One of the key strategies all businesses should adopt is a differentiation strategy. A differentiation strategy is an integrated set of actions designed to produce goods or deliver services that customers perceive as being different in ways that are important to them.
The concept of being unique or different is far more important today than it was ten years ago. One of the keys to successful marketing and competing is differentiation.
Because of the “Black Hole” that exists today with most businesses approach to customer service, I believe outstanding customer service can be an excellent differentiation strategy for businesses that can actually deliver a higher level of service.
Like many people, I constantly find myself baffled and frustrated by the inept “customer service” I encounter almost daily as I go about my business.
In his book, Hug Your Customers, Jack Mitchell, CEO of Mitchells/Richards, shares his family’s philosophy of how a clothing retailer has adopted a no-nonsense approach to customer service that has allowed their two stores to achieve among the highest margins in its industry, as well as amazing customer loyalty. Jack has a very simple, but effective approach to customer service, with the belief that a relationship is at the heart of every transaction. Jack’s business philosophy is based upon “hugs”, that is personal touches that impress and satisfy the customer, such as:
- Calling a customer to make sure he’s satisfied after a purchase
- Having a “kids” corner with TV, books and treats to keep kids occupied while the parents shop
- Remembering the name of your customer’s dog
- Introducing customers to business contacts
Hug Your Customers is an well-written, easy to read book that provides ideas and action steps of how business owners can develop a ”hug your customer” approach to customer service.
In my next post, I will provide additional ways that business owners can provide outstanding customer service to differentiate themselves from the majority of businesses that don’t have a clue when it comes to customer service.
