Posts tagged "trust"

Advice Inspiration

Results

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“You can’t build a reputation on what you are going to do.” Henry Ford

As a young entrepreneur, some questions you hear repeatedly from prospective customers are, “Who is currently using your product/service?” or “How many users do you currently have on your system?”  These questions are asked with the aim to establish whether the prospect can trust your business to deliver what you are pitching, and whether the team has the appropriate capabilities and skill sets. Not many individuals want to be the first customer to test a brand new product/service, it is hence up to the entrepreneur to convince the customer why they should use their product/service. The question that arises is “How does an entrepreneur convince a customer to trust him to deliver on his word?”. I believe the fastest way to do this, is to reference past performance and results, and use them as benchmarks to make a convincing argument. 

Results and past performance speak louder than any number of words. The world today benchmarks each and everyone of us to what we have achieved. For example, take an individual with high levels of integrity, extremely competent, communicates consistently and has a genuine concern for what he/she is doing. However, if this individual does not have a track record of delivering when given a task, chances are that they are not going to be given a chance to step up to the plate. Therefore, as entrepreneurs, we have to constantly look for ways to prove to customers, stakeholders, investors, employees and the media that we have what it takes to succeed. We cannot wait around for things to happen or wait for the ‘right’ opportunity. Action needs to be taken, and positive results need to follow. Will we always get the results we want? Unfortunately not. However, if we persevere and pursue what we want to achieve relentlessly results will follow.

Some areas where younger entrepreneurs can display results they have achieved are:

1. Academics: This works well when you are raising early stage angel or venture funding. If one has achieved success in the form of honor rolls, awards or other recognition for academic pursuits, they should be included in some way in your pitch. From a customer’s point of view, having someone with deep theoretical knowledge about your product/service adds great value.

2. Extra Curricular: Including any information about areas such as sports, debate societies, student unions or charitable efforts one has been part of, also adds value.  A personal example is,  when I co-founded an entrepreneurship society at university, which has since grown from 10 members in Singapore, to over 2500 spread across all of Asia today. It was through this platform that I gained a valuable network, and built trust with many of my mentors today. Other examples could be contributions to charitable organizations and events, and funds you may have raised for them.

3. Projects & Initiatives: Results can only be achieved when you take initiatives and actions. Highlight areas where you took an initiative, such as, starting a blog, a website, a store on ebay, freelance projects or any other example where you have documented results. Such projects go to show that you are willing to go the extra mile to reach you goals. 

Once the business has established customers, continue to track results through all business processes. Take responsibility for all the results you get, be they positive or negative. I have found that the learning process is specially instructive when we do not get the results we want. I have repeated this many a time, there is no failure, only feedback. Once you have established a solid track record, and have been identified as a result oriented team member, the level of trust your peers will have in you, will sky rocket. 

Advice Customer Service

Genuine Concern

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“If a man speaks or acts with a pure thought, happiness follows him like a shadow that never leaves him.” Buddha

An individual or business can have high levels of integrity, be competent and communicate with consistency, yet, a lack of genuine concern for others or your customers, will dramatically slow down the trust building process. I believe a genuine concern for your customer with honest intention is the ‘x-factor’ in the trust building process. We have all encountered situations where a business, restaurant, hotel or individual went out of their way to assist you and remember the impact it had. This could be something as small as having your laundry picked and dropped to your house free of charge or giving you a complimentary meal when your food did not arrive in time. These gestures communicate genuine concern for the customer, and an honest aim to make sure they are completely satisfied. 

When a business puts making X amounts of money in a calender year or achieving a certain amount of ROI every quarter as the only aim, they tend to miss out on this factor. Therefore, to build an organization which takes into account the aim and will to ensure that each customer is looked after to the best of the company’s abilities is a challenging task. It has to begin with senior management, they must lead by example. A couple of days ago, I had a prospective customer email me regarding taking some psychometrics courses. Unfortunately, his email got buried and I completely forgot to respond. When I uncovered his email a week later, I promptly sent him the information along with a free test to apologize for the delay. We must always remain vigilant of our intentions, attitude and actions from the customers point of view. 

As a startup it is important that a culture for genuine concern is developed from the onset. Listed below are a few steps to help you get started in the right direction.

1. Listen: Understand your customers in as much detail as possible. Learn what their goals, objectives, threats and concerns are when dealing with vendors, who may be providing similar services to yours. Armed with a thorough understanding of their needs and wants, we will be better equipped to cater to them.

