Making the grade: satisfied customers are crucial for any business. Learn how distributors and their clients turn complaints into compliments

Pool & Spa News, April 25, 2005 by Shabnam Mogharabi

On March 15, Phil Gelhaus went live with his company's new telephone network. The cutting-edge voiceover IP system monitors call lengths, hold times, displays caller IDs and interfaces with his firm's accounting system.

"It will monitor how long we're on the phone, how many calls we miss and give us information about each caller's account," says the president of General Pool & Spa Supply, a Rancho Cordova, Calif.-based distributor. "How did we know our phones were messed up? It came from our customers. Actually, our best ideas come from our customers."

Spurred by numerous complaints, Gelhaus made a hefty monetary investment and increased his staff to implement the new phone system. In the end, it was worth it for him to ensure happy customers.

Negative feedback can be difficult to handle no matter what type of industry you're in. But customer satisfaction has become increasingly important in light of tough competition. Here, distributors share their strategies on how to prepare for, and best use, feedback.

Why is it important?

Consolidation and competition have forced many distributors to pay closer attention to customer satisfaction. Among manufacturers, acquisitions and divestitures are shrinking the variety of equipment pad parts available to retail stores and service companies.

"For the most part, the vast majority of what we sell is similar to, if not the same as, that of our competition," says Regis Miles, national sales manager at Imperial Pools Manufacturing & Distribution in Latham, N.Y. "The only way to distinguish ourselves is with customer service."

In addition, dealers are more likely to have numerous distributors from which to choose. Gone are the days when one company serviced entire states. The growth of big distributors such as SCP Pool Corp. and the mushrooming of regional suppliers give customers the option of walking away when faced with sub-par service. A competitor is often just a phone call away.

"Right now, there are a lot of different suppliers out there," says Louis Longo, co-owner of Acqua Pools Inc., a building and service company based in Midland Park, N.J. "If someone doesn't give me service, there are lots of suppliers who would be happy to have my business."

Distributors know that without solid customer service, repeat business and referrals will fall off. "It's absolutely critical to keep customers coming back," says Manuel J. Perez de la Mesa, CEO/president of SCP in Covington, La.

For distributors, good customer service is more than just being polite on the phone. Satisfied customers expect their deliveries to be made on time, orders to be processed correctly and, most importantly, problems and concerns to be acknowledged.

"We all enjoy positive feedback, but opportunity lies in negative feedback," says Tim Loomis, sales and marketing manager at Spa Parts Plus in Prescott Valley, Ariz. "By calling you and letting you know of a problem, the dealer is doing you a great service. It would be much easier for them just to go away."

At SCP, as with more and more of today's distributors, a solid customer service program involves soliciting face-to-face and anonymous feedback. Companies regularly poll customers, sending them opinion surveys and conducting third-party research.

"Customer feedback is how we measure ourselves," Gelhaus says. "We are in a repeat mode of business with our customers. In the distribution game, you only have a limited number of customers in your pond, and you must ensure those customers are happy with you."

People also want some kind of guarantee. "I'm only as good as my supplier," says Terry Mannos, co-owner of John's Pool Service Inc. in Tracy, Calif. "There are a lot of different suppliers out there. It behooves them to care.

"If my customers aren't happy, they go somewhere else," Mannos adds. "It truly has to be a partnership where I can also be heard."

Internal makeover

The first step in making a customer feedback program work for you is to start on the inside. For many, this can be as simple as training staff members to be kind, courteous and respectful of customers. After all, your sales team will likely be the first employees to speak with irate dealers.

"Everybody has, to one degree or another, contact with customers, so everyone should be trained to interact with them," Perez de la Mesa says. He believes there are three important questions that people will ask themselves about the staff member with whom they're speaking:

1 Does this employee care about me?

2 Is this individual treating me respectfully?

3 Will this employee be fair?

Keep in mind that knowledge is power when it comes to fielding questions. Be sure employees know your company's product catalog inside and out. No dealer wants to feel more informed than their supplier.

"We like to know more than our customers do," says Bill Kent, president of HornerXpress of South Florida, based in Fort Lauderdale. "We make sure that our customer-service people are well-trained in terms of knowing the products and having general education. That's how we develop an open, loyal, win-win relationship."