It's Alarming! My 11 year old, 6th grade son does not know how to use Liquid Paper—commonly called White Out!

For me, White Out was a college staple—right behind beer and pizza. And yet, my computer literate son looks at me in horror when I attempt to coach him on the finer techniques of covering a typo.

He wonders why I don't fix the problem on the computer and reprint. (I don't have the heart to give him a history lesson by introducing him to a typewriter!)

So why is this so alarming, you ask? Because it's one more example of my world changing. It's one more example that the "old way" of doing things might have been perfect in 1975, but the techniques and strategies are outdated today.

This is also the case when it comes to growing business in challenging economic times. Many techniques and strategies are outdated in today's world. I submit the winners in tough times will be those who focus and expand service vs. those companies where service is cut. These companies see service as a line item expense vs. a long-term investment.

Let's build a solid case why service is your secret weapon in challenging economic times. I'll offer Seven Points:

Point 1: When it comes to growing more business, you basically have three strategies:

1. Get more customers
2. Have existing customers spend more money
3. Have existing customers increase their buying frequency

Our experience indicates strategies two and three—have existing customers spend more money and increase their buying frequency— happens best when customers have had a WOW! experience with your company.

Point 2: Companies spend 6 times as much money to attract new customers than they do to keep current customers happy, informed and motivated to buy again. It's cheaper to keep current customers happy.

Point 3: Existing customers are easier to sell to and traditionally more profitable. After all, they know you, they know your products, they're educated, up to speed and require less hand holding than brand new customers. (In most cases, everyone has that 1 customer...you know the one...they whine, whimper, bitch, moan and complain just for the sake of doing so. It seems as if they wake up each morning looking for ways to consume your life.)

Point 4: Existing customers are more likely to spend a larger portion of their budget with you than new customers. Think about it, if I'm a new customer, I might give you a portion of my budget, but before I turn over my entire budget to you, I'm going to make sure you will "stand & deliver."

Point 5: New & potential customers do not have an "experience" of your service and delivery. They may have heard about your commitment to their satisfaction, but they haven't seen it demonstrated on a consistent basis—they have little or no experience.

Existing customers who have been with you a while "know" that when you say you'll take good care of them, you come through. They know your products or services do the job. Furthermore, they know what they can and can't expect from you. This "knowing" is important. Anyone can add, "And, we'll give you GREAT service" to an ad slick, but it's coming through in the heat of battle that makes the difference.

Point 6: You're able to "Rebound from Breakdowns" more effectively with existing customers. Here's the example: You take great care of me 99 straight times, then the customer experience from hell breaks lose. Everything that can go wrong does go wrong. Who is more likely to work with you, be understanding, cut you a degree of slack? The customer who knows this is not the norm. Therefore, you're able to "Rebound from Breakdowns" more effectively.

Point 7: Let's review Point #1 and examine the three strategies: Strategy 1: "Getting more new customers" happens by making a promise to solve a problem, create value, reduce pain, save time or $, make their life easier. Strategies 2 & 3: "Increase frequency & increase revenue" are easier to accomplish if you've delivered during Strategy 1.

Great "service" companies will be best able to leverage strategy 2 & 3. They're the ones who come through, deliver on their promise, meet and exceed customer expectations, stand above the crowd, hit the home runs. They'd be considered really good at the "service experience."

Summary:
The world is changing. I might not ever be able to coach my son on the proper stroke for using White Out (or is it more of a dab technique?). Some companies will cut service when things get tough. However, a few will buck the trend, and use service as a key marketing tool to differentiate themselves from the competition.