This week we want to continue on with the subject of why your people quit. As we stated last week, in this session we want to discuss the 5 major reasons why your employees leave.
1. NOBODY TOLD ME WHAT TO DO--This is not to be confused with "nobody trained me on what to do". This goes deeper to the root of the problem. This says that when an employee was hired, they were told something like "Go to the ABC building and do janitorial work, you'll find everything you need in the closet". That's about the same as in an interview asking the applicant about their experience and having them tell you that they vacuum their home once a week and take the trash to the curb every Thursday so we all agree that must qualify them for the job.
What about your company? What do you say to your new recruit that you just invested hundreds of dollars to find, interview, and put on your payroll?
2. NOBODY EVER COMPLIMENTS ME--This reason should come as no surprise. People working in the service business usually hear about something when there is a problem. What about you? Is the only time you communicate with your staff is when there is a problem?
In the building service business, the usual procedure is for the supervisor or manager to come to work and ask the question "Any complaints today? What problems am I going to face tonight? Who isn't coming to work tonight and not even call in"? Sound familiar?
Let me ask you, "When was the last time you went to work and made a conscious effort to compliment your staff on a job well done? Today? Yesterday? Last week? Never? It's a jungle out there. True, but the compliment you give your employee today or tonight may be the only good thing they hear today. They may have spent the entire day fighting off creditors or arguing with a spouse or child. Try giving a compliment, you'll like it and so will they.
Why not create a file of your employee's birthdays and the anniversary date of their employment and make a conscious effort to call them or stop by their work station on those important dates and congratulate them.
I know of managers and supervisors who will pick up pizza on Friday night and deliver it to a crew if they have gone a period of time without a complaint or no one was absent. Create your own reason for doing something like this. By the way, stay and enjoy the pizza with them. Amazing what it will do for strengthening your relationship with them and you may even learn something.
3.THERE DOESN'T APPEAR TO BE ANY ROOM FOR ADVANCEMENT--This reason is really interesting. At the time your employee is leaving your company because there is no place to advance, you are shouting to the world that you can't find any good supervisors or managers. Sound familiar?
In my job as a consultant to many companies, I get asked frequently if I know of any good managers, etc. anywhere in the country. Most of the time I answer "yes, in your own company". They really are there most of the time. We just need to locate them and give them the training and opportunity to succeed.
The current supervisors will generally tell you that they have no one to promote because if they give you one of their good people, that means they have to go to work and train a replacement. Bummer. They have their building running smooth and don't want to have to work harder so the answer is you have to dig deeper and become more familiar with the second level management. In my book "Finding, Training, and Keeping ,GREAT Service Employees 101", I go into detail how we developed that next level of supervision and created a stable of available site managers. Just as importantly, we had fun doing it and got to know a lot of good people.
4. NOBODY TRAINED ME--This reason is a continuation of the first one where they said nobody told me what to do. When I talk training, I am not talking about where someone is hired and then sent out with a current employee to "learn the ropes". These may be the very ropes you want to get rid of. The current employee may only show them a series of WRONG ways of doing what it is you want done. My philosophy is ON THE JOB TRAINING ONLY IS A RECIPE FOR ON THE JOB FAILURE.
I know of many companies who justify on the job training by saying they want the new employee to see how it is really done out in the field. In many cases, that's the problem. It's being done WRONG out in the field and if you don't have a formal, written training program you only amplify the problem by sending out new employees to learn how to hang themselves with that rope you are needing to get rid of.
Create a training program, commit the resources to it and make it happen ASAP. You WILL see positive results.
I know of and have worked with companies where we have focused their efforts on these 4 of the 5 issues and have seen turnover rates go from 325% to as low as 40%. Most settle in at about the 75% number. To a company such as a law or accounting firm that number will seem high, but if you are in the Building Service Contracting business, having a 40%-75% turnover rate is real progress in the grand scope of things.
5. BENEFITS/PAY--I fully understand that benefits and pay are very important issues and I have always tried to keep them in focus with the first four. The reality is this...many times service employment such as contract cleaning, food service, retail clerks and similar positions are considered entry level positions and benefits and pay will always be an issue until staff members are trained to a point where they can move up the ladder and make it a career. Career opportunities abound in the service sector but we need to tell our story and make the commitment to recruit and train a primary focus of our individual company's growth. The GREAT people are there, we have the responsibility to recruit, train, and keep them.
