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Surviving in a Competitive Business. New Mexico College Bookstore Association Dr. Luis Ortiz EDC Executive Director/Professor LVSMEDC/NMHU. More than Surviving… . Competing today and in the future differentiation/innovation Doing things different Doing things better.

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Surviving in a competitive business l.jpg

Surviving in a Competitive Business

New Mexico College

Bookstore Association

Dr. Luis Ortiz

EDC Executive Director/Professor


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More than Surviving…

  • Competing today and in the future differentiation/innovation

  • Doing things different

  • Doing things better

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Outline of our presentation

  • Our everyday business reality

    • Cause “more than a mission statement”

  • Employees Management Relations

  • Customer service

    • Your best competitive advantage

  • The model bookstore

    • Why not your store!

  • New Reality Recommendations Results

    • “Owning our own behavior”

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Our everyday business reality

  • Retail market

  • Selling

  • Merchandising

  • Inventory

  • Safety/Security

  • Finance

  • Employee Relations

  • Customer Service

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Running a Small Business

  • Complexities

  • Average hours per week is 65

  • 84% are passionate about their job

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Do you have a “Cause”?

  • Mission Statement no a Purpose

    • Now what?

      • “we survive, but are elders tell us we were meant for much more – a higher purpose” D.J. Odawa

    • Ingenuity – is it in you!

    • Great things are seldom done alone

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Social Work









University Core Requirements - Students

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General Overview

  • Accounting

    • Certified Public Accountants

    • Certified Management Accountants

    • Auditors

  • Finance

    • Certified Financial Planner

    • Certified Real Estate Agent

    • Appraisers

  • Economics

    • Economists (trends business cycle)

    • Macro/Micro Data Analyst

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General Overview

  • Marketing

    • Marketing Research

    • Sales

    • Advertising

    • Customer Service Specialist

  • International Business

    • International Manager

    • International Executive

    • Consultant

  • Management

    • Entrepreneurs

    • Professional Managers

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… could you please be more practical

  • Example one

    • HS 25 years

      • 25 @ 17,000 = 425,000

    • UG 25 years

      • 25 @ 47,000 = $1,175,000

        DIFFERENCE OF $750,000

  • Examples two

    • HS 18yrs. to 65yrs. = 47 years

      • 47 @ 17,000 = 799,000

    • UG 22yrs. to 65yrs. = 43 years

      • 43 @ 47,000 = $2,021,000

        DIFFERENCE OF $1,222,000

  • Thus of the 45 books they buy they are investing about 3,000 in four year with a ROI of $2,018,000

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Self-fulfilling Prophecy

Need Theory

Goal Setting

Expectancy Theory

Social Comparison Theory

Equity Theory

Management Theories

What the heck does that mean to me???

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Because of this!

  • Three basic classifications of Employees

    • 1) Extra-Role Behavior Employees (OCB)

    • 2) Contractual Agreement Employees

    • 3) Sub-Optimal Employees

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Performance Model

Employee Affect or Disposition

1) Entitled Individuals (+)

2) Equity Sensitive (=)

3) Benevolent (-)







Improved Organizational Effectiveness





1) Extra role (+) behavior employee

2) Contractual (min) agreement employees

3) Sub-optimal employees (-)

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Theoretical Model of Employee

Work Behavior


Equity sensitive


Organizational Justice

Distribution of rewards

Procedure of the organization

Interaction with co-workers & managers



Job Performance

Job Satisfaction



Job itself


Source:Bateman & Organ, 1983; Konovsky & Pugh, 1994; Moorman, 1991; Organ, 1988

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Customer Service at NM College Bookstores

  • Importance of Customer Service

  • Study and Articles of Customer Service

  • CS a Practical Approach

    • Steps of CS Improvement

    • Phone

    • Face to Face

    • Facility Layout

    • Discussion

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Importance of Customer Service

Customer n. [kust-a-mur]

The Person who makes all of our jobs possible.

A customer must perceive that they are the most important person on our premises. The customer is not dependent on us in any way and we are not doing them a favor by serving them. They our doing us a favor by using our services (products) and giving us a chance to serve them.

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Return on the Customer

  • Maximum Return on your scarcest company resource

    • If not you look short

    • Business triad (E/M/C)

  • Increasing their lifetime value…

    • Don Peppers and Martha Rogers, Ph.D.

