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Some you love,
some you tolerate, others you’d just as soon dump (or at least
recycle). When you and your management team are sitting around the
conference table, however, chances are you talk extensively about
how to keep clients away from your competition. What does it take
to earn – and retain – the loyalty of your customers? At the
bare minimum, a quality product, coupled with good customer
service. Special offers, affinity programs and other
demonstrations of appreciation can also weigh in your favor. But
in your quest to corral clients be sure you don’t lavish
attention unnecessarily; success often stems from a few basic
principles deployed during the day-to-day course of a business
relationship.
Clients’
Time is Money, Too
Ron Kanatzar
rarely lays eyes on his clients.
It isn’t
that he’s too busy running Phoenix Orthodontics, his Blue
Springs, MO-based orthodontic supply company. Or that he doesn’t
enjoy the face time with his 250-plus clients. What he’s
discovered, though, after 20 years in the field, is that the best
way to demonstrate his understanding of his clients’ needs –
which has resulted in their loyalty – is to keep his distance.
“Before I
changed our model of selling and servicing clients by calling on,
showing product to and writing up orders in person, I spoke to my
biggest accounts to make sure they would be comfortable with my
new vision,” explains Kanatzar. “They said, ‘We love you,
we’ll see you if you want to see us, but we’re busy trying to
put braces on kids so it’s fine if you don’t visit us on a
regular basis.’ Our goal has always been to provide
orthodontists with the tools they need to increase their practice.
But a few years ago I realized we weren’t going about it in the
best way.”
Today
orthodontists can communicate and conduct business easily with
Phoenix Orthodontics through the Internet. They can view the
company’s 44-page catalog; study product specification sheets;
submit inquiries; request samples; place orders; take advantage of
specials; and subscribe to the company’s e-sales bulletins. (An
e-newsletter was just introduced.) The supplier also offers an
automated fulfillment program designed to improve clients’ cash
flow, save time and money and maintain inventory of critical
supplies. In addition, clients can even order T-shirts for their
patients.
“The
industry has gotten very competitive,” says Kanatzar.
“Orthodontists need to promote their practice and kids wear
shirts. We sell them by the gross.”
Knowing its
position in the marketplace has also proven to be critical in
Phoenix Orthodontics’ ability to keep clients. According to
Kanatzar, there are 127 suppliers competing for the business of
more than 14,000 orthodontists in the country. The four industry
leaders own 80 percent of the market and everyone else – Phoenix
notwithstanding – focuses on price.
“It’s our
approach that has brought us where we are today. We’re less
invasive, talk when it’s convenient to the client and the
quality of our products – all of which are made domestically –
is a given,” Kanatzar reports. “We aren’t about offering the
hottest, newest products. We’re about providing our clients with
ways of increasing their productivity and profitability.”
Do
Unto Others
Alan Dworkin
developed a loyal following of customers long before he even
thought about establishing a business.
In the 1980s,
while earning his living as a trader at the Chicago Mercantile
Exchange, Dworkin purchased an Apple II computer to ensure
accurate recordkeeping of his losses and gains. Once he mastered
that task, curiosity kicked in and he began to play with the
system, intentionally creating havoc which he would then figure
out how to fix.
It didn’t
take long for word to spread around the trading floor that Dworkin
was computer-savvy. Soon the trader’s associates started
bringing their software and technical problems to him. Dworkin
would outline the series of steps to take to use an application or
get a system up and running and instruct the person to let him
know the next day if it worked. Time and time again, he was on the
mark. Eventually, he started charging for his assistance.
Coincidentally,
the Chicago Apple office for sales and education staff was located
in the same complex as the Exchange. When Dworkin wasn’t trading
(conservative by nature, he wanted to hold on to the nest egg he
had built) he hung out at Apple, eager to learn more about the
personal computer. Over the next several years the computer
enthusiast upgraded his computer several times. Meanwhile, his
network of coworkers, peers and friends in need of technical
support and advice continued to expand.