2. Communicate: This needs to start internally in the business, the team must be made aware of the focus, agenda and achievement targets of the company. How the company plans to achieve targets as well as the necessary actions that need to be taken. Such information empowers the workforce as can be seen at Southwest Airlines, the company has the best service standards by far in the industry. We also need to communicate our agenda to the customers. This helps create transparency and removes suspicion from the customer’s mind.

3. Actions: We have to lead with examples and empower our workforce to go beyond the call of duty to help a customer. Ritz Carlton gives employees a discretionary budget in case of an emergency or incident with a customer. At my local Starbucks, the servers know me by name as well as my daily order. When a customer receives such service they are bound to let everyone know, and this will not only help create goodwill but also secure a loyal customer base. 

Financial goals are important metrics for any business. However, I believe that businesses should have metrics for the softer side of the business as well. How many satisfied customers did we serve this year as compared to last year? How many customer complaints were received this year as compared to last year? Benchmarks must be created for quality of service too. Genuine concern for your customers is positively correlated to better quality of service, this results in more customers and higher levels of trust.

Advice Communication Customer Service

Consistent Communication

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“To effectively communicate, we must realize that we are all different in the way we perceive the world and use this understanding as a guide to our communication with others.” Anthony Robbins

We have all come across businesses where senior management says one thing, middle management says another and the customer service representative says something completely different. Another example, marketing slogans promote 24/7 customer support yet, there is no one to answer the phones at 3 am in the morning. When there is inconsistency in communication, building trust will be an arduous task. As younger startup companies, we have to instill the importance of consistent communication, from the beginning of our operations. Such a culture will act as a catalyst in the development of trust and creating a level of loyalty to your product/service. Failure to do so will have a detrimental impact on your business as a whole, and it will be very difficult to retain and nurture existing customers. 

Several key areas where consistency of communication is of utmost importance are:

1. Senior Management: This group of individuals is responsible for the creation of a culture where candor is promoted through the ranks. They need to lead by example by keeping their word, and being upfront and honest with all employees, vendors and customers. This is manifested in the little things, how many times have you told your secretary or colleague to make up an excuse when you don’t want to speak to someone on the phone? If one promotes honesty and consistency in the organization such actions clearly conflict with the message that you are sending to your employees and colleagues. Inconsistency of communication is usually the result of a breakdown from senior management. This group needs to be extremely vigilant of their actions and words. 

2. Customer Service: How many times have you called a support department and felt like slamming the phone down because of the level of service you received? I know I have wanted to do so many times. This is the result of the gap in communication between middle and senior management. When this level is not clear about the level of communication the organization stands for, what their role is, or why it is important that they act and behave in accordance with the principles of the organization, they will not be able to communicate this messages to the end customer. I understand that in todays world, doing this while outsourcing these activities to third party vendors is going to be a difficult task. However, it is of vital importance that creative solutions to this problem be developed to facilitate the trust building process.

3. Marketing: Seth Godin wrote an interesting book called “All Marketers are Liars”. It uses various examples to drive home the point that the most successful corporations are the ones who have consistent and honest marketing. Today, we are bombarded by millions of advertisements, many of them use deceptive tactics to stir curiosity. I am sure many people click the pop up banner which says you have won a million dollars. Often a company will promise features and capabilities which they may not possess. Most of these companies will never be able to develop any trust with their target customers. As a startup, use marketing as a tool to tell a compelling story, which is rooted in honesty. 

Consistency of communication must be developed through the entire business. When mistakes are made do not attempt to cover them up and embellish the truth. It only takes a single act of inconsistency in your message to destroy any trust which may have been developed between your partners, vendors or customers. 

Advice

Competence

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“A competent leader can get efficient service from poor troops, while on the contrary an incapable leader can demoralize the best of troops.” John J. Pershing

Competence is a pre-requisite for the process of trust building. An individual or business is deemed competent in a particular skill set when they have proved themselves adequately. However, for a new startup, without a track record, this is often a very challenging task. Competence needs to be communicated through actions in a younger team. For example, take two startups, both aiming to develop similar ebay replicas in a virgin market. Both teams have identical skill sets in terms of technical capabilities. One of the team, actively looks for individuals with prior experience in this sector, and adds them to their advisory body. Along with this, they get a major courier company to sign up with them as well as a reputable payment processor. A customer evaluating which website to use, will clearly choose the team which has put in extra effort in developing weaker areas of expertise. 

