As a customer, I know what it’s like to be on the customers side of the counter. You want to turn over your hard earned money for goods or services. You are then confronted with attitude, rudeness and utter disregard for just how hard you have worked for your dollar. Either the service is slow and the quality of the goods are poor, or worse the company you are patronizing rigidly enforces poor policies for handling customer issues.

As a business owner I realize the cost of poor service. Poor service decreases impulse purchases, leads to a reduction in repeat business, causes lack of referrals and negatively impacts customer relationships. When you are trying to build a business in a competitive market each of these are critical to your success. In an environment where customers have a dozen or more purchase options it is imperative that great care be taken to build your business.

How are you doing at building your business with customer service? Consider how you would handle the following customer interactions:

(1) A customer purchased a $10 item and now wants to return it. Your policy is no refunds. This a customer who has shopped your establishment many times. Do you return the item or enforce the policy? If you must, gently remind the customer of your policy, but you should absolutely refund or exchange the product to the customers satisfaction.

(2) When customers enter you business are they greeted warmly or ignored? At the very least do you make eye contact and smile? A warm and hearty “Hello” will fit almost any environment. Do this with each customer. A smile would be the icing on the cake.

(3) Do your employees say “Thank You” and smile after each customer purchase? Or do they simply hand the customer their bagged item and say “next.” Thank You … Its just two little words, and only eight characters long. Just say it. It goes a long way to build goodwill and customer relationships. It gives the perception that you are nice and friendly. Don’t forget to smile.

(4) During customer interactions are you on the phone or talking with other employees? Or are you focused 100% on the customer? It is downright rude to be doing ANYTHING, other than focusing on your customer, during a transaction.

(5) A Customer comes into your establishment and is there incessantly reading product labels. Do you leave the customer there to fend for themselves or do you offer the customer your expert opinion on the products you offer. More often than not the customer will be left alone. Go help them. If they want to be left alone let them tell you so.

What do you think customers do when they encounter great customer service? They become advocates for you and help to build your business by referring others. They become loyal to you, completing like purchases exclusively at your establishment. Fantastic service is what makes customers want to shop with you despite a higher price or the inconvenience of distance. Even if you are providing a lesser quality product or service, fantastic customer service can help you compensate for it. It gives you an incredible, low cost competitive advantage.

To improve your customer’s experience, start by changing yourself. Change your attitude when handling customer issues. Be friendly and liberal versus stern when implementing policy. This may require you to convince yourself that you can afford great service. Do the math and discover that it will cost you less to take care of that customer now and build a life long patron. Set the example by regularly chatting with customers and enthusiastically pitching in to solve hard problems.

Next challenge your employees by asking them to step up their game. Catch them providing great service and provide some simple verbal recognition. Constantly bring up and talk about how important it is to set yourself apart with great service. Create a bulletin board in your employee only area, and post positive comments from customers - if a customer verbally tells you something great, type it up and post it on the board. For employees that just don’t get it try to understand why and help them with some training, coaching and counseling.

Starting with your next customer begin building that essential customer service foundation. Offer a friendly smile, a warm greeting, and a caring attitude. Engage in aimless small talk, genuinely go the extra mile and try to truly understand the other person.

“Do unto others as you’d have them do unto you.” Don’t worry; I’m not trying to take you to Sunday school under the pretense of a business article! However, in one form or another we have learned this rule for as long as we can remember. Many people try their best to apply this rule in their everyday lives. But, how many of us try to follow such a simple principle when it comes to business?

If you think about it, it could single handedly be the most important rule to follow in business. After unpleasant sales encounters, most customers are not most upset with the product or service that they purchased. Sure that may have been the root of the problem. But, most people understand that we don’t live in a perfect world and sometimes things don’t work!

The reason most people leave these situations upset is because of the way that they’ve been treated. They feel that they have spent the money for your product or service that for one reason or another did not perform properly. This upsets them, but what really angers them is that they feel that no one cares.

We’ve all had negative customer service experiences. Those of us in sales have most likely been on both sides of such exchanges.

When we’re in the salesperson role, we may be running ragged from an extremely busy day. We may have issues going on in our personal life. We might simply have gotten up in a bad mood that morning. There’s nothing innately wrong with any of those things. However, it is our job to find a way to put all of those things aside to help the people we’re paid to assist. This is why I feel that sales people should really be required to take Acting 101! Ideally, we would always be able to genuinely be interested in listening to our customers and helping them find the solutions that work best for them. But, we all know that that’s pretty much impossible everyday, absent a fairly large prescription of Prozac! Salespeople are just that, people. We’re not always going to be at the top of our game, but we must be able to “act” as if we are. Convincingly, act as if we are!

