How to Lose a Customer in 5 Steps

What not to do is just as important as what to do

Business owners often willingly invest tons of time and resources trying to attract new customers and grow the business. Meanwhile, they sacrifice valuable relationships through simple acts of carelessness and the failure to meet their current customers’ needs. As a result, many businesses lose existing customers faster than they can gain new ones.

While securing new business is essential to business growth, retaining customers is just as important, if not more so – your business is not growing if customers are leaving faster than new ones are coming in. And trust me; your competitors are working overtime to steal your key accounts. If you want to make it easy for them to do so, check out these five easy steps to losing your best customers.

Step 1: Don’t Listen.
Don’t bother learning as much as you can about the customer’s organization, facility and needs. Don’t ask open-ended questions to get the most information as possible, and when they talk, be sure to interrupt them and dismiss their comments. Shutting your customers down is a great way to make sure you miss out on what you need to do to deliver quality service. If you want to keep customers, ask questions, listen, and take notes.

Step 2: Don’t provide value.
Instead of providing what the customer views as valuable, assume what they want and deliver the services you think are best for the customer. After all, you are the expert and know what they want, right? Wrong. Find out exactly what they view is valuable and focus on delivering those things in the best way possible.

Step 3: Keep customers in the dark.
Customer relationships require constant communication in order to last. One of the fastest ways to destroy a customer relationship is to limit communication. This includes not letting the customer know when you’re making any changes anything from staffing to service levels to billing. Making changes with little or no notice just gives customers unnecessary feelings of uncertainty and adds strain to your relationships.

Step 4: Don’t treat customers with respect.
Sometimes, as the business owner, you might feel like the customer is being unreasonable. You may even be annoyed but, don’t have the luxury of letting the customer know it. The age-old adage, “the customer is always right” must live on in your mind and in the minds of your staff. If you are rude or disrespectful to your customers, they will your competitor’s customers tomorrow.

Step 5: Destroy trust.
Customers need to feel like they can trust you and your business or they won’t stick around. There are many ways to destroy trust and it doesn’t take one huge mistake; you can destroy trust little by little with small things. For example, don’t return their phone calls in a timely manner (within 24 hours), don’t follow up with them on issues or concerns or to see how they are doing, and be inconsistent so they just don’t know what to expect from you. Just like any relationship, customer relationships require trust or they won’t last.

Any of the above steps can easily send your customers packing. The key to keeping them from walking away is to do the just opposite of what the steps say: listen; provide what they define as valuable; communicate; treat them with respect; and work build and keep trust. Sometimes knowing what not to do is as important as knowing what to do.

Matrix Leads Toys for Tots Campaign

Matrix Integrated Facility Management and several local businesses are teaming up with the United States Marine Corps Reserve to kick off the 2009 Toys for Tots Campaign. Our goal this year is to collect 1000 toys, creating 1000 smiles.

Anyone may donate by placing a new unwrapped toy in the donation boxes posted. For more information contact John Zalenski, Matrix @ 315-349-0969, or visit http://www.toysfortots.org/.

EcoSmart™ Green Cleaning Program Earns CIMS-GB Certification

Matrix Integrated Facility Management and Shellville Facility Services have achieved the major distinction of being among the nation’s first commercial janitorial companies to be certified to ISSA’s Cleaning Industry Management Standard for Green Buildings (CIMS-GB).

The companies earned certification following a rigorous and comprehensive independent third-party assessment. “Our success in achieving CIMS-GB certification underscores our commitment to cleaner and greener buildings. Certification assures our customers that we meet the highest standard and accountability required by CIMS-GB certification," said James Peduto, Chief Executive Officer.

CIMS-GB Certification validates Matrix’s EcoSmart™ comprehensive sustainability services platform and its green cleaning practices. Through EcoSmart™ Matrix and Shellville deliver greener and healthier workplaces across all types of commercial properties. Peduto noted, “With this certification, our customers can be confident that Matrix is dedicated to maintaining the highest level of effectiveness and responsiveness in achieving our goal of total customer satisfaction.”