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Importance of Customer ServiceThe Tough Reality of Customer Service

  • Study I

    • Bad service

      • A person will tell 9 of 10 they meet about it

      • 13% tell an avg. of 20

    • Good service

      • A person will tell an average of 4 people about it

  • Study II

    • Bad service (customer tells 32 avg. others)

    • Good service (customer tells 9 avg. others)

  • What does a customer look for:

    • Value = Fair Price + Quality + CS (competitive pricing environments-university lottery scholarship making Quality and CS more important here at New Mexico College Bookstores)

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Importance of Customer Service

  • Why a customer stop doing business

    • 1% pass away

    • 3% move away

    • 5% develop other relationships

    • 9% leave for competitive reasons

    • 14% are dissatisfied w/ product

    • 68% due to attitude and indifference of ONE single employee

      • customers stop using a business due to an indifferent employee who treated them poorly

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Why focus on the customer?

  • Five time more likely to leave due to poor service than product quality

  • For every 1 that reports poor service, 26 are unreported.

  • Only 4% will ever complain about bad service. - 96% never complain about rude or discourteous service but….

    • …will quietly go away and take their business else where

    • 91% will never again buy from that business

    • Tell their “horror story” at least 9 times

    • 13% of them tell it at least 20 times

  • It cost five times more to attract a new customer than keeping an existing one

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Importance of Customer Service

  • It is no big loss - What do you lose (1 person for a lifetime of sales and their referrals)

What is losing one “Worth”:

Autos Industry - 200K

Grocery Business - 234K

Newspaper .50 * 365 = 182.50 * 40 years = $7,300

30 papers @.50=15. * 40 years $600

Yearly subscription $75 * 40 = $3,000

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Study and Articles of Customer Service

  • Management’s Commitment

    • Constant

    • Rewarded

    • Walk the talk

    • Accountability

    • Valued

    • Reinforce behavior with immediate recognition

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Study and Articles of Customer Service

  • Employee’s Commitment

    • Consistent and fair w/ each other

    • Accountability

    • Positive Attitude

    • Owning our own behavior

    • Professional vs. personal

    • Serving the customer

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Practical Approach

  • Seven Steps to Successful Customer Service

    1.Total Management Commitment

    2. Get to Know Your Customers

    3. Develop Standards and Service

    Quality Performance

    4. Hire, Train and Compensate


    5. Reward Service Accomplishments

    6. Stay Close to Your Customers

    7. Work Towards Continuous


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Practical Approach

6 Steps to Great Customer Service

1. Drop Everything to Answer

Email, Phone or Whatever…

2. Do a Little Extra

3. Keep Your Promises

4. Address Problems Immediately

5. Follow Up On Problems,

Questions, Etc.

6. Personalize Communications

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Practical Approach

  • Customer Satisfaction in 7 Steps

    1. Encourage Face to Face


    2. Respond to Messages Promptly

    & Keep Your Clients Informed

    3. Be Friendly and Approachable

    4. Have a Clearly-Defined Customer

    Service Policy

    5. Attention to Detail

    6. Anticipate Your Client’s Needs & Go

    Out of Your Way to Help them Out

    7. Honor Your Promises

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Practical Approach

  • Six Steps to Excellent Customer Service

    1. Impress Prospects and Clients with Professional Proposals & Documents

    2. Keep in Touch During the Project

    3. Guarantee Your Work

    4. Learn to Manage Complaints

    5. After the Project is Completed, Give the Customer A Gift

    6. Stay In Touch

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Sound Nice

  • But please get more practical!

  • Asset vs. Liability

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Phone – Customer Service

  • Did you know that a caller to your employment can tell and perceive your mood and even if there is a smile on your face by the tone of your voice.

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Phone – Customer Service

  • Phone Etiquette

    • Company’s name

    • Employee’s name

    • How may I (help, serve, assist) you

    • Listen

      • jot the callers name down – and use the callers name in the discussion many times if possible

      • When wanting a different person (it is ok to ask – May I inquire as to whom is calling (and or the issue)?

      • If placed on hold (example: Sorry for the wait that department is working on a deadline – May I please take a message - explain)

    • Transferring Calls (always give the call the extension number in case they need it later)

    • Thank them for calling!

