Surviving in a Competitive Business New Mexico College Bookstore Association Dr. Luis Ortiz EDC Executive Director/Professor LVSMEDC/NMHU

Surviving in a Competitive Business

New Mexico College Bookstore Association

Dr. Luis OrtizEDC Executive Director/ProfessorLVSMEDC/NMHU

More than Surviving…

Competing today and in the future differentiation/innovation

Doing things different

Doing things better

Outline of our presentation

Our everyday business realityCause “more than a mission statement”

Employees Management Relations Customer service

Your best competitive advantage The model bookstore

Why not your store! New Reality Recommendations Results

“Owning our own behavior”

Our everyday business reality

Retail market Selling Merchandising Inventory Safety/Security Finance Employee Relations Customer Service

Running a Small Business

Complexities

Average hours per week is 65

84% are passionate about their job

Do you have a “Cause”?

Mission Statement no a Purpose

Now what?• “we survive, but are elders tell us we were

meant for much more – a higher purpose”D.J.

Odawa

Ingenuity – is it in you!Great things are seldom done alone

University Core Requirements - Students

Education Social Work Science Engineering Business

Math English Spanish History Arts

General Overview

Accounting Certified Public Accountants Certified Management Accountants Auditors

Finance Certified Financial Planner Certified Real Estate Agent Appraisers

Economics Economists (trends business cycle) Macro/Micro Data Analyst

General Overview

Marketing Marketing Research Sales Advertising Customer Service Specialist

International Business International Manager International Executive Consultant

Management Entrepreneurs Professional Managers

… could you please be more practical

Example one HS 25 years

• 25 @ 17,000 = 425,000 UG 25 years

• 25 @ 47,000 = $1,175,000DIFFERENCE OF $750,000

Examples two HS 18yrs. to 65yrs. = 47 years

• 47 @ 17,000 = 799,000 UG 22yrs. to 65yrs. = 43 years

• 43 @ 47,000 = $2,021,000DIFFERENCE OF $1,222,000

Thus of the 45 books they buy they are investing about 3,000 in four year with a ROI of $2,018,000

Education is the only thing that you can never lose. - Dr. Sanchez

Stage of life (infant, young, adult, and old age)

Native Americans

A satisfying and fulfilling career

Life satisfaction

Management Theories

Self-fulfilling Prophecy

Need Theory

Goal Setting

Expectancy Theory

Social Comparison Theory

Equity Theory

What the heck does that mean to me???

Because of this!

Three basic classifications of Employees1) Extra-Role Behavior Employees (OCB)2) Contractual Agreement Employees3) Sub-Optimal Employees

Performance Model

Employee Affect or Disposition

1) Entitled Individuals (+)

2) Equity Sensitive (=)

3) Benevolent (-)

Trust

Job Satisfaction

OrganizationalCitizenshipBehavior

Improved Organizational Effectiveness

Organizational Activities

JobFAIRNES

S

1) Extra role (+) behavior employee

2) Contractual (min) agreement employees

3) Sub-optimal employees (-)

OCB

Organizational Justice

Job SatisfactionJob Performance

Trust/commitment

Theoretical Model of Employee Theoretical Model of Employee Work BehaviorWork Behavior

Source:Bateman & Organ, 1983; Konovsky & Pugh, 1994; Moorman, 1991; Organ, 1988

Distribution of rewardsProcedure of the organizationInteraction with co-workers & managers

PayCo-worker/managersJob itselfPolicy/advancement

EntitledEquity sensitiveBenevolent

Customer Service at NM College Bookstores

Importance of Customer Service

Study and Articles of Customer Service

CS a Practical Approach Steps of CS Improvement Phone Face to Face Facility Layout Discussion


Customer n. [kust-a-mur]The Person who makes all of our jobs possible.

A customer must perceive that they are the most important person on our premises. The customer is not dependent on us in any way and we are not doing them a favor by serving them. They our doing us a favor by using our services (products) and giving us a chance to serve them.

Return on the Customer

Maximum Return on your scarcest company resourceIf not you look shortBusiness triad (E/M/C)

Increasing their lifetime value…• Don Peppers and Martha Rogers, Ph.D.

