Joan Treistman

BrainTrust Query: How Consumers Killed Customer Service

December 29, 2009

FROM RETAILWIRE:
We went to the buy-one-get-one sales. We made Walmart what it is today. We camped out for Black Friday. We built the dollar store channel. The bottom line is that we voted with our wallets and customer service lost. Are consumers largely responsible for any deterioration in customer service at retail?      [more...]

I don't believe that consumers have voted for poor service. I believe that consumers have demonstrated that in some cases, price outweighs service, but not always. Hence, Apple can charge more, Nordstrom retains loyal customers and shoppers are disenchanted with Saks.

All year round, consumers buy private label cranberry sauce. At Thanksgiving and Christmas they invest in Ocean Spray, the national brand they trust and want to serve their family guests. It's a decision as to when paying a little more makes a difference.

Dollar stores and Walmart offer a distinct value proposition that many competitors do not. Shoppers choose the value and implicit is that service is not required for the bargains received.

Once there is an even playing field in terms of value and products, service becomes a differentiating factor. We've discussed training for staff many times, but I'd urge retailers to think of another resource for creating dedicated and motivated staff...good working conditions.

I've observed the dirty lunch rooms; the smelly bathrooms without toilet paper and the scarce amenities (even air freshener for the bathrooms). If retailers insured employees good working conditions the employees would be more likely to feel and act with greater self worth. Shoppers would immediately notice the difference and so would sales. But if retailers treat employees without respect as if staff conditions are low on their list of priorities, then they are telling employees that they are not a significant aspect of the store or its success.

Customers would rather shop in an environment that is pleasant with engaged staff that are proactive. Yes, price value has made a big difference and created the opportunity for many retailers. But things change and new opportunities are out there for those who pay attention.