Cleanpeers.com>Articles>6 Secrets of Very Successful Service Businesses
by Rod
Kasnick
Computers. Businesses have gotten by without them for hundreds of years. You either live with them or without them. But one thing is for sure. If your business does not use these inexpensive and powerful tools, your chances of survival in the competitive service business world are dim. Large companies have realized the benefits of using these productivity tools for years, but why should a sole proprietor, a mom-and-pop type business, make the investment of time and money for a business software application? SUCCESS! That’s why. Without a good back-office software application, your customers will eventually go to your competitors, leaving you with the never-ending uphill battle to attract new customers just to stay alive. Let’s face it. Computers are here to stay. Nevertheless, most people think of a computer as something to deal with -- rather than something to help them deal.
There is a proliferation of books such as Computers for Dummies and Computer Based Training materials (CBT for short) available to help you get the most from your computer. Sure, you and your staff CAN learn to use them, but where do you begin? Your time is valuable, would it be a worthwhile investment to learn how to operate a computer, become skilled at doing the research, select the hardware and software your business requires, get the training and then modify your daily business activities to get all the benefits computers can provide?
Use the WIIFM Principle. That’s the bottom line. Before you spend the time and money ask yourself:
“What’s In It For Me?”
There are literally millions of ways companies of all sizes from John Doe Cleaning Company to General Motors are using computers to gain an advantage over their competitors or reduce their internal costs. By comparison, there are only a handful of activities that are common across all sizes, shapes and forms of companies. Let’s explore the most common of these activities as they relate to service businesses.
Surveys of service companies defined as SMEs (Small and Medium Enterprises) by trade analysis groups have identified commonalities among those that used computers regularly during the course of business. The six main uses of computers and computer software (in order of popularity) are:
Mailing Lists
Scheduling
Invoicing
Tracking Bids and Estimates
Statistical Analysis
Human Resources
Not all SMEs use every solution, but on average it was found that businesses used at least three. And, implementing even one of these solutions can save or generate substantial amounts of money - no matter what size business you have.
As we explore the uses of each of these solutions, I will attempt to explain the “Why” as well as the “How”. Because once you learn why these solutions are so useful, you'll know what solutions you want to adopt for your own business.
By knowing what solutions would be useful to your business you will avoid needlessly learning general computer skills. You will focus instead on the specifics you need to get the job done.
Don’t buy a software application based on features. Features by themselves do you no good. Example: you are buying a car and you expect that it has four tires. That’s a feature. Great. But how long will those tires last before you have to replace them? If they last 75,000 miles and you never have to replace them while you own the car, that’s a benefit. Benefits relate to solutions. Pick a solution, not a feature.
Don't buy a database program just because it can store all your customer information. That’s a feature. All databases do this, just like all new cars come with four tires. If what you want to do is set up a mailing list, you need to know how easy is it to enter customer data, how quickly can you produce the list, and can you reuse the data in other ways? If the answers are very easy, fast, and yes, then the benefit is time saved. Always get solutions that give you the most benefits for your way of doing business.
Speaking of reusing or sharing data, the more ways you can use your customer data without rekeying it the better. Choose solutions that are multi-functional, based on your analysis and business needs.
For example, if you have decided your business needs are an invoicing, scheduling and a mailing list ability, and if your invoicing process cannot share the data with your mailing list process and scheduling activities, you need two software applications. That means double the cost and double the learning curve. This is multiplied by any other stand-alone or non-sharable data solutions you would need to add to your business now or in the future.
Mailing List
What's the most valuable asset your business owns? For most businesses, if you really think about it, the answer is an intangible one: your customer relationships. Even if you have large capital investments or money in the bank, no customers means no business. Most service businesses provide service to their customers regularly albeit sometimes as infrequently as once every six months. Intelligent use of mailing lists cement relationships between every customer and your business. Mailing lists allow you to ‘touch’ your customers outside of your core service with a frequency that you determine is right for each customer. They provide a means of keeping your customer relationships healthy, allowing you to attract new customers and to get new business from existing customers. Here are five typical ways in which mailing lists are used:
Thank You Notes - When a customer makes a purchase, sending out a thank you note shows the customer that you value them and encourages repeat business.
Customer Satisfaction Survey - A customer satisfaction survey can help smooth out any problems that may have developed in your relationship with a particular customer. It can also provide general feedback about how your services are perceived by your customers.
Refer a Friend Programs - A satisfied customer can be an excellent sales person. Offering referral incentives to your customers or discounts for new customers can encourage word of mouth advertising.
Sales Flyers - People are busy and easily distracted. Sending out a sales flyer can remind your customers that you exist and can re-familiarize them with your services.
Reminders - If you perform a service that should be done regularly - like carpet cleaning, window cleaning, or lawn maintenance - a post card or email reminder can make sure that your customer gets services they need.
Not all of these are appropriate for every business, and there are many other ways to use a mailing list that aren't listed here. However, virtually every business can and should be using a mailing list. It's one of your most powerful tools for making money.
OK, so doing a mailing list is good, but is it difficult?
Not really.