In the meantime, I tried my best, not always successfully, to be at the top end of the pay scale for the positions I had in my company. We tried to be sure that if someone committed to our industry as their career, we would be at or near the top in pay and benefits. You always want to put yourself in the position of having the best trained and compensated people. Believe me, this will pay dividends in the long run. Remember, we are offering careers, not just jobs.
Hopefully this information has been helpful to you. There is so much to say on this subject and I am very passionate about recruiting and training and keeping GREAT employees that I could go on writing forever but you probably don't want to go on reading forever, if you even made it this far.
Next week we will be in Orlando conducting our Selling Contract Cleaning Services seminar/workshop. Still time to register at www.consultantsincleaning.com
Till next time.
Monday, February 23, 2015
Monday, February 16, 2015
WHY YOUR PEOPLE QUIT, PART 1
I wish I had a dollar (or 2) for every time I have been told by a BSC that they don't have time to train their employees. The most common statement goes something like this, "Why should I train them, they'll leave in a week or two anyway?" And my answer is, "You bet they will leave if that is the attitude you take toward the most valuable asset you have, YOUR EMPLOYEES".
There is no question there are a certain number of employees that will grab a paycheck and run or will take a job and not show up for work the first night or walk off the job after they get there. I suggest to you that more often than not, the reason these events occur is because of our failure to communicate properly the requirements of the job, the training needed, and the important part these play in providing customer satisfaction.
Let me spend some time here making a case for taking the time to hire properly, train properly, and communicate properly. The points we make will be extremely critical to the success (or failure) of your business and we'll discuss them in greater detail in the next blog session.
Retail stores and manufacturing facilities have a tangible product as their inventory to sell to their customers. Our inventory is the employee we place in the customer's facility to clean it for them on a regular basis. I don't mean to compare a human being with that of physical inventory in a store but the analogy is important in order to illustrate the importance of the employees you have in your organization.
When you walk into a grocery store you expect the inventory to be top quality. Don't your customers have a right to expect the same from you?
In the contract cleaning industry, the average turnover is approximately 325%(I was told recently that is is 350%) per year which means for the employer that has 100 employees they will make 425 W-2s at the end of the year. Pretty overwhelming, isn't it? What about your company? Take the time to check your turnover rate. I'll wait until you come back.
Okay, now that you are back, what is your turnover rate? For those of you considering starting in this business or have an emerging company, this area can cause you a lot of headaches and heartburn.
Let's look at the economic impact high turnover has on our companies. Studies have shown the cost of turning over ONE employee in our industry costs about $525 computing all of the expenses involved with recruiting, orientation, and training, etc.
Now going back to the illustration of 425 W-2s needed to staff 100 employees at 325% turnover, the cost to your bottom line is $170,625 per year. That's a pretty big number no matter who you are.
Okay, so you only have 10 employees and made 42 W-2s last year. It only cost $17,062. Getting the idea that turnover is expensive?
So what's the answer to reducing turnover and providing quality, stable "inventory" for our customers? Studies have revealed that the major reasons that our employees leave are,
1. Nobody told them what to do.
2. It appears that there is no room for advancement in the organization.
3. Nobody ever compliments them on a good job.
4. Nobody TRAINED them on the specifics of their job.
5. No benefits.
Did you notice that pay is not at or near the top? Surprised?
In our next blog we will address each of these items and how we can solve the problem in order to reduce turnover and increase our bottom line AND customer satisfaction.
Later and MAKE IT A GREAT DAY. Hope to see many of you at our Selling Contract Services workshop in Orlando March 6.
There is no question there are a certain number of employees that will grab a paycheck and run or will take a job and not show up for work the first night or walk off the job after they get there. I suggest to you that more often than not, the reason these events occur is because of our failure to communicate properly the requirements of the job, the training needed, and the important part these play in providing customer satisfaction.
Let me spend some time here making a case for taking the time to hire properly, train properly, and communicate properly. The points we make will be extremely critical to the success (or failure) of your business and we'll discuss them in greater detail in the next blog session.
