GPI 103 – Treat customers ethically if you wish to keep them.

Concerning customer relations, when you request something is sometimes more important than what you request.  Too many businesses drive good customers away through strict adherence to internal rules which were felt to be more important than the customer himself.  A few managers trying to cover themselves enforce rules that, in the long run, are detrimental to the customer relationship.  Someone has to step in this time to save the relationship and keep things going.  This is where you as a manager can either get in the way or help the customer.

Do not create unnecessary burdens or strains on your customers.  Before mentioning your internal rules and deadlines, consider whether they are critical or not.  Time your requests at non-critical points.

Politely warn the customer of past-due invoices well before cutting off their next ‘vital’ shipments.  Instead of waiting until the last minute to cut off critical shipments because of non-payment, watch your past-due accounts receivables well in advance.  When you notice growing past due invoices, look for other shipments coming up that may be cutoff if the customer has not paid these old invoices.  If there is a way to warn your customer with plenty of time about paying past-dues, do it.  If you know you need something before you can allow more shipments to a specific customer to happen, do not hold them hostage.  Notify them immediately.

Choose notification times to the customers that allow them plenty of opportunity to plan.  Give your customers plenty of time to respond to your requests.  Make it as easy for the customer to follow as possible.  Go out of your way to give your customer notice well before deadlines stop shipments or project delays.  Give him the benefit of the doubt.

Do not drive customers away; help them with deadlines!  Anticipate that customers will forget, delay and put off requests until the last moment.  For example, gently remind them of various deadlines and requirements for important blueprints, critical definitions and specifications, absolute shipping deadlines, exact packaging requirements and increased credit lines.  Offer to help them or assist them by sending in an outside sales rep to provide guidance or help in filling out paperwork or forms.  Offer to complete some tasks for the customer if necessary.  Go out of your way to show you are there to only help and will do what you need to do to retain this relationship.

Track what information and actions on your customer’s part will be needed in the future.  Assume your customers will forget.  Remind them when it is the easiest for them to achieve a necessary task and do not assume they are on track with you because they most likely are not.

Even when you are right, your unorganized customer will dump you and go elsewhere.  Small understaffed organizations sometimes will put off your request until the last moment, or ignore it entirely because they are overwhelmed.  This is when you need to step in and volunteer to do some of the work.  Even when you rightfully become the bad guy and have to stop the shipment, you will be still absolutely right and they will get a new vendor.  You will not be able to win in this situation, so do whatever you need to do to help the customer as early as possible.  You must forget the normal work scenarios in order to keep this account.

Ask for items well before deadlines arrive; help your customers and assume they run ‘late’.  It is costly to win over customers these days.  It requires a lot of time and money so before risking the loss of a customer who will most likely not return, do what you can upfront to keep that relationship on track.  Avoid strong-arm tactics which work but alienate customers.  Go out of your way to make this relationship successful and rightfully change the customer for this service.