This example goes to show that younger startups need to think creatively about areas of competence and work pro-actively on weaker aspects. Areas of competence must be clearly communicated to their target audience. Some areas which can be emphasized for younger startups are:

1. Education: Many startups comprise of young team members who may still be at university or have recently graduated. Emphasis on your team’s specialized educational background to show they have adequate technical, managerial or marketing skills required by the business is an asset. Any other certifications or external program qualifications of team members can also be added when relevant. 

2. References: References from established members of your target industry whom you or other team members have worked with, can be very helpful. This serves as a validation of your skill sets and capabilities. This is particularly handy when a team is involved in raising seed funding at an early stage of the venture, from angels, friends or even family. 

3. Talent: All of us have some particular talent which makes us unique. Some may be good at public speaking, sales, programming, art, writing, sports or another talent. When your talent pool adds direct value to the business you are embarking on, it is advisable to highlight them. They add depth to your overall profile and provide keen insights into team member’s skill sets. For example if you were a swimming champion throughout university, it shows that you have discipline, and thrive on competition and high endurance levels. Many valuable characteristics can be extrapolated from that one talent.

Once credibility has been established, the display of competence becomes a lot easier to communicate. We all know that google is by the far the best search engine today and that it’s team is highly competent at creating algorithms which continually improve the product. A new startup wanting to challenge google will have a very difficult and challenging task to communicate that level of competence. Developing competence levels within your business is a constant work in progress. Set goals, and keep developing the team’s capabilities in strategic areas, to ensure that long term trust can be built with your customers.

Advice Inspiration

Integrity

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“Have the courage to say no. Have the courage to face the truth. Do the right thing because it is right. These are the magic keys to living your life with integrity.” W. Clement Stone

Integrity is a foundation block of building trust, in both life and business. Our integrity levels are built upon our value and belief systems. It is these systems which define us as individuals and businesses. Ensuring that the core values which define us as individuals, are in congruence with the values we want our business to be defined by, is vital. A mismatch between these two creates substantial friction. Therefore, it is essential when building your team, to get individuals who have similar values and beliefs. Integrity however is not something which is developed overnight. An individual or organization needs to work hard and consistently to develop an image of integrity. 

Our integrity is based purely on actions and decisions we make in life. They reflect who we are and what we stand for. Listed below are a couple of integrity benchmarks to help gauge integrity levels:

1. Congruence: This is an essential sub component when evaluating integrity levels. Complete congruence is when we think, speak and act in an identical fashion. However in this day and age, this is becoming increasingly difficult. Organizations want to make money, to achieve this they embellish their services with words which are not actual representations of what they provide, finally, they provide customers with sub par services to achieve their primary goal. Such an organization will find it impossible to build a loyal customer base, and will probably not be around for very long. We have to ensure that are actions are in congruence with our thoughts and words both as individuals and organizations.

2. Commitment: Promises made by individual or business must be honored. If your business guarantee’s 99% uptime of your services, make sure that there is an adequate infrastructure in place to support that commitment. I am sure we have all come across individuals who promise us the world, but when it comes down to getting things done, they rarely deliver. Such individuals get labelled as big talkers and cannot be depended on. Therefore, be very careful when making bold statements and promises to customers. 

3. Courage: In life, at some point or other, most of us will find ourselves at a crossroads of opportunities where taking the easy way out goes against all our principles and beliefs. It is at moments such as these that an individual’s integrity is truly tested. This is specially true where money is concerned, and we have seen many public cases where senior management compromised their values for short term monetary gains. Many businesses turn a blind eye to sweat shops, below quality products and poor service.  Not standing up for your principles and beliefs makes developing a reputation for integrity a very challenging task. 

I hope these benchmarks will get one thinking about personal integrity as well as that of the business. Without this crucial element, we could have the next killer product, service or idea, and yet not succeed. One needs to be constantly vigilant about what our thoughts, words and actions are communicating. An immediate exercise one can do with our teams is value identification. This will help clarify the team’s and businesses common value systems as a whole. This list can help measure actions against them, to gauge the sort of image being projected.

Customer Service Trust

PayPal Account Hacked

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“Are you kidding me!” Usman Sheikh

This is going to sound ironic…this week’s series was to be about trust and its importance in life and in the world of business. Trust is hard to gain, by the same token it is extremely easy to lose. After today’s incident, PayPal has lost all credibility and trust with me it may have gained over the last couple of years that I have been using their service. This afternoon my mailbox was suddenly flooded with authorizations for payments from multiple individuals whom I had never heard of. My first reaction was that it was one of those fraudulent emails which wants to swipe your information etc. However, once I checked the sender and saw it was PayPal themselves, my heart jumped a couple of beats. There were multiple payments in excess of a couple of thousand dollars.

