As more and more consumers are beginning to make purchases online, traditional bricks-and-mortar retailers who are yet to enter the online shopping domain rely on the philosophy that a computer can’t give the same customer service you can get in store.
Fashion and apparel retailers who subscribe to this theory might be surprised to hear that a recent study showed 10 per cent of the 2000 customers surveyed would rather shop online because they believe they will get better and faster service just with the interaction on the internet – without a frustrating telephone conversation and without a long queue at a bricks-and-mortar outlet.
The formula to win then is based on the ability to provide better service than these competitors. Just as there are those who win on price there are those who have built their brands on what might be considered an unprecedented level of customer service.
The fact is customers buy from one store and not from another largely because of the customer service provided. Therefore it stands that service can be a deciding factor in the purchasing behaviours of consumers and their motivation to buy may not be just for a physical product itself but for the experience of the service.
Putting yourself in the shoes of your customer, is your service worth buying?
The same study cited earlier showed a 20 per cent increase in customer satisfaction generates a five per cent increase in customer loyalty and a 20 per cent increase in profits.
Retailers that are able to maintain their loyal customers and keep them there with a superior service have a huge built-in advantage over their competitors, from the shop next door to those competitors half way around the world that reach Australian customers online.
But with a changing marketplace, how do businesses not only meet customer service expectations, but exceed them to create the kind of brand attitude that keeps consumers coming back over and over again?
It really should go without saying that having an online space is critical to meeting customer expectations. An integration of online and offline to create a ‘oneline’ experience is increasingly necessary. Progressive retailers are seamless in the way they interface their online with their offline facilities. This ‘oneline’ strategy incorporates both online and offline to build a superior experience that is mirrored in all channels.
A perfect example of this is the reinvention of American apparel; Nordstrom’s multi-channel operation that better manages customer challenges with inventory disconnect. If customers can’t find the right product or size, online inventory is easily pulled from in store.
As well as creating an online space that operates seamlessly with bricks-and-mortar stores of the same brand, the most important link in the superior customer service chain is skilled and empowered staff with ‘day-maker’ attitudes. You know that kind of person that engages you in a way that you’ll tell your friends about. Carefully picking staff with attitudes consumers will come back for is just the first step in ensuring great in store customer experience.
After staff have been chosen, there are three words: train, train, train.
Consider your service team's role like this: they are the concierge, they are the story teller, they are the day-maker, they are the solutions finder, they are the lasting impression of the journey a customer has had with your brand.
It is easy to overlook the value that is added through the talent in retail businesses with an over-reliance on creating systems and process to ensure consistency. But to create a customer service product that is worth buying, retailers must set a standard that is able to be replicated through training and mentoring.
The following steps are critical elements to consider when overhauling your customer service as a product worth buying:
Invest in soft-skills training: Soft skills are often misunderstood as the more subtle added extra that is non-essential and just nice to have. With 80 per cent of businesses challenged to survive in the first five years, it is clear these foundational skills play a big part in a retailer’s success. These skills have the capacity to support team members in solving customer problems, spotting additional sales opportunities and building loyalty.
Make customer service training ordinary: Customer service training is seen as a big investment and requires focus and dedicated times. The reality is that it should be seen as ongoing and indeed ordinary. By demonstrating that customer service training is important and essential enough to be “ordinary”, teams feel recognised as professionals.
Invest in people where people make a difference: Investment needs to be directed to support and educate consumers on the retail floor. Train, train, train. Ensure that you invest in your team’s ability to create superior experiences regardless of how strong your results may be, and how much market share you may command for the foreseeable future. Superior customer experiences may be the best insurance that a retail business can invest into.
Respect your most valuable asset: Retail teams carry around within them a little algebraic equation. It goes like this: if you treat me badly, and expect me to treat customers well, then this equation will not reconcile. There is a discrepancy easily detected by customer service terms, as hypocrisy. Retailers lose a tremendous amount of internal credibility when they tolerate double-standards of service: one for their employees, and one for their customers.
A good example of this, although not a fashion retailer example, is encapsulated in the following quote: "A funny thing happens when you take the time to educate your employees, pay them well and treat them as equals," company president and CEO of The Container Store, Kip Tindell, declares. "You end up with extremely motivated and enthusiastic people."
The fact is contemporary consumers have many other options for gaining access to products they need through different channels and at a price lower than most traditional retail businesses can compete with. To keep business, it is true you need to compete on more than just price, and that leaves exemplary customer service. Not just good customer service that merely meets expectations – we now know the internet can do that. Customer service that has difference – that’s the attitude that creates real consumer loyalty and that’s what keeps customers coming back for more.
Upcoming relevant training
For information about professional development courses in customer service, email: training@retail.org.au
For information about seminars focused on getting online to meet customer service expectations, email: events@retail.org.au.
Some free options for ARA members are available.
Sue Anderson