meta content= One major key to be successful in a decentralized business is the idea of Information Democracy, ID, a principle of equality that demands actionable insight for all.' name='description'/> meta content= information democracy, article marketing, application of information technology, business management' name='keywords'/> Information Democracy: 2011-06-26

Thursday, June 30, 2011

Why Do Your Customers Complain and What Can You Do About It?

As the Internet becomes an increasing part of our lives there are a growing number of web sites which are run for dissatisfied customers to publicly air their complaints about bad service. See your name posted on these sites or get contacted by them and you know you have a problem!

How can you prevent your business from becoming 'feature of the week'? Of all the skills small business owners need these days, the one least practiced is the ability to step back and look at your business from the customer's perspective.

Having an effective complaint handling process is important but that is the equivalent of closing the stable door after the horse has bolted – it's too late, your customer has already suffered.

It's more effective to know what your customers could potentially complaint about and put it right before it happens.


So what are the common reasons for customer complaints? Mark Bradley of Customer Service Network (www.customernet.com), which facilitates in benchmarking, improving processes and implementing improvements to help reduce customer complaints, says,
"Financial loss is the obvious reason but the rest can be split into operational and emotional reasons."

In this article we will look at some of the operational and emotional or human issues within your business which could give your customers cause to complain. Take a look at these and examine each part of your business. How do you stand up?
"You didn't do what you promised."

When did you last review your advertising material or web site? Do they contain service promises which sounded great at the time but have since been forgotten? For example, do you promise to deliver within 24 hours but changes in processes have meant that is no longer possible? No one may have complained yet but sooner or later someone will.
"Your product didn't do what it's supposed to do."

When did you last undertake a quality check of your product? Random checks can help weed out poor quality workmanship before a customer spots it. When buying your stock or finished item do you test it?
"You're never open when I need you."

9 to 5, 5 days a week may have been acceptable when you first started out, but is this still what the customer wants? Check with your customers – they may want you to open later and close later.
"It's a long time before someone answers the phone."

Hanging on the phone while it rings and rings is very irritating. It conjures up images of staff sitting drinking coffee and chatting; not the impression you want to portray and not the way to put customers in a buying mood! Do your staff understand the importance of the phone being answered promptly?
"Whenever I ring in and get transferred to another person I often get cut off."

Have your staff been trained in getting the best out of your phone system? Do all staff have a handy list of extension numbers to avoid annoying 'sorry wrong department' answers? Ask a friend or business colleague to ring in and take note of what happens – good and bad.

Mark Bradley says, "We usually encounter a number of interesting correlations that fundamentally prove that operational accuracy leads to customer satisfaction."

Take some time to look at your business from the customer's perspective and you should be able to stop customer complaints before they hit your desk.

It's not only the operational side of the business which can let you down; the human side of business can also generate complaints – your staff! No matter how good your product is one loose cannon in your team can upset everything. What actions can your staff take that can lead to a customer picking up the phone or putting pen to paper?
Bad Attitude

There's no getting away from it – some people have a bad hair day every day! The way they speak to people is enough to turn the most mild mannered of customers against your company. They act as if the customer is an interference to their daily routine. A person with poor job skills can be taught the relevant knowledge or skills but a person with a generally bad attitude, the proverbial chip on the shoulder, is harder to bring into line. 

These type of people are the ones who never acknowledge your presence when you are standing in front of them, or still chat away on the phone The solution? Get them away from your customers.
Not Willing To Seek a Solution

These people are the ones who may acknowledge a customer's problem but just can't be bothered to find a solution; it's too much hassle. The stock answer is, "I can't help. It's company policy." Their favourite words are "I can't", "Yes, but", "won't", "shouldn't". They can find nothing positive to help the customer. If this happens, your customers walk away thinking you are a 'can't do' instead of a 'can do' business.
Not Giving Full Product Explanations

Your product may be the best in the world, but if it doesn't do what the customer wants then you have one unhappy purchaser. Lack of understanding of how the product or service meets the customer's requirements could be down to your sales staff being too anxious for a sale – persuading the buyer that the product is just right when it clearly doesn't fit what the client needs. This is partly down to sales training but also attitude. Do you want staff that are happy to sell to your customers on this basis?
Not Willing To Admit a Mistake

Isn't it refreshing to hear someone say, "Do you know, you're right. We really messed this up." If you get this as an opening line when making a complaint, you immediately know you're in business. However, sometimes getting a business to admit it has made a mistake is like pulling teeth. If you're in the wrong, get your staff to own up and say, "Yes, we were wrong", it can take away the emotion which sometimes blocks successful resolution of complaints.
Not Keeping You Up To Date

In any effective complaint handling process, everything can be done according to the book, but it can all be thrown away if the client is not kept up to date. A complaint, followed by days of silence, allows doubt and anger to bubble up again. It may be that the person handling the complaint had a bad time when taking the initial query; he's not motivated to pick up the phone and engage in another torrent of abuse! However, not speaking to the client can only make matters worse, and so guaranteeing that the next call will be even more interesting! Get 'strong' characters to front your complaints, people who are not intimidated and are happy to solve problems.
Broken Promises

This is probably the most frequent reason for human cause of complaint; 'Yes, I'll do that for you. Leave it to me." What happens? Nothing! The impression given is that your staff just don't care, or that the customer is not important. Impress upon your staff the importance of following through on their promises. Any broken promise will compound a complaint.