Retail stores and manufacturing facilities have a tangible product as their inventory to sell to their customers. Our inventory is the employee we place in the customer's facility to clean it for them on a regular basis. I don't mean to compare a human being with that of physical inventory in a store but the analogy is important in order to illustrate the importance of the employees you have in your organization.
When you walk into a grocery store you expect the inventory to be top quality. Don't your customers have a right to expect the same from you?
In the contract cleaning industry, the average turnover is approximately 325%(I was told recently that is is 350%) per year which means for the employer that has 100 employees they will make 425 W-2s at the end of the year. Pretty overwhelming, isn't it? What about your company? Take the time to check your turnover rate. I'll wait until you come back.
Okay, now that you are back, what is your turnover rate? For those of you considering starting in this business or have an emerging company, this area can cause you a lot of headaches and heartburn.
Let's look at the economic impact high turnover has on our companies. Studies have shown the cost of turning over ONE employee in our industry costs about $525 computing all of the expenses involved with recruiting, orientation, and training, etc.
Now going back to the illustration of 425 W-2s needed to staff 100 employees at 325% turnover, the cost to your bottom line is $170,625 per year. That's a pretty big number no matter who you are.
Okay, so you only have 10 employees and made 42 W-2s last year. It only cost $17,062. Getting the idea that turnover is expensive?
So what's the answer to reducing turnover and providing quality, stable "inventory" for our customers? Studies have revealed that the major reasons that our employees leave are,
1. Nobody told them what to do.
2. It appears that there is no room for advancement in the organization.
3. Nobody ever compliments them on a good job.
4. Nobody TRAINED them on the specifics of their job.
5. No benefits.
Did you notice that pay is not at or near the top? Surprised?
In our next blog we will address each of these items and how we can solve the problem in order to reduce turnover and increase our bottom line AND customer satisfaction.
Later and MAKE IT A GREAT DAY. Hope to see many of you at our Selling Contract Services workshop in Orlando March 6.
Sunday, February 1, 2015
FORWARD OR BACKWARD
Recently I read a saying that went something like this---Many people don't move forward in their life or business because they are too busy looking backward. Pretty telling statement isn't it?
It reminded me of a BSC that I talked with a while back that told me that he didn't need anymore training and didn't need to go to conventions and workshops because he had a business that had been successful since the 60's and he saw no need to change where he was going now. If it was good enough for the forefathers it was good enough for him.
So I asked the logical question of how much revenue was he doing and he told me. My next question was, "How does that compare with what you were doing 10 years ago". The answer was astounding. His reply was that he was actually doing about 25% less than 10 years ago but didn't I realize that the economy had been terrible these last several years?
I couldn't resist the next question which was how did he explain that so many BSC's were thriving even though the economy had been less than great? And of course the reply was that his marketplace was different than any place else. Really? I wish I had a nickel for every time I have heard that statement. I hear it especially from contractors having a hard time finding and keeping employees. When I suggest some ideas that have proven to work for other BSCs in all parts of the country the answer usually goes something like "but my area is different".
You see, this BSC that I referred to above was stuck in "how we used to do it" and wasn't thinking of how it could be done differently, and better, moving forward.
What about you? Are you busy looking back at where you have been and not looking forward to where you can be? We are in a wonderful business where we can go and find prospects and convince them that we should be their service provider. We aren't a retail business where we have to hope people will come in and buy. We hold our destiny in our own hands.
We owe it to ourselves and our staff to create and execute a solid plan of moving our organizations forward profitably or we will be left behind. Most BSC's I know that have been the same size the last several years are not that way by design, they just haven't developed a sound plan for moving forward and then sticking to the plan. Employees will leave an organization that they feel is not progressive in wanting to be the leader in their market.
I remember years ago when I left my employer and started my own company, within a few months nearly all my former employees were applying for a position with us. I asked one gentlemen in particular who had been an outstanding building site supervisor for me in my previous employment why he wanted to leave my old company and join us as a new, young company. His answer was really telling. He said "Richard, even a rat deserts a sinking ship and the old company is sinking". That is not to imply he was a rat but the statement was very telling about a company not wanting to move forward. I hired him and he stayed with me 20 years before he retired.
Then we have the "yeah buts". These are the people that whenever you suggest trying a new process or product etc. will say, "yeah but, we tried that a few years ago and it didn't work". The yeah buts are all around us. They are still looking backward as a company tries to move forward. I have encountered a countless number of people in this category, even some of my clients that have to be indoctrinated into the 21st century of marketing, human resources, client relations, and training techniques needed to deal with the different cultural and generational differences in the work force that we employ.
