I’ve been involved in technology marketing since 1994. And yes I’ve read all the “bibles” out there, wrote one for that matter, and worked for some of the most innovative relationship marketers on the planet. I’ve overseen sales, customer service, IT, and I’ve owned multiple businesses of my own. I surround myself with people smarter than I am and I listen to them. But the most important lesson I was ever taught in business came to me courtesy of a 65 year old, hard drinking, hard smoking guy who owned a Radio Shack franchise.
I’ve worked as long as I can remember, I’ve always enjoyed business in general and hard work isn’t something I was ever afraid of. I was around 17 years old and worked evenings after school at his store, and full days on weekends. We were paid on commission. Luckily for me I was a computer geek even then and I could sell the shit out of the new Tandy computers (so much so that it put me into my own store a couple years later).
But we also sold all of that “other stuff”. That stuff that didn’t make me any money like .64 cent capacitors, and spools of wire. In those days all Radio Shacks had these little cards that you’d get punched every time you came into the store and once you’d visited a few times you got to take a free battery with you. You’d be amazed at how successful that program was in bringing customers back into the store, and as far as I know it ran for decades. The problem (as I naively saw it) was that it was predominantly older customers who wanted something for free, and rarely bought much of any consequence. As a commissioned employee you tend to notice these things, especially when it is those same customers that want to talk or complain to you for hours on end.
The other policy was that they would repair virtually anything they had ever sold, from any store, anywhere. This was also a supreme pain in the ass to me because it took a lot of time, it had to be packed up to be shipped off to Tandy if it couldn’t be fixed in store, and I didn’t get commission off of that either.
One day, I get this older gentleman who walks in with a answering machine that had broken and he wants it fixed. I start the process just like always, I get his information, I take down what the problem is, and it’s only then that I notice that it’s not actually an answering machine that has ever been sold at a Radio Shack. As I attempt to explain to the gentleman that the product didn’t actually come from Radio Shack he begins to get a little irate with me. He’s absolutely convinced that he bought it at our store. I suppose he thinks that I’m just trying to get out of having to repair it, I’m not sure. But the logic of “Sir, we sell one brand of product, that’s all we’ve ever sold, we make our own products and don’t sell anyone else’s” didn’t seem to be working. It’s at this point that he asks for my manager. I gladly oblige so that I can extricate myself from the situation.
The owner comes out (with a cigarette hanging out of his mouth I might add), takes one look at the answering machine and asks what the problem is. The gentleman explains his point of view, and my boss says, “you know, we don’t make this unit but I think it came from {some store close by}. But don’t worry about it.” And without another word my boss proceeds to walk over to our answering machines, picks one out, and hands it to the guy. He tells him “This model is better than the one you have here that is broken, it should suit your needs just fine, take it”. The gentleman’s mouth falls open a little as he was expecting to argue his way further and can’t quite believe what is happening. No cash register, no receipt, no personal info, just hands him a new answering machine and says thanks for coming in with a genuine smile on his face.
I’m a little pissed at this point to be honest because my boss just made me look stupid. He didn’t take my side of the argument. The obvious, logical, perfect sense side of the argument. So I confront him and ask “why the hell would you give a guy a $100 answering machine at no cost and then accept his broken one which wasn’t even bought here? That makes no sense”. He puts on that patient face of a father teaching a life lesson and says “Son, that machine cost me $50. If I send him up the street to return his then he’ll buy something else from them. I’ll take the time to return his broken one instead and possibly get my money back. Moreover, anytime that gentleman needs something in the future he will only go to one place to buy it. He now knows that anything he buys from me I will back it up, no matter the problem. That’s priceless. Now get your ass back out there and sell something”
There’s a lot of lessons to be learned in that story. But for me, the primary one was in learning to always view the customer as a long term relationship and protect it. Maybe there are a few others in there that will help you along the way as well.
Matt Ridings – @techguerilla