address it immediately. Do not let it fester. Unlike a fine red wine, a customer with a problem does not improve with age. He or she only gets sourer.
  • Ensure your employees are properly trained in good customer procedures. Delta Airlines recently sent a majority of their ground staff to customer service training in an attempt to correct service deficiencies that ranks the airline low in this area.
  • Ensure employees at the point of sale have the ability to handle complaints on the spot, rather than push them up to management. Faster resolution of problems generates more goodwill (see the second bullet).

    Now - while you still have a business - is the time to take a hard look at your company reputation and take the necessary steps to protect and maintain this most important aspect of your business.

    Jim Carroll is the vice president of small business for the Hampton Roads Chamber of Commerce and executive director of the Hampton Roads Small Business Development Center. He can be reached at 664-2595 or www.hrsbdc.org.