Sunday, August 26, 2012

Parag's Learning Log: Anecdotes that teach you a lot

Parag's Learning Log: Anecdotes that teach you a lot:  Anecdotes that teach you a lot I must have been barely 26 years old. I had gone to receive my father’s very close fri...

Thursday, August 23, 2012

Anecdotes that teach you a lot






 Anecdotes that teach you a lot

I must have been barely 26 years old. I had gone to receive my father’s very close friend, and an outstanding film producer, Mr. Narsimhan at the Pune Airport. He was the producer of “Malgudi Days” a very popular TV serial in those days, based on a series of short stories written by the great author ,  R K Narayan.
I was driving the car on the busy JM Road, and Narsimhan Uncle (we still call him young man!) asked me to stop the car. He said he wanted to buy Chocolates for my kids. I found a temporary parking spot and told him in my usual annoyed style, “Go get it fast!” I don’t want the cops to come and fine me! He went to the shop and what looked like hours to me. I was getting restless in the oppressive heat and the fear of the cops coming and fining me.  “Young Man” comes to the car and is laughing away to high glory! I asked him “what is so funny ?” He said , “This can never happen in Bangalore!” I said “what happened?” He narrated something that taught me a big lesson. He said he went to the shop and told the shopkeeper to hurriedly give him some chocolates. The shopkeeper was prompt , but just as he was paying, the shop keeper asked him , who are you taking the chocolates for? He said my friends Grandchildren . The shopkeeper said wait, let me gift wrap them for you. He said “no no, I am in a hurry”. The shopkeeper shouted at him. Five minutes will not make a difference, but the joy of opening a gift beautifully wrapped is unbound. Don’t take that joy away from those kids. So you wait here until I gift wrap them for you! The shopkeeper was so stern that “Young Man” had no choice but to wait.
When he narrated this incidence to me, I realized the importance of simple gestures in business. Give the customer more than he wants. Even  if he is not your repeat customer, it doesn’t matter, give him that joy. Mr Narsimhan was truly impressed by the culture of my city. Pune is otherwise known for very curt shop keepers. But this one incidence taught me so many things. It taught me that wrapping a gift for a child is important. Watch a kid open wrapped gift. He is so impatient and there is such joy when he sees something he wants! In true essence this is “Customer Delight”
Let me narrate another lesson .
I had started my first venture in 1984. 17th June 1984 to be precise. It was a photofinishing Lab. I began on the 3rd floor of a non-descript building on Laxmi Road. I knew nothing about printing color photographs, although I knew quite bit about Black and White Photography. I used to wait for hours for a customer to walk in. None would come. I was so frustrated; I decided to pick my bag and go get work from the Market. I went to some of the biggest dealers of photographic films in Pune. One amongst them was a man called Babubhai. He used to send his work to a Lab in Mumbai. He said, he was more than happy with their services and saw no reason to switch over. I would go to him every day and with hungry eyes look for work from him. He would give me nothing. But my perseverance paid off. One day out of sheer pity he gave me 10 films. I had my first customer! Armed with these ten films, I went to my lab, worked all night printed his photos and took them to him. He looked at the prints and he said “this is shit” I will never give you work. I was crestfallen. I begged him for another chance. I requested him to give me a sample of what he wants. I worked all night again and ensured that the prints were good. I lost money. I didn’t want to lose a customer. I could have been tempted to tell him , sorry this is all I can do. I can’t take 100% rejection. But I just wanted a satisfied customer. Your first customer is your best ambassador. Doesn’t matter what is the cost, he has to be satisfied. That chance will never ever come again. A first customer satisfied is far more important than the next one. Law of diminishing utility!  
The next day , I took the prints and he liked them ! I invited Babubhai to my office for a cup of tea. He said he would come. He came. I developed a good relationship with him. But he would give me no more work. I one day just casually suggested that I don’t expect him to give me all his work. But may be 10% or 15% is enough. He thought for a moment, and I said, it’s never a good idea to rely on one supplier. You never know anything can happen. He agreed. He would come every day and give me 15 films. It just about helped me break even. But every time he came, I treated him by receiving him at the entrance, escorting him to my office and offering him a cup of tea. My business began to grow. It reached a point where I used to get about 5,000 films a day. But Babubhai kept coming and slowly and surely I had converted him from 15% to 90%! The important thing for me was that he was my first customer, who supported me when no one was ready to back me up.
Sometimes, it’s a good idea to persuade a customer to be his standby supplier. He is bound to have a problem with his major vendor. You cease the moment that time! A lesson in marketing!
Years passed. Babubhai began to get old. He started losing interest in the business, my business was booming. But yet, he would come every week for his customary cup of tea, and I continued receiving him in my much bigger , larger office .
 One day, he said, this was his last cup of tea. He is getting too old and won’t be able to see me. I said I will come. I used to go once a month and meet him in his small but clean house. Just a week before he passed away he wept on my lap and said no one ever treated him with the respect I treated him with. The whole world is after money. You are a good man Parag. You respected me not for the business I gave you but the trust I reposed in you. I attended his funeral and had a tear to shed for my first customer.
A few days later, his son came to my office. He said, his father had left a Gold ring in his  dying Will for me. I said I cannot accept it. He said, he cannot keep it too. We decided to sell it and educate one child. I educated my first student free of cost from my first customer.
The lesson to learn is that never ever forget your first customer. Treat him the same way you treated him the first time he came to you. For he gave you faith , not business. That my friend is a big difference.  
I don’t pass a day without remembering Babubhai, my first customer. May his soul rest in peace

Parag Shah
22ndAugust 2012
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