Service often the deciding factor

If there is one critical component in business that is so often overlooked, it is service.

While many operators spend hours assessing and analysing product, pricing and distribution systems, too many neglect the most important aspect - their relationship with customers.

Happily that is definitely not the case with a good number of local businesses.

In this cut-throat world of globalisation, online alternatives and competitive pricing, it can be hard to carve out a niche to ensure customers are drawn to you - and keep coming back.

One such Wanganui business that has set the bar high and has been awarded for its achievements is the Stihl Shop. As reported in Thursday's Business Extra, the local franchise cleaned up at the national Stihl awards, beating 106 other outlets in the process. Having had personal experience I can relate to what impressed the judges.

The staff there know their products, form a relationship with customers that is in no way overbearing and they follow through. From the first time I ventured inside I was treated with respect, within a couple of visits they were referring to me by name, the service was exemplary and as a consequence I have recommended them to others and become a repeat customer.

The funny thing about service is that it can cost little but add so much value to the customer and your business. In Stihl's case, they have managed impressive year-on-year growth over consecutive years and in tough trading conditions.

But they are not alone. There are many other local businesses who likewise epitomise the best of customer service. Think back to the Mainstreet Service Awards in the middle of last year. Consider what it was that the winners had in common. Tasty Indian, The Bike Shed, AMI Insurance and the 2011 winners Just Looking, Element cafe and Hawkins Pharmacy are all very different businesses but all show a commitment to good service.

Business consultant and columnist Russell Bell extols the virtues of good service and its impact on profitability and success. It's reasonable to assume that like the Stihl Shop those businesses listed above had a steady list of regulars and repeat customers.

There are of course firms that don't do so well at meeting their customers needs, and it can be a fine line between meeting a customer's needs and being overbearing and intrusive. There is little to be gained from naming and shaming them here but I have certainly had experiences dealing with local firms that left me more than a little deflated. Not that poor service is something exclusive to Wanganui. On the whole, most places do very well.

It is also worth noting that not all customers position themselves for a positive experience. The saying "the customer is always right" is a fallacy but those businesses where service excellence is the standard certainly manage to make them all feel that way, while also resolving any issues.

It may not always be possible to offer the best product at the cheapest prices but if there's one area a business can really stand out, it is service. Local businesses must take the opportunity to rise to the example set by those mentioned above. And, critically, those of us who shop must reward their efforts with our loyalty.