Archive for February 17, 2010
How Pay-By-Cell Will Transform Your Business
My i Phone
by Paul Diamond
Cell phones are becoming not only virtual credit cards, but also mobile credit card processing terminals. In Japan and Sweden consumers have long been using cell phones to make purchases. The United States has been slow to adopt the technology, but currently has four forms of mobile phone transactions in use, and these may become widely adopted soon. The four models for cell-phone transactions are:
- Swipe your phone: Customers can securely swipe their cell phone and use it just like a credit card, making for a quicker transaction. One provider, BlingNation, is spreading this technology via community banks, which provide local merchants with a phone-swipe terminal and checking-account customers with a small adhesive tag that sticks to the back of their phone. Swipe the tag over the terminal to make a purchase. The transactions are processed directly by a local bank which results in lower fees than merchants normally pay for credit card transactions.
- Accept payments with your phone: You can now buy a small card reader made by SqaureUp that hooks to your iPhone, Android or Blackberry. When a customer wants to buy something from you, they simply swipe their credit card through this gadget connected to your phone, then they sign their name on your phone, and the transaction is complete. It’s a good solution for retail businesses that want to sell items off-location and for consultants, one-person businesses, or artisans that want to accept payment by credit card but either couldn’t get a merchant account or didn’t want one because of the fees. With this service you don’t need a merchant account and there are no contracts or monthly fees. The cost per transaction hasn’t been disclosed yet. This service, which aims to be available in Q2 2010, is brought to you by the people who invented Twitter–expect it to be highly disruptive to traditional merchant accounts.
- Enter your phone number online: Customers shopping online can enter their cell phone number—then reply to a text message—the check out and pay. The customer then pays the charge on their monthly cell phone bill. Using a cell phone number is a lot quicker and easier than entering credit card and address info online, and it appeals to younger people and those who may not have a credit card. What the rub? The transaction fee is painful—as a merchant you must give 35-50 percent of the sale price to the mobile carrier that processes the transaction. These fees may drop in time.
- Transfer money via cell phone: Transferring cash via text messages is simple when both the sender and recipient register for a free account with a provider such as Obopay.com. Sending money only costs 25 to 50 cents per transaction, and the money can go directly from and to bank accounts. For small business owners it’s an easy, inexpensive way to send or collect payment overseas. Wave goodbye to the fees, long forms and bank visits associated with wiring money.
These nascent mobile commerce platforms will likely battle it out in VHS-vs-Betamax style, while most of us will be on the sidelines with a wait-and-see attitude. Forward-thinking companies should dive in now, even if they risk adopting a platform that goes the way of Betamax.
5 Ways to Offer Outstanding Customer Service
Customer Service
by Paul Diamond
Good customer service brings customers back and gets them talking and spreading the word about your business. There’s always a cost associated with retaining customers and with attracting new ones. Here are five tips to help you offer excellent service and lower the above mentioned costs:
- Answer your phone or email: People want prompt service, and they want it on their terms, whether that’s by phone or email. If someone is not available to answer the phone or respond immediately to email, then try to respond within an hour of the contact. See phone answering tips to win business for more advice.
- Address customer concerns immediately. Customers will buy again if their complaint is resolved, according to Kyle LaMalfa, a customer loyalty consultant with Allegiance. And if the customer feels the complaint is resolved quickly, 95 percent are likely to remain a client. When customer’s get a happy resolution to their complaints, they tell, on average, five people about their positive experience.
- Ask your customer for feedback. The best time to ask your customer a question is during the time of service or transaction. Jay Forte, a Bizmore blogger and employee performance expert, recommends this question, “If we could improve just one thing, what would be the most meaningful thing for you?” If your service is conducted over the phone or online, says Forte, then present the question with a thank-you email. Present the responses you get at a recurring team meeting; it builds the customer perspective into your organization’s culture. Lastly, remember to communicate to your customers when you make changes based on customer feedback. LaMalfa recommends that you communicate this personally to the customer(s) who complained or recommended the change, as for the public companies can use their newsletter, website, or social media to get the word out.
- Extend yourself to find a solution to the customer (even when there is no profit in it for you). No matter what problem a customer or even a prospective customer presents you with, go out of your way to find a solution for them. When a customer is made to feel important, says business advisor Morris Segal, and their needs are satisfied, they’ll talk positively about you and refer people to you.
- Only make promises that you can deliver on: When offering solutions to customers’ problems, never make a promise that you can’t fulfill. Customers feel a new level of betrayal when this happens.
One final bonus tip:
Keep a record of customer requests. Have your sales and customer service team keep a list of all the requests your customers volunteer, specifically those for products or services that you currently don’t provide. Barry Schimel, author of 100 Ways to Profit in a Volatile Economy says you can discover what you aren’t selling with this list which he calls a “lost sales report.”
