‘Selling Value’
A Customer Service Story: The Ritz-Carlton Way
One of the most visited articles on my blog (so I’m told) is a piece I wrote a few years back titled, "Customer Service: The Ritz-Carlton Way." It discusses the six steps that make Ritz-Carlton customer service so exceptional and unparalleled.
Well just last week, I received a call from a good friend of mine who related a wonderful story about Ritz-Carlton. Dennis Lacognata is a partner in a company called Prompt Mailers in Staten Island, NY. They are a full service mail house and if you’re looking to put together a great direct mail campaign visit their website.
The great story Dennis told me was about his daughter, Annemarie.
About a year ago, Annemarie and her husband spent their honeymoon at the Ritz-Carlton hotel in Hawaii on the island of Kauai. Naturally, they had a great time.
A few months ago, Annemarie received a phone call from someone at Ritz-Carlton. Being a smart organization that prides itself on service and follow-up, Ritz-Carlton knew that Annemarie and her husband would soon be celebrating their first anniversary. Figuring they would want to celebrate in style, they offered her a terrific package deal to stay at one of their hotels in the Caribbean. Naturally, Annemarie booked it immediately.
No sooner was the reservation booked that Annemarie received a call from the concierge at the Ritz-Carlton where they’ll be staying. The concierge asked if there was anything he could do to make this occasion even more special.
Annemarie said there was nothing she could think of at the moment, but was there anything special he had in mind? Did he ever!
The concierge told Annemarie they had a beautiful package that would allow them to renew their vows in a setting that was romantic, and Ritz-Carlton would arrange for everything: Limo, a setting on the beach at sunset, the priest, music; all top drawer. You couldn’t say no.
So Annemarie and her husband bought the package and sometime this month they will fly to the Caribbean to celebrate their first anniversary, Ritz-Carlton style. Why?
Because Ritz-Carlton:
When was the last time you received a phone call from a hotel or resort who felt that you were important enough to keep as a customer? And it wasn’t as if Annemarie and her husband had been longtime steady clients. As a smart company, Ritz-Carlton knows that if they can do a great job for this nice young couple just as they’re starting out in life, then they will have a place in their hearts for a very long time.
Many years ago, I received one of the best pieces of advice from a great speaker named Joel Weldon. He told me: “If you want to be successful, look at what everyone else is doing and do something different.”
That’s what Ritz-Carlton does everyday.
Sixty Second Sales Tip #4
In this clip, from the sales training video Make My Life Easier, Warren emphasizes the pitfalls of the price trap, and how selling value is what makes you great. Don’t miss it!
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Sixty Second Sales Tip #3
In this clip, from the motivational video Make My Life Easier, Warren Greshes challenges his audience to recognize why they go out there and sell every single day.
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Winning Referrals
I just received the following email from Ira, who is a property and casualty insurance agent. He has a very interesting question about referrals and since this is such a big topic among salespeople and business owners, I thought I would share my reply with you:
Warren,
I just found your site via your BusinessWeek interview, and I really enjoy your content.
I wanted to ask you a question regarding referrals. About a year ago, I got into the commercial insurance industry. I provide small to mid-size companies General Liability coverage, commercial vehicle, property insurance, etc. I am very fortunate in that I am quite often able to lower their costs without sacrificing coverage and am able to provide outstanding service to my clients.
My question is: how do I get these guys to understand that I really am trying to build my business with referrals and have them give me some names, intros, etc, without them feeling like they are putting another sales guy onto them? I feel like if I can save someone 40+%, they should be willing to help me out by giving me some guys to contact.
What are your thoughts?
My first thought is that Ira is hurting himself mainly because of his perceptions (sales sterotypes). Ira is not only providing a valuable service to these business owners, but in his own words states, “I am quite often able to lower their costs without sacrificing coverage and am able to provide outstanding service to my clients.”
Anyone who can do that is not selling; they’re helping, which is what successful salespeople do. A salesperson like Ira who saves clients money while delivering quality service is not another sales guy out there bothering people.
Good salespeople who deliver lower costs, asset protection and quality service are the kind of people clients and prospects WANT to see. This makes it Ira’s obligation to get referrals. Rather than “putting another sales guy on them,” don’t you think Ira’s clients would love to refer him to fellow business associates knowing that if he does the same for them, it wil help their businesses?
I think the issue Ira has is quite common. He’s afraid to ask for referrals. He shouldn’t be, especially since he does such good work for his clients. But while Ira states, “they should be willing to help me out by giving me some guys to contact,” the first rule of referrals is: "You have to ASK!" In referrals and in life, if you don’t ask, you don’t get. You cannot sit around and wait for something to happen; you have to MAKE it happen.
Here’s what Ira should do:
- Make a courtesy call to each one of his clients.
- Ask each one of these clients for three names. When asking for referrals always ask for a specific amount. Don’t use open ended questions like, “Do you happen to know anyone who might be able to use my service?” That’s the kind of question that usually gets you a big fat NO!
- When speaking to his clients, Ira needs them to agree with him that they are more than satisfied with everything he’s done for them and then ask them if they know three other business owners, they are friendly with, who they feel could benefit, much like they are, from his services.
People know and hang out with others who are just like them. In Ira’s case, his clients are business owners. I guarantee each one of them knows other business owners.
Referrals are the life-blood of a successful business. A prospect who has been referred by a satisfied client is more likely to buy and more likely to become a long term repeat client.
So remember the three rules of referrals:
- ASK!
- ASK for a specific number
- ASK the kind of questions that can be answered. (Could you give me the names of three business owners you know who might benefit from this service?)
Links to past articles on winning referrals:
Sixty Second Sales Tip #2
In this clip, from the sales training video "Make My Life Easier," Warren explains his “I Do Nothing” buying policy when dealing with salespeople. Don’t miss it!
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Sixty Second Sales Tip #1
In this clip, from the sales training video "Make My Life Easier," Warren colorfully illustrates the stresses that fill the life of many prospects, and what, as a salesperson, you must do to mitigate the pressures of the buying process.