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Wednesday, September 14, 2016

The Philosophy Of The Accidental Winner

The Philosophy Of The Accidental Winner

By

Eric M. Twiggs






 Failure isn't fatal, but failure to change might be” John Wooden.


What’s the philosophy of the accidental winner?  I stumbled across the answer back in 2000 when I was the new district manager over seventeen corporate automotive service centers. 

Of the seventeen, the most puzzling location was my Southern Maryland, center which was run by "Ben” the store manager.  If the district as a whole produced a 10% revenue increase for the month, Ben would be up 15%. 

The group average for net profit as a percent to sales was 18%.   Ben produced a 24% result.   As far as net profit dollar increase, the collective average was a 9% improvement, compared to Ben being up 13%. 

Being new to the market, I wondered what he was doing to consistently outperform the group.   I decided to pay him an unannounced visit, with the goal of gathering best practices to share with the other locations. 

When I arrived I found out exactly what Ben did to deliver those results: NOTHING!  The place was a complete mess!  The shop was filthy, the counter was disorganized, and the phones rang an average of ten rings before anyone answered.

It was so bad, that I once overheard a customer ask the writer: “Do you need me to answer that for you?”  Clearly, Ben was an accidental winner.  But how was he able to experience such a breakthrough in a broken shop? It’s because he was the wrong guy at the right time.

Sixteen years ago, customers didn’t have smart phones and shops didn’t have websites.  Since finding another service option was more difficult, patrons were more tolerant of bad service.  If the location was convenient, many consumers would continue to visit because it’s what they always did.

This caused many shop leaders to embrace a similar mindset which leads to the philosophy of the accidental winner:  It’s the belief that you can win by simply showing up and doing what you’ve always done. 

When was the last time you purchased a Blackberry Smartphone or a Blockbuster video?  Both companies have taught us that what you’ve always done, doesn’t always work.   Today, the amount of information your customers have at their fingertips exceeds their demand for your service. 

This explains why many of the shops you considered to be accidental winners are no longer in business.   So what can you do to avoid embracing this philosophy?  Keep reading and you will learn.


Dare To Be Different


When your potential customer types “auto repair near me” into her smart phone, six different shops may appear on her screen.  Why would she choose you instead of your competition?  Having a clear answer to this question will help you to differentiate.

Noted author and CEO Brian Wong highlighted the importance of being different when he said:” The more differentiated you are, the more indispensable you will become.”   Studying your competition is the first step to discovering your difference.

Who are your three biggest competitors, and what do you do that differentiates you from them? If you don’t know, mystery shopping your competition, reading their google reviews, and reviewing their website can help you find out.   

The next step is to identify what you can do to personalize the experience.  Making the transition from being transactional to becoming relational will help you stand out in your customer’s mind

Most shops are transactional, so ideas like hand written thank you notes, making thank you calls, and providing your customers with welcome and parting gifts, will set you apart. 



Drink the “LATTE”


In his book, The Power of Habit, Charles Duhigg writes about how Starbucks trains their employees to respond to irate customers. 

All new employees are required to learn what the company calls the “LATTE” method of responding to unpleasant situations.  The latte is a popular Starbucks drink, so they have turned it into an acronym to reinforce the right habits.

The LATTE method involves: Listening to the customer, Acknowledging their complaint, Taking action by solving the problem, Thanking them, and Explaining why the problem occurred.  Thanks to their training, the Starbucks “Baristas” are prepared when they encounter a yelling customer.   

This is critical because back in 2000, the average unhappy customer would tell eleven people about their bad experience.  Today, an unhappy individual can tell eleven thousand people by pushing a button on their phone while standing in your waiting room!

Studies show that 68% of all customers who stop doing business with a shop, do so because of a perceived attitude of indifference by the company representative.  Doing Role plays of the LATTE will keep your customers coming back and your reputation intact.



Conclusion


Unfortunately, Ben’s story didn't have a happy ending.  He and I agreed that it was in his best interest to leave the company.  If he would have dared to be different, and drank the LATTE, his wins would have been intentional instead of accidental! 


Your story can have a happy ending if you reject the philosophy of the accidental winner!




Eric M. Twiggs
The Accountability Coach



PS.  Looking for ideas to differentiate yourself from your competition?  Email etwiggs@autotraining.net and I will send you my top seven differentiation strategies.

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