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At the recent Epson Business Council event, customer service was one of the main topics raised. It created an interesting debate between the panellists, and while all agreed on the importance of developing and maintaining deep customer relationships, there were some conflicting views on whether focussing on customer service and support was actually

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We wanted to share some of those views with you in the hope that they may support your thinking on how to address this crucial issue.

The entrepreneurs all agreed that listening to customers is vital; find out what they need from you so that you can improve your overall service and their experience of dealing with you.

Jonathan Benhamou, CEO of Novapost, organises an ‘innovator club’ each year where he listens to both customers and prospects to take feedback on products. This insight is used to develop new products and enhance future ones. He also advocates regular measurement of customer satisfaction – either in groups or using online tools.

One question that sparked a lot of discussion was the question of cost cutting, and whether, in difficult economic times, SMEs should consider it to retain clients. Inma Martinez, President of Stradbroke Advisors and co-founder of Escape Velocity, advised very strongly against it. Inma recommended two approaches. Firstly, ensuring that your product or service solves a headache for your customer. And secondly, adding something that creates real value for them.  She called for entrepreneurs to consider: “What can I include in this product that they’ve never asked for, but I’m just going to invest in and put in anyway?”

Sara Murray, while agreeing that prices should never be cut, suggested negotiating with customers on payment terms as a way to engender goodwill. She’s found on more than one occasion that by extending payment periods customers come away with the impression you’ve done them a large favour, when it may not have impacted you too much at all.

The discussion moved onto how much time should go towards attracting new customers. Stefan Zickgraf, MD, European Association of Small & Medium Enterprise (CEA-PME) recommends devoting 30% of your time to customer acquisition. But, as Andrea Granelli remarked, customer acquisition doesn’t have to come through elements of the existing (and often expensive) marketing mix. He argues that word of mouth marketing is very effective – particularly when it comes from your existing customers – and this is something we’ll be exploring on the blog in the future.

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