Customer service | The Barefoot Spirit

Does Your Company Have a Customer Intel Department?

Michael Houlihan & Bonnie Harvey — Thu, 26 Jul 2018 17:00:17 +0000

In most large companies, the customer service department is strictly for complaint resolution. Companies usually relegate customer service to the bottom of the corporate structure pyramid because they’re seen as some kind of a clerical call center. They’re the ones who answer the 800 number complaints and comments. And they’re the ones who are expected to solve customer problems “down” at their level.

In the top-down structure of the classic pyramid company, production and marketing have a higher status than sales and customer service. Products are pushed down to the salespeople to sell. And if any complaints try to come back up, you guessed it, they are kept down by the customer service people.

Some companies actually rate their customer service people by how few complaints escalate up to management. We think this limited view of the customer service is not only unfair, but it’s unprofitable, wasteful, and ultimately unwise.

Why? Because this view of customer service ignores the fact that, except for your salespeople, your customer service people are the only ones in your company who talk directly to your customer every day. They know what your customers like …and hate about your company’s products. They know about your competition. They hear daily suggestions about how to improve your products. They know when and where your products are out of stock. And they are the ones who can turn your complainers into advocates.

In fact, we don’t call it “Customer Service.” We call it “Customer Intel.”

The Two-Division Company

A popular keynote we present for large companies that want to engage and empower their people with the entrepreneurial spirit is “The Two Division Company.” The two divisions are Sales (which includes Customer Service) and Sales Support (everybody else from the CEO to the receptionist).

Customer Service – Resolve Issues, Win Back Customers & Get Feedback

A customer can only give you two things: their money and their feedback. The feedback is extremely valuable. That’s because it is the information you need to keep your goods and services relevant, stay on top of your distribution system, and stay ahead of your competition. In other words, it’s the information you need to stay in business!

Unlike the focus groups and market studies that the marketing people spend thousands on, the information your customer service people get is unfettered, unbiased, and timely. And it comes from folks who care enough about your company to call and complain. Many are brand advocates seeking resolution for their favorite brand, the brand they’ve told their friends and neighbors to buy. Now that brand let them down. If they can get resolution they won’t feel obligated to go back and tell everyone they know about the problems they ran into. Instead, they will celebrate the problems and the solutions as validation for their continued advocacy.

Once their problem has been resolved, they can provide vital information you need like: Where did they buy it? Was it in stock? How long have they been a customer? Have they been satisfied with it in the past? What suggestions do they have to improve your products, marketing, and service? Will they recommend your brand to others?

Formal Lines of Communication Focusing on Sales & the Customer

If you don’t have it already, we recommend that you at least establish formal lines of communication between sales and customer service on the one hand, and production, marketing, and management, on the other. By focusing on sales and the customer, instead of divisions of labor, specialization, and chains of command, some of those complaints and suggestions can find their way back up into the company structure where they belong to keep your products relevant and competitive.

Why not start today by renaming your customer service department, “Customer Intel” and benefit from what they hear from your customers? They can do much, much more than complaint resolution.

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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How to Keep The Entrepreneurial Spirit as Your Business Grows

Michael Houlihan & Bonnie Harvey — Mon, 27 Mar 2017 23:56:50 +0000

The entrepreneurial spirit is the spirit of the entire team, and is represented by their commitment to customer service, resourcefulness, and going the extra mile to make sales happen. There is no question in the minds of start-up entrepreneurs, in a garage, undercapitalized, and having to make do with less, that they must make sales happen no matter what or they will be out of business — fast! They all know the customer comes first.

Beyond the start-up phase

Then, if they are fortunate, dedicated, and diligent, they progress beyond the startup phase and into the buildup phase. Now they have a few solid customers that keep them going. Their volume picks up. They begin to see some pressure on production, customer service, and supply chain management. In an effort to satisfy these demands, and in the name of efficiency, they begin to specialize their use of human resources. Thus begins the degradation of the entrepreneurial spirit.

To read the complete article, please visit The Business Journals

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Back to the garage: How to recapture the entrepreneurial spirit

Michael Houlihan & Bonnie Harvey — Wed, 05 Oct 2016 17:00:30 +0000

“Sales? That’s not my job.”

It’s not how you get the entrepreneurial spirit. It’s how you lose it!

Companies can reverse engineer the entrepreneurial spirit back into their companies by returning to the backbone of that spirit — sales.
Every garage startup must have the entrepreneurial spirit to survive. Many successful businesses were once garage startups, and they once had that spirit.