Importance of Customer ServiceThe Tough Reality of Customer Service

Study I Bad service

• A person will tell 9 of 10 they meet about it• 13% tell an avg. of 20

Good service • A person will tell an average of 4 people about it

Study II Bad service (customer tells 32 avg. others) Good service (customer tells 9 avg. others)

What does a customer look for:• Value = Fair Price + Quality + CS (competitive

pricing environments-university lottery scholarship making Quality and CS more important here at New Mexico College Bookstores)


Why a customer stop doing business 1% pass away 3% move away 5% develop other relationships 9% leave for competitive reasons 14% are dissatisfied w/ product 68% due to attitude and indifference of

ONE single employee • customers stop using a business due to an

indifferent employee who treated them poorly

Why focus on the customer?

Five time more likely to leave due to poor service than product quality

For every 1 that reports poor service, 26 are unreported.

Only 4% will ever complain about bad service. - 96% never complain about rude or discourteous service but…. …will quietly go away and take their business else

where 91% will never again buy from that business Tell their “horror story” at least 9 times 13% of them tell it at least 20 times

It cost five times more to attract a new customer than keeping an existing one


If you lose ... Spending

$5 weekly

Spending

$10 weekly

Spending

$50 weekly

Spending

$100 weekly

1 customer a day 94,900 189,800 949,000 1,898,000

5 customer a day 474,500 949,000 4,745,000 9,490,000

10 customer a day 949,000 1,898,000 9,490,000 18,980,000

It is no big loss - What do you lose (1 person for a lifetime of sales and their referrals)It is no big loss - What do you lose (1 person for a lifetime of sales and their referrals)

What is losing one “Worth”:Autos Industry - 200KGrocery Business - 234KNewspaper .50 * 365 = 182.50 * 40 years = $7,300 30 papers @.50=15. * 40 years $600 Yearly subscription $75 * 40 = $3,000

Management’s CommitmentConstantRewardedWalk the talkAccountabilityValuedReinforce behavior with immediate

recognition



Employee’s CommitmentConsistent and fair w/ each other AccountabilityPositive AttitudeOwning our own behaviorProfessional vs. personalServing the customer

Practical Approach Seven Steps to Successful Customer

Service1.Total Management Commitment2. Get to Know Your Customers3. Develop Standards and Service

Quality Performance4. Hire, Train and Compensate

Staff5. Reward Service Accomplishments6. Stay Close to Your Customers7. Work Towards Continuous

Improvement

Practical Approach

6 Steps to Great Customer Service1. Drop Everything to Answer

Email, Phone or Whatever…

2. Do a Little Extra

3. Keep Your Promises

4. Address Problems Immediately

5. Follow Up On Problems,

Questions, Etc.

6. Personalize Communications

Practical Approach

Customer Satisfaction in 7 Steps1. Encourage Face to Face Dealings2. Respond to Messages Promptly & Keep Your Clients Informed3. Be Friendly and Approachable4. Have a Clearly-Defined Customer Service Policy5. Attention to Detail6. Anticipate Your Client’s Needs & Go Out of Your Way to Help them Out 7. Honor Your Promises

Practical Approach Six Steps to Excellent Customer Service

1. Impress Prospects and Clients with Professional Proposals & Documents2. Keep in Touch During the Project3. Guarantee Your Work4. Learn to Manage Complaints5. After the Project is Completed, Give the Customer A Gift6. Stay In Touch

Sound Nice

But please get more practical!

Asset vs. Liability

Phone – Customer Service

Did you know that a caller to your employment can tell and perceive your mood and even if there is a smile on your face by the tone of your voice.

Phone – Customer Service

Phone Etiquette Company’s name Employee’s name How may I (help, serve, assist) you Listen

• jot the callers name down – and use the callers name in the discussion many times if possible

• When wanting a different person (it is ok to ask – May I inquire as to whom is calling (and or the issue)?