I first placed a block on all transactions with my bank account and PayPal. Next I tried to figure out the maze of forms which need to be filled, to alert them of unauthorized transactions. Finally, I got a rep on the phone. The first one I spoke to was helpful and managed to calm me down substantially. We got a lot of the paperwork out of the way and she was quick to assure me that they would do all that was possible to get the money back. Midway, the call dropped, I got reconnected to another person at the call center. This was awful, she must have had a bad day or something, and instead of calming me down, was totally inconsiderate and wanted to put down the phone as soon as possible. This is not an attitude a distraught customer wants to be facing. Anyhow, finally got everything submitted and now it is “under review”.

I will keep everyone updated about the progress and have posted this to alert all PayPal users who read this blog to go and check their accounts, and request for the Verisign security key to safeguard your account from similar activity. This is not an isolated case, I found this article which goes to show that there is obviously a significant loop hole somewhere in the system, and it is being exploited. Please be very careful, and if you are not using your PayPal, unlink it from your financial sources. In the end, it is incidences such as these, which totally decimate any shred of trust and credibility with a service provider.  Negative feedback tends to spread a lot faster, and it could result in a mass exodus of customers, if such service providers do not take appropriate measures and actions to stop and help customers when such incidents occur.

Updates:

– September 17th: Was on the phone with around 3 customer service representatives and have lodged an unauthorized transaction report.

– September 19th: Paypal sends a survey requesting information regarding their phone support service. At-least they are showing initiative to making their customer service better, which by the way needs a lot of work.

– September 22nd: Received partial refunds for some of the unauthorized transactions. However my account has been locked and I am told by their customer support that my money is going to be withheld for 180 days! I understand Paypals point of view to control the level of risk, but I don’t think this should be a rule applied across the board and should be handled on a case by case basis.

– September 24th: One of the fraud claims has been refunded to my account. 4 more to go.

– September 29th: The remaining four claims have been refunded. I have to say that I am impressed how fast Paypal managed to resolve these claims. I may return to using their services sooner than expected.

Sales

5 Steps to better sales pitches

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“There are always three speeches, for every one you actually gave. The one you practiced, the one you gave, and the one you wish you gave.” Dale Carnegie

I firmly believe that every pitch you make to a customer has to be customized to the customer’s current needs. Going in and giving the same pitch to every customer is not an effective strategy. Customers are becoming more sophisticated and have a larger pool of vendors to choose from, hence, you have to do more and be different. This week I have set down some primers on sales pitches. Below are a list of important factors you should look into when preparing and delivering your sales pitch .

1. Industry Identification: Two factors need to be decided upon before you set out to get your prospect list sorted out. The first factor is identifying the industry that will have the greatest utility for your product/service. The second factor is identifying which industry you have the greatest links to through your personal network. Balance these two factors to arrive at an industry where you have the highest % chance of closing a deal. To read more please click here.

2. The Customer: If you can figure out your prospects pain points well before meeting them, you will have substantially increased the probability of closing the deal given you have a great value proposition. There should be substantial time dedicated to doing maximum background research about your prospects before you actually pitch to them. You will need to develop a value proposition which is tailored to their current requirements and addresses a need. To read more please click here.

3. The Sales Pitch: Rehearse, rehearse and then rehearse some more. You need to perfect the delivery of your pitch. Before you actually dive into your sales pitch you need to build rapport with your prospect. This is critical to breaking down the barriers that individuals put up when they are pitched to. The transition between building rapport and beginning your pitch should be a natural progression to ensure that you keep your prospect in a comfortable state during the pitch. To read more please click here.

4. Getting to “Yes”: Three factors play a major role if you are to close a deal. Firstly you need to be confident about both your pitch and your product, secondly you need listen and understand the prospects concerns and lastly your ability to summarize and make an effective closing argument will greatly affect the outcome of the pitch. To read more please click here.

5. Expert Advice: Three key pieces of advice which were shared to me by seasoned entrepreneurs have helped me close more deal than any other strategy. Staying honest, exceeding your clients expectations and providing more value than you take in payment. To read more please click here.