But somewhere in the four stages of businesses growth our friend Jim Canfield of Renaissance Executive Forums calls “startup, buildup, buildout, and enterprise,” the entrepreneurial spirit can lose its luster.

The entrepreneurial spirit is the spirit of the entire team, and is represented by their commitment to customer service, resourcefulness, and going the extra mile to make sales happen.

To read the complete article, please visit The Business Journals

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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As Businesses Grow, They Risk Losing Their Entrepreneurial Spirit

Michael Houlihan & Bonnie Harvey — Thu, 01 Sep 2016 17:00:12 +0000

It’s not how you get the entrepreneurial spirit. It’s how you lose it! Every garage startup must have the entrepreneurial spirit to survive. Many successful businesses were once garage startups, and they once had that spirit. But somewhere between the four stages of businesses growth, our friend Jim Canfield of Renaissance Executive Forums calls “startup, buildup, buildout, and enterprise,” the entrepreneurial spirit can lose its luster.

The entrepreneurial spirit is the spirit of the entire team, and is represented by their commitment to customer service, resourcefulness, and going the extra mile to make sales happen. There is no question in the minds of start -up entrepreneurs, in a garage, undercapitalized, and having to make do with less, that they must make sales happen no matter what or they will be out of business – fast! They all know the customer comes first.

With a few more big customers, they enter the buildout stage. Now they are expanding their offerings and their markets. Division of labor is now a must. One of the divisions is called “sales” and another is called “customer service.” But even though the customer feedback necessary to keep the company’s products and service relevant comes almost exclusively through these two divisions, they are now being relegated to the bottom of the pyramid, which is quietly and quickly growing on top of them. The focus is now on production rather than sales. Sales begins to be taken for granted by the other divisions of labor who no longer feel responsible for sales. In fact, they are convinced that what they do is as, or more important, than sales, even though their very paychecks come from sales! Now, when referring to sales, you hear, “That’s not my job!” The entrepreneurial spirit begins to fade further.

Now comes the enterprise phase where professionalism, compliance, status, tenure and structural procedures become more important than sales and customer service. Salespeople are “outside” in the field, and everyone else is “inside” in the office. Inside office people have greater access to the decision makers and become even more removed from sales. “What’s the matter with those salespeople? Why can’t they just do their job?” is the common refrain when sales are down. But everybody in the office is taking a bow when sales are up! And who is the first to get laid off when sales are ‘bad’? Yup, it‘s the salespeople! What’s wrong with this picture? The entrepreneurial spirit is lost, a victim of its own success!

But by understanding how and why this happens, companies can begin to reverse engineer the entrepreneurial spirit back into their companies. They must start by returning to the backbone of the entrepreneurial spirit, sales. Put sales back on top! Think of the company as having only two divisions; sales and sales support. Sales support is everybody who is not in sales – accounting, production, marketing, HR, legal, admin, the receptionist, everybody! Enforce this relationship by providing quarterly bonuses to sales support staff based on sales, growth, and profitability. Acknowledge their contributions to these three essentials. And create official lines of communication between sales and customer service on the one hand, and sales support, on the other. Make sales everybody’s job – again!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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How to Find Your Ideal Investor

Michael Houlihan & Bonnie Harvey — Thu, 04 Aug 2016 17:00:47 +0000

One of the wisest questions any startup could ask is, “What should I be looking for in an investor?” Wise startups assume they have some say over whom they will accept money from, rather than being in the desperate position of being lucky to get any investor.

When you choose your investor carefully consider their motives and what they can add to your business besides funding. Sometimes the “perfect” investor is not bringing hard money to the table! Sometimes what they bring can be of greater value to you in the short term and protect your equity position in the long term.

For years we could not get an investor in Barefoot Wine, now the world’s largest brand. The banks wanted nothing to do with us because we didn’t have a “secondary means of collateralizing the debt.” Those are big words for owning real estate. They wanted us to own property they could take if things went south. Ironically, when we tried to buy a house they said we were self-employed and ipso facto “unstable.” When we complained that they had floated mortgages to four of our employees, they said, “Well, that’s different. They have a good solid job!”

So were forced to go it alone, undercapitalized and on the verge of bankruptcy for years! But that was a good thing! That forced us to be resourceful, frugal, and practical. We never had a bunch of money to “burn” through, so we had to come up with alternatives to get the word out about our product. We had to come up with other ways of financing our growth. We were forced to grow slowly.

Yes, it was a good thing because we learned how to get our vendors, suppliers and retail buyers to “finance” our business and we never lost control. They had an interest in seeing us succeed and we learned quick enough what we had to do to gain their trust. They were, in retrospect, our ideal investors.

