Marge Laney

New Customers and Poor Service

September 3, 2010

FROM RETAILWIRE:
Columnist and author James Surowiecki believes a fixation on new customers is ultimately the root cause of poor customer service levels across corporate America. How does a company keep a healthy balance between addressing new and existing customers?      [more...]

The trouble with retail customer service is the short term mentality that drives it. It's much easier for management to cut payroll to improve EBITDA now than it is to invest in their people and improve their businesses over the long term. Wall Street is a big part of the problem. Analysts herald retailers who cut costs (read payroll) in a downturn. Yet, they're the first to scream about the lack of top line growth when they deem it time. The retail winners in the long run know who they are and what they're customers expect, and implement strategies that deliver their brand promise consistently across all channels. And, most importantly, they stay the course no matter which way the economic winds are blowing.