Recently I read about a national customer survey that 43% of those surveyed had experienced a serious problem with a product or service in the last 12 months. The problem became more acute when it was disclosed that almost three quarters of complaints escalated to some form of customer rage, wherein those studied became extremely upset. Finally, very few of the complaints (less than 16%) were handled to the customer’s satisfaction, let alone resolved! This merely reinforces what we already know; customer service and satisfaction is becoming the exception, rather than the norm in our society!
The crux of the problem lies in the fact that most service based businesses have systems or plans in place to deliver customer service, but don’t know if they are commensurate with what they charge, nor if they are consistently delivered to the consumer! In retrospect, the only service that really makes a difference is one that is valued and remembered from the customer’s perspective and that is all that matters! Simply put, the value of service must be defined by the customer and must meet their expectations consistently and must become the product of the business in itself if is to become a “value added” of the product or business!
There are many factors or elements of the quality of service when assessed by the consumer. Some of the factors are reliability, responsiveness, consistency, assurance, empathy, and visibility and how tangible the service is from the customer’s perspective. The genesis of what the customers expect is to take the time to listen to the customer! This can be accomplished by customer focus groups, customer feedback collected at the point of sale surveys (retail) or by mailed in “opinion” type surveys sent out to the customers after their stay (hotels or hospitals etc.) or after their product purchase (car dealers, appliance dealers etc.) Relationship management can be sustained tracking customer purchases, average expenditures, frequency of visits, preferences etc. via data collection from the Point of Sale system, personal credit card use and even manually with frequent shopper cards etc. Of course there must be some incentive to motivate customers to take the initiative to provide information.
Many retail operations and other service based businesses have made the transition to “self service” or “limited service type of operations. The clientele patronizing these businesses know what to expect and usually are not disappointed due to lack of personal contact with service personnel. However, those “high end” businesses that are perceived as service organizations, and in some cases, cannot thrive without employee interaction, lose revenue and customers when they don't deliver! Many, eventually, go out of business. In Part two we will discuss service that matters and will lead to customer satisfaction and keep them coming back!
The crux of the problem lies in the fact that most service based businesses have systems or plans in place to deliver customer service, but don’t know if they are commensurate with what they charge, nor if they are consistently delivered to the consumer! In retrospect, the only service that really makes a difference is one that is valued and remembered from the customer’s perspective and that is all that matters! Simply put, the value of service must be defined by the customer and must meet their expectations consistently and must become the product of the business in itself if is to become a “value added” of the product or business!
There are many factors or elements of the quality of service when assessed by the consumer. Some of the factors are reliability, responsiveness, consistency, assurance, empathy, and visibility and how tangible the service is from the customer’s perspective. The genesis of what the customers expect is to take the time to listen to the customer! This can be accomplished by customer focus groups, customer feedback collected at the point of sale surveys (retail) or by mailed in “opinion” type surveys sent out to the customers after their stay (hotels or hospitals etc.) or after their product purchase (car dealers, appliance dealers etc.) Relationship management can be sustained tracking customer purchases, average expenditures, frequency of visits, preferences etc. via data collection from the Point of Sale system, personal credit card use and even manually with frequent shopper cards etc. Of course there must be some incentive to motivate customers to take the initiative to provide information.
Many retail operations and other service based businesses have made the transition to “self service” or “limited service type of operations. The clientele patronizing these businesses know what to expect and usually are not disappointed due to lack of personal contact with service personnel. However, those “high end” businesses that are perceived as service organizations, and in some cases, cannot thrive without employee interaction, lose revenue and customers when they don't deliver! Many, eventually, go out of business. In Part two we will discuss service that matters and will lead to customer satisfaction and keep them coming back!
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Randy Snyder is a frequent contributor to Salesheads. His “hands on” knowledge of retail is attributed to his vast experience with three national chains, three international companies and franchises he helped develop as a retail consultant. Randy can be reached at (p)828 625 4932 or e mail at rsnyder921@att.net.
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