Had we gotten the Shark Tank variety of investors, we would have been forced to sell as soon as we achieved the equity return majority owners wanted to see on their investment. Not necessarily the most opportune time for a sale, but the shortest turn around for investors!

With access to capital we would have approached marketing in a much more conventional, expensive, and less efficient way that we did – which was to use Worthy Cause Marketing. Because we were broke, we chose to support local fundraisers in the neighborhoods around the stores where our brand was for sale. We hoped the non-profit’s members would choose our product over our competitor’s. This turned out to be a targeted, highly efficient, and effective way to build a loyal base of advocates.

Our “investors” who were suppliers and vendors stood to gain by our success, so they granted us extended terms, higher credit limits, and free warehousing. In the case of “investors” who were our retail buyers, they gave us cash for volume discounts, store-wide ads resulting in higher volume, and they gave us their loyalty. In other words, they helped us build our brand.

These “investors” wanted long-term contracts, quick resolution to customer service issues, and empathy for their position. They never pressured us to sell our brand. On the contrary, they wanted us to continue to enrich them with ongoing growth and success!

So what is the bottom line? Your ideal investor is someone who is in your industry and stands to gain by your success in more ways than just a return on their hard capital investment. They will be more supportive, more forgiving, and more respectful of your long-range goals. Cash is not necessarily king. It takes more than money!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Are You Paying for Attendance or for Production?

Michael Houlihan & Bonnie Harvey — Thu, 14 Jul 2016 17:00:01 +0000

When you are a startup entrepreneur, you must hire those who are production driven and not attendance driven. Brian Tracy says, “Fully 80% of all production problems are caused by compensation plans!” In other words, you get what you pay for. If you pay by the hour, you get hours. If you pay for production, you get production. We think the best hires are other entrepreneurs.

When you pay by the hour or based on tenure, you’ll hear, “I haven’t had a raise in a year,” like the amount of time that has passed earns them the raise. You will also hear, “I’ve got enough to keep me busy,” as if keeping them busy is a goal of the company. And then there’s the classic, “I was there. Pay me,” as if their mere attendance is all you needed.

This is not to say that hourly employees and outsourced services ipso facto aren’t good producers. Many are. Especially the ones who know their job is on the line, and the ones who clearly understand their goals and deadlines. But there is far less lurking and sandbagging among folks who get paid for deliverables. They simply can’t afford it any other way!

As an entrepreneur, there is no question in your mind about the critical nature of sales and customer service, but what if your team gets paid whether or not you make sales, and whether or not your customer is happy? Do they have the same incentives you have? Probably not.

We like to say, “If you are paying your people right, the non-producers can’t afford to stay, and the producers can’t afford to leave!” Just take a moment to think about that…

When you pay your people right, you increase production, engagement, urgency, sales and the excellent customer experience you are looking for. Here are some ideas to get you started:

Clearly Define the Deliverables. Plainly state exactly the expectations you have of each team member. It is likely different for each player, so consider this carefully. One approach to get going is to ask each person to make a list of what they do and the relevant deadlines. This gives them ownership and forces them to think in terms of outcome. Then refine this list to better suit your company goals.
Create a Bonus Structure. It’s easy to pay the salespeople on production – their commission is based on it! But what about the receptionist, the assistant, and the bookkeeper? What about the marketing, legal, production and administrative people, and other folks who are paid by the hour industry wide? For them we created a quarterly bonus. The bonus was paid as a corporate contribution to their 401K tax-free retirement plan, matching at 50%, 100%, or 150%, and was based on sales, growth, and profitability.
Take a Smaller Slice of a Larger Pie. Be prepared to share the wealth in various ways appropriate to each individual’s accomplishments. One way is to bonus for a specific accomplishment that clearly adds to profits, like a new client, a big savings in overhead, achieving a stretch goal, or meeting a difficult deadline. Once your team sees the direct relationship between their production and their compensation, they will become more interested and engaged in the process of making your business more successful. Plus, now you have more “found money” to share with them.

Congratulate each one publically for their achievements, especially those who impact everybody’s bonuses. You’ll see more of what you acknowledge, create a stronger and more cohesive team, and get the production you paid for!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Training Magazine

Michael Houlihan & Bonnie Harvey — Tue, 01 Dec 2015 18:19:22 +0000

KNOW THE DIFFERENCE BETWEEN CUSTOMER SERVICE AND COMPLAINT RESOLUTION

These days, most companies have anything ranging from one person to a whole department dedicated to so-called “customer service.” But let’s be honest: For many of these departments, truly gratifying service isn’t on the menu. They’re more like “complaint resolution” departments. They take calls or answer e-mails from unhappy customers and then try to resolve the problem as quickly as possible (often relying on a script or protocol), then move on to the next.