Peduto concluded, “Our commitment to environmental stewardship, innovation, and healthy buildings is embodied in CIMS-GB and EcoSmart™. As an industry leader, we have a responsibility to be at the forefront of green cleaning. With this certification, our clients can count on us to be the leader in commercial real estate green cleaning programs.”

About EcoSmart™
The EcoSmart™ Green Cleaning System is a comprehensive strategy that encompasses training, purchasing, and operations. The company’s approach is built on the belief that green cleaning practices produce tangible client benefits. The EcoSmart™ system even assists clients in qualifying for industry certifications, such as the USGBC’s Leadership in Energy and Environmental Design Program (LEED).

About CIMS
CIMS is a management framework designed to assist building service contractors and in-house service providers in developing quality, customer-centered organizations and is based on universally-accepted principles that have proven to be the hallmarks of well-managed, successful cleaning operations.

Certification with Honors is the highest designation available to those who comply with CIMS, indicating that the cleaning organization meets 100 percent of mandatory management requirements and at least 85 percent per section of recommended elements set forth in the Standard (see CIMS checklist at www.issa.com/standard for more details).

Growth without Growing Pains

Avoid the pain of learning the hard way by following a business framework

We have all heard the expression “sometimes it’s better to learn the hard way.” Throughout our lives, there are many opportunities to learn things the hard way. These lessons lead to twists and turns, and stumbles and falls, or “growing pains.” I am sure you can think of a time or two in your life when you learned a lesson the hard way, and are glad (or not) that you did.

As a business expands, management may experience growing pains. For many building service contractors the challenge is not getting more business; it’s keeping it. All too often, we see businesses losing accounts as quickly as they win them. Taking your lumps may be part of life but it should not be part of growing your business. With your business at risk, it’s essential to create a framework for growth that enables you to build the proper foundation for managing growth.

A standard framework
Fortunately, our industry already has already developed a framework for growth that can be applied to all types of organizations, including BSC organizations. That framework is found in ISSA’s Cleaning Industry Management Standard (CIMS), which sets forth processes and procedures for achieving well-run, customer-focused businesses.

Following the CIMS structure ensures that your organization has the right pieces in place to operate efficiently as operations expand. The best practice is to use the CIMS five management principles as a “platform for growth.” Well managed BSCs conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to see where they are doing well and where they need to improve. Fixing the areas that shout “needs improvement” now prevent growing pains later.

1. Quality Systems – This first principle ensures organizations have an effective quality system. This includes defining cleaning service requirements, implementing a quality plan, measuring performance, obtaining relevant feedback from customers, and committing to continual improvement.
2. Service Delivery – To ensure acceptable service delivery, organizations must have a service delivery plan that outlines the organization’s customer-related processes, including workloading, staffing, purchasing, and handling of unexpected events.
3. Human Resources – A cleaning organization will only operate in an efficient and professional manner if its employees are well-trained, customer-focused and dedicated to delivering a quality service. From hiring to training to the actual delivery of service, an organization’s human resources must be prepared to upload its commitment to quality.
4. Health, Safety and Environmental Stewardship – Businesses have to comply with existing legal and regulatory obligations. Documentation of this compliance is important. This also includes any other processes and systems related to health, safety and sustainability initiatives. An optional “green” component is also available.
5. Management Commitment – BSCs should have a clearly defined vision for the future and an understanding of its mission. Well-defined organizational roles and responsibilities as well as an effective communication plan are also must-haves. All of this will prepare BSCs for times of organizational change.

When a business goes through growth spurts, its owners should experience exciting times not tumultuous ones. A framework that helps prepare BSCs for steady, organized growth ensures owners avoid the pitfalls and growing pains so they can reap the benefits of a well-run, thriving business.

Hiring a Subcontractor?

