Target Sells a Service Experience with its Electronics

Even during the recession, the electronics business continues to be hot as customers consider things like cell phones a necessity.

As the electronics business gets more competitive with discount stores like Target and Walmart fighting specialized stores like Best Buy for a larger customer base, stores realize they need to do a lot more than just stock shelves with the products customers want–and need. In an effort to become more of a destination electronic store, Target announced new services for electronics shoppers.

Among the new offerings, Target is adding a free telephone technical support service for purchases, an electronics recycling program that offers store gift cards and more wireless phone choices.

“Electronics are getting more complicated and more of us are connected to the Internet and wireless,” Senior Vice President Mark Schindele said. “Guests want a seamless experience.”

Like Best Buy’s Geek Squad and Apple’s Genius Bar, Target’s new services hope to bring more traffic to the store. Time will tell whether consumers will buy what Target is selling.

Consumers Procrastinate Back-to-School Shopping

Retailers, take notes. American families are putting off their back-to-school shopping in an effort to make sure they’re getting the best deals.

Marshal Cohen, chief industry analyst with the NPD Group, told msnbc.com, “The consumer is not in any rush.”

An earnings call from Walmart indicated more shoppers are making their school supply purchases closer to their schools’ start dates. The National Retail Federation also predicted a quarter of school shoppers won’t begin their back-to-school shopping until one or two weeks before school begins. In some cases, families may even put the shopping off until later in the fall after seeing what’s in style and what students really need.

Still, the National Retail Federation predicts American families will eventually spend more on back-to-school supplies and clothes than last year. Back-to-college spending should remain about the same.

Meanwhile, retailers are offering deals for the customers now. Abercrombie & Fitch’s jeans are currently 40 percent off, Target is offering free shipping on $50 online purchases and Amazon.com has bargains on coffee makers, printers, microwaves and textbooks for college students.

Getting it Right in the First Place

When discussing a truly great customer experience, it’s a natural reaction to focus on a specific customer service situation or service recovery. It is true that all organizations have problems to solve at one point or another and the way they solve them goes a long way toward establishing long-term customer relationships. But we should never lose sight of the easiest and least expensive form of service recovery which is getting it right in the first place.

Service recovery only works if it’s the rare exception and not the rule. Such is the case at Walmart stores who are reporting that increased productivity and improved inventory management are resulting in a better customer experience. Having what the customer wants in-stock and on the shelf is the surest way to please a consumer. It’s no surprise that these improvements have resulted in improved third quarter financial performance for this retail force of nature.

Wal-Mart officials are saying that their stores are running better than at any time in history, which is leading to market share and an all time high customer satisfaction level. One could make the case that the success is being driven exclusively by price, but even the best deal in the world isn’t a deal if it’s not available, hard to find or if associates can’t help you out.

This Wal-Mart story is a good example of putting the customer experience first in every step of the go-to-market chain. If you wait to the end of the chain to take care of your customer, it might be too late.