Five Questions You Must Ask about Your Business…….and the One That Will Separate You From Your Competition

by Anne M. Obarski

Published on this site: February 10th, 2004

Does the word "report card" still make your stomach do flip-flops?

It does mine! I can remember having to ask my parents for the "dreaded" signature on the infamous envelope that needed to be returned to school. I never had bad grades but I knew that it was a parent's right, to question you about the status of each grade. Of course the big A's in Gym and Chorus and Home Economics never seemed to cover up the C's in Math or Social Studies!

Usually the whole conversation boiled down to those last words, "We know you can do better. Whew, does that mean I'm not grounded??? I would whisk the card right out of their hands and vow that the next grading period would be better.

Report cards are not only given to students but to companies and employees of all sorts of businesses. Some of the report cards come packaged as yearly performance reviews of employees and some come from actual customers in a mystery shopper "survey" format. No matter what the style, those results usually instill panic and cause most people to become defensive, even if the information is good!

I believe everyone needs and should require report cards rating their employees as well as for their overall businesses. Critiquing performance is one of the best ways a company can sharpen their focus on the areas that need improvement and then monitor that targeted performance.

Customers and clients develop mental "report cards" for most businesses that they deal with. The categories can vary but they are usually based on their personal experiences with each and every company, from the initial contact, to the final sale, and any further follow-up that may been needed.

Here's an example. I think everyone does a fair amount of business with their local post office and you can relate to this example. It's Monday and you have a stack of letters to mail and a package to send to your child in college. You walk through the door of the post office and there are 3 employees behind the counter and there are over 10 people in each line. They are out of the size box you need to buy to send your item and they don't have the stamps you always get. The inventory wall looks like they haven't stocked it in a week. The air conditioning is not working and everyone is sweating bullets! Finally, you hear the words you have been waiting for; next?

Your patience has worn thin and you are anticipating less than perfect customer service. Not so this time! The associate is very kind and understanding and finds a box for your item in record time and just "happens" to have those stamps you had your heart set on.

She acknowledges that you look a little warm and moves a small desk fan closer to you as she rings up the sale. She even says you look younger when you cheeks are so pink!!! Yikes, who could be upset with that!

You see you had been giving the post office a mental report card in your mind before you got to the counter. It was probably poor at best in your mind, and the employee had the capability of making it go either way. Her understanding way made your final report card acceptable, maybe even very good even though circumstances were less than perfect.

The next time you go in the post office, the report card slate will be clean again. Circumstances the next time might show a totally different "grade"!

So how can you keep your CRC- Customer Report Card in the "A" range?
Here are 5 simple questions to ask yourself that could separate you from your competition and give you a better GPA!

1. What does the exterior of your business say about you? Is there sufficient parking? Is the exterior clean and well lit? Is the entrance bright and inviting? Are the window displays neat and well-merchandised? Does the front of your business truly invite customers to come in? Does the exterior say, "Hey, you just can't afford not to stop in"?
   
   
2. What does your inventory say about you? Have you updated your inventory based on the current demographics of your customer? Are you buying what your customer wants or what you think they need? Do you have a system in place that allows you to reorder merchandise that is selling well so that you are never out of your "bread and butter" items? Have you allotted the best square footage to the items that are selling and turning the highest? Does your inventory say, "I am in business" or does it say, "Business is a little slow, I'll order more when business gets better"?
   
   
3. What does your floor layout say about you? Customers vary in their needs and wants, but one of the basic needs is that of efficiency. Customers want what they want, when they want it and as efficiently as possible. We all know how frustrated we can be in a super center when all we wanted was a jug of milk and we have to walk a mile to get it. I am amazed at how many stores merchandise their walls to the ceiling. What customer is going to be able to reach those items and how many extra employees and ladders do you have around to retrieve one of those items that is 15 feet up? How easy is it to navigate your store or business? Can you get a stroller or wheelchair through the aisles? Are you making it easy or difficult for your customer to get in, find what they want and get out quickly? Could your grandmother easily shop in your business? If not, change it!
   
   
4. What do your employees say about you? Are your employees knowledgeable about store policies as well as all of the inventory you carry? If something happened to you today, could you honestly say you would have faith in your employees to carry on, as usual? Do your employees have excellent phone skills and sound cheerful each time they answer the phone? Do they realize that the reason for their job is because you have customers? Do they go out of their way and never lose their patience on the phone or on the floor? Are your employees capable of making their own decisions or are they always looking for a manager to check with? Bottom line, would you want any of them working for your competition?
   
   
5. What would your community say about you? Does your community really know what you do? Can they recommend you to people they run into who need your product or services? Will those who recommend you follow their comments up with, "I wouldn't do business with anyone else"? Are you involved with other groups in your community such as the Chamber of Commerce or Little League or Rotary or other associations? Do you or your employees attend networking functions where you can educate your community? Are you a giving business or are you focused on what the business gives you?

These are five tough questions for any business to answer. You don't have to be a retailer for these questions to apply. Every business has clients that are unconditionally loyal. I believe that number is dwindling as the number of new businesses increases. People have many more choices and are more focused and truthful when they make out the report cards!

What are you doing the best in? What is your "A" subject? What area needs a little more studying or research? How willing are you to spend the time to really improve the grade? Like my parents always said, "I know you can do better"! If not, I'll bet your competition can.

Anne M. Obarski is the "Eye" on Performance. An author, professional speaker, and a business consultant , Anne presents keynotes, seminars and workshops nationwide. She works with companies who want to create service strategies to keep their customers coming back. Anne has recently published two new books, "Surprising Secrets of Mystery Shoppers" and "Real World Customer Service Strategies That Work". Reach Anne at www.merchandiseconcepts.com or [email protected].