Small firms can beat the giants on customer service
Apr 29 2003 By Bill Midgley, The Journal
The problems I experienced a few weeks ago when trying to buy some new gardening equipment have prompted some interest.
So I have to come clean and admit that I did later go and buy the necessary equipment, making my small contribution to the North-East's retail economy.
But the equipment was not from one of our large multiple DIY stores, but from a much smaller family owned business on Tyneside, a specialist in such machinery.
And what a difference in approach. Considerable time was taken to ascertain my exact need for the size of garden and details of the grass that I would have to cut.
The lawnmower was assembled for me, filled with fuel and oil and a full demonstration given as to how not to cut up various parts of my person.
And, extremely importantly, there was a full collection and repair service, if necessary. Yet the total cost was remarkably similar to what I would have had to pay to carry the equipment myself, attempt to assemble it, lose my temper and spend a considerable amount of time studying an instruction book to find out how the equipment works.
Small businesses often wonder how they can compete with large.
There is, however, a distinct role for the small business, in whatever field, given that it is totally geared to customer service.
That is, businesses which listen to their customers, sell them what the customer needs and provide an after-sales service.
Many large companies are turnover-orientated. Today's sale is the target, yet they often forget the customer may have needs tomorrow.
That is the niche which the small company can and must fill.
Many small businesses can control their overheads and that may mean knowing when not to expand, rather than look at expansion as being inevitable.
Importantly, they must remain close to their market place. In spite of my often-voiced concerns about the low rate of growth of small businesses in the region, there are excellent examples of individuals who show initiative, particularly in using new technologies, around graphic design: developing computer based techniques, for example, to break into areas often dominated by national and international players.
They succeed because the individuals listen and tailor what they have to offer to the customer's needs. The opposite end of the spectrum from those companies which have technology seeking an outlet.
We must use new technology in a positive way, harnessing it for the customer, not letting it dictate. The old values and the new techniques can and do work well together.
Indeed, if many small businesses are to succeed they must learn that lesson. The appreciation of the customer's needs, and ability to adapt to that individual's requirements may just be the basis of a recipe for continuing success.
