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The Business Cycle

Added Friday, 02 September 2005 - Written by Katie Williams

After recently returning from a conference focused on recruiting effectively, it is interesting to reflect on the importance of customer/client satisfaction in relation to success in business.  In this modern day, when choice is a privilege enjoyed by the consumer, it is imperative that quality service is provided, in order to ensure that repeat business is maintained.  

Although recruitment advice and tips are readily available through books and other sources, it is the act of putting these ideas into practice that really makes a difference.  It can be dangerous to both your reputation and bottom-line to underestimate the affect relationships can have.  It is no secret that the majority of non-repeat customers fall into this category after their expectations are not met in regards to customer service, rather than more tangible reasons such as a product/service not reaching their satisfaction or business lost to rivals.
It is the customers that do not complain who you should be worries about – they will be unlikely to return to waste their own time pointing out the inadequacies within your business.
Although the complaints process is not the most pleasant aspect of running a business, it needs to be addressed because these valuable customers can and will return in the future if their complaint is resolved satisfactorily.  It is the customers that do not complain who you should be worries about – they will be unlikely to return to waste their own time pointing out the inadequacies within your business.  The majority of customers with complaints will in fact return for repeat business in the future, if their issue is resolved quickly and thoroughly.  This brings up the issue of another interesting and potentially profitable issue – referrals.  The power of the referral within the recruitment industry or indeed within any type of business, cannot be refuted.  In a recent in-house study of advertising, the majority of our candidates were found to have been referred to us by a friend or colleague.  In a candidate shortage market, this valuable and virtually free means of advertising is an invaluable resource.

In business we tend to value our clients because they provide us with our cash flow and profit.  On the other side of the coin, perceiving service providers as a valuable asset is not as common.  They are the people that take away the cash flow and profit in many minds of business owners.

It always astounds us - when everything goes right customers treat their service providers with respect and cooperation.  However when things go wrong, all hell breaks loose!  It may be the case that the service provider is judged on one unsatisfactory incident while all the years of efficiency and value are forgotten.  Reactions to perceived “bad” service in the market place can range from withholding payment, angry and sometimes insulting emails or phone calls.  Whilst it is understandable that this is created by frustration, it does nothing to solve the situation.  The word “perceived” is interesting.  In most disputes there are two different perceptions therefore two different realities. No one goes out of their way to give bad service and most people respond to a rational discussion with the possibility of a healthy conclusion.

If a valued relationship exists, neither party is looking to assign blame when things go wrong but instead are focused on finding a workable solution.  The secret to service provider/client relationships is communication. A good relationship with your service providers can be very beneficial if you value them.

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