Rigid Business Policy Over Serving the Customer: A Bad Idea

Is placing rules and procedures over relationships and loyalty the new way to do business? First it was my bank and I just experienced another excellent example of this bad behavior. And I see it everywhere.

These past few months, I have been writing about my experience of being forced to end a long relationship with my bank. More recently, I have been shopping for a service provider for a different piece of my business. I have asked for referrals from people I trust. An email introduction was made. Then things went downhill and fast.

An email response from this potential vendor was cold and formal -?telling?me I would only be allotted 15-20 minutes for a meeting. No greeting, no indication of any genuine interest in me or my business - just their rules I was required to abide by. I wrote back and asked why. The reply was the same cold, unfriendly, and process-oriented content and style. I canceled the appointment and wrote to tell the sender why I was canceling. I also wrote to the business owner to share my experience. I was not looking to get this person into trouble, but he lost my business before we started. Please use this as a coaching moment I suggested. The owner dug his heels, got very defensive, touted his successes, and and said this was their process and, essentially, too bad. Ouch!

If you are in a relationship business, as we all are, this is the definition of a transactional mentality and culture vs. a relationship culture.

This little skirmish brings up some powerful relationship-building principles:

“Every interaction is a selling moment.” Yes, this is my mantra, and the entire exchange proves this. Like my bank, they lost the sale based on tone, attitude, lack of any emotional intelligence, and resistance to reason.

Play the long game. This business owner lost my sales, my future referrals, and what would have been a much larger opportunity down the road. His intransigence and stubbornness to "bend" his rules and focus on the possibility of a relationship that could be very profitable took a back seat to his being called out for bad behavior. He also embarrassed the person who referred me, guaranteeing he won’t get any more business.

Take the high road: His ego got in the way of reason. He could have defused and offered to call me, hear me out, and use this as an opportunity to improve. Instead, he defended and cited his rules and the loss of profit by investing more time with me. He noted how many transactions he will do this year to prove his success. All that proves is that he has a volume-based transactional culture. I am sure he would take a different attitude if he were courting a large client.

Relationships are not on the clock. If you are in a business focusing on utilization and billable time, you must have a different perspective on relationships, which takes time and patience.

I consulted with a long-time former banker and business professor. His remarks rang true:

“What resonates with me the most is that the search for true ‘relationship’ providers requires much more effort upfront, way before cash exchanges hands. Many organizations say they ‘value’ your relationship. We all know that is something you must earn, and the company’s actions and behaviors speak to whether the organization really means it. Sometimes, policies and procedures are appropriate and expected (think healthcare delivery). Hiding behind policy and procedure often masks an inability or, worse yet, an unwillingness to engage in a truly meaningful conversation upfront. Your bank experience indicates what can happen later in a relationship. How you were treated and communicated within each situation was antithetical to how you run your business and how most people want to be treated.”

Simply put, the crux of the matter is this: If you are focusing too much on “procedures” and placing them above a significant opportunity and professionalism, this will cost you profit, business, and future referrals.?

I struggle with how this is a sound business strategy.

Stop tripping over dollars to pick up dimes.

Todd Cohen, CSP, has inspired and motivated audiences for 16.5 years, teaching them to sell themselves to achieve goals and incredible success. His sales culture programs are in demand from audiences from every background. Delivering approximately 90 appearances every year worldwide, Todd leaves people?with a story to tell and feeling great about themselves! Book Todd here: https://toddcohen.com/book-todd/

Todd has just released his third book,?"Mastering the Sales Mindset."