It's fun to be nostalgic on occasion and talk about when we used the old pagers, Pantaloon paste wax, paper time sheets and the like but that is all it should be--a fun nostalgic conversation, not a longing for going backwards.
What about you? Are your 2015 goals firmly in place? Do you have a systematic program for bringing on new business and KEEPING existing business? What about your training program? Still just showing a video and sending the new recruit out to work with an "old hand" to "learn the ropes". Many times the old ropes they are learning are the wrong ropes and can eventually hang us and lose customers.
I am completing my 52nd year in this exciting business and never have I been more enthusiastic about what the future holds for us in this industry. How about you? Are you still concentrating on looking back to where you were instead of looking forward to the great opportunities that lie ahead. I certainly hope you are looking forward. The life of your business may just depend on which way you are looking. Remember the old saying--If you don't know where you are going, any road will get you there or as the great American Philosopher, the former great New York Yankee catcher said, "When you come to a fork in the road, take it". Which road are you on?
Till next time. Hope to see many of you in Orlando March 6 at our Selling Contract Cleaning Services one day workshop.
It reminded me of a BSC that I talked with a while back that told me that he didn't need anymore training and didn't need to go to conventions and workshops because he had a business that had been successful since the 60's and he saw no need to change where he was going now. If it was good enough for the forefathers it was good enough for him.
So I asked the logical question of how much revenue was he doing and he told me. My next question was, "How does that compare with what you were doing 10 years ago". The answer was astounding. His reply was that he was actually doing about 25% less than 10 years ago but didn't I realize that the economy had been terrible these last several years?
I couldn't resist the next question which was how did he explain that so many BSC's were thriving even though the economy had been less than great? And of course the reply was that his marketplace was different than any place else. Really? I wish I had a nickel for every time I have heard that statement. I hear it especially from contractors having a hard time finding and keeping employees. When I suggest some ideas that have proven to work for other BSCs in all parts of the country the answer usually goes something like "but my area is different".
You see, this BSC that I referred to above was stuck in "how we used to do it" and wasn't thinking of how it could be done differently, and better, moving forward.
What about you? Are you busy looking back at where you have been and not looking forward to where you can be? We are in a wonderful business where we can go and find prospects and convince them that we should be their service provider. We aren't a retail business where we have to hope people will come in and buy. We hold our destiny in our own hands.
We owe it to ourselves and our staff to create and execute a solid plan of moving our organizations forward profitably or we will be left behind. Most BSC's I know that have been the same size the last several years are not that way by design, they just haven't developed a sound plan for moving forward and then sticking to the plan. Employees will leave an organization that they feel is not progressive in wanting to be the leader in their market.
I remember years ago when I left my employer and started my own company, within a few months nearly all my former employees were applying for a position with us. I asked one gentlemen in particular who had been an outstanding building site supervisor for me in my previous employment why he wanted to leave my old company and join us as a new, young company. His answer was really telling. He said "Richard, even a rat deserts a sinking ship and the old company is sinking". That is not to imply he was a rat but the statement was very telling about a company not wanting to move forward. I hired him and he stayed with me 20 years before he retired.
Then we have the "yeah buts". These are the people that whenever you suggest trying a new process or product etc. will say, "yeah but, we tried that a few years ago and it didn't work". The yeah buts are all around us. They are still looking backward as a company tries to move forward. I have encountered a countless number of people in this category, even some of my clients that have to be indoctrinated into the 21st century of marketing, human resources, client relations, and training techniques needed to deal with the different cultural and generational differences in the work force that we employ.
It's fun to be nostalgic on occasion and talk about when we used the old pagers, Pantaloon paste wax, paper time sheets and the like but that is all it should be--a fun nostalgic conversation, not a longing for going backwards.
What about you? Are your 2015 goals firmly in place? Do you have a systematic program for bringing on new business and KEEPING existing business? What about your training program? Still just showing a video and sending the new recruit out to work with an "old hand" to "learn the ropes". Many times the old ropes they are learning are the wrong ropes and can eventually hang us and lose customers.