On the other hand, being that salespeople are people, we are constantly faced with these situations in which we are the customer. Undoubtedly, you have run into a few salespeople who have irritated you or who may not be quite as helpful as you’d like.

Now, obviously, we will never be able to be perfect in all of our customer interactions. However, if we were to try and keep the good old “Golden Rule” in our consciousness at all times when dealing with customers, I think we’d find our jobs more enjoyable, our customers happier and yes, even our profits growing!

We’ve all seen it. Julia Roberts is shopping on Rodeo Drive. She’s dressed in her “professional” gear and gets that infamous attitude from the saleswomen. And of course, we’re all cheering when she stops back by the store in her newly purchased couture, arms laden with shopping bags and delivers my favorite line of all time. “You work on commission right? Big mistake, huge!”

We all love to watch that scene and feel like we identify with Julia. However, I am going to admit something here. I think that, whether we’re willing to admit it or not, all of us in sales have been guilty of this crime. I know this is extremely politically incorrect, but come on now. The minute we encounter a customer, we form some sort of split second judgment as to what kind of client they are.

The problem does not lie in that initial judgment (even though it’s most likely completely wrong!). The problem is born the minute we allow ourselves to act based on that initial opinion.

The single most powerful sales and marketing tool we have is word of mouth from past and current clients. By the same token, the fastest way to lose business is for one person to have a negative experience with anyone associated with your company. If that happens, you’ve not only lost that person’s business, but most likely anyone that person happens to talk to while they’re still upset, and by proxy, anyone that second person talks to, and so on and so on.

So what lesson can we learn from everyone’s favorite working girl’s shopping experience? I know you’ve heard it over and over again, but seeing this happen over and over again in stores across the country, I think it definitely bears repeating. Ever person you come in contact with is a potential sale. Every potential sale is a potential commission for you and a potential increase in your company’s profits.

It’s really that simple, but from my personal experience as a customer, most salespeople don’t seem to get it! All customers want is to feel that you appreciate the fact that they’re spending money on your product. They don’t want to feel as if you’re looking down on them, and they certainly don’t want to feel as if they’re interrupting your day of leaning against the wall looking bored.

If you ask me, projecting an air of self-importance is the single easiest way to fail at retail or any other type of sales. So, the next time you encounter a potential customer try to remember that silver screen moment of Julia and try to decide if you want to be those women that everyone in the theater is booing or the wonderful people who make her feel like a princess!

Retailing is growing and growing fast. As one of the nation’s largest sectors, the retail industry provides a wealth of opportunity to people who have the desire to forge their own path to success. One-third of the 500,000 or so new businesses created each year are retail businesses. The entrepreneurs risk their hard earned capital, dedicate their resources and make a life out of offering consumers something they need or want.

The possibilities and opportunities that are associated with opening a retail business make it the backbone of the American economy. The industry delivers a rewarding business for the more than 24 million people who earn their livelihood by selling products. Retailers distribute the goods and services that are consumed by the public each and every day – be it food, energy, leisure, and our home products - our lives would not be the same without having places to get these items and resources.

Most of these retailers buy merchandise from a manufacturer or wholesaler and sell it to consumers for their usage. The price that is charged for the goods covers the retailer’s expenses and typically includes a spread that is considered the gross profit. The retail portion of the U.S. economy accounts for about 38 percent of our gross national product–more than $3 trillion dollars. The National Retail Federation is quoted in saying that more than 1 million retailing companies operate more than 1.4 million retail businesses in the US alone.

Types of Retailers

To provide detail into the types of retail businesses, we’ll take a look at the different ways for which a retail business can market products to the consumer. Remember that all these businesses began as a simple concept and grew through word of mouth and due to the drive of their respective store owners.

Our country is an amazing conglomerate of independent stores, large national department stores, discount chains, convenience stores, membership clubs, national and regional chains, category-killer stores, and other large-scale retail operations.

Store retailers hope that their fixed locations attract a large volume of walk-in customers of the street. These new customers will be satisfied with their purchase and will spread positive word of mouth about the business to their friends and family. Most stores have varied merchandise display options and utilize advertising both in print and via the internet to attract customers.

Store retailers sell products to the general public for personal use, but some also serve commercial businesses as well. These include establishments such as office supply operations, computer and technology service stores, and home improvement stores.

Massive retailers like Wal-Mart are focused on selling consumable products that consumers need for their everyday lives while more specialty retailers such as “Sunglass Hut” tend to sell products that people desire. They focus more on unique products that meet the emotional needs of the customer and focus on creating a brand mystique that is associated when someone interacts with the business. The ability to integrate an eCommerce business within the overall retail operation makes it even that much more powerful.

A retail business can be a fantastic way to start a new venture. Consider your location and products wisely, strive to provide great customer service, and manage your expenses carefully and you will soon be on your way to having a sustainable retail business.