You’ve certainly heard companies talk about this concept called, “added value.” So what does it mean? And, if the big companies are doing it, why can’t you?

Added value is what gives a company the right (decided on by the customer) to charge more for a product or service than what it costs them to buy or deliver it. The automobile industry is a classic example of adding value and charging you for it.

What is the functional value of an automobile? Transportation, right? So what is the added value? The added value is the body style, the color, the sound system, the sun roof, the interior comfort, and so on. Then, the industry recognized that people were also willing to pay for added safety with dual air bags, early warning signs, alarm systems, etc. These are the tangible things that add value.

There are also a host of non-tangibles (or perceived tangibles) items that people are willing to pay for such as a lifetime service guarantee, 24 hour road-side service, and many other things you can’t actually see. These are things that you may or may not end up using, but they sure add value to the vehicle, and many of us are willing to pay for them.

So ask yourself, and your staff, what is your business’ functional value, and what is your added value? What is it that gives you the right to charge what you charge? What does your competition offer? What do your customer’s find to be important? During the holidays, some grocery stores offer a 24 hour hotline on how to BBQ a turkey or other holiday recipes because that is important to their customers. What do you offer? What can you offer?

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit ©2008 Customer Loyalty Builders, Inc.

The other day I walked into a small local business and waited in line for over five minutes and no one even acknowledged my existence. No one said hello, no one dipped their head, and no one even flinched at my existence. When I got to the counter, the clerk looked at me and without saying a word, tilted his head slightly downward, and raised his eyebrows above the rim of his glasses and just stared…waiting for me to make the first move.

I decided that this time, I was going to wait however long it took, to make them speak first since I was their customer. An eternity went by before I saw the first sign of life, but wait, it was only a repositioning of the head, now tilting his head to the other side, and his lips became tightly closed. No words were spoken, so I told the clerk that I would come back some other lifetime when they wanted to assist me as a customer. I watched the next customer approach…. the customer spoke first.

GREET YOUR CUSTOMERS!
There’s no excuse for not greeting your customers, and, if you are sitting down, stand up when you do it. Put a smile on your face and show your customers that you want to help them.

LET THEM HEAR THE SMILE IN YOUR VOICE!
When you and your staff answer the phone, put a smile on your face before you say a word! It’s hard to be rude or come across offensively when you do this.

TREAT COMPLAINTS AND QUESTIONS AS GOLDEN OPPORTUNITIES!
If your customers are complaining about something, they are giving you time out of their lives. It’s up to you to respond to their satisfaction, or lack of it, by giving them your full and undivided attention. Acknowledge and understand their concern, make some sort of commitment to them, and thank them for telling you about it.

THANK YOUR CUSTOMERS!
If your customers bought something from you, showed an interest, or just looked inside your business, they have given you time out of their precious lives. You owe them a “thank you for coming in!” By giving them a sincere thank you, even if they came in to return something, they will remember the courtesy and will reward you with their return business when the time is right. Don’t miss the opportunity.

TELL YOUR CUSTOMERS HOW TO COMPLAIN!
Not the right way to complain, but tell them who, on duty, has the authority to solve problems now. Also, make your name (as the business owner or manager) visible so your customers and employees can see it, and include your phone number. I can’t tell you how many times I decided not to pursue a complaint that would probably have been appreciated by the business owner, but because the clerk in the store wouldn’t give me their name, and there was no easy way to obtain it, I decided to take my business elsewhere without giving the owner a chance to fix the problem.

REWARD YOUR EMPLOYEES!
If your employees are doing a good job and you witness it, make it worth their while and promote it to the other employees and the customers. Many people think that recognition is “old hat,” and unnecessary. The truth is, however, that recognition accomplishes several less apparent things. First of all, it encourages the employee to keep on doing the right things. Second, it tells the other employees what it is that they need to do. And finally, when you promote it to your customers, it lets them know that service is an important element in your business.

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit www.ServiceQuality.US ©2008 Customer Loyalty Builders, Inc.

You can blame the fast-food giants – they started it. “It” is the, “Would you like fries with that?” era. They figured it out first, so they get the credit. They made a specific suggestion and got super results.

Times have changed, but the facts haven’t. What spurred the initial push was a survey that pointed out that 80% of single item purchasers said “yes” when asked if they would like another specific item. Businesses across the world caught on, but many have gotten lazy as time moves forward.

How many of your customers buy one or two items? I bet it’s more than you think. You can’t just ask, “Did you find everything today?” or “Is there anything else I can get you?” These aren’t enough. You have to train employees to identify the next step. Make specific, relevant, suggestions based on your customer’s needs. In order to do this, managers need to make the investment to train employees who face off with customers about the choices available.

Most customers don’t know what their choices are. It’s not their job to know – it’s yours, as the business, to be the expert. An example of this is a hardware store. You can actually go in and buy a toilet. Now, if you’ve ever replaced a toilet you know there’s at least another five or six parts that you must have to complete the job. Probably another 10 to do it right. The money’s not made off the toilet, it’s the additional stuff that has the higher margin. If I get out of the store with just a toilet, they have just lost a lot of potential revenue. I was in the store, I needed to spend the money. I didn’t know that, so I left. Another store got the chance to sell me the high margin stuff. (If you’re the manager/owner of a hardware store in the East Bay, don’t snicker – there’s a good chance that I bought my toilet from you…)

If you have a large selection of items or departments, appoint a subject expert or two for each. Rotate them between departments every month or two. Pretty soon, everyone will have gained the knowledge they need to make confident recommendations. Spend five minutes every day brainstorming with your employees about what items a customer may also need if they buy a certain product. Have a contest to see who can successfully identify the most “add-ons” for a particular item. Don’t just do this for a day or two – this needs to be a change in your culture, not just a program or promotion.

This isn’t rocket science. You will be amazed at how your sales revenue and ultimately profits grow, and keep growing for years to come.

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit www.ServiceQuality.US ©2008 Customer Loyalty Builders, Inc.