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Face - Customer Service

  • Face to Face

    • Respect

    • Kindness

    • Consideration

    • Empathy

    • Friendly and effective service

    • Honesty and feelings of pride

    • Use examples to assist customers

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What you they say!

  • Help me first

  • Can I speak with your manager

  • You people never get it right

  • Not what I ordered

  • It was on sale

  • My statement is messed up

  • You never have what I want

  • I need that by the end of the day

  • You can bend the rules

  • What are you a 3rd grader

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What to say!

  • Secret weapon words

    • “I am sorry”

    • “for you”

  • “I am sorry that happened I understand can I fix it for you (Mrs. or Mr. Garcia)”

    • Empathy

    • Permission

    • Personal Service

  • Lack of customer trust must be viewed as a challenge to serve them

  • Good customer service build trust

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What to never say!

  • “NO” or I can’t

  • Don’t blame me

  • It is not my fault

  • I have not had my break

  • That customer didn’t know

  • I just work here

  • I can’t wait to get out of here

  • I hate my schedule/computer

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What to never touch!

  • Religion

  • Sex

  • Politics

    • Smile

    • Pleasant

      • Offer no opinion

      • Thanks for you interest

    • Professional

      • I consider that personal

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When “yes” is not an option!

  • Never say “no”

  • I will try

  • Lets explore some options

  • I want to be fair to everyone

  • Consistency does matter

  • Show empathy

  • Note* Let them talk and vent

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What are customers/employees?

  • Are Customers

    • Next in lines NIL

    • No Problem – are they

    • A nuisance

    • A bother

    • An interruption

  • or are employees

    • Rude

    • Disrespectful

    • Aloof

    • Indifferent

    • Fake

    • Not sincere

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Customers always win!

  • “Make no mistake about it in the long run I will win”

    • The Customer

  • I don’t make a scene

  • Bad attitude

    • I can forgive just not forget

  • We have choices - local & online

  • Note* it is never the person it is the organization

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    What do they want?

    Understanding & Caring Attitude

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    Good judgment







    Quick Thinking

    What do they want?

    Problem Solving Ability

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    Facility - Customer Service

    • Facility Layout - Customer service area

      • Comfortable

      • Visional designation between work and customer area

    • Everything that you can use

      • Build trust with customers w/ service

      • Reinforce the need of treating customers right

    • Tickets Scheme – have a plan

      • Give employee all five tickets at start of the month

      • Employees give their peers a ticket when they see them performing great Customer Service or “going beyond the norm” with Teamwork

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    Customer Service - Ask yourself

    • Is it really a pleasure to serve them?

    • Do you treat them as individuals?

    • Do I remember them by name?

    • Do I care to see a smile on their face?

    • Do I like to customer satisfaction in their eyes?

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    Since you know what the Customer Feels

    • Smile and make eye contact

    • Acknowledge the customer

    • Neatness of workplace

    • People come first

    • Problem solve for the customer

    • Be genuine and sincere

    • Say your welcome (not no problem)

    • Thanks customer for choosing to do business with your organization

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    • Fitting the right people in the right places

    • Empathy

    • Vision – Why not!

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    The model bookstoreWhy not your store!

    • Big box

    • Online mega-store

    • Exploiting your space on their dime

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    What is our Niche?

    • NM Students

      • Nationwide 15 million in Higher Ed

    • Highest Trained – Experts

      • Poisoned Pen – in AZ

      • Instant Review

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    Model is your Store

    • It is on hand or short time to get

    • Staff has a cause CS

    • Attractively Arranged

    • Targeted age groups sections

    • Inviting – what to spend some time

    • Coffee shop

    • Post Office

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    The three R’s

    • Wholesale business

    • Digital – e-books to Podcast

    • Competitive knowledge

    • Ask engage the customer

    • Technology Web development

    • Real Partners (Students and Profs)

    • Events

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    The three R’s

    • Computers to order and compare


    • Engage the Department and Manager

      • Customized value added products

    • Reasons to come in

      • Events (250 at AZ bookstore)

    • Students learn differently

      • Tap that market

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    The three R’s

    • Coffee shop

    • Hangout

    • Wireless

    • Alumni - Graduation

    • Sale to each on their time

    • Gift Cards

    • Drawing/Tutoring/School pride

    • Entertaining Environment

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    Enjoy your conference

    • Thank you!


      • “Owning our own business behavior”