Following-up a vital part of the business model

Following-up a vital part of the business model

The human resource manager who would not shortlist a job applicant if they had not followed up on their application within 24 hours is an example of just how important follow-up should be in the business model, Aoraki Polytechnic School of Business co-ordinator Jillian Ireland says.

“He’s got a very good point,” she said of the United States corporate recruitment officer who believed that if job applicants found their own employment application was not worth a follow-up email, he would not trust them to do anything else.

Mrs Ireland said following-up, whether on cold inquiries coming into a business or relationship building after a sale, was a vital part of the business model – “and South Canterbury businesses are not always very good at it”.

She said follow-up was not after-sales service.

“The two are quite different. After-sales service took care of product teething problems and correct usage. Follow-up built relationships so important for ongoing business. It could be as simple as a phone call or email to ensure the customer’s experience with the business was pleasant, effective and needs were met.”

Mrs Ireland said follow-up gave a business the opportunity to tease out complaints or issues that could lead to bad word-of-mouth.

“An example could be a hairdresser who had noticed a regular client had not booked in for a long time.

“Could it be that the last time she was there, the water was too hot, the room too cold, or staff seemed inattentive and preoccupied?

“A follow-up call might tease out this issue and offer the salon the opportunity to address the customer’s concerns, offer concessions, and avoid bad word-of-mouth.”

She said United States research showed that 68 per cent of customers were turned away by the indifference of the person serving them. By contrast only 14 per cent of customers were turned away by faulty product.

Research also showed that most people don't buy the first time. They have to encounter a marketing message multiple times before making a purchasing decision. This makes follow-up an essential ingredient in the selling process.

Mrs Ireland said follow-up may not be done because it was considered unproductive, unnecessary and time-consuming.

“There could also be a reluctance to confront issues within the business.

“But building a customer data base and using it to follow up on customers, just to ask ‘how are you?, how’s the product going?, have you found our service valuable?, were your needs met?, how can we help you in the future?’, is perhaps the single most effective way of building your business, introducing new customers and retaining existing customers,” she said.

Mrs Ireland said the business tutors at Aoraki Polytechnic could offer wide experience in the follow-up model and show the pathway to data-base building.

“In the last year we have all become fussier about how and where we spend our money. Times are tougher and our competitors are sharpening their pitches.

Our businesses need to think smart, become extremely customer focused, and be ready to listen to them.

“Follow-up offers the opportunity to build business relationships.

“We need to think about the other person’s perception of our business and manage that.

“If you are a travel agency, did you call your customer when they got home to find out how their trip went? If you didn’t you might never find out about that delayed flight or baggage handling errors that your firm might find itself being unfairly blamed for.

“Equally importantly, you might never know about just how highly your customers regard you now that they have had the most enjoyable experience of their lives.

“Follow-up, and find out. Businesses can only learn and grow from the experience,” Mrs Ireland said.

Aoraki Polytechnic’s next business course starts on July 20 and Mrs Ireland welcomes inquiries to (03) 684 0815.

ENDS

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