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Carve Your Niche With Customer Service
June 11, 2008 |Estimated reading time: 3 minutes
A "focus on service and support as key differentiators, especially for mature or maturing software technologies" is a leading recommendation by PricewaterhouseCoopers in its 2007 Software Pricing Trends report.
As the market environment continues to evolve - with greater competition overseas, new pricing models, and the introduction of no- or low-cost tools - organizations must develop strategies to adapt in order to remain viable for the long term.
For the North American printed circuit board industry, overseas competition has drastically cut the number of domestic manufacturing facilities, from approximately 800 in 2001 to less than 400 today. Overseas firms may provide cost savings for large production runs, but their weakness lies in customer service. More innovative companies in the industry can exploit that weakness by investing in a solid customer service program to produce the competitive edge needed to carve out a niche and thrive.
Because of their focus, nimble companies are well positioned to provide clients with exceptional customer service. Understanding their product and service inside and out and passing that knowledge on to customers effectively and efficiently can promote loyalty. Through comprehensive customer service programs, companies have an opportunity to show how their products will optimize their clients' business processes and therefore add value.
Steps Toward Success
Every company's customer service program is unique, and some may require more effort than others to make the sort of positive impact desired for higher retention rates. However, some simple steps can be taken to start developing a more customer-focused organization.
Know Your Market. Take advantage of opportunities to listen to your customers - past, present and potential - to understand the product and service features that are important to them. Pay attention to feedback areas on your Web site, which can provide a wealth of information on what customers find helpful and what would improve their experience. In addition to improving your Web site, this feedback can also drive changes to your product offerings, making them more attractive to a wider audience. Also, keep tabs on competitors and their Web sites to see how they have enhanced their customer service experience and if they are offering features that your company can implement or even improve upon.
Invest in Training. With their narrow product focus, nimble companies can provide in-depth education to their workforce. Invest time and money in training customer service representatives to ensure that they know the full potential of products and systems and can help customers optimize their purchases and feel confident that they have made the best choice. Companies that provide well-versed staff to assist customers illustrate their commitment to client satisfaction.
Be Available. Given the global nature of business today, design and engineering work is being performed around the clock. While offering 24-hour customer support may be a huge leap for some companies, it may be beneficial to test the waters by extending support hours gradually. Providing customers with a larger window in which to have their problems addressed can allow them to get back on track faster, adding value by keeping the design process moving and wasting minimal amounts of time and money.
A Service Model in Practice
In the PCB prototype business, Oregon-based Sunstone Circuits has applied the above principals and promises to provide the best customer service from quote to delivery.
The company studies the design process and consistently evaluates how information can be moved upstream to help designers avoid pitfalls that could delay or increase the cost of the final product. Sunstone has introduced tools and design environments that allow designers to work with manufacturing and suppliers to ensure that schematics can be produced and all the necessary parts are available.
By constantly listening to its customers, Sunstone develops greater understanding of its changing needs and is nimble enough to respond by applying changes to its own systems, software and tools. The result is high customer retention rates, positive word of mouth, and steady growth. The company currently averages nearly 30 new customers a day, and retains at least 80% of designers for a second try. In addition, average year-to-year sales growth has exceeded 25% during the last five years.
Becoming a customer-focused business is a gradual process. Enhancing traditional customer service programs is important, but it is also imperative to develop a culture that considers customer needs at every level, from product and service development to delivery and beyond.
Bob Schnyder is director of marketing for Sunstone Circuits.