It’s understandable. Dealing with unhappy customers isn’t anyone’s idea of fun. But the desire to “solve” their problems as quickly and painlessly (for you and your employees) as possible actually might be doing your company a disservice. Remember, happy customers are the lifeblood of your business and also one of your most valuable potential marketing tools, so no one at a company should rest until customers are impressed…not just satisfied. That means going way above and beyond merchandise exchanges and money-back guarantees.

To read the complete article, please visit Training Magazine

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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5 New Year’s Resolutions to Improve Your Bottom Line

Michael Houlihan & Bonnie Harvey — Sat, 27 Dec 2014 19:30:19 +0000

We all want to see our businesses prosper in the New Year. We want our products and services to become more relevant. We want to reduce turnover, reduce our need for capital, and see our people more engaged and empowered. We want to reduce costs and increase profitability. But where do we start?

This year we have been asked for our top 5 New Year’s resolutions to improve any business. Since it’s easier to shake the tree from the top, we’ll start with the boss. If that is you, your attitude toward business relationships will make all the difference. Here are the top 5 resolutions that will improve your business for 2015 and beyond:

1. Resolve to treat your employees like owners. If you want your people to act more entrepreneurial, treat them like owners. To make sure they know where the money comes from – the customer – show them a “money map.” Make sure they know that everybody not in sales is in sales support by making their bonuses dependent on sales. Let them know-the-need instead of only what you think they need to know. Give them written appreciation acknowledging a job well done, and copy it to your entire team.

2. Resolve to treat your customers like family. You wouldn’t want to offer inferior products or service to your own family. If you were selling to your grandmother, you would deliver 110%. You would listen, and then adjust your product/service and it’s delivery to her feedback. You would honor your commitments to your family and exceed their expectations. You would want to make them happy and do whatever you could to please them. Do the same for your customers.

3. Resolve to treat your vendors like partners. They’re not just salespeople selling you services and supplies. They are strategic allies who benefit when you benefit. They want to see you succeed, because your success means they can sell more to you. Don’t blind-side them when you can’t pay your bill – give them a heads-up in advance so they have time to make adjustments. Generally, all they need to increase your credit is trust in you.

4. Resolve to treat your financiers like friends. Meet with them regularly. Tell them everything, not just the achievements and goals, but also the challenges. Look to them for advice. Make them feel like they are part of your company, and they will surprise you with their support. They can lengthen your terms, reduce your interest and give you timely short-term loans to help you through the tight spots and underwrite your growth. Few of their debtors really level with them and your transparency can give them the confidence they need to make exceptions and bend the rules in your favor.

5. Resolve to treat your competitors like mentors. Instead of looking at your competitors as adversaries, study them and learn from them. Notice where they are missing the market, and where they are capturing it. Take note of where they are becoming less relevant and don’t jump over that cliff with them. Zig when they zag. And especially if you are starting out, sell where they are not. Don’t try to copy them or you will make the same mistakes. Don’t compete, distinguish.

New Years is merely a celebration about the passage of time, but you can transform it into something more meaningful. Make and keep these resolutions and you will transform your key relationships. After all, it is our relationships with others that we rely on for our success.

Happy New Year everyone!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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7 Steps to Infuse Entrepreneurial Thinking into Company Culture

Michael Houlihan & Bonnie Harvey — Sat, 26 Jul 2014 18:30:38 +0000

Every company wants to stay relevant and be in the forefront of their industry. This requires an imaginative staff creating new solutions and thinking outside the box. But first you need to change your company culture. This is easier said than done.

A positive company culture is what we relied upon when building the Barefoot Wine brand into a national best seller. Here’s how we did it:

1. The Money Map. When we hired people they were give an infographic showing the circuitous route the money took to get from the consumers, moving through the retailers and distributors, and eventually into their paychecks, bonuses and benefits. This was not just a great educational tool from an orientation perspective, but it was a great way to set the stage for a company culture of sales!

2. The Two-Division Company. Unlike the typical pyramid structure with the CEO on the top, followed by the C-Suite, and then the myriad of divisions and departments, our organization had just two divisions: Sales and Sales Support. Everybody who was not in Sales was in Sales Support, including the CEO, receptionist and accounting, marketing, product development, and production. Why? Because without sales there would be no income. If you really believe the customer should be on top, put sales on top and have everyone else support sales.

