Customer service principles and best practices

Business

Retail Customer Service

Current trends in retail customer service include many changes in the way retailers view customers and customer satisfaction. Some of the most significant trends include:

return of customer service - this is extremely significant because customer service often takes a back seat to other retail considerations, such as cost and inventory, and that does not target the consumer. The consumer is the person who makes or breaks the business in the end, yet many retailers consistently ignore this fact.

Instant information - another trend is consumers wanting to know instantly if a style, size, or color is in stock. Watch for retail customer service staff wired via computer or other hand-held device directly to the stock room, so information is instantaneous.

Green awareness" - consumers are becoming much more aware of green shopping and green items, so customer service reps will need to be more educated on the green products they carry and what benefit they are to the environment.

Building loyal customers - many retailers, especially luxury retailers, are realizing that customers want an excellent customer service experience, and that can bring many customers back to a store where they feel welcome and special. As the economy continues to slide, bringing customers back will become of prime importance. Low prices can do it, and so can convenient locations, but a store with poor customer service many not last through the economic downturn, consumers simply will no longer put up with shoddy customer service, especially in upscale markets (Editors, 2007).

Historically, retailers seem to overlook customer service because the sheer numbers of shoppers were enough to make many of them successful. Good customer service takes training and monitoring, and many retailers simply are not willing to invest in these activities. They may think it will negatively affect their bottom line. In the short run, that is true, but losing customers to poor customer service will negatively affect the bottom line even more.

Retailers, like the public, seem to go through periods of complacency, especially when business is booming. They do not have to engage in good customer service, because people will come, anyway. Consumers also seem to become complacent, expecting poor customer service, and not demanding anything better. In addition, many consumers who experience poor customer service do not do anything about it, they simply never return to the store, and the retailer has no idea why. Retailers need to remember consumers have choices. As one retailer notes, "And that's important because no retailer sells anything that customers can't get from another retailer" (Ratner, 2002). In addition, online shopping, for many, is a valid alternative to local shopping, because online retailers often offer a larger variety and volume pricing, enticing consumers to order with the click of a mouse. If a local retailer offers poor customer service, it is much less of a hassle to deal with a monitor than a mouthy or rude retail clerk. Ratner continues, "Researchers can identify the point during a transaction when the service level is most noticed by the customer and has the greatest impact on his or her perception of the transaction. According to one study, this point is the end of the transaction when the customer checks out and leaves the store" (Ratner, 2002). Retailers tend to overlook the importance of customer service because they can. When their profits suffer, they tend to look for ways to increase their profits and maximize their inventories. Some simple customer service training can help increase those profits, because consumers, especially in tight economic times, do not have to spend money. Treat them poorly, and they will take their hard-earned cash somewhere else. Retailers are experiencing this, and they need to remember that the bottom line ultimately rests in the hands of the consumers, and the salespeople who deal with them on a regular basis.