Get it right and in writing.Hiring subcontractors takes care of your extra work and adds scalability to your business – but only if you protect your business with a written agreement.

Don’t do windows? Need some help with stone floor care? If so, it might be time to look into hiring a subcontractor or two.

Even the largest building service contractors do not always have on staff the skilled technicians necessary to handle the many special service tasks of our industry. Subcontractor experts in specialty areas bring that expertise to your business.

Moreover, if you have any regional and national contracts, you might have certain accounts that extend outside of your business’s geographic capability. Subcontractors can provide the extra coverage needed in those remote locations to secure more business.

Understanding how subcontractors can help you create a more scalable business is the easy part. The hard part is hiring a quality, reliable, honest individual or business. Keep in mind that the subcontractor is representing you and your business to your customer.

To protect your business and the subcontractor’s business, the working relationship mustn’t begin without a comprehensive, detailed written agreement.

Why a written agreement?
A written agreement should protect your business (and the subcontractor) in many ways. It goes far beyond the simple agreement to perform the work. First, you need to specify in writing that your subcontractors (whether they're individuals or other businesses) aren't employees and that they're responsible for paying their own taxes and benefits.

Second, the agreement must spell out the scope of work, including the subcontractor's responsibilities, and the payment rate (project or hourly) and deadlines. The agreement document also should contain a provision allowing your company or the contractor to terminate the contract within a certain amount of notice – 30 days, for example. Additionally, the agreement should include provisions in the event of non-payment or incomplete or substandard work. Also determine which party would be responsible for correction of substandard work.

Addendums to the agreement. The written agreement is the foundation of the subcontractor agreement. It is the base document in the file of documentation you will need to keep on each subcontractor you hire. There are three more key pieces necessary to obtain from subcontractors prior to the start of work.

Certificates of insurance. Include a provision in the agreement that requires subcontractors to obtain and maintain worker's compensation, general liability and automobile liability insurance. Ask for a certificate of insurance, which is a form issued by the subcontractor's insurer that details the coverages, expiration dates and limits of their policies. Requesting a certificate of insurance does not transfer any risk, but it does tell the contractor whether the subcontractor has adequate coverage.

Indemnification. Require subcontractors to sign a “hold-harmless” or indemnity agreement, which are non-insurance, contractual agreements used to transfer risk from one party to another. This basically means the subcontractor agrees to take responsibility in the case of a lawsuit against your business as a result of an incident related to the subcontractor.

Compliance with immigration laws. The third document to be obtained in tandem with the written agreement is a certificate of compliance with immigration laws and regulations. When signed, the subcontractor is disclosing that workers are legally allowed to work in the United States.

With a written agreement in place, including certificates of insurance, indemnity agreement and certificate of compliance with immigration laws, you can trust that you will not be risking your business to do business with subcontractors.

Jim Peduto to Address IFMA World Workplace

Jim Peduto will lead an important and useful session at IFMA's World Workplace. Participants will learn how to use the Cleaning Industry Management Standard (CIMS) as a "pre-qualification" tool to help ensure that your cleaning organization is managed in a professional mannner and is dedicated to delivering quality services. They will also discover how the standard's key elements can be used as a tool for benchmarking, evaluating and improving operations.

Helping Facility Managers Take the Guesswork Out of the Cleaning and Services Equation will be presented at World Workplace on Friday, October 9, 2009 from 8:00AM - 9:00AM.

http://www.worldworkplace.org/2009/conference/sessions/ed_sessions_track.cfm?track=1&submit3=Search

More Than 400 CIMS Professionals Now Certified to I.C.E

A new group of individuals has achieved certification as official Cleaning Industry Management Standard (CIMS) ISSA Certification Experts (I.C.E.). The addition of these 36 new I.C.E. professionals brings the total count to more than 400 experts representing 47 U.S. states and Canadian provinces as well as Mexico and the Caribbean.

An interactive map containing a full list of CIMS experts and their contact information is available at www.issa.com/?id=cims_ice_map&lg.

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