So, in what areas are your staff letting you down? Are you doing everything to ensure your staff are treating everyone as loyal customers? Listen to what your staff are saying, and listen to what your customers are telling you. Get the human side of your complaint process right and you have more chance of keeping your customers for life.

The art of complaint handling is not only resolving it to the customer's satisfaction; it's also about taking action on what you find out and being proactive in finding potential problems before they become problems.             
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Wednesday, June 29, 2011

Four Easy Steps To More Motivated Employees

There is no particular set of rules that one should follow in motivating employees. We each have our own driving force when it comes to doing an excellent job at work. A working mother could be motivated by her children, who serve as her inspiration to succeed. A trainee who is fresh out of college is motivated by the compulsion to learn and climb to the top. A long-time company employee will get motivated to perform well so that he or she can be promoted. Others are motivated by financial rewards. As a manager, team leader, department head or supervisor, you need to determine the individual driving forces of those who are in your team so that you can create a motivated workforce.

1. Goals For Employee Motivation:

- Increase employee performance at work
- Spice up team spirit and build a cohesive team
- Eliminate individual differences and avoid conflicts
- Have an open communication between peers
- Set and achieve a common goal

2. Lead By Example

There is one joke where it says that the new definition of a boss is one who is always early when you are late and who is always late when you are not. Do not let this apply to you. Be consistent. The simple gesture of arriving before or as the same time as your employees will show them how much you value their time and yours. This is also a good way of showing employees that you respect the company that pays you for your time at work. If you do come in late, apologize to those who are under you and explain why you are late. This is so that they would not think that the no-late policy does not apply to the boss, showing them that you are equals when it comes to company rules and policies.

2. Keep Communication Lines Open

Some employees are afraid to talk to, or even look at superiors who exude the touch-me-not aura. This is not a good way to motivate your employees. When you come to work, do not just go straight to your office and deal with your paper works. Mingle with the employees and ask them about their previous day, on what they have accomplished so far. Then you can tell them about the output that you expect by the end of the day. This way, you would know what to expect from the employees and vice-versa. It will not only help you set a goal for the day but with this, you are also optimizing your interaction with the employees by mingling with them on a more casual basis.

3. Share What You Know

Do not be selfish. Sometimes, a company does not grow because there are employees who know something advanced about the industry or a certain aspect of the company, and they are not willing to share their knowledge to others. They think that this would make them invaluable to the company, especially if they are the only ones who know about a particular process or idea. This attitude would not help your company succeed. There should always be a sharing of knowledge. When an employee is asked to train abroad, they are often asked to sign a contract that they should not resign for the next year or two. Why do you think this is so? Imagine what would happen if the employee who trained abroad or attended an exclusive seminar about an advanced technology on the industry just up and leaves right after the training. A company would not spend thousands of dollars to train an employee for nothing. They want you to share and impart the knowledge to your fellow employees. If you share a new technology to your entire team, who knows what newer and better ideas the knowledge would bring? Do not stutter the company's growth by keeping your ideas to yourself.

4. Implement Your Ideas

What good would a new idea or technology do if you do not apply it? After sharing the knowledge, gather the team and think of ways to improve the company's operation with what you all have learned. As a leader, you should be a people person. You must know how to adopt to the things that motivate your team members and use this knowledge to your advantage. Without a good and solid workforce behind you, you will not accomplish anything. You may have ten or a hundred employees, but if you apply these steps to motivate your team, you can bring out the best in them and contribute towards your company's growth and success.
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The Power of Imagination

fellow entrepreneurs, while reading some very informative information on the internet, I came across a really intriguing concept of creativity and imagination. In it's application to marketing strategies, imagination is often one of the most powerful aspects that can be applied to internet business ventures. In just a few words, I'll explain the power that lies within the use of creativity and imagination. Keep in mind that nothing "under the sun" is new. Everything in existence has always existed, and facts and substances are continually changing and shifting. All that is necessary to exercise creativity is to borrow from what already exists and rearrange the material into new combinations. This process is called Imagination. Now imagination in it's nature is both interpretative and creative. This means that it can receive impressions and ideas, and it can also use these impressions and ideas to form new combinations of the same. So, any person of average intelligence can take information from endless sources and transform this information into endless new combinations. Having infinite new combinations or ideas is, without debate, one of the most valuable tools a person can possess in their business. A remarkable example of how this concept has been applied, can be found by examining the efforts of Thomas Edison. The invention of the incandescent electric light bulb was nothing more than a combination of two old, well-known principles. He then simply arranged the two principles into a new combination. So you can see, both the simplicity and the power in the concept of creativity and imagination. Therefore, in each of your business transactions, it is very important for you to apply this powerful concept by prompting your imagination to make new connections between multiple principles and apply them to things that are unique to your situation.