I am completing my 52nd year in this exciting business and never have I been more enthusiastic about what the future holds for us in this industry. How about you? Are you still concentrating on looking back to where you were instead of looking forward to the great opportunities that lie ahead. I certainly hope you are looking forward. The life of your business may just depend on which way you are looking. Remember the old saying--If you don't know where you are going, any road will get you there or as the great American Philosopher, the former great New York Yankee catcher said, "When you come to a fork in the road, take it". Which road are you on?
Till next time. Hope to see many of you in Orlando March 6 at our Selling Contract Cleaning Services one day workshop.
Sunday, January 25, 2015
IT'S ONLY FIVE MINUTES
It doesn't take a rocket scientist to understand that the largest expense (investment) a BSC has is labor. Ever wonder if there is any wasted time in your organization? Without DAILY control of our labor expenses we can sink into a loss on the bottom line very rapidly.
I remember a few years ago I had a client that was constantly complaining about "little" things we weren't doing in her building. I talked and trained at length with my 4 person crew and to no avail. They kept telling me they just didn't have enough time to do all that was required. They said if they could just have 15 minutes more per person per day I would not have to worry about complaints in the building any more.
I gave in and asked the client if I could talk with her about an increase in our monthly fee. She said it's 5 o'clock and I am ready to leave but I'll wait on you to discuss the issue. I hurried to her office and sweat blood and maybe some tears to convince her that 1 additional hour per night in her building would solve the problem.
I left her office at 6:20 and decided to go to the basement where there was a break area that I could get a soft drink to congratulate myself on a sales job well done.
As I walked into the break room, lo and behold ALL FOUR of my technicians were sitting and visiting. I counted to 10 and then reminded them I had worked hard to secure the extra time they requested and here, 20 minutes past starting time they had not yet begun to work. Let's see, 20 minutes times 4 is 80 minutes and they had just wasted nearly an hour and a half of precious time. I kept my composure and explained the importance of going to work on time. I wanted to explode but I would have cleaned the building myself that night and I didn't want to. I then left the building and started making plans to replace the crew, which I did. One of my old sayings--I took them to lunch and bought theirs to go.
The point here is a few minutes wasted each night on the job can be the difference between customer satisfaction and customer lost. How about you, checked up on your accounts lately?
I have a chart that shows what only 5 minutes lost each day can cost a company. I reviewed it at least once each year with our staff, not to brow beat them but to remind them that the time spent or lost can be the difference between a customer kept or lost. You are welcome to download this free chart from our web site at www.consultantsincleaning.com then click on the worksheets icon and scroll down to the "It's only 5 minutes" title and run it off. Maybe it can be helpful to you as well.
I remember a few years ago I had a client that was constantly complaining about "little" things we weren't doing in her building. I talked and trained at length with my 4 person crew and to no avail. They kept telling me they just didn't have enough time to do all that was required. They said if they could just have 15 minutes more per person per day I would not have to worry about complaints in the building any more.
I gave in and asked the client if I could talk with her about an increase in our monthly fee. She said it's 5 o'clock and I am ready to leave but I'll wait on you to discuss the issue. I hurried to her office and sweat blood and maybe some tears to convince her that 1 additional hour per night in her building would solve the problem.
I left her office at 6:20 and decided to go to the basement where there was a break area that I could get a soft drink to congratulate myself on a sales job well done.
As I walked into the break room, lo and behold ALL FOUR of my technicians were sitting and visiting. I counted to 10 and then reminded them I had worked hard to secure the extra time they requested and here, 20 minutes past starting time they had not yet begun to work. Let's see, 20 minutes times 4 is 80 minutes and they had just wasted nearly an hour and a half of precious time. I kept my composure and explained the importance of going to work on time. I wanted to explode but I would have cleaned the building myself that night and I didn't want to. I then left the building and started making plans to replace the crew, which I did. One of my old sayings--I took them to lunch and bought theirs to go.
The point here is a few minutes wasted each night on the job can be the difference between customer satisfaction and customer lost. How about you, checked up on your accounts lately?
I have a chart that shows what only 5 minutes lost each day can cost a company. I reviewed it at least once each year with our staff, not to brow beat them but to remind them that the time spent or lost can be the difference between a customer kept or lost. You are welcome to download this free chart from our web site at www.consultantsincleaning.com then click on the worksheets icon and scroll down to the "It's only 5 minutes" title and run it off. Maybe it can be helpful to you as well.
