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By David Saxby It is no secret that rural telephone companies are experiencing a significant loss of access lines and longdistance minutes. Two research groups, Pew Internet and American Life Project, estimate that 2% of Americans have cancelled traditional phone service in favor of a cellular phone, and that an additional 20% seriously have considered such a move. Is competition increasing for rural telcos? Absolutely. And now there’s yet another new player—voice over Internet Protocol (VoIP). Last year, there were 110,000 VoIP subscribers in the United States, according to Parks and Associates, a Texas research firm. Parks predicts that number will climb to 4.5 million by 2007. Rural telcos in many areas of the country are experiencing increased competition from VoIP, cellular and cable providers. Local number portability also is having an impact. If your customers received an offer tomorrow for unlimited telephone service for $19.95 a month, how many of them would you lose? Being the local phone company serving the community may no longer be good enough when it comes to many of your customers’ buying decisions. Many customers shop for new technology based on price. If they lack product knowledge, they use price as their gauge when making their buying decision. This can be cause for concern as many rural telcos are not the lowest-priced provider. On the other hand, other customers shop based on price, but actually buy based on the value they feel they will get from using the product. That’s where small telcos can wage their battle against the giants and their array of products. Here are some suggestions to help put yourself ahead of your competition. Know Your Competition Are your employees familiar with all the products and pricing plans your competitors offer? It’s difficult to convince a customer why they should choose your products over the competition, if you can’t explain why your products are better. What do you offer that is better than your competitors? Everyone in the company, from the chief executive officer to the customer service representative (CSR), should be able to answer that question in their sleep. Deliver Exceptional Customer Service Quality service is critical with every customer interaction. Many of your competitors know that a great customer may choose to do business with them. They’re making a substantial investment to guarantee that their CSRs have the appropriate customer service and sales skills to turn that potential prospect into a customer. Every person at your telco who talks to customers should possess the skills to make each customer feel valued when they call your business. They should have adequate knowledge on every product you offer to convey the features and benefits to a prospect or customer who is a first-time buyer of that technology. Many customers are uncomfortable with new technology and are looking for someone to hold their hand and help them make the purchase. Fulfill the Customer’s Emotional Need From our experience, many companies are great information providers. While they give the customer adequate pricing information, they fall short on determining the customer’s needs and desires. CSRs must go beyond pricing and sell the benefits of their products and services. In many markets, competitors have positioned themselves to offer similar products and services for less money. It’s critical that your CSRs identify your customers’ needs, and then explain how your products and services will provide the benefit and value that customers want. Evaluate the Customer’s Process Each one of us has an expectation of what we want to happen when we interact with a company. Customers are becoming more demanding and have less patience with paperwork when applying for a new service. From the moment the customer makes the decision to call or walk into your office to purchase a product, do you make it easy for them to do business with you? Is the application quick and easy? Could they go online to complete the application and purchase the product? Ask your customers what they think of your process. Celebrate Failure Competition is increasing for consumers’ dollars. You need to be innovative—try new ideas to promote and sell your products. But realize that not every new approach will be successful. Albert Einstein once said, “Insanity is doing the same thing over and over expecting different results.” If what you’re doing is not creating the results you desire, try a different approach. ------------------------------------- David Saxby is president of Measure-X, a Phoenix, Ariz.-based measurement, training and recognition company that specializes in customer service and sales skills training for utilities. He can be reached at 888-644-5499 or via e-mail at david@measure-x.com. Visit the Measure-X Web site at www.measure-x.com. |
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