Henry Miller, a car salesman, was not having a good day. As a customer service representative and sales associate for a large company, he dealt with clients and looked for new prospects on a daily basis. But today, nothing seemed to be working. He had used his regular sales pitch of emphasizing the value of the products his company offered, the reasonable prices, and the easy payment policy. No one was buying and he couldnt understand why. He was relatively new to this company, and didn't want to lose his job, but he couldn't see how he'd be able to make any commissions selling products that everyone else seemed to carry. Thoroughly frustrated, he put his head into his hands and tried to think of what he'd been doing wrong.
Frank Simes was Henry's supervisor. He'd been monitoring Henry's calls and watching Henry's frustration mount and, deciding to do something about it, called Henry into his office.
"This is it. I'm going to be canned," Henry thought, as he followed Frank into the inner office. Surprisingly, instead of being fired, Henry found himself being invited to lunch.
As they walked to lunch, Frank asked about Henry's family and how he liked working for the company. Henry talked animatedly about his wife and children and more cautiously about his job.
"Here we are," Frank said, stopping suddenly in front of a corner grocery store. The store was small and well kept, with bright signs proclaiming, "Welcome" and "Come on in".
For the second time that day, Henry was confused. He hadn't even known the grocery store was there. He usually went to the larger chain grocery store around the corner. And he never would have thought that they served lunch.
Looking around curiously, Henry saw that, even though it was a small store, the cashier's line was full and people were milling around filling their baskets. Henry couldn't believe that this store had such a steady clientele. He would have thought the larger store around the corner would have drawn all the customers away.
Settling down at the cafe tables near the deli counter, Frank began to talk. "I'm sure you're wondering why I brought you here for lunch," he began.
"It had crossed my mind," Henry said, swallowing nervously.
"When you look around, what do you see?" Frank asked. Sensing a trick question, Henry hesitated, trying to find the "right" answer.
"Let me tell you what I see," Frank said, letting him off the hook.
"I see rows upon rows of neatly arranged, and easily obtained food products. Products that can be purchased at the larger chain store around the corner, and are probably cheaper than here. I see nothing special or significantly different in the layout of the store, or the quality of the produce. Yet the store is full of happy and purchasing, customers." Henry listened quietly, his eyes following Frank's hands as they gestured about the store.
"You have to ask yourself then, as a sales professional, how this small, ordinary store has survived the appearance of a larger, flashier chain store around the corner." Frank paused to take a sip of his drink.
"Let's look again and try to figure it out. See there, near the cashier. That sign on the wall that says "Ask about our Birthday Club". There's a clue for you."
"A clue? The Birthday Club is a clue? What is The Birthday Club?" Henry asked, amused and a little intrigued.
Frank smiled. "So glad you asked. The Birthday Club is a program the owner set up to give a little something to his customers on their birthday. Mr. Bob, that's what everyone calls him, collects his customers' information, what they buy and sends them a gift and a gift certificate on their birthday. Sometimes it's a little bookmark or other such trinket, but always something he feels the customer will like. He includes a gift certificate for a certain amount and chooses a birthday card to go with it. It's been a big hit with the customers, and it gives Mr. Bob something valuable at the same time."
"What does Mr. Bob get in return? He gets to know his customers, their likes and dislikes, and their buying needs."
"How is that information valuable?" Henry asked.
"Once the chain store moved in a few years ago, Mr. Bob knew he'd have to offer something to his customers that they couldn't get in the other store. He realized that people today were not buying products in the same way any longer. Many stores carried the same products with minor variations. So how did customers choose whom to buy from? He determined that people were buying personality, not product. He began to get to know his regular clients, and to try to reach his occasional ones. He tries to greet them by name, if possible, and suggest products that match their interests. A funny thing happened when he started doing this. He noticed that more and more people were discovering his store.
He hadn't spent anything more than usual on traditional advertising, but his sales had increased. He began to send thank you cards out to people who referred their friends and family to his store. Little things that didn't cost him very much, but that made the customers feel good about shopping here and remembering his store."
"So, what you're saying is, instead of concentrating on attracting the customers to what the products had to offer or which of them he carried, he concentrated on how his customers felt about shopping in his store?" Henry asked, wondering if it was that simple.
"Exactly!" Frank said, smiling. "He knew that he would never be able to compete by only emphasizing his products and prices. But if he could establish a relationship with the customers, and make them feel good about where they bought their products, then they would want to come back."
Henry thought back to the frustration he had felt earlier. Had he been looking at things the wrong way?
"People want to buy from someone they feel is attentive and honest. They don't want to be just another order number on someone's books. They can get that feeling anywhere," Frank said, finishing the last of his drink.
"Hello there, Frank, how have you been?" Mr. Bob approached them with a smile.
After introducing Henry and talking for a few minutes, Frank mentioned that they should be getting back to the office.
"Frank, thank you for bringing Henry in. Oh, and Henry, if you'd like to join The Birthday Club before you leave, here's the form. Have a wonderful day gentlemen." Mr. Bob produced a short questionnaire from the deep pockets of his apron.
"Look forward to seeing you again, gentlemen." He waved as he walked away.
Henry smiled and began filling out the form. "Hey Frank, I'd like to pick up some "Thank You" cards before we head back, if that's okay with you."
In summary:
Build a database: collect your customers' information
Research shows that many customers buy personality, not product
Get to know your customers by name and what they like to buy
Do little things like birthday cards and thank yous instead of advertising
People want to buy from someone they feel is attentive and honest
Say thank you to customers who have referred new customers
