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September 1, 2011 BCMA - It’s All About You! Welcome to the latest issue of BCMA News! This month’s topics… 1. Using Networking to Your Advantage 2. The 10 Commandments of Customer Service 3. Dunning Notices: Back to the Future 1. 1. Using Networking to Your Advantage By By Peggy Morrow I bet at least once you have attended a session on "networking". Most people think that is something you do outside of your work environment. But you need to network internally, too. A strong network can help you get ahead, get things done faster and more easily, and help you create a power base. Here are a few ideas on the subject. 1. Learn who the powerful people are and seek them out informally. This will give you an idea of the kind of behavior that is "rewarded" in your organization. If you are not comfortable with that style, you may want to think about changing jobs. 2. Make it a point to develop strong contacts with those people whose work can affect yours, no matter what their position. Remember: you don't have to like someone to form a work relationship. In fact, you can hate them and still have a supportive relationship. Pass on information you think would be helpful to them and help them in any way you can. 3. Do not ignore the "unimportant people". Everyone, from the custodial staff on up, is a valuable person to your organization. Treat them with courtesy and respect. All too often I have seen people look down on anyone who is not at their level. 4. Develop a plan. Networking is a way of marketing yourself within the organization. Define your objectives, target prospects, make new contacts, and follow-up. 5. Ask people in your network for their opinions about your objectives and your methods of achieving them. For example ask, "How can I be more visible and credible?" Most people like to be helpful and if you are looking for a mentor, this is a way to find one. Be sure to take some of their advice and be genuine. 6. Be patient and persistent. Networking and developing rapport with people takes time. I have a suggestion for you to start enlarging your network. Don't have lunch with the same people every day. That is, if you get a lunch! Don't eat at your desk. Use that time to get out and meet new people and make contacts that can help you. Peggy Morrow is the president of Morrow & Associates in Houston, TX, and the author of four books and other learning tools on customer service, customer loyalty, teams and communications skills. She also writes a bi monthly customer service column for the Better Business Bureau of Houston and has been named a "content expert" for Inc.com. She can be reached at peggy @ peggymorrow.com or www.peggymorrow.com. 1.2. The 10 Commandments of Customer Service 1. Customer service is everyone's job. 2. Respect your customer at all times. 3. Give your customer what your customer wants. 4. Exceed your customer's expectations. 5. Be truthful to your customer. 6. Ask your customer to evaluate your service. 7. Thank your customer and mean it. 8. Talk to you customer in language your customer can understand. 9. Give your customer your full attention. 10. Follow-up with your customer. Source: Donald L. Caruth, Ph.D. & Gail Caruth1. 1. 3. Dunning Notices: Back to the Future Employment is now the monster issue in the U.S. economy. Until the unemployment rate drops, consumer confidence (and with it, business confidence) will continue to deteriorate. And now we're seeing another perverse side of the employment problem: Underemployment within business organizations (i.e., short staffing). So the crucial question becomes, "How can you make optimum use of the staff you've got?" At EMI CMG Distribution, where two thirds of the customer base accounts for only 4 percent of sales volume, the answer - initiated several years ago - was to supplement monthly statements and personal collection efforts with mid-month dunning notices. The dunning notice program was begun with some trepidation. "They seem old fashioned - in the mail and all of that," says Customer Services and Sales Support Director John Vogelaar. "Certainly, fewer companies are using them. The collective wisdom was that they weren't effective anymore. "But, for us, they've worked out. They've helped us stay within desired ranges for past-due accounts without making phone calls to those accounts. You have to do something if you don't have the staff to make the calls." The notices are standard and not tailored to individual customers. They're generated from information downloaded from the server into Excel. They're worded as reminders rather than as demands, informing the customer how much is owed on that date and showing if there are any open credits on the account. Vogelaar adds that no one seems to be offended by getting an old-fashioned dunning notice. Since the program began three years ago, only one customer complained about getting a notice rather than a phone call. From short staff, it's on to short cash. Sure, the big corporations are wallowing in liquidity - accumulating from a reluctance to spend on staff and equipment. But small-to medium-sized businesses are struggling with frozen or withdrawn bank credit lines and stretched-out receivables. And those receivables aren't likely to speed up much because their customers are facing identical problems. "We're in a position where we have to work more with customers and do more payment plans." says Credit Manager Tony Greenway of Edwards Garment Company. "We want to be able to ship product, but we also have to address their arrearages." One positive is that the weeding out of weaker customers during the Recession has increased confidence that those given payment plans can and will comply with them. There are fewer defaults and write-offs and the comfort level has increased. Greenway's general strategy is "to have more money coming in the door than going out." Individual payment plans are devised according to specific customer situations. Typically, they're on a one-for-one or a two-for-one type of shipping basis - send us $1 (or $2) we'll ship $1 in product. "We might set up a weekly payment plan, a schedule with the aim of continuing to work down the arrearages and not put them on hold," he says. Of course, the amount matters. "You're going to work more with someone who is doing $15,000 a month than with someone who is doing $500." So what does the future hold? Greenway says it's difficult to see where customers' cash flows will improve much over the next two to three years. "I don't see small business lending picking up until the banks start increasing their comfort levels," he says. The situation with municipalities - a significant part of Edwards's business - is especially dire. Payments from some of these are backed up 180 days. "A lot of things will have to happen in Washington for state and local governments to free up their cash positions." T o learn more about subscribing to Credit Today, check out our web site at http://www.credittoday.com/Credit Today Benchmarking Survey- 2011 Improvement Initiatives -- Many Different Things Going On Credit Today 2011 Outlook Survey Reveals a Changing Risk Scenario Benchmarking Survey on Meetings Looks at the Worst Meeting Experiences - Learn What to Avoid! Benchmarking Extended Terms- Survey Participants Weigh In on the Process With Some Great Advice |
