[ Focus: Marketing ] H


ow often have you been paying at the till in a shop when the assistant is talking to their friend and ignoring you? Or been made to feel foolish in a mobile phone shop because you don’t fully


understand all of the technology? It’s annoying, isn’t it? Do you ever promise yourself not to use the shop again? And have you ever behaved the same way to your customers? Be honest – can you really say that every time you provide a service, the customer has had a pleasant experience? My preferred definition of customer service is straightforward enough: ‘Customer service is about treating others as you would like to be treated yourself’. What I want from a service provider is for them to understand my needs and deliver value.


Understand the customer’s needs The first step with a potential new customer is to understand their needs. In a business-to-business environment, that starts with researching their background – easy enough these days with the resources of the internet. It means that when you do have a face-to-face meeting, you have some background knowledge to start with. When you do meet your customer for the first time,


whether they are big or small, it’s important to start by asking questions. It’s a big mistake to assume you know why they want to see you. When done correctly, questioning also relaxes the customer and presents you as someone who is interested in understanding their issues rather than jumping straight in with a solution. Asking questions presents a much more professional approach. Most importantly, it allows you to fully understand the situation, identify how you can help and work out the best way to do this. Effective questioning is an art, and requires practice. Start with open-ended questions (what, why, where, when, who, how), then bring the discussion to a close with closed-ended questions (requiring statements of fact, like yes and no answers) this confirms you have understood the issues. It is also important to listen carefully. Focus on the person and ensure you have fully understood their requirement. Relate to their issues and problems and show understanding, perhaps giving examples of other customers who have had the same problem in the past. Having understood their needs, you can then propose the best solution, demonstrating why it is right – and that you are the best choice to deliver it.


Lowest cost or best value There are two winning pricing strategies – offering lowest cost or best value. But first it is important to understand what your customer is looking for. You should have established this from your research and questioning. A customer looking for lowest cost probably has a limited budget and will not be in a position to pay above this. To succeed when following a low price strategy, you need to be confident that your costs are lower than your competitors’ and that you can offer the lowest price while still making a profit. As an aside, since the start of the recession the industry has seen a lot of companies taking work below cost in the hope of winning future business, or just to keep busy. This is a suicidal strategy, proven by the number of companies that have gone out of business.


My preference would be to go for customers looking for


best value. This does not mean you can charge inflated prices, especially if everyone is making the same offer. But it does mean your customer will not buy the lowest price if value is demonstrated. What you need to establish are the things that are important to the customer and the way you can deliver them differently, giving extra value. Value might be represented by less disruption, extended warranty, a free safety check and many other elements. It is important to understand your customer’s issues so that you can identify relevant benefits to offer.


Building relationships This sounds a bit close and personal, but it is about developing a dialogue with your customer. At the start of a business relationship, the customer is going to be distanced and cautious. They don’t know you and have no reason to trust you. You need to demonstrate that you are reliable, competent and worthy of their trust. You will find this easier if you have been introduced as a referral, although you still have to justify their interest. Ways to build trust include giving advice and presenting case studies of past projects. Ideally, you want your customer to take your calls and


Marketing initiatives for the medium-to-large contractor


Understand your customers’ needs It’s important to understand your customers’ issues and what they are likely to want from a contractor. n Research their background. The internet will provide plenty of information. Visit the corporate website, and look for articles about them. If you subscribe to a project leads system, this will give details of other projects and key decision makers.


n Phone and ask for some background. Use questioning to understand exactly what they want from a contractor.


n Best value or lowest price: decide which your customer is looking for. Is this the right type of business for you?


Delivering value With what you know about your customer, what can you do to deliver value? Think how you could do things differently to take out cost. Present these as benefits, with extra emphasis on those that your competitors cannot provide.


Build relationships n Identify the key decision makers and influencers in your customer’s organisation. Go beyond the purchasing team. Involve others from your own organisation.


n Present your company as ‘the experts’ by providing technical information and advice. n Make them aware of project successes, especially examples of how you have saved other customers money.


Deliver excellent customer service n If you do a good job, other work will follow. Ensure that everyone in your organisation understands this.


n Keep your customer informed, and ensure key people in their organisation know of your success. Just because one project manager is happy, don’t assume everyone else knows. However, if one project manager is unhappy, probably everyone else will know!


n When a project is complete, make a point of contacting all of the decision makers and influencers to check they were happy. Take the opportunity to ask what other projects they are working on where you could become involved.


January 2012 ECA Today 61


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