Customers First – Money Follows

Posted by Deborah Chaddock Brown on April 24, 2009 under Connecting Moments, Customer Moments | Be the First to Comment

I have a new customer.  She is in the business of residential mortgages.  Not a good time for her business, is it?

Actually – she’s doing great.

But oh those foreclosures.  Bet she has a lot of irate customers, huh?

Nope.  Currently her foreclosure rate is less than 1%.

So she just sells those small houses, right?

Nope.  She’s certified and successful with the over $400k homes as well.

So what’s her secret?  She sums it up in one sentence:  “I put the customer first.”

Her salary is commission-based and if you’ve ever been in a job where your income is based on commissions you know that you pay close attention to the financial details.  Unlike a job where you know what your paycheck will be, those who work for commission receive a different amount each month based on previous month’s sales.

“Oh, I never know what I’m going to make in any given month,” she told me. “I don’t worry about it.  If I think about my commission then I’m not doing what’s best for my customer.  However, if I focus solely on my customer, I TRUST that the money will be there.  That belief has never failed me.”

Not even in this economy. 

What can we learn from that approach?

My Dad was ordained as a commissioned minister of Organizational Development in the UCC of New England.  He helped congregations resolve internal conflict. I remember him telling of a different approach to the annual pledge drive. 

“Most churches ask members to give and once people make their pledges, the church budget is based on the amount of money raised,” he explained. “However, a more successful approach requires the church set their budget first.  They determine their financial needs to operate the church and then what outreach or mission programs they’d like to be involved with and what additional services or structural needs they may have.  Once they determine the final budget, it is presented to the congregation.  In every case the money is raised to support the budget.  In fact, I’ve seen churches raise even more money.  Interestingly enough – the amount raised is always more than if they just asked people to pledge a certain dollar amount.”

Faith.  Focus. Belief.  Putting the customers and programs first and trusting the money will follow.

So let’s just work this out a little bit.  What happens if I focus on the money first?

1. Each prospect is assigned a dollar amount – the potential sale they represent
2. It becomes a numbers game – the more phone calls, the more prospects, the more sales closed, the more commission earned
3. No time for relationships because I need to move on to the next possible sale
4. Difficulty sleeping as I lay in bed counting possible commission and subtracting it from the monthly bills to determine if there will be an excess or a deficit
5. Minimal repeat business – I didn’t build a relationship therefore there isn’t customer loyalty so I’m constantly looking to close new sales

How about if I focus on the customer entirely?

1. I learn about their needs
2. I listen to their expectations
3. I hear their frustrations with past experiences and hopes for the future
4. I uncover fears, road blocks and true needs
5. I provide solutions
6. Together we build a relationship
7. The customer is satisfied – feels valued – remembers us for the future, refers us to their friends
8. The quality of sale increases because I’ve uncovered needs they didn’t realize they had and offered comprehensive solutions far bigger than originally discussed
9. They become loyal customers, true friends

Can you see how focusing on the customer will ultimately drive the sales? 

Where is your focus?