As entrepreneurs we are selling something everyday. It could be a vision, a product or a service. We have to do our best to make sure that we learn continuously to become better at this skill which is critical to our success. If you have had success in this area please share your experiences to help everyone reading this, so that they may benefit and in so doing become better at pitching.

Sales

Advice on Sales

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“Sales are contingent upon the attitude of the salesman, not the attitude of the prospect.” William Clement Stone

When I was starting my first business I was given quite a few tips from a couple of very established entrepreneurs to help me out in getting the sales that I needed. Outlined below are some of the key tips which have helped me.

1. Honesty: The first thing that crosses my mind when I am getting pitched an idea or a product/service is; “Is this for real?”, “Can he/she really deliver?”. This question probably goes through all customers mind at one point or the other. It is your responsibility to make sure that when you are pitching you are honest about what it is that you can and cannot do. Honesty is always the basis of long trusted clients who continue to come back to you and refer you to their own network. Reputation is the most important aspect for any entrepreneur and honesty and integrity should be the corner stone in developing that reputation.

2. Don’t over commit: When you know you have the capability of completing additional requests by your clients but have yet to gain authority in those area’s commit less and exceed your clients expectations. My first media copyrighting business was built on this one factor. Our mantra was “exceeding your every expectation” and by focusing on exceeding our clients expectations we enjoyed tremendous amounts of success.

3. Value: Your entire sales pitch should revolve around creating more value for your client than you are taking in payment. If you continuously strive to achieve this aspect you will see your business prosper and will most likely develop a very strong bond with your clients.

Simple as they may seem these pieces of advice have provided an enormous amount of return for my colleagues and I who have incorporated them into their sales pitches. I hope they will be as beneficial to you.

Sales

Getting to “Yes”

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“No one can remember more than three points.” Philip Crosby

All the effort you put into your sales cycle boils down to the fact that you are able to convince the customer to buy your product/service. There are a many factors which have to be in place for you to get to “yes”.

1. Confidence: Throughout your pitch, the customer is going to be evaluating you continuosly through the way you speak, gesture and articulate your thoughts. All of these factors come together when you are convinced about the value of the product you are selling. If you have the slightest doubt about what you are selling the customer is going to pick up on it. So make sure you believe in whatever it is you are selling.

2. Listen: During your pitch or in the Q&A session listen intently to the concerns which are being raised by the customer. Is there any one segment which he is focusing on repeatedly? By concentrating on those you will be able to break down any internal barriers which may be stopping the customer from make the purchase. If you are selling a complicated product which requires several meetings with the customer taking down detail notes helps in preparing in advance for future negotations.

3. Summarize: After concluding your pitch you should tell the customer once again about the product and the value proposition in a very short, concise and understandable manner. This recap helps to put things into perspective as the customer has had to digest a lot of data. If you have built a solid case this is when the customer will ask you probing questions about price, delivery and implementation which often signals a green light for the contract to get signed.

I have always been a straight shooter when I pitch to clients. There are a ton of “closing strategies” which you can find in books and the internet telling you ingenious ways on how to get to “yes”. The most effective one that I have found, is to be honest, confident and concise.

Sales

The Sales Pitch

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“It takes one hour of preparation for each minute of presentation time.” Wayne Burgraff

We have all,over time, been pitched something or the other. Some pitches have been good, others could have been better, and some had you looking for the nearest exit. The sales pitch is the amalgamation of your collected information and value proposition in less than 60 minutes. First impressions are critical and in most cases, the deal closers or breakers. Think of the times when you were pitched something, be it a business idea, a product or a service. What were the factors which influenced you into making the decision to buy?

Two steps need to be taken to get to that buying decision. The first is a pre-demonstration pitch, this is where you break the ice with the customer and build rapport. This is a technique all great closers use as it lowers the internal barriers we put up when someone is pitching to us. Building rapport is an art which is learned over time and is a skill which you continuosly need to hone. Once you get good at it, you will be able to shift the customers mindset to a more accepting one, to a point where you are more likely to close the deal.

The second step is when you actually begin the sales pitch. This is when you show the customer what it is that you are actually selling and how it is going to help them. All the information you gathered about the industry and the client must be reflected in your pitch. An attention to detail will help create a much closer connection with your prospect. This allows both of you to look at the concept from the same wavelength.

This is when you arrive at a point when the customer is faced with a buying decision. If you have showcased your product/service confidently and have clearly shown how it is going to add value, closing will be much easier. Whichever method you use, whether it be a power-point presentation, a story board or a simple discussion, remember, keep your pitch simple and to the point.