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Owners of small businesses, including freelancers, often wonder how they
can compete with the “giants” in their field, given the unbridgeable difference
in human and financial resources. Yet, it is possible for stake a niche in the
market by adding a twist, to quote Avi Zeitan in his lecture on small business
marketing, by turning a negative factor into a positive factor. Specifically,
small businesses, especially freelancers, can provide immediate and relevant
response to any customer communication precisely because they do not have
complicated business structures. This feature both provides an advantage during
the initial purchase as well as encourages loyalty post-sales. The end
result, as anybody that has had to deal with large corporation can attest, is
that many customers prefer small businesses.
It is clear that small business, whether one-person shows or companies
with less than ten employees, must focus on one primary service and, obviously,
do it well. While economies of scale provide large companies with a significant
cost efficiency advantage, freelances can distinguish themselves by one feature
that makes them far more customer-friendly – immediate and relevant response.
To clarify, customers like to feel important in the eyes of the supplier. In a
store, that approach often involves body language. By contrast, in written
communication, whether in an email, on a chat or in a formal document, businesses
express the level of priority given to the customer through their response time
and relevant response. Whether a request for a quote or a post-sales query,
customers truly appreciate an immediate response, often sincerely surprised by
it and thanking the seller. This approach shows that the provider is “on the
ball”, exactly what they seek. Yet, a prompt reaction is not sufficient. The
answer itself must be specific to the customer and issue. General or irrelevant
responses indicate a lack of attention or care, both undesirable traits.
Of course, large companies are technically able to provide the same type
of response, with some actually doing so. However, in my recent experience, more
and more financially successful large firms notably banks and other financial
institutions, today often fail to meet both the criteria. I had recently had an
awful experience of receiving two meaningless and non-specific form letters from
Lufthansa that only exasperated the negative feeling even if I received them
within 24 hours. In practice, it is difficult for a large company to control
the actions and attitudes of all of its employees without overly strict rules.
By contrast, all a small entrepreneur must do is to always make client
communication the top priority. The
self-employed have a clear interest and full control in providing prompt
and effective responses to consumers.
The benefits of fast and effective response are in the areas of both
pre- and post-sales. Prospective customers tend to assume that the technical
skill of a service provider is aligned with its communicative skills, which is
not necessarily true. As a result, delayed or incomplete communication tends to
drive customers away. As freelancers have full control of that aspect, they can
excel and outperform far larger enterprises. After sales, customers appreciate
the ease and efficiency of continual work with one person. There is no need to
explain the whole matter from the start to another person. Furthermore, no
company policy complicates or prevents implementation of an alternative
approach. Small businesses do not require rigid policies. Thus, entrepreneurs have
an advantage because a person, not a “team” is responsible.
Of course, no entrepreneur can be available all the time nor immediately
solve all problems. The issue here is not the actual solution but the
effectiveness of the communication. If matters require a person to be out of
the office for several hours, customers almost always accept a response sent by
phone saying that the individual will be available in X hours. For longer
absences, an “out of office” response providing the reason for the absence,
including a vacation or participation in a professional conference, and a date
of return is almost always acceptable. In emergencies, a phone call is a way to
extinguish any immediate fires. Time zones also affect availability with
effective differences between customer and provider areas reaching 10 hours or
more. Most customers understand this matter and expect an answer in the
morning, provider time. If the entrepreneur answers beyond standard work hours,
customers are thrilled. In the case of a question that may take some time to
answer or request that is not doable, a few simple words are generally
sufficient to maintain a positive reputation. Once again, small business flexibility
is one of its strengths.
There is a supposedly old Chinese proverb about the definition of the vital elements of life: the most important time is now; the most
important person is whom you are with; and the most important place is here.
Small businesses can not only compete but outperform large enterprises in
providing prompt and relevant responses, making customers feel like gold. That is one twist that makes small businesses
stand out.
* Picture captions help the blind fully access the Internet.
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