In a past life I was a building and remodeling contractor in our town of about 60k people for over 25 years! Obviously that entailed purchasing a lot of material from the local lumberyards over the years. I've learned that there can be a huge difference in the way different companies approach relating to their customers.
What should be the goals of the interactions with your customers? If understood correctly, great customer relations can maximize sales per visit, and by increasing customer satisfaction, can lead to more repeat visits and more referrals to other potential customers. Aren't those critical components to increasing your bottom line? I thought so too. That's why this story makes such a great point.
For many years, if my memory serves correctly there were basically three lumberyards in my town from which to choose from. Each one presented a different face to the public.
The first one that I began patronizing was the one nearest to my home and had been used by one of my former employers. Their customer relations face to me, the public, consisted of the guy behind the counter who always came across as arrogant, condescending, and bothered that he had to deal with me. Then when I would get out into the yard, I was constantly hassled and even insulted when I tried to pick a straight 2X4 out of the pile instead of taking the crooked ones on top.
When you are a concerned craftsman who is trying to deliver a quality product to your own client, you can imagine how that caliber of service went over with me. Needless to say, I literally have not been back to that store in over 15 years.
The second yard that I tried, developed a great reputation with me in that they almost never had what I was looking for in stock. So after almost 10 years of trying, I gave up on them too.
That left me with the third yard in town which was actually the biggest of the three. My results there weren't much better. I would go in one morning and have to track down somebody to help me, explain what I was doing and get the necessary supplies and go off to my job site. Later in the same day (or maybe the next), I would need something else and run back in. After tracking down the very same salesman, you would think that there would be some friendly recognition and continuing on from where we had left off. But no, I was always amazed that they acted as if they had never seen me before and that my trying to get them to remember what we had talked about earlier was an inconvenience.
Even today, after 25 years of going in there to purchase hundreds of thousands of dollars worth of supplies, you would think that I'd be on a first name basis with many of their employees. Not so!
After 25 years of using their business, there are literally 2 people there who know me by name. One of them is my assigned lumber rep and another is someone who I originally met somewhere else. I've never been introduced to the local manager and none of the other employees who have been asked to help me from time to time has ever acknowledged me again after our business was completed. Even though I was in there often, none of the sales people ever greeted me with any sense of recognition.
Now, I know that I am not one of the big name contractors in the area and this is not about me crying out for attention. This is simply to illustrate a point. A couple of more stories will drive it home even further.
At one time I was partnered up with a friend for awhile. When he started to go out on his own more, he went in to this store one day to place an order for some $60,000 worth of material. At the time that was the equivalent of the typical order for 2 average sized houses worth of lumber. After finally getting one of the contractor reps to sit down with him, the guy got up and left and went over to visit with one of his buddies for 10-15 minutes, leaving my partner hanging. How do you imagine that went over? Yep, Somebody else got the business!
Another perfect illustration happened at a so-called "Contractor Appreciation Day". The company invited all of the local builders in for lunch one day. They had a caterer in to serve a great hamburger lunch to all of us. Now you would think that this would be a great time for all of the company employees and managers to be out mingling and building friendships and connections with all of us. Again, I don't believe I ever saw the manager out there at all and the only real conversations I was engaged in were by the outside sales reps they had brought in to tell us about certain lines of products that hey offered.
Now why do I go to all of this length to tell you these rather negative sounding stories? To make a contrast!
One day my partner and I got involved in a project in a little town about 10 miles down the road. We had known about the smaller lumberyard in this town but had never taken the time to check it out, believing that because of its location that they would be low on inventory and high in cost. But since we were working only a couple of blocks away, we decided to check it out.
What we found amazed us! When they found out that we were contractors, the owner of the company came out to meet us and visit with us about our project and learn what other types of stuff we did. Before we left, we were introduced to all of the floor salesmen, the guy that ran the door shop, and the ones in charge of the yard. We walked out that day with a line of credit big enough to cover anything we needed on our projects and a rep who was to be personally in charge of getting us anything that we might need. It was a whole new experience.
Every time we would come in after that, we would be greeted by name and know that they had a very good handle on what we were working on and actually cared. If we needed to hurry, they were right on top of helping us get out of the door quickly. If we needed suggestions on something we were unfamiliar with, they were all over it. If we had time, they were all about developing a friendship with us. We were always welcome in the owner's office and often he would personally drop what he was doing and help us out. We were free to sort through lumber if needed and often helped to do so.
Do you see the contrast? What do you think the result was?
For 10 years after that, almost 100% of our business went to this store! If I was working on the far side of town and needed anything significant, I would drive past all 3 of the previous yards plus another 10 miles to patronize these guys instead. It continued that way until many years later when the big box yards came to town and the owner decided to retire.
Why? One word...SERVICE!
If we want to set ourselves apart from the competition, we can do it in two ways, better selection but even more importantly, BETTER SERVICE!
Even today, if I need something for a project, I'll go to one of the big box stores (the one with the best customer service), before I finally run over to the one big lumberyard with the poor service that I was describing earlier.
Here's the bottom line, over the 25 years that I was in business here, the store with the poor customer service, even though they always had the best selection of supplies on hand, probably conservatively lost a million and a half dollars worth of my business because they just didn't seem to care whether they got it or not!
Is that significant? You tell me!
Then multiply that by how many other guys like me might have been loyal and faithful customers over all these years if they had felt valued. That number is likely to soar well into the several millions of dollars!
Is it worth the time and investment to develop a culture of great customer service? I think we just proved that point pretty clearly!
Are these principles only natural in some people or can you teach them to anybody?
In answer to that, some of the salesmen at the great yard were anything but charismatic. But they had learned how to make the customer feel appreciated and valued!
Those are the principles that we teach here! Contact me if you would like to learn more!
Hope you have a great day!
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