Editor's note

How far would you go to provide good service?

Competing on price alone isn't a good long-term strategy; some say it's also a surefire way to failure.

A good example is the Singapore-based One.99 budget retailer, which closed down six years after founder Nanz Chong-Komo opened her first outlet in 1997. Chong-Komo had opened 10 stores when the shutters went down in April 2003. Industry observers had said it was wishful thinking by Chong-Komo to build an empire by selling all products at a single price of S$1.99 (US$1.16) and where barriers of entry were low.

But whichever strategy SMBs like One.99 choose, there is no escaping pricing pressures. The difficulties are also compounded by the fact that it is increasingly difficult to differentiate on product features alone. How does a sugar manufacturer differentiate his product? Make it sweeter? Use higher quality ingredients? Produce it faster and more cheaply? Probably all of the above.

But today, the real long-term differentiator is in service: Provide a different customer experience. Make the customer feel special. Make the customer feel that there's something you offer which none of your competitors are able to do as well.

Many SMBs, say this is difficult, given the limited human and financial resources. How true is that?

I'm fairly certain that large companies, even multinationals, have difficulty providing good customer service. But whether it's a small or large company, I believe that this has less to do with company size and more to do with attitude. How badly do you want to improve customer service? How far do you think you need to go, or how far do you want to go, to ensure customers are happy with the company and the service?

The theme for this month's special report is "Delivering Service Excellence". This is a timely topic, as SMBs face stiff competition from not just local but international players. If a prospect is able to get the same product or service from your competitor at the same or lower price, why should he still do business with you?

Customers are more discerning today, and the only way to compete for the customer's dollar is to compete smart, starting with the customer in mind.

And that's exactly what Jack's Place has done. Director and general manager Suzanne Say tells senior journalist Aloysius Choong how the restaurant chain has built up a loyal customer base with the help of customer relationship management software.

Malaysia's Alliance Contract Manufacturing also shares their motivations for implementing SAP's software, which is primarily to offer a stronger customer value proposition.

We also outline the setup and recurring costs of wireless handheld applications, which is gaining momentum in Asia-Pacific as a platform to improve customer service and resource efficiency. So if you are still undecided if wireless applications and handheld devices can indeed make a strong business case, check out Pamela Wu's guide to setting up and running a wireless solution.