Business Intelligence and how can it help us

Every year organizations gather and store increasing amounts of data. Mid-size organizations tell us that, on average, they have a minimum of seven operational data sources.
These sources contain data the business users often want to tap into, in order to make the best decisions to steer the business in the right direction. But for IT to respond to the escalating requests and really help the business use that data can be a huge drain on time and resources. And the requests are piling up.
Requests such as:
Can you give me a report that combines sales and forecast data?
Can you provide a spreadsheet that shows a top 100 customers by product type—what and when they bought, and where they are located?
Can you provide a dashboard that shows the executives of the key performance indicators such as sales, costs, and profits, so they can have up-to-the minute access to this information? Sounds familiar?
You want to help, but are limited in time and resources. And you often don’t want to give them access to the data directly for control and security purposes. That’s where Business Intelligence (BI) comes in. http://Infosdemocracy.com

Knowledge Management

Knowledge management involves data mining and some method of operation to push information to users. Some vendors are offering products to help an enterprise inventory and access knowledge resources. IBM's Lotus Discovery Server and K-Station, for example, are products advertised as providing the ability to organize and locate relevant content and expertise required to address specific business tasks and projects. They are said to be able to analyze the relationships between content, people, topics, and activity, and produce a knowledge map report.
In early 1998, it was believed that few enterprises actually had a comprehensive knowledge management practice (by any name) in operation. Advancement in information technology and the way we access and share information has changed that; many enterprises now have some kind of knowledge management Framework in place.
Comprehensively, Knowledge Management is a newly emerging, interdisciplinary business model dealing with all aspects of knowledge within the context of the firm, including knowledge creation, codification, sharing, and how these activities promote learning and innovation.
In practice, knowledge management encompasses both technological tools and organizational routines in overlapping parts.
Rudy Ruggles, leading knowledge management thinker/practitioners, has identified the following items as integral components of knowledge management:
·       Generating new knowledge
·       Accessing valuable knowledge from outside sources
·       Using accessible knowledge in decision making
·       Embedding knowledge in processes, products, and/or services
·       Representing knowledge in documents, databases, and software
·       Facilitating knowledge growth through culture and incentives
·       Transferring existing knowledge into other parts of the organization
·       Measuring the value of knowledge assets and/or impact of knowledge management.
As a manager, it is essential to develop your business management skills to their full potential, which is also known as or called Business Intelligence. More details here: http://Infosdemocracy.com

Inventory Management

Inventory management is the active control program, which allows the management of sales, purchases and payments.
Inventory management also refers to the process of managing the stocks of finished products, semi-finished products and raw materials by a firm. Inventory management, if done properly, can bring down costs and increase the revenue of a firm.
How much one should invest in inventory management? The answer to this question depends on the volume and value of inventory as a percentage of the total assets of a firm. The importance of inventory management varies according to industries. For example, an automobile dealer has very high inventories, sometimes as high as 50 per cent of the total assets, whereas in the hotel industry it may be as low as 2 to 5 per cent.
The process of inventory management is a continuous one and here are various kinds of solutions available. It is advisable to employ specialized staff-for-inventory-management.
The inventory management process begins as soon as one has started production and ordered raw materials, semi-finished products or any other thing from a supplier. If you are a retailer, then this process begins as soon you have placed your first order with the wholesaler.
Once orders have been placed, there is generally a short period of time available to a firm to put an inventory management plan in place before the supplies are delivered. Inventory management helps a firm to decide in advance where these supplies should be stored. If a firm is getting supplies of small-sized goods, it may not be much of a problem to store them, but in the case of large goods, one has to be careful so that the warehousing space is-optimally-utilized.
From invoices to purchase orders, there is lot of paperwork and documentation involved in inventory management. Several software programs are available in market, which help in inventory management.
Inventory management software helps create invoices, purchase orders, receiving lists, payment receipts and can print bar coded labels. An inventory management software system configured to your warehouse, retail or product line will help to create revenue for your company. 
The Inventory Management will control operating costs and provide better understanding. There are source for inventory management information, inventory management software and tools.

A complete Inventory Management Control system contains the following components:

·       Inventory Management Definition

·       Inventory Management Terms

·       Inventory Management Purposes

·       Definition and Objectives of Inventory Management

·       Organizational Hierarchy of Inventory Management

·       Inventory Management Planning

·       Inventory Management Controls for Inventory

·       Determining Inventory Management Stock Levels.

The ultimate value of inventory management software is directly related to the integrity of the data entered into the system. If the physical goods in the warehouse do not correspond with the digital information, get ready to grit your teeth.

Effective inventory management is more than just blips on a screen ... its how those blips relate to what's actually sitting on the pallets.  Click here details: http://Infosdemocracy.com