Thursday, January 15, 2015
BSC LEADERSHIP
As a leader of your company, whether you like it or not, your employees look to you to provide leadership in the direction the company is to go. What type of leadership are you providing? It's very important you know. The people are looking to YOU to give them direction.
For example, what is the dress code in your company? Do you allow jeans to be worn at all times or do you require a suit and tie for men and business attire for women? If you require business attire or a suit and tie, try wearing jeans to work for a couple of days. It won't take long and everyone is wearing jeans because you have set the standard. They are watching you every minute of the day and that is not a bad thing if you are setting a good example.
Let's talk further on this discussion on leadership. As we go through some ideas, think about your organization and how it is or isn't performing and if you need changes to occur.
First, the definition of leadership from the dictionary--The art of motivating a group of people to act toward achieving a common goal.
There's that word "goal". Have you established them for your company? How about yourself? That's a subject for another blog.
I think it is important that we not confuse leadership with managing. You see, there is a major difference and a successful company will make sure they have both. I think the best definition I ever heard or read on the subject is attributed to former first lady Rosyln Carter who said, "Managers take people where they want to go , leaders take them where they NEED to go".
Think about that. As a leader of your company you are charged with the responsibility of taking you people in the direction that is needed to accomplish the goals you have established for the organization. This is not always comfortable. You see, it is more fun and much easier to try and please everyone, isn't it? You'll probably have a great time but you won't accomplish your objectives.
Another way I have heard this managing vs. leadership dilemma explained is that managers do things right while leaders do the right things. As I stated earlier, your company needs both and you need to find those people who can do the things right once you have determined
what the right things are your company should be doing.
Most entrepreneurs are great idea people and know what has to be done but don't ask them to do the details. They will mess up the details almost every time. They do the right things but need key people to be sure that they are done right. Guilty as charged.
It took quite a staff to keep up with the ideas I created but they hung in there with me. It must have worked, I had many staff people who were with me 15-25 years. I guess they wanted to see what challenge I would present next.
So how about it, do you have leaders AND managers in your company that can move you forward. Which one are you? If so, who are the others in your company that can compliment you? Do an assessment, then TAKE ACTION.
On another subject, I hope you will plan to join us in Orlando, FL. March 6 as we conduct a jam packed one day workshop on SELLING CONTRACT CLEANING SERVICES. You can check out all the details at www.consultantsincleaning.com The information is right on the home page with details of our day. See you there?
Till next time.
For example, what is the dress code in your company? Do you allow jeans to be worn at all times or do you require a suit and tie for men and business attire for women? If you require business attire or a suit and tie, try wearing jeans to work for a couple of days. It won't take long and everyone is wearing jeans because you have set the standard. They are watching you every minute of the day and that is not a bad thing if you are setting a good example.
Let's talk further on this discussion on leadership. As we go through some ideas, think about your organization and how it is or isn't performing and if you need changes to occur.
First, the definition of leadership from the dictionary--The art of motivating a group of people to act toward achieving a common goal.
There's that word "goal". Have you established them for your company? How about yourself? That's a subject for another blog.
I think it is important that we not confuse leadership with managing. You see, there is a major difference and a successful company will make sure they have both. I think the best definition I ever heard or read on the subject is attributed to former first lady Rosyln Carter who said, "Managers take people where they want to go , leaders take them where they NEED to go".
Think about that. As a leader of your company you are charged with the responsibility of taking you people in the direction that is needed to accomplish the goals you have established for the organization. This is not always comfortable. You see, it is more fun and much easier to try and please everyone, isn't it? You'll probably have a great time but you won't accomplish your objectives.
Another way I have heard this managing vs. leadership dilemma explained is that managers do things right while leaders do the right things. As I stated earlier, your company needs both and you need to find those people who can do the things right once you have determined
what the right things are your company should be doing.
Most entrepreneurs are great idea people and know what has to be done but don't ask them to do the details. They will mess up the details almost every time. They do the right things but need key people to be sure that they are done right. Guilty as charged.
It took quite a staff to keep up with the ideas I created but they hung in there with me. It must have worked, I had many staff people who were with me 15-25 years. I guess they wanted to see what challenge I would present next.
