What Does It Mean to Satisfy Your Customers?
“The customer is always right.” There’s an adage from an era gone by that isn’t seen too often today. And nowhere is this shift in attitude more obvious than in customer service. Stop anyone on the street and ask what they think of the average customer service experience, and the reaction is likely to begin with plenty of eye-rolling. Most customers lament customer service, or the lack of it, in the typical retail environment.
But, after years of slowly sliding downhill, retailers are beginning to take notice and create new customer service expectations in an effort to set themselves apart in an overcrowded marketplace. Keenly aware that dissatisfied customers are impacting their bottom lines like never before, and with so many Internet-fueled alternatives to the bricks and mortar store, retail companies and their stock prices are quickly realizing they can’t afford to take the hit. Overwhelmed by globalization and a revolution in low pricing, customer service appears to be the last way in which retailers can impact price increases.
Claes Fornell, director of the University of Michigan’s National Quality Research Center explains, “Companies don’t have much pricing power unless there is a shrinking supply or higher customer satisfaction. Companies may begin to see narrowing profit margins unless there is further improvement in customer satisfaction.”
So how can retailers define customer satisfaction? It is low costs, efficient service, knowledgeable staff, clean restrooms, or reasonable return policies?
The answer is…. It’s whatever the customer perceives as important. No one specific formula works for every retailer. But customers know when they’re not getting the level of customer service and satisfaction they need.
Jorge Leis, retail expert and partner with Bain & Co. in Dallas, comments that most retailers view customer service as just one part of an overall customer-oriented culture developed over time that includes taking care of the customer. Leis goes on to explain that expectations may differ inside the same store environment, where one department may have a need for better trained employees than another.
Despite our best efforts at moving away from it, it seems that the old adage remains true. The customer is always right. Customers remain free to choose where to spend their money. And those retailers who embrace the comprehensive customer experience, beginning with a corporate culture that demonstrates respect for the customer’s buying power, are the ones who will ultimately survive.
Tags: Customer Experience, customer satisfaction, customer service