What is The Purpose of Business

I have had the rare privilege over many years of being able to observe and understand the nature, aims and strategies of leading people and organizations, across many industries and professions. Most business people are denied the opportunity to see the big picture of service and profit success, confined as they are within their own companies. One of the most interesting facts about leaders in business is that their primary goal is not to be ‘successful’. They want and need success of course, but they are driven by the higher goal of building their personal and organizational value. These people might address the issue of ‘budgeting’ several times each year, but the topic of creating product, service and business progress is discussed on a daily basis.

The ‘value’ motivation for leaders has nothing to do with ‘loving customers’, it is predicated on aiming to conduct business in a professional and progressive manner. So why don’t more business owners and managers operate with such high quality motivation? The answer is that they have been conditioned to view business in a negative and sordid way. To identify with this ‘conditioning’ problem, consider this fact: if most people were asked ‘what is the purpose of a business, any business?’, they would offer the obvious answer ‘to make money’. But then ask the same people this question: ‘what is the purpose of comedy?’ They would surely answer ‘to make people laugh’. Then ask ‘what is the purpose of music?’ and they would say ‘to give pleasure to people’, and if you asked them ‘what is the purpose of medicine’ they would say ‘to create health.’

So the bottom line is that business represents indulgence for organisations, while comedy, music and medicine each represent excellence for customers. So is money unimportant in comedy, music and medicine? Not at all, none of these contributions can be sustained or improved unless they make money. The world of business is besotted by what it what it wants to get, rather than by what it must give. To build value and therefore success, a pharmacy must give its best to markets, and these days that involves more than offering products and service. The move pharmacy needs to make is ‘from distribution to contribution’. The distribution process involves ‘attending’ to customers with service and products. The contribution process involves ‘achieving’ for customers through advice and partnership. The giving of advice is of course predicated on knowing what customers need, as opposed to what they say they want. To find needs you must know in advance that they are likely to exist, otherwise why would you bother to go looking for them? This is a major problem for business, including pharmacy, because most businesses do not know about the probable needs of customers. Customers are not students and experts of the products sold by pharmacy, and so what they need will almost always be different to what they want. For example, just recently I was experiencing pain in the elbow of my right arm and so I obtained a prescription for anti-inflammatory tablets. When I handed the prescription in at a pharmacy, all I got in return was ‘Do you want the cheaper tablets?’ It took 2 months, more pain and discussions with a physiotherapist before I was able to obtain an inexpensive [tennis elbow] armband for putting on my arm, so that I could play tennis again. That was the problem you see. I wasn’t really worried about the elbow pain, I was worried that it was preventing me from playing the game I love. Neither the doctor (who knew about my tennis problem) nor the pharmacy assistant (who didn’t bother to find my real problem) were of any real help to me at all. I got service and product from both parties but the advice was severely limited in both areas, and therefore the productivity achievement (being able to play tennis) was hopeless.

The pharmacy didn’t offer advice because they didn’t know about my real problem. Why? Because they didn’t ask questions. Why? Because they are only interested in me while I am in the pharmacy, not on the tennis court. Why? Because their business purpose is limited to making money from giving service and distributing/dispensing products. And by the way, the physiotherapist who told me about the armband device actually called me to ask how it was working, and to offer additional advice! That’s the partnership factor. Don’t just give advice and help customers to buy what they need, find ways to ensure that they succeed with what they buy.

For Faulding customers, I have designed the ‘Zenith’ success service called Q.U.E.S.T, that will help your pharmacy to engage in ‘advising’ and ‘creating partnerships’ with customers. Ask your Business Development Manager about this idea, and call anytime for advice on this issue.

HOW TO DEAL WITH ‘SCURVY ELEPHANTS’

I recall many years ago that our youngest son, Daniel, had a problem at school. He was only 6 at the time and he was upset because a teacher, ‘Miss Jones’, had called him a ‘scurvy elephant’. We couldn’t work this out, especially as Miss Jones was very nice. I made an appointment to see her and told her about Daniel’s claim. At first Miss Jones appeared confused, and then she smiled, and then she began laughing and soon she was out of control and in hysterics. When she was able to speak, Miss Jones explained that the day before Daniel had been talking in class and she had asked him to stop. He did as he was told but shortly after he was caught talking once more, and soon after he was warned for the last time. Miss Jones explained that when he began talking again she had said ‘Daniel Lees, you are a disturbing element!’

The point of all that is that you probably have your fair share of customers who present themselves as ‘scurvy elephants’. These are the people who get upset over something or nothing, and they make a noise and threaten to ruin your day. Don’t let them. When the worst in a customer comes out, look for and find the best in that customer. For example, if a customer says something like ‘I was told that product would be here today!’, say ‘I’m sorry it’s not here and I appreciate your concern, however I’m sure you’re main interest is to have the product, so let me find out what is happening for you.’ Arguing with difficult customers will only get you into more hot water, and telling them that a problem is not your fault will also add fuel to the fire.