So how about it, do you have leaders AND managers in your company that can move you forward. Which one are you? If so, who are the others in your company that can compliment you? Do an assessment, then TAKE ACTION.
On another subject, I hope you will plan to join us in Orlando, FL. March 6 as we conduct a jam packed one day workshop on SELLING CONTRACT CLEANING SERVICES. You can check out all the details at www.consultantsincleaning.com The information is right on the home page with details of our day. See you there?
Till next time.
Monday, January 12, 2015
THE SILENT MAJORITY
Usually when we think of the silent majority we are thinking in terms of voters and politics. We hear so much about it every political season which now seems to go on forever.
But what I want to talk about today is a different silent majority---THE CUSTOMER.
Recently I saw a sign posted in a business that, while it was one I had seen before, had a profound effect on me when I read it again. It said
But what I want to talk about today is a different silent majority---THE CUSTOMER.
Recently I saw a sign posted in a business that, while it was one I had seen before, had a profound effect on me when I read it again. It said
THE SILENT MAJORITY
DID YOU KNOW
93% OF DISSATISFIED CUSTOMERS NEVER COMPLAIN
90% OF DISSATISFIED CUSTOMERS NEVER COME BACK
EACH DISSATISFIED CUSTOMER WILL TELL AT LEAST 9 OTHER PEOPLE
13% OF DISSATISFIED CUSTOMERS WILL TELL AT LEAST 20 PEOPLE
Now I am sure some of you are saying something like, I have heard that one before or so what else is new. You may have heard it but have you listened. Lost any customers lately?
One thing I have noticed in the BSC industry that I have spent my lifetime in, is that most of us are really good at explaining away a lost customer. We say something like,
They went out for bid and I got underbid.
The new contractor can't do it for that, I'll get it back.
They we too hard to please, I'm glad they are gone.
They are down sizing and got a cheaper price. Had they contacted me I could have given them a better price.
But maybe, just maybe, they were one of the 93% that didn't complain and just got tired of poor work or poor (or no) customer relations on your part. Just as bad, or worse, are they one of the 13% that will tell 20 others how bad their relationship with you was? Just a thought.
Let me suggest in this new year that we make a concerted effort to make sure we have a positive relationship with all of our customers so in the unlikely event there is a complaint about service performance we are aware and handling it immediately. I for one, want to keep all customers and want a positive relationship with them. Set yourself a goal that you or someone in your organization is intimately involved with every customer you have. The investment in obtaining new accounts is SO much more expensive than retaining the ones we have that we need to focus on keeping what we have. Agree?
Sometimes we have small volume customers and I have heard the comment that the customer is so small I just can't spend a lot of time on them. My response is that if a customer is large enough to sell too, it is large enough to give your full attention too. If you don't want small accounts, don't sell them, it's as simple as that. Our company had a limit as to how small an account we would pursue and in the event we got a call from a prospect that didn't fit the profile we would say to them we would rather turn them down than let them down and then go on to explain what we meant.
The average lost business in our industry hovers around 17% per year meaning a BSC has to add 25% new business just to net an 8% increase. I know, I know, you do better than that and I congratulate you, but the point is the more we keep the better the bottom line.
Are you ready? Let's set a record for retaining customers in 2015.
Till next time.
Monday, January 5, 2015
WHY SHOULD ANYONE BUY FROM YOU?
Well, here we are beginning another year. I hope your 2014 was a prosperous one and you are poised for a record year in 2015. But as we begin a new year I believe it is important for us to take a look at our own companies and do a hard self analysis as to what we really have to offer our current and prospective customers. So let me give you some ideas on how to grade yourself.
First, ask yourself and your staff,
WHY SHOULD ANYONE BUY FROM US?--If your response is we have been in business a long time you have some work to do. Hundreds of companies have been in business a long time and my question is have you been in business, say 20 years, or have you been in business 1 year, 19 times over. Some companies feel "we've always done it this way" and it will continue to work but most likely that is an incorrect assumption.
There are other stock answers that don't hold water today such as "we have trained personnel" or "we only provide quality service". If you can't provided actual measurable proof of these claims they become old standard sales talk only.
So, what does make you different? Systems and processes? Real measurable training that you can prove to a prospect? Special software like Paperless Proposal or Janitorial Manager or TEAM or CleanTelligent?
