BrainTrust Query: How Consumers Killed Customer Service

Commentary by
Doug Stephens

A recent Brandweek article
titled "Retail Customer Service Stinks" reported the results
of The Retail Service Quality Index, released by consulting firm The SALT & Pepper
Group. It stated that the service received by shoppers in over 1,000 retail
interactions in the study rated 48.2 out of a possible 100 points. It’s
a flunking grade, but the fact that
"service stinks" is entirely our fault – we consumers, that is.

We demanded
the lowest airfare wherever we flew. 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.

The consequence
of our lust for cheap stuff combined with the retailers’ hunger for profit
is that there’s barely a working wage left in it for most retail employees.
And yet with most retail workers at or near minimum wage, we somehow expect
them to sweep us off our feet and treat us to a profound in-store experience.
We expect them to dazzle us with their knowledge and helpfulness. It’s
delusional.

And our preference
for price didn’t only erode wages, it trimmed recruiting costs, eliminated
training budgets, slashed worker medical benefits, and put a virtual moratorium
on employee corporate mobility. We made it so. We demanded it.

Despite the
devastating effect of discounting on the market in general, there are still
some remaining vestiges of service. The Apple Store, Lululemon, Nordstrom,
and Publix Super Markets are a few names that consistently rise to the
top in discussions on in-store experience. Their closest commonality apart
from superior service is that none of them have staked their reputation
on price; they haven’t allowed us to drag them into the mud like so many
others. They prove that in a world of price promotion, it’s still
possible to differentiate and create remarkable brand experiences that
people will pay a premium for. Rarities like Southwest Airlines that manage
to combine low price and great service are exactly that – rarities.

The question
we need to ask ourselves the next time we’re confronted with bad service
is: would we pay more to have a great experience? Would we literally reach
into our pockets and pay an extra 20 percent or more for excellent service?
It’s not as easy a decision as one might think.

If all we conclude
from this study is that retailers scored 48.2 and "service stinks" then
we lose again. The real story here is that there are 51.8 points of unclaimed
turf for smart retailers who want it. The service gap has never been larger.
Never have the opportunities to shine and create remarkable customer experiences
been more abundant.

As far as I’m
concerned that’s good news for the future of great retail.

Discussion
Questions: Are consumers largely responsible for any deterioration in
customer service at retail? To what degree would better compensation
for store associates solve most issues? Are most consumers near a point
where they’d likely pay a premium for better service?

BrainTrust

Discussion Questions

Poll

36 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Dr. Stephen Needel
Dr. Stephen Needel
14 years ago

The last paragraph in this story makes a great point–there is a lot of space to be had in customer service. The key, I think, is to do it right, not just give lip service to customer service. The premium one pays for better service need not be large. We are Publix shoppers and yes, we pay about 5% more for our groceries there than at Kroger (here in Atlanta). And yes, it’s worth it. And every employee in the store appears to be focused on “How can I make your shopping trip better?” That’s an attitude, not a pay rate.

Warren Thayer
Warren Thayer
14 years ago

I agree with the basic gist of this, and it’s one reason more people are shopping online, especially for high-ticket items where a bit of product knowledge (found on the internet, but rarely in stores) is important.

As for supermarkets, I visit a lot of stores all over the country, and find truly excellent service at places like Publix, Wegmans, HEB and a few others. I think that comes in large part from a culture that is set by senior management, with pay scales that are a bit better than the competition’s. It doesn’t take much more to attract significantly better workers, IMHO. But I think the corporate