The best course of action is to listen, show concern, steer the conversation towards the solution needed, and to make ‘extra’ effort to be of help, Here are some imaginary situations with difficult customers, along with suggested responses:

“I was next!”

“My apologies and thank you for letting me know, I’ll be right with you.” (or organise for someone to serve the customer)

“I’ve been waiting ages to be served!”

“ I’m very sorry, how can I help you?”

“I can buy this product much cheaper elsewhere!”

“Really, well thank you for pointing that out, we like to know about where we stand on product prices. Can you help me with the details and I’ll look into the situation.”

“I was told my prescription would be ready in 10 minutes!”

“I see, well please accept our apologies and let me see if I can get that for you now.”

“This product is (defective, broken, wrong in some way)!”

“I’m sorry about that, thank you for letting us know. Let me get this sorted out for you.”

Scurvy elephants can appear at any moment so be ready with courtesy, apologies and a promise of action so as to diffuse the situation. It is not a sign of weakness to apologise, for all you are doing is saying that you regret the inconvenience suffered. Another suggestion is that with the more difficult customers it is a good idea to lead them away from where other customers can hear their complaints. It is embarrassing and potentially dangerous to expose ‘others’ to such negative situations. And finally, knowing how we all hate complaints, you might like to try this idea when you are next in a restaurant. When they bring the bill and ask ‘Was everything OK?’, just say ‘Yes, but do you mind a small criticism?’ He or she will look hurt and perhaps guarded, but will probably say ‘Of course.’ You then say ‘Fine, well I’ll try to think of something and I’ll get back to you!’ Observe the relief on their face.

The Tasteless Brew of ... Hot Marketing and Cold Service !

There is a certain retail store chain that advertises almost non stop in Sydney, and through this manic marketing process they offer a never ending range of ‘specials’ that must be very attractive to consumers. And apparently the hype works, in that high numbers of potential customers visit the stores. However the advertising mass on TV and radio is easily overshadowed by the service mess found in the stores!

The public who are seduced into visiting these stores often can’t find serving staff, and when they do they are either faced with staff who are stuck for an answer if you say hello to them, or staff who specialise in ‘mouth-to-mouth-combat’. The latter type, utilising the renowned ‘up-sell’ process, might use a 100 word sales pitch, however they are easily defeated by customers ... who only need to use one word! The results of this ridiculous ritual are that many customers don’t buy, several buy on terms which suit only them, and a reasonable number buy under pressure and vow never to return!

Why do businesses make their advertising so attractive and their service so grotesque? It seems to me that the senior managers of such guilty organisations (also known as ‘junior leaders’!) find it easier to create special offers than to create special staff. So what can pharmacy learn from this type of inane activity? As a starting point, this edict is worth remembering:

“High quality service can only be given by high quality people”

Now, in a fast food business where staff have less than 30 seconds to deal with customers, they may be able to get away with a ‘service sham’. However, if more than 30 seconds are involved, as is often the case in pharmacy, then the goal must be to give service that is a consistent fact, and not an occasional act!

The good news is that it costs very little to train staff to be excellent service providers. Think about it. You have already paid for their time so the challenge (and the obligation) is to use that time in the most constructive manner.

These are some of the ways you can use the staff time you have paid for to create high quality service providers ... so that marketing input is matched by service output:

• Provide ‘service sheets’ that explain every facet of marketing activity, for distribution to staff (in language the staff can understand, and which sells them on what they have to sell!)

• Provide ‘service questionnaires’ that ask staff (as individuals and as teams) to think about and express themselves on your pharmacy’s purpose, goals and strategies (as explained in the ‘service sheets’)

• If a manager or someone else is responsible for staff training, then provide a ‘leader’s guide’ that offers suggested answers to the questions posed of staff in the service questionnaires. This will enable the trainer to run service training sessions with confidence, at breakfast and evening meetings, and during quiet times in store trading • Invite staff to work in teams of two, to investigate and report on how they feel the store can improve service and sales in key product category areas • Ask just a few customers to attend sales meetings/training sessions (for a small reward) to explain what they like about your service and what they feel could be improved. Also ask what where they buy key product categories from, and ask why they buy certain products from your pharmacy or other stores.

• ‘Sales/training’ meetings should be run each week and each month, and informal 5 minute morning meetings will help to maintain motivational momentum and focus on service standards, sales goals, progress, success stories and staff needs.

Finally, to put real heat into store service, think of service as being like a disease, positive or negative. The disease starts with management and then infects the staff, and of course the staff then pass on the disease to customers. So be sure to serve staff well, for they are your number 1 customer!

John Lees is a speaker, consultant, trainer and the author of 10 books...specialising in marketing & sales.

Website: www.johnLees.com.au email: info@johnlees.com.au



What is The Purpose of Business - To learn more about this author, visit John Lees's Website.

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