Tuesday, May 26, 2009

Establishing Value by Contact

Last week I talked with a CPA who related an interesting experience that a current client of his who I will call Bob had had with another firm. The first time that Bob walked into that firm’s office, he was greeted by the receptionist. As she greeted him, she stepped out from behind the desk and offered to hang up his coat. Turning to doing so, she asked him if he would like a cup of coffee and offered him his choice of four flavors. Along with the cup of coffee she brought several magazines. “You may find an article in one of these magazines interesting to read while you are waiting,” she suggested.

He was not finished with an article that he did indeed find interesting when the person he had come to see was ready to meet. As he rose from his comfortable seat, the receptionist once again came over to him. “I noticed that you were engrossed in the article that you were reading,” she began, “but that you were not finished reading it. Would you like me to make you a copy of it that you can take with you?”

Taken aback at her offer, he murmured, “Yes, thank you. I would like that.”

What particularly surprised the CPA was Bob’s admission at the end of the story. “That firm was expensive,” Bob confessed, “but it was worth it.”

After hearing this story, the CPA had been so impressed by this handling of a customer that he had had his office staff set up their own unique version.

While Bob cited that the firm saved him money and helped him, what stuck in his mind about the firm was his initial encounter with the receptionist. Her actions were focused on him and what she could do for him. She made him feel special. She went the extra mile by offering to copy the article for him. She laid the groundwork for his perception of the firm and the price that he was willing to pay for their services.

She established value for the firm by her contact with the customer.

The impact of initial customer contact on securing a customer’s business, getting a price, and setting the tone for future customer interactions is often overlooked by businesses. Since marketing is any communication that you have with a customer, this initial communication is critical to the success of your marketing system.

As I write this, I am reminded of a question that I received from an attendee to a workshop that I gave at a bed and breakfast association gathering. “How do you handle price resistance over the telephone?” he queried. “Should I not give out a price?

“Whether you are encountering price resistance over the telephone or in person the reason that you are doing so is the same,” I answered. “In your initial contact, you are not providing information about your bed and breakfast before you give the price. Price alone tells a customer nothing. Customers want to know what they are receiving for that price. Always tell what the customer is receiving before you quote a price. Tell them about the experience that they will have at your bed and breakfast. Make them understand what’s in it for them to stay with you. Understanding what they receive gives them a basis to justify the price.”

That is just what the receptionist had done for her firm. She had justified in Bob’s mind that the price the firm charged for services rendered was worthwhile. His attitude had been formed by the receptionist’s actions because she had established the value of the firm during her initial contact with him.

What is your customer’s initial contact with your business? Does that contact make your customer feel special? Does that contact establish the value of your business?

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