• If placed on hold (example: Sorry for the wait that department is working on a deadline – May I please take a message - explain)

Transferring Calls (always give the call the extension number in case they need it later)

Thank them for calling!

Customer Service Factors

Telephone Service

87%

13%

Tone of Voice

Content

Face - Customer Service

Face to FaceRespectKindnessConsiderationEmpathyFriendly and effective serviceHonesty and feelings of prideUse examples to assist customers

Customer Service Factors

Face to Face

55%38%

7%

Body Language

Tone of Voice

Content

What you they say!

Help me first Can I speak with your manager You people never get it right Not what I ordered It was on sale My statement is messed up You never have what I want I need that by the end of the day You can bend the rules What are you a 3rd grader

What to say! Secret weapon words

“I am sorry” “for you”

“I am sorry that happened I understand can I fix it for you (Mrs. or Mr. Garcia)” Empathy Permission Personal Service

Lack of customer trust must be viewed as a challenge to serve them

Good customer service build trust

What to never say!

“NO” or I can’t Don’t blame me It is not my fault I have not had my break That customer didn’t know I just work here I can’t wait to get out of here I hate my schedule/computer

What to never touch!

Religion Sex Politics

Smile Pleasant

• Offer no opinion• Thanks for you interest

Professional• I consider that personal

When “yes” is not an option!

Never say “no” I will try Lets explore some options I want to be fair to everyone Consistency does matter Show empathy Note* Let them talk and vent

What are customers/employees?

Are Customers Next in lines NIL No Problem – are they A nuisance A bother An interruption

or are employees Rude Disrespectful Aloof Indifferent Fake Not sincere

Customers always win!

“Make no mistake about it in the long run I will win”

• The Customer

I don’t make a scene Bad attitude

I can forgive just not forget We have choices - local & online Note* it is never the person it is the

organization

What do they want?

Tactful Respectful Empathetic Caring Courteous Enthusiasm

Friendliness Nurturing Helpfulness Upbeat Pleasant

Understanding & Caring AttitudeUnderstanding & Caring Attitude

What do they want?

Knowledgeable Professional Good judgment Responsive Resourceful

Persistent Thorough Accurate Committed Quick Thinking

Problem Solving AbilityProblem Solving Ability

Facility - Customer Service

Facility Layout - Customer service area Comfortable Visional designation between work and

customer area

Everything that you can use Build trust with customers w/ service Reinforce the need of treating customers right

Tickets Scheme – have a plan Give employee all five tickets at start of the

month Employees give their peers a ticket when they

see them performing great Customer Service or “going beyond the norm” with Teamwork

Customer Service - Ask yourself

Is it really a pleasure to serve them?

Do you treat them as individuals?

Do I remember them by name?

Do I care to see a smile on their face?

Do I like to customer satisfaction in their eyes?

Since you know what the Customer Feels

Smile and make eye contact Acknowledge the customer Neatness of workplace People come first Problem solve for the customer Be genuine and sincere Say your welcome (not no problem) Thanks customer for choosing to do

business with your organization

Leadership

Fitting the right people in the right places

Empathy

Vision – Why not!

The model bookstoreWhy not your store!

Big box

Online mega-store

Exploiting your space on their dime

What is our Niche?

NM Students Nationwide 15 million in Higher Ed

Highest Trained – ExpertsPoisoned Pen – in AZInstant Review

Model is your Store

It is on hand or short time to get Staff has a cause CS Attractively Arranged Targeted age groups sections Inviting – what to spend some time Coffee shop Post Office

The three R’s

Wholesale business Digital – e-books to Podcast Competitive knowledge Ask engage the customer Technology Web development Real Partners (Students and Profs) Events

The three R’s

Computers to order and comparewww.bestbookbuys.com

Engage the Department and ManagerCustomized value added products

Reasons to come inEvents (250 at AZ bookstore)

Students learn differentlyTap that market

The three R’s

Coffee shop Hangout Wireless Alumni - Graduation Sale to each on their time Gift Cards Drawing/Tutoring/School pride Entertaining Environment

Enjoy your conference

Thank you!

www.drluisortiz.com

“Owning our own business behavior”