The Real Customer Service Story

Upon entering a retail store, the customer knows what’s coming next: it’s the standard greeting, followed by the current sales promotion and then the question, “Anything I can help you with today?” According to recent research published in the Harvard Business Review, that answer is often, “No.”

Corporate leaders dramatically overestimate how much the customer wants to talk to a customer service representative. They believe customers value live service twice as much as self-service. HBR’s data shows customers are significantly indifferent to that claim, and they value self-service just as much as they value using the phone. More interestingly, that indifference doesn’t change across their demographic, issue type or urgency.

It’s an interesting predicament: what should your company do to improve its customer service when the customer prefers self-service? And what’s compelling the customer to repel real-life interaction? It could be argued that with the rise in social networks, people don’t like to engage in as many face-to-face conversations with others. Maybe fascination with technology has won out and the lure of fancy, powerful machines are more attractive than the sales associates. Or, now, everyone considers themselves a control freak and dislikes relying on other people to get something done.

Or maybe, customers haven’t wanted the relationships companies have been pushing all along and this rise in self-service finally gives them the easy way out. That’s not a comforting thought for retailers who build their company on the promises of quality customer service. So, what should those retailers do?

It’s a simple task in the world of automated customer service recordings, information computer stations and high tech self-service cash registers: have customer service reps be real people. Too often, customers blow off the sales associates because they sound like robots reading from a script. If customer service practices create authentic experiences by individualizing how each customer gets served, it’s a good bet that customers will again appreciate that friendly face that greets them right when they walk through the door.

Customer Experience tied to retailer’s stock value

As the world watches the stock market’s up and downs, new research from the University of Michigan concludes customer satisfaction levels affect retailer’s market value.

Michigan’s Ross School of Business and American Customer Satisfaction Index conducted research on customer experience and stock prices. The research indicated the higher level of positive customer experience, the better stock prices.

A Twice article discusses the findings of the report. Retailers with improving customer satisfaction scores from ACSI witnessed a smaller market value decline in 2008. Retailers will a smaller ACSI score had market value decline up to double the improving ACSI retailers had. The article highlight more of the research findings to include how well online retailer did.

The research emphasis how important customer experience program is to a retailer’s business. higher levels of customer satisfaction can only be reached through a well designed customer experience program. Of course, measurement of success will lead brands and retailers to know where the improvement areas are. Customer experience programs are a shot in the dark without proper measurement initiatives. Certainly, retailer’s who dedicate resources to measuring and implementing effective customer experience programs are seeing a boost of confidence from inventors.

Leading Super Stores Witness New Consumer Trends

Major retailers, Wal-Mart and Krogers, are making note of changing consumer spending habits.  Both retailers have announced consumers are shifting their buying focus as the country settles into a long term recession.  Kroger consumers are paying more attention to store-brand items versus name brand.  
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Restaurants Should Avoid the $ Sign

Studies show that menus using a numerical price format without the “$” symbol yielded, an average, $5.55 more in spending than menus with prices printed with either a dollar sign or written script.

If I owned a restaurant, I would consider taking out the $ sign on my menu. Let’s face it, restaurants are having a tough time making money with current economic conditions.  With more customers saving money by opting to eat at home, restaurants need to maximize revenue opportunity with existing customers. If you told me all it took to make an extra $5.55 per table was to take out a $ sign on a menu, I would go for it.

What do you think?

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