This is the question that Ed Koch, the iconic three term mayor of New York City, made famous.  The Mayor would pose this question to the denizens of each of New York’s five boroughs as he strolled through his City.  He was looking for direct and immediate feedback from the people he served…and you can bet, in New York, that’s exactly what he got.  He was a tough-minded New Yorker and he knew how to take the feedback and use it to improve service delivery.  That’s one reason he was elected three times as mayor in one of the country’s most jaded political environments.

Unfortunately, most business owners don’t ask their customers that same question:  “What do you think about the product or service we deliver?” 

It may be because they don’t want to “upset the apple cart” reasoning that, in some relationships, if the question results in an answer that creates a problem, it’s just better not to ask.  Others may believe that a repeat purchase order is a positive performance review.   Still others may be so absorbed in running their business they don’t consider actively soliciting feedback from their customers.  Each of these notions limits the firm’s opportunities to gain an advantage over the competition.  Look, you may have the business today, but you can bet your competition is asking your customer what aspects of the product or service they consider the most important and tailoring a proposal to meet those expectations.  If you are not doing the same, the business may be at risk. 

If you are communicating with your customers you will know how best to serve them; and it is often just a matter of executing on those expectations.  In addition, if needs change or if your customer has new products in development, you are most likely to be the first to know.  And that’s a huge advantage to further cement the relationship, by collaborating with them in the development phase.

At a minimum, these are five questions that you should periodically ask:

 1.       How did you hear about us? 

                   This can help identify the marketing channel that is working best for you (referrals, direct sales,advertising or other promotional efforts). Obviously, this is not a question to ask         long-term customers.  Consider replacing it with something that draws out what current industry marketing/advertising/promotional trends seem most effective.

                   It is essential to know why your customers choose you.  Is it price, quality, reliability,
flexibility, a particular relationship, or some other factor?  Know this and amplify it.

                   This is another very important question.  This will give you an idea about the areas where you may be better than your competition.  This is key intelligence about how you must perform to keep the customer relationship.

         This is the scariest question of all, but it is critical information for your business.  You might not like the answer, but you are better off knowing how you are missing expectations than not knowing.  If there is an expectation gap, at least you will know about it so that it can be plugged.   Don’t leave a gap open to be exploited by your competition.

          This is the capstone question.  If you receive 8’s, 9’s and 10’s, you know these customers are pretty reliable referral sources.  This also identifies your best and most loyal customers, the ones you really want to continue to satisfy.  Concentrate on them, particularly if they provide significant revenues.

Clearly, asking your customers how you’re doing provides very important “actionable intelligence” to help you manage your business.  Equally important, it helps communicate to your customers that you know they don’t exist to provide you with sales, but that you exist to serve their needs.  

Relationships More Important Than Being Right

The first thing my new boss explained to me on my first day was that my first priority was managing the production of the new advertising campaign - and getting it on air for Thanksgiving. When he showed me the shooting boards, my heart stopped. The advertising was terrible.

Fortunately, I resisted my natural instincts to show him how smart I was (and how dumb everyone else was) and went into question mode.

"May I see the strategy?"

The advertising hit the mark on benefit and support. The gap was in its character.

"Are you sure this advertising is in line with this character?"

"You know, that had been bothering me too."

We scrapped the advertising together, started over together, missed Thanksgiving together, and ended up with advertising that made a material difference to the business in a way that built our relationship.

This approach to a disagreement involves going back up the logic chain to the point at which you all agree. Then connect steps back down the chain to the point of disagreement. If the other person sees the logic the way you do and changes his or her mind, great. If not, do it their way. Any argument you win in your early days is likely to be a Pyrrhic victory. Instead of trying to win, find ways to help others be right, get right, or stay right.

Regards,

George Bradt

PrimeGenesis Executive Onboarding and Transition Acceleration
Helping new leaders and their teams deliver

With apologies to Tom Petty, it IS good to be King.  But every King needs his court; his cadre of trusted advisors.  It’s no different in business. The need is there but, surprisingly, many closely held businesses do not formally engage a group of advisors or a board of directors.

Most business owners have a few trusted advisors, an attorney, a CPA and perhaps an interested and savvy friend, spouse or a senior manager.  But most business owners turn to their attorneys and CPAs for “transactional” or single issue advice, not strategic direction.  Friends or spouses often don’t really have the right business experience for counsel on challenges like branding or exploiting new market opportunities.  Finally, employee executives may be too deferential for candid, objective advice. 

Every chief executive and business owner understands that, while it is good to be King, it can also be very “lonely at the top”…especially when a crisis looms.  Having a trusted group of experienced advisors who know the business and are engaged in its challenges can be an invaluable resource.  Frank advice from independent peer executives can be crucial in clearly defining an issue and fleshing out the right course of action.  With seasoned advisors, there is a strong chance they have faced the same or similar issues and can bring that experience to bear. 

One of the most important benefits of assembling a court of advisors is found on a tactical level by bringing a discipline and culture of accountability to an organization.  Formulating and articulating short and medium-term objectives and then measuring and reporting monthly or quarterly the progress to a designated “higher authority” can be a company changer.  Beginning at the top, the objectives are communicated and understood throughout the organization.  Then they are translated into measurable activities and standards.  If the importance of meeting those standards is clear, the accountability can drive the company to higher levels of success.

Finally, no matter how brilliant and committed a business owner may be, (s)he is unlikely to know what (s)he doesn’t know.  Another set or sets of experienced eyes can provide that key missing piece, the one that enhances the vision and wisdom to accomplish the firm’s mission, thus making it easier and more satisfying to be the King.