You get the names and addresses of your customers into the computer. The computer then prints the customer names and addresses on mailing labels, envelopes, or postcards.
You can even get a bit fancier and create a form letter that the computer customizes using information you enter into a database. For example, "Dear Mr. Smith, Your 2004 Toyota Prius is due for an oil change on or before February 4th. Please call us to set up an appointment."
Better still, for customers who have email, you can send your messages electronically saving you the printing and postage costs.
As far as what you mail out, there are a myriad of inexpensive printer-compatible postcards, greeting cards, envelopes, and labels available at office supply stores like OfficeMax. What you use, what you say, and how you use your list is limited only by your creativity.
All of these features can save you money and make you look more professional. That’s a real benefit.
Scheduling
Your customers have an expectation that when they schedule an appointment, no matter how far into the future, you or your employees will show up on time, with the proper equipment to perform the service they contracted for. Setting an appointment and getting the right people to show up at the proper place and time is the second most important activity a service business can perform. Nothing creates more customer dissatisfaction than late arrival or missed appointments.
Computerized scheduling helps avoid the most common causes of tardiness and missed appointments. Each employee or crew lead should have clear instructions about when and where they are scheduled to be, as well as other pertinent information that relates to each job. Information such as directions to the job-site, special requests by the customer, work to be performed, amounts to collect, notes about past services performed or problems encountered are basic functions.
Having your employees show up prepared to do the job and knowing all the details about the customers’ wants and needs indicates professionalism that consumers have come to expect as a matter of course. It’s what sets apart companies like Sears from John Doe Handyman Service. Emulating how the large companies operate is one step towards becoming a large company.
Invoicing
Are you still using manual or paper invoices? If so, don't feel bad. You are not alone. Accounting programs can be daunting. However, they needn’t be so. Many accounting programs, such as Quickbooks, include wizards that guide you through the basic tasks of setup and operation. Among the many reasons to go electronic are these benefits:
Fewer Mistakes - Calculating totals, taxes, shipping costs are extremely accurate when you let the computer do the thinking.
Easier to Read - Legible handwriting is becoming a lost art form. A computer based invoice is always easy to read both for you and your customers.
Easier for Accounting - Need to add up a stack of invoices? Invoices stored in a computer can be added in a split second, way faster than a human can do with an adding machine, with fewer mistakes.
Easier to find - A customer needs your help in finding an invoice? With a paper-based system, you could be looking through a long stack of papers before you find what you're looking for. With a computer you can find invoices by number, name, date, telephone number, what was purchased, you name it. And invoices can't be misfiled.
These are the obvious advantages, but there are some really great additional benefits. For example, your invoicing process can be linked directly to your scheduling and services files to create invoices on the fly and insert the data right onto the invoice, making the process of filling out an invoice faster and more accurate.
Tracking Bids And Estimates
As a service oriented business, you know how important it is to keep track of your prospective jobs. Using your computer and database application you can set up a database of all your bids and estimates. Each estimate can be linked to jobs scheduled and completed. The bid tracking function should be flexible enough to allow access to your established services, as well as new services you may be requested to perform, giving you a complete picture of the entire estimate. You should be able to scan and store digital pictures, drawings and other documents to keep you organized.
While there are many advantages to using a computer to keep track of bids and estimates, here are some important ones:
1. Records and important documents are easy to find and reprint.
2. You can keep track of customers who have requested estimates or have open estimates.
3. You can automatically generate bids and estimates and print addressed envelopes in which to mail them.
4. You can keep track of bids that are still open and need to be completed or accepted.
5. You can automatically send out thank you cards and schedule appointments when the bid is accepted.
Because each business is somewhat different, the solution should be customizable to your business needs.
Statistical Analysis (Reports)
Statistical analysis might seem like something that only a big corporation or Wall Street investment house might do, but even small businesses should be keeping track of statistics.
Statistical analysis can give you answers to questions like: What products or services are the most profitable? Which employees are doing the best job? What are sales compared to this time last year? Were advertising dollars well spent?
If you are keeping your invoices and job histories in a database, then answering these questions is simple. And when you have the facts, you can make better decisions on how to run your business.
Any solution should have a reporting feature, and the more flexible the reports the better. Once you see the power of reports, you'll wonder how you got by without them.
Human Resources
Keeping your employee files on computer makes it easy for you to keep these important records up to date. Documents like social security cards, tax forms, emergency contact numbers, job descriptions, salary histories, performance reviews, even employee photos can be scanned and inserted right into the database.
Bottom line is, anything you keep in a file cabinet can and should be kept in a computer. Backup copies on CD that are kept off site, make an even more secure means of storing data than a locked file cabinet.
But remember, if you have employees who access the computer, sensitive data like this should always be kept on unshared, password protected drives.
Author Information:
Rod Kasnick is the President of Wizdom Works. With his over 15 years experience as a developer of software applications for service businesses, he has an expert understanding of the needs and requirements of small and medium sized businesses. Wizdom Works developed and markets Easy Scheduler and Easy Scheduler LITE. To find out more about Wizdom Works and their products, http://www.wizdomworks.us/