3. Pay for Performance. We used our pay structure to develop a creative, supportive team. By making their monthly bonus and part of their 401K directly based on their production and the profits of our company, they became better team players and exerted peer pressure on others to perform. When you paying your people right, the performers can’t afford to quit and the non-performers can’t afford to stay.

4. Make Mistakes Write. When you make mistakes, don’t just right them, write them! Establish a culture of permission that says, “You can be creative, experimental, and make mistakes – as long as you identify what went wrong and what documents need to be changed.” It may be a sign on the wall, a label on a package, or a checklist. Or it may be a signoff sheet, a policy, a procedure, or a new clause in a contract. When something we never thought could go wrong went wrong, we would celebrate knowing that, thanks to this mistake, we now had a much better procedure that saved time and reduced misunderstandings.

5. Acknowledgement. We sent out an acknowledgement memo on every person’s anniversary with the company that said what they did last year to improve everybody’s situation. When you catch someone doing something right, creative, or efficient, tell the world! If you make it a public memo praising the person’s accomplishment, the entire staff will know that this type of behavior gets recognition and they will have more respect for that person as a team player.

6. Fun. People want to work with and buy from people who are fun. In our company, we all had fun titles. Because we were Barefoot Wine, Michael was CEO and “Head Stomper.” Bonnie, whose foot was on the label, was “Original Foot.” Our Controller, Doug McCorkle, was “The Cork,” because somebody had to put a stop to it. When work becomes fun, everyone is more creative.

7. Remove Blockage. When a good idea has to go through “channels,” and “compliance,” people can be discouraged by structure and restraints. At Barefoot, we regularly allowed direct access to top management for idea presentations and rewarded the person who came up with it. Our compliance people would identify parameters inside of which ideas could flow without lengthy compliance approval.

Company culture starts at the top and permeates throughout the entire structure. It’s time to take a fresh look at company structure and the general attitude of top management towards everything from sales to mistakes, acknowledgement to compensation, and orientation to fun.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Integrity Trumps Everything

Michael Houlihan & Bonnie Harvey — Sat, 19 Jul 2014 18:30:50 +0000

We can’t have a cop on every corner or a regulator in every office. At some point we must rely on the people we hire, do business with, and buy products or services from. When we cannot depend on on these people, we look to terminate the relationship and search for alternatives. It’s only human nature. We need a stable, dependable platform that we can rely upon to build any relationship.

Aspiring entrepreneurs often ask us what the most important factor is in building a successful business. They ask, “How can I keep and grow my customer base? Is it cornering a narrow niche where you’re the only game in town? Is it providing outstanding value for money? Is it a slick package and a compelling slogan? Is it a cute and memorable logo?”

It’s certainly all those things, but one factor stands out above all else. It is the deal breaker when it’s missing and the glue that bonds customers to your company when it’s demonstrated. It’s doing what you say or imply you are going to do, and what you are expected to do. It’s meeting deadlines, covering bases, and looking out for your customer. It living up to your warranties and solving customer problems with your product or service. It’s called integrity.

And what happens when you make a mistake that hurts your customer? You immediately admit to it and make amends. You show them how you learned from the mistake and what steps you have taken to prevent its reoccurrence. We often say, “People don’t remember how you do when things go smoothly but how you do when times are tough!”

Yes, it can be costly to live up to your promises. Once we had to write a check for $5,000 to a major supermarket because we made a mistake on a back label that was scanning through its cash registers at half the price than it should have. The buyer was unaware of the mistake and what it was costing him. He was surprised that we brought it to his attention and instantly made it right. He was reassured when we showed him how it happened and how it would never happen again. At that point, he knew he could trust us. Soon after, he expanded our line in all his stores.

We’ve learned that normal inadequacies, weaknesses, and imperfections are more easily forgiven when we are reliable. It is the most highly valued attribute in business. Sometimes our quotes to clients were too low, but we honored those quotes at a loss to us. Why? Because we said we would and our customer expected it. Our word is our bond.

Through this we learned the importance of understanding our customers’ expectations and all the hidden costs that will be expected of us, and took all this into account before we made our quotes.

The same thing goes with employment. If your boss finds you to be dependable and reliable, he or she will be more likely to tolerate a slower learning curve or the occasional foul-up. When we hire people the first thing we look for is integrity. We know we can generally teach them the skills they lack – if we can trust them.

When we hire a service or buy a product we look for the same quality. We know there are going to be mishaps but we want to know how a business has treated their customers in the past. What does their customer service look like? Do they honor their guarantees? Do they deliver on time? Are they reliable?

When building a relationship, integrity trumps everything!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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