If you can't really identify and quantify truthfully what sets you apart then I suggest you follow the steps outlined below to improve your organization,
1. Identify 1 or 2 items that you want to focus on as major selling points for your company.
2. Discuss how YOUR company will benefit from focusing on and developing these qualities. How will you as individuals benefit?
3. How will your prospects and customers benefit from this or these qualities. Are they qualities that will set you apart from your competitors? How will they set you apart?
4.What special skills will you need to develop to advance these qualities? What training will be required and for which members of your staff and where will you get that training? THIS STEP IS CRITICAL IN THE PROCESS.
5. What are the major obstacles your company and its staff will have to overcome to professionally develop the qualities you have decided to focus on?
6. Who are the people or organizations that can help you develop these qualities such as BSCAI, ISSA, peer groups, industry specific consultants etc.?
7. From all of these discussions, develop a step by step plan of action. This means assigning responsibilities and time lines for completion of each step.
8. Decide on an overall completion date as to when you will be ready to announce to the world the reasons a prospect should buy from you.
This blog has only scratched the surface on how to set yourself apart from your competition but I hope it has motivated you to take an inward look at your company as we start a brand new year. If you have any questions or need further clarification on any of the points just send us a message or call us at 573.374.1111. Be happy to assist.
So in closing, determine what it is that sets your company apart from the competition, then define it further and make it a part of your everyday life and sales presentation. If you don't know what sets you apart, follow our 8 steps outlined above and soon you will be a company that can truly tell people why they should buy from you.
Don't forget to register for our upcoming SELLING CONTRACT CLEANING SERVICES workshop in Orlando, Fl. Friday, March 6. Details are available at www.consultantsincleaning.com.
Hope to see as many of you as possible at the event.
HAPPY NEW YEAR. Till next time.
First, ask yourself and your staff,
WHY SHOULD ANYONE BUY FROM US?--If your response is we have been in business a long time you have some work to do. Hundreds of companies have been in business a long time and my question is have you been in business, say 20 years, or have you been in business 1 year, 19 times over. Some companies feel "we've always done it this way" and it will continue to work but most likely that is an incorrect assumption.
There are other stock answers that don't hold water today such as "we have trained personnel" or "we only provide quality service". If you can't provided actual measurable proof of these claims they become old standard sales talk only.
So, what does make you different? Systems and processes? Real measurable training that you can prove to a prospect? Special software like Paperless Proposal or Janitorial Manager or TEAM or CleanTelligent?
If you can't really identify and quantify truthfully what sets you apart then I suggest you follow the steps outlined below to improve your organization,
1. Identify 1 or 2 items that you want to focus on as major selling points for your company.
2. Discuss how YOUR company will benefit from focusing on and developing these qualities. How will you as individuals benefit?
3. How will your prospects and customers benefit from this or these qualities. Are they qualities that will set you apart from your competitors? How will they set you apart?
4.What special skills will you need to develop to advance these qualities? What training will be required and for which members of your staff and where will you get that training? THIS STEP IS CRITICAL IN THE PROCESS.
5. What are the major obstacles your company and its staff will have to overcome to professionally develop the qualities you have decided to focus on?
6. Who are the people or organizations that can help you develop these qualities such as BSCAI, ISSA, peer groups, industry specific consultants etc.?
7. From all of these discussions, develop a step by step plan of action. This means assigning responsibilities and time lines for completion of each step.
8. Decide on an overall completion date as to when you will be ready to announce to the world the reasons a prospect should buy from you.
This blog has only scratched the surface on how to set yourself apart from your competition but I hope it has motivated you to take an inward look at your company as we start a brand new year. If you have any questions or need further clarification on any of the points just send us a message or call us at 573.374.1111. Be happy to assist.
So in closing, determine what it is that sets your company apart from the competition, then define it further and make it a part of your everyday life and sales presentation. If you don't know what sets you apart, follow our 8 steps outlined above and soon you will be a company that can truly tell people why they should buy from you.
Don't forget to register for our upcoming SELLING CONTRACT CLEANING SERVICES workshop in Orlando, Fl. Friday, March 6. Details are available at www.consultantsincleaning.com.
Hope to see as many of you as possible at the event.
HAPPY NEW YEAR. Till next time.
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