The world has changed, and whilst a business may create operational silos for accounting and business purposes, no longer can these silos operate functionally individually. In other words, every manager and employee must be prepared to operate together for the overall benefit of the business.
All decisions regarding management and employee work must be focused on efficiency, which includes encouraging new and existing customers to contact the business, buy the business’s goods and/or services, or to deal with any of their problems. This requires teamwork and understanding that sales, profits, cashflow and great customer service are essential components of survival and growth.
The factors which prevent these objectives from being met, include but not limited to:
- having unprofessionally and unqualified employees who are unfamiliar about their business’s process and products, or fail to pick up the telephone and answer enquiries promptly,
- unprofitable sales,
- a mistake causing a credit claim which is not dealt with promptly, preferably within 24 hours,
- a lack of product or ability to supply a service, “… as specified by the customer”,
- an inability to “sell a deal”, because your salespeople are order takers not salespeople,
- failing to understand a cash sale at a discount, is usually more profitable than a sale on terms where payments are late,
- failing to pick up the phone when invoices are paid late and speak with customers to understand why your invoices were not paid within terms,
- failing to thank customers for their custom, or visiting the customer to understand their business needs and find out what your competitors are offering,
- relying on outdated, unprofessional terms and conditions which cannot be amended for each customer,
- believing technology is the answer to all your business sales and efficiency issues, etc.
When every potential or actual customer sales or problem-based enquiry is meet with incompetence and/or a delay in providing an answer, two major problems are created.
First, your business is providing that customer the incentive to use another business to try and satisfy their needs, or they find another solution altogether.
Secondly, you are providing the customer with an excuse to slow pay any invoices with unresolved problems.
In either case, a failure of the business owner or manager to understand these outcomes always results in a costly mistake. Furthermore, when you are the customer, would you accept such outcomes for your efforts to do business efficiently? I think not!
To actually try and create a profitable sales attitude within the business means understanding that the following solutions will assist achieve this objective. This is not an exclusive list, it does however assist in providing possible solutions, which include:
- irrespective of whether a sales enquiry is received by telephone, text, or email, it is dealt with within 24 hours, not in 1-2 days,
- ensuring all invoices are sent as required by the customer,
- if purchase orders are required before raising invoices and sending goods to the customer, these details are to be shown on the invoice,
- all invoice enquiries are dealt within 24 hours,
- all credit claims are processed within 1-2 days of receipt, or at least the customer is informed on why there is any delay in processing the claim,
- all unpaid invoices which remain unpaid outside of normal or special terms are contacted within 2working days by telephone and asked, “…is their problem as we do not appear to have been paid?” and you respectively listen to the feedback and act accordingly,
- all regular customers are contacted regularly by telephone or a visit and asked “… is everything going okay, or can we do anything better?” In addition, all these and other occasional contacts should always offer the customer a “thank you for their business.”
None of the above information needs a “Rhodes Scholar” to understand the ramifications of why these actions are required. Sure, you may not be able to complete all these tasks as specified. You do need targets as an incentive however, to try and make these actions take place as often as possible, based on the type of:
- products you offer,
- the actions of your competitors,
- the needs of your customers, and
- the nature of each and every marketplace you operate in, etc.
Only then can you encourage customers to take up every opportunity to buy profitably and promote your business to others. In the current economic and world environment, your business needs to make every enquiry count, and have every invoice paid within terms paid as quickly as possible.
Achieve these objectives and existing and potential customers will want to contact you. Again, you don’t need to be a Rhodes Scholar to understand that if the customer willingly contacts your business, they are covering many of the costs of the contact, NOT your business. As always, a cost saved equals more profit for your business.
Want to know more, contact Kim at kim@creditmatters.com.au, or 0411 649 261, or have a look at what we offer via our website at www.creditmatters.com.au
