Many service businesses experience a downturn this time of year, and it appears that this year may be more of a downturn than ever. Consumers are shy about spending what little money they have, and what money they do spend tends to be on hard goods, not service. Service businesses tend to look at how well they are doing by measuring profit per sale and often use allocation of company resources as a determining guide for doing anything new.

During normal times this strategy works; however when profits began slipping the standard remedies tend to not work! Faced with major sales problems and with no clear plan of what to do, service firms are facing the need to change to a more market-oriented company. It’s a challenge that will leave many on the sidelines when recovery again takes place. So, the question you need to ask yourself is: “How do I ensure survival?”

Here are several ideas you might consider implementing tomorrow morning. Most will require a drastic change in your approach to profits, and can result in dramatic changes in your company operations; but you are already proving the old ways don't work. Keep in mind that none of the suggested strategies will work without your personal whole-hearted support. Not only must you accept the fact that changes are necessary, you also must be the driving force behind the changes.

RETAIN PRESENT CUSTOMERS
Nothing is more important than maintaining the customer base you have right now. Hold a company meeting tomorrow morning and frankly and openly discuss the fact that keeping your present customers is the number one job of everyone in the firm. Attracting new customers is only number two. This means everyone in your firm must adopt a can-do attitude when talking with a customer. This may mean extra services without the normal extra charges you normally would include.

BECOME PROBLEM SOLVERS
You are not the only one with problems. Present and potential customers are also looking for solutions. Start your change process by finding ways (using your services) your customer could reduce their cost of doing business, increase their productivity, find new customers, or improve their competitive position. Break the normal barriers and ask your customers what it is they want or need, and then get busy supplying it to them. This may be a personal task for you with your larger customers.

MOVE IT!
You really do not have time for the traditional product/service research. If you are 80 percent sure something would work, DO IT! Your competition may be contemplating changes similar to those you think up, so beating the competition and solving your customer's problem should be of prime importance. You can fine-tune things later.

CHANGE FOCUS
Temporarily you must discard the notion of ‘profit per sale’ as the driving force of your company. If your new customer service program is going to cost a bundle, look at the profit gain over time. If new delivery vans, fax/internet ordering systems, or a telephone hanging off everyone’s belt can dramatically increase business, DO IT! Use market share as your guide to real growth, not profit per sale.

REMEMBER, IT’S BENEFITS, NOT PRODUCTS
This is the hard one. You have to change from telling your customers about your service to telling them what your service can do to help solve their problems. Brainstorm a benefit list which demonstrates how your service can help your customer either make money or keep more of what they make. Then, and only then, tell them why your service is better than your competitor's.

EVERYTHING IS UP FOR REVIEW
You cannot do this piecemeal. It has to be an all-out effort or it will fail. Examine your entire operations with the aim of changing to a customer oriented status. For example, change sales reports to show sales per service offering, per customer, and per sales person. Or change or modify distribution channels with customer convenience being the key factor. Or maybe start a customer-oriented training program for your whole company, not just the sales staff. Finally, you might prune your old service line and add something new with customer service as the watchword.

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Paul Tulenko is a Small Business Success Consultant based in New Mexico. Additional tips and suggestions are available at www.tulenko.com or call (toll-free) 1-866-TULENKO.