In 1995,
Dworkin’s wife, Lisa, became ill. He took a year off to help
care for her and their two young sons. The experience was so
jarring the couple concluded it was time to reduce the stress in
their lives, beginning a change in Dworkin’s career.
But when
Dworkin started exploring other opportunities, he couldn’t shake
the idea of whether he could earn a decent living working with
what he has come to know and love: the computer. He had the
know-how, the interest, a network of prospective customers and his
buddies at the Chicago Apple office were willing to set him up as
a reseller. So he decided to give it a try.
That was seven
years ago. Today Dworkin is an Apple Authorized Reseller
Affiliate; an Authorized Xerox Peak Reseller; an Authorized LaCie
Reseller; a member of various Apple networks; and a reseller for
Hewlett-Packard. From the comfort and convenience of his north
suburban home, Dworkin provides training, software and hardware to
Chicago area businesses. He has over 100 clients who call every
four to 12 weeks in need of technical help or new equipment. They
range from a downtown financial institution’s graphic design
department and a small chain of beauty salons to home-based small
business owners.
Since he first
set up shop, Dworkin has retained every client but one. (This is
through no fault of his own. The client is faced with financial
challenges and refuses to take Dworkin up on his repeated offer of
a slow payment plan.) What makes this statistic particularly
notable is that the majority of his revenue – typically between
60% and 75% – stems from the sale of equipment which is
available from a variety of sources.
Even more
impressive? Virtually every client refers Dworkin to his or her
friends and associates.
“When
someone goes to a retail store to buy software or hardware, the
people behind the counter can only sell the products they have –
and in three months those salespeople might work somewhere else. I
only sell products I know will work with a client’s system, and
I only sell products I know are backed by companies that offer
reliable service and support,” explains Dworkin.
Selling the
right equipment is only part of the reason Dworkin has been so
successful. Usually he wins clients over with his service. For
starters, he doesn’t charge for minor problem solving. If he
spends four minutes troubleshooting he won’t bill the client.
Each occurrence, he says, is akin to running an ad in the paper
– but it doesn’t cost him $500. When the minor fix-its add up
to an hour, that’s when he’ll send the client an invoice.
The most
telling display of Dworkin’s dedication to his clients is his
guiding principle: crises come first. If Client A is scheduled for
a demonstration of a scanner on Tuesday morning at 10:00, but
Client B calls Monday afternoon in a panic because her system is
down, Dworkin will be off to see Client B first thing Tuesday
morning and Client A’s demo will be rescheduled. Before
companies sign on with Dworkin he explains his policy and they
must be willing to abide by it. How strongly does he feel about
this clause? When a graphic design department offered him a
50-hour contract but said he had to be on site by the next
business morning if they needed even non-emergency assistance, he
turned them down.
“The only
thing I have to sell is my reputation,” says Dworkin. “I treat
my clients like friends.” (Only when pressed does Dworkin own up
to the degree of good will his approach has generated among
clients. Once, after giving a prospect a client’s phone number
to call for a reference, the prospect called him back. “Do you
know what she said about you? She said, ‘He walks on water.’
You’re hired.”)
Become
a One-Stop Shop
As the
Director of Marketing and Business Development for a 200-employee
healthcare company operating six diagnostic testing centers in
Florida, Dana Schroeder has plenty of promotional opportunities to
consider.
Her number one
priority is ensuring that physicians are aware of the
organization’s 25-member team of specialized radiologists and
state-of-the-art testing equipment. In addition, she is
responsible for enticing the general public to take advantage of
the opportunity to ward off potentially fatal illnesses (e.g.,
heart disease or lung cancer) by using the organization’s
advanced screening equipment.
You might
think that Schroeder would welcome the almost-weekly unsolicited
phone calls and visits from promotional products distributors and
agencies hungry for her promotional dollars. Surely they try to
woo her with ideas and programs designed to generate more business
for the growing enterprise?
