Chris Aiello Relational capital
I recently attended a leadership conference in Boston. While my plans during my stay in Boston included seeing a Red Sox game in the evening at Fenway Park, enjoying a pint of beer at an Irish pub, and eating clam chowder and lobster, I was also looking forward to the lineup of speakers and workshops at this conference. One speaker in particular was Ed Wallace and his workshop on relational capital. Ed Wallace is President and Chief Relationship Officer of The Relational Capital Group; he is critically acclaimed as the foremost authority on business relationships and their impact on performance. There were many takeaways from his workshop, and I knew this topic would be a good one for my monthly aftermarket column here.
The success of your dealership is often attributed to a combination of factors, including innovative products, effective marketing strategies, and efficient operations. However, one essential but often underestimated factor plays a pivotal role in shaping your organization: relational capital. This intangible asset encompasses the network of relationships you build with your customers, partners, and employees. Let’s look at the significance of relational capital and explore how it can be a game-changer for your business.
Relational Capital Defined
The relationships with your customers, suppliers, partners, and employees should be considered a core asset of your business, known as relational capital. Relational capital can be understood as the collective value derived from your business’s relationships with various parties. It extends beyond financial transactions and encapsulates the trust, goodwill, and mutual understanding fostered between your business and its stakeholders. These stakeholders include customers, suppliers, investors, employees, and even competitors.
At the heart of relational capital lies trust. Establishing trust with your customers and partners can lead to long-lasting relationships that are built on honesty and integrity. Trust fosters loyalty, and loyal customers are not only more likely to stick with your brand, products and services, but also become advocates, spreading positive word-of-mouth and attracting new customers.
After-sale service at a lift truck dealership encompasses maintenance, repairs, parts replacement, and technical support. Relational capital in this context revolves around the intangible value generated from trust, customer loyalty, and the quality of interactions between your dealership and your customers in all aspects of the after-sale service.
Customers
In the age of information and social media, customers have more power than ever before. They can easily share their experiences and opinions about your business with a global audience. A strong focus on building positive customer relationships can help you manage your brand’s reputation and ensure customer satisfaction. Happy customers are more likely to provide repeat business and recommend your products or services to others.
Running a lift truck dealership entails more than just selling equipment; it involves cultivating enduring relationships with your customers. The post-sale service phase presents a valuable opportunity to establish and nurture these relationships through relational capital.
Suppliers
Relational capital is not limited to customer relationships. Partnerships with suppliers, distributors, and even competitors can drive innovation and open up new avenues for growth. Having a good relationship with suppliers is vital, especially where critical components and complementary offerings are concerned. Successful companies understand that trust is an important distinction between a business transaction and a true relationship. They invest tremendous energy in developing ways to institutionalize trust in their procurement processes.
For example, many successful businesses tend to develop long-term relationships with their vendors and suppliers rather than simply buying from the lowest-cost provider. They prioritize quality first, followed by service and cost. Building a good working relationship with suppliers helps develop their reputation and attract additional business. It is important to conduct regular strategic business reviews to assess the relationship and discuss performance, improvements, and new product development. It is also important to foster relationships with suppliers that share the same values as your organization. Focus on developing trust-based, mutually beneficial, and long-term relationships with your suppliers.
Employees
A business’s most valuable asset is its employees. Building strong relationships with your team members can result in higher employee satisfaction, improved morale, and increased productivity. As I stated in a previous column, the competition for service technicians, parts professionals, sales staff, office personnel, and management continues to be fierce. When employees feel valued and connected to your company’s mission, they are more likely to go the extra mile and contribute positively to your organization’s success.
Strategies to Deploy
Communication: Regularly engage with your stakeholders through various channels. This could include personalized interactions, newsletters, social media, and more. Specific to service, regularly communicate with your customers to remind them of upcoming service intervals, provide maintenance tips, and address any concerns they may have.
Deliver Value: Continuously deliver value to your customers, partners, and employees. Show that you are invested in their success.
Networking: Collaborating with other businesses can lead to the exchange of ideas, resources, and expertise, ultimately enhancing your own products or services. Attending industry events, conferences, and seminars to expand your network and connect with potential collaborators.
Empathy: Understand the needs and concerns of your stakeholders. Showing empathy helps forge deeper connections.
Personalized Maintenance Plans: Develop customized maintenance schedules based on each customer’s usage patterns and needs. This proactive approach demonstrates your commitment to their specific requirements.
Transparency: Be open about your business’s operations, values, and challenges. Transparency builds trust and demonstrates authenticity. Additionally, offer clear and transparent cost estimates for repairs and parts replacements. Customers appreciate honesty and are more likely to return when they trust your pricing.
Expert Technical Support: Provide accessible and knowledgeable technical support for troubleshooting and assistance. Prompt and effective support builds customer confidence.
Warranty and Service Guarantees: Offer warranties on repairs and services, showcasing your confidence in your team’s expertise. Such guarantees bolster customer trust in your dealership.
Customer Training: Organize workshops such as forklift operator training. This educational approach enhances customer empowerment and loyalty.
Feedback Integration: Encourage your customers to share feedback after each service interaction. Act on their suggestions to continually improve your services.
The benefits of these strategies include customer retention, word-of-mouth referrals, enhanced reputation of your dealership, and increased revenue as loyal customers are more likely to choose your dealership for future purchases, repairs and maintenance needs. Superior after-sale service differentiates your dealership from competitors, positioning you as a preferred choice.
Navigating the Future
At your dealership, after-sale service is a prime arena for cultivating relational capital. By offering personalized service plans, transparent communication, and expert parts and service support, you can forge lasting connections with your customers. The benefits, including customer loyalty, referrals, and revenue growth, underscore the vital role of relational capital in establishing your dealership as a trusted partner in the long-term success of your customers’ operations. Remember, it’s not just about selling forklifts; it’s about building a network of satisfied customers who rely on your expertise and support.
Investing in relational capital in your network of relationships with your customers, partners, employees and stakeholders will lead to repeat business, word-of-mouth referrals, and a positive reputation in the industry. As a result, your dealership experiences steady revenue growth and gains a competitive advantage.
About the Author:
Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 16-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.
