During former president Bill Clinton’s 1992 election campaign, party strategists were constantly reminded of the core issue of Clinton’s campaign by a large sign that hung on the wall and read, “It’s the economy, stupid.”

While stated somewhat bluntly, people who work in the service business might benefit from a similar reminder that reads, “It’s the customer, stupid.” If you remember that bit of wisdom and build your business to meet and exceed your customers’ expectations — every time you do business with them — then you are on your way to having a successful service business.

So what do customers want? Over the years I have read a number of different surveys that attempted to discover how a customer defined good service. In the end, it all came down to these seven customer needs:

Respond to Me Quickly
Everyone wants a quick response but not everyone has the same definition of “quick.” I’ve seen service companies that boast of 24-hour, on-site response to every service call. One size really doesn’t fit all. A 24-hour response isn’t very appealing to the customer who has his only piece of floor-cleaning equipment down on the evening before his regional manager is due for a store inspection. Nor is it very important to the customer who would be happy to see you in 48 hours. Take the time to talk with your customer when they place a service call. Find out what kind of response they require. Then find a way to meet that need.

Send Me a Trained Technician
Sending an unqualified technician, who can’t make the repair, doesn’t help anyone. Be sure that the technician you dispatch has the ability to fix the machine that is broken. Nothing is more frustrating to a customer than realizing a service technician can’t fix the equipment. Your company looks very unprofessional and that service technician isn’t very happy about being put in that position either.

Have the Parts to Fix it the First Time
This is the most difficult thing to consistently deliver in the service business. That doesn’t mean you should not try. Employ the “80/20 Rule,” which says 80 percent of repairs can usually be performed with 20 percent of the parts that you stock. Take time to know what parts they are and be sure that they are on your service vehicles.

• Know Your Customers’ Needs.
Developing and maintaining a specialized truck stock for a large customer can significantly increase first-call completions.

• Be creative and partner with a customer. Identify critical parts and show customers why it’s to their benefit to maintain a small on-site inventory. That way, whenever a technician is called out — even if it’s late on a Saturday night — the parts will be there to fix the problem.

If it Can’t be Fixed the First Time, Return Quickly
Prioritize service call completion. Too often we respond immediately but then drop the ball. Be sure you have a system in place to expedite back orders. If the part is in the warehouse, use a courier or a parts runner to get it to the job site. If it has to be ordered, order it today. Find out if the customer is willing to pay next-day-air charges. Track and expedite your open parts orders.

Treat Me Professionally
Communicate, communicate, and communicate. It’s not just a piece of equipment that’s broken. There is a person involved, too. Be sure that person knows what you are doing every step of the way. If you are going to be late, call. If you have to back order a part, call and explain when you anticipate that the machine will be fixed. Offer a loaner if that’s appropriate. Train your service technicians to fully explain what was done at the conclusion of every service call. If the customer has a complaint, resolve it to their satisfaction — quickly.

Be Consistent
Deliver quality service every time. Just like any successful business, monitor and measure the results. By the way, the only opinion that counts is the customer’s.

Charge Me a Fair Price
Customers won’t tell you to charge a “cheap” price. Price becomes an issue when value is not delivered. Good service costs more. It costs money to build an organization that can:

  • Respond quickly,
  • With a trained technician,
  • Who has the right parts to fix it the first time,
  • Or can return quickly with a back-ordered part,
  • That communicates throughout the service process,
  • And ruthlessly rectifies problems to the customer’s satisfaction,
  • And does all of this consistently.

You are entitled to make a profit. Don’t be afraid to charge for good service. Good customers know the difference and are willing to pay for it.

Having said all of this, in the end it’s a simple question with an equally simple answer: How do I run a successful service business?

The answer: Take care of your customers and your customers will take care of you.

Jim O’Brien has held a number of senior management positions during his 17-year career in the service industry. He can be reached at (866) 832-7378.




POSTED ON: 9/1/2001