“Absolutely,”
says Schroeder. “But I tell them all that I’m very satisfied
with someone else and have been for several years.”
Hearing those
words makes promotional consultant and integrated marketing
solutions specialist Jon Clark – Schroeder’s “someone
else”– smile. He is grateful for her loyalty, especially since
she’s been employed by three different companies since he began
working with her, but knows it is hard earned.
After Clark
moved from California to Florida in 1999 and set up shop as a
distributor (his second venture; he sold the first as part of his
relocation plan), he joined the local Chamber of Commerce. At the
first function he spotted Schroeder, whose nametag indicated she
worked in marketing for a hospital. He pegged her, understandably,
as a person he’d like to know, even though standing by her side
was another distributor. She introduced him to several people at
the event and wished him well – as did almost everyone he met
that night.
“Many of the
prospects I met early on in Florida were braced for me to be a
fly-by-night operation, to take their money and run,” recalls
Clark. “That first year I was told more than once, ‘Talk to me
when you’ve been here a couple of summers.’ I’m in a small
community. It became clear quickly that it would take time to
build relationships.”
The first year
was tough – lots of networking, not a lot of sales. But Clark
continued to work his prospect base, including Schroeder, calling
or dropping off catalogs periodically and reminding them he was
available if needed. One day, out of the blue, Schroeder called.
“You’re it,” she said, “I’m tired of missed deadlines,
backwards logos and wrong colors.” Clark was in the car the next
day driving the 70 miles to her office. He left with a project,
which he completed on time. From that point forward he did
whatever he could to keep Schroeder satisfied, including, within a
few months, announcing that he was now equipped to handle her
commercial printing needs.
Schroeder was
thrilled. “Jon had all of our artwork. It was easier to call him
than a second vendor,” she says. “He made certain our message
and look was consistent with all of our printed literature and
promotional products.”
Through his
dealings with Schroeder, Clark came to know Schroeder’s
assistant and the heads of several departments. He was so at ease
with the organization as a whole that when Schroeder announced she
was leaving the hospital for her current position he wasn’t
surprised to discover that her replacement planned to continue
working with him – and still does.
Schroeder’s
relationship with Clark has deepened since she joined the
diagnostic company at the start of this year. “When I left the
hospital and joined this company, neither Jon nor I knew anything
about diagnostic facilities,” she admits. “Jon researched web
sites and read a lot of literature to help educate me about my new
field.”
The ultimate
testament of Schroeder’s loyalty? Recently when Clark announced
that he would be able to offer full-service marketing, including
advertising, media buying, public relations and sales strategies,
Schroeder took another chance on Clark and signed a 12-month
consulting contract. Now, in addition to handling her promotional
product and printing needs, he acts as an account executive,
helping map out radio and newspaper ad campaigns, Power Point
presentations, sales collateral – the works.
“ He may not
have 52 awards on the wall but I still chose him as our agency of
record,” says Schroeder. “I know and trust Jon, he makes me
look good, and the partnership is comforting.”
For Clark, the
decision to expand his company’s services was critical to
strengthening ties with Schroeder – and other – clients.
“Now I’m not just someone who sells products. I’m a
marketing partner. I now have the tools needed to help clients
become more successful,” he says.
Speed
& Agility Count
Ron Kanatzar
likes to describe his orthodontic supply company as a Porsche
going down the interstate. Some of his competitors he likens to
18-wheelers. “We can switch direction quickly,” he explains.
Don’t ever
let a large competitor psych you into thinking that they can
inherently do a better job of retaining clients because they are
mightier in size and boast a bigger bank account. As Kanatzar
points out, a small business can react much faster than a large
one and that’s often how a service provider wins – and keeps
– a client: by delivering what they need, the way they want it,
when they need it, time and time again.
Highland
Park, IL-based marketing specialist Cathy Cain-Blank is a frequent
contributor to Imprint.
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