What your Customers are Thinking

Posted on June 10, 2008

It pays to know what your customers are thinking then meet their needs before they express them. Easier said than done? Not when your passion is customer service.

I’m going to tell you the story of Runzo’s Music World. Independent music stores are facing the same challenges that all independent stores are facing – big large footprint chain stores and the Internet are ripping the margin out of the business, and dropping the volume for independents as well. My son (12) is a musician, and so we shop for all things related to electric guitar and bass. I’ll let you inside our thinking as consumers.

Runzo’s Music World is a small store, started 31 years ago. Dean Runzo owns it and is there nearly all the time. His prices are about 10 to 20 percent higher than the chains or the Internet, and he doesn’t stock some major brands (like Gibson) because they got in bed with the big chains and now require huge stocking orders to qualify to become a reseller. Mr. Runzo can neither afford that nor fit that many instruments in his store.

We learned about Runzo’s Music World because he has established a reputation in our community. He works hard to partner with the schools and their music teachers, and is known to be honest and straight in an industry full of scammers. What do you do to develop a reputation in your own community?

In our first visit three years ago, he explained that if you buy an instrument from him, he will service it for life. (Guitars need to be set up every six months or so, at a typical cost of $70, which he does for free.) We went for it, and true to his word, he takes care of us. We’ve now saved more than we spent on that initial purchase. Of course it keeps us coming back to his store. What do you do to create ongoing value for your loyal customers and to keep the relationship going and growing?

I must admit that I buy things on the Internet all the time, and since my son fell in love with a Gibson guitar, we’ve bought from the Guitar Center – the big chain. They’ve got tons of instruments and the mega-store is an exciting place to visit. But my son, who pays for much of his equipment on his own, really feels safer buying from Mr. Runzo, and chooses to do so unless it’s a really big price difference or he just has to have something that Mr. Runzo can’t get. Eight months ago, I was dragged down to Runzo’s Music World to buy a distortion pedal that we could have bought online. We paid an extra ten bucks plus the sales tax, and bought it from Mr. Runzo. Six months later it broke, and Mr. Runzo, true to his high service guarantee, worked with the factory, sent it in for repair and got it back in time for the sixth grade talent show my son was in. This drove home the point for both of us – that local, small business service just can’t be beat.

When asked, Mr. Runzo is not shy to talk about the challenges he faces staying in business. He’ll complain about how the world is shifting against him. So we feel guilty when we buy from the big guys or the Internet. That is a strategy that works in Mr. Runzo’s favor. Do you educate your customers that you NEED their business, and that every sale counts? Most of us consumers want to help the local independent guy.

But we worry about Mr. Runzo. He doesn’t look happy most of the time. Maybe it’s those long hours, or he’s worried about finances. We would love for him to show and share our excitement about music. It can’t be any different for other independent stores. Are you excited about your products and your business, and do you show it, even when you’re tired?

We’ve seen Mr. Runzo get upset about his David and Goliath like battle against the big retailers. It really upsets him to see his customers go around him. We don’t want him to be upset with us, so we kind of keep him in the dark and look at the Internet and the chain stores first, and when we’re in Runzo’s, we sneak peeks at the prices. That puts him at a disadvantage. But we don’t want him upset with us, so that is what we do. Are you your customer’s #1 and closest advisor, even occasionally recommending they buy elsewhere when appropriate? That trusted advisor spot is worth a lot.

Now I’m kind of worried that Mr. Runzo might read this column. He’s never asked me as a customer for my candid impressions of him and his store. I wish he would. Do you ask your customers for an evaluation? If you ask (in person, when they don’t seem rushed), they’ll tell you at least some of their thoughts, and then you’ll know how to improve. The big guys have to do the stiff informal surveys, but not you. You can have a series of conversations and learn much more.

Takeaways:

• Your customers may not be telling you everything they’re thinking, but that doesn’t mean they’re entirely satisfied.
• Customer service, your community reputation and a passion for service are just a few ways to impress customers.
• If you really want to know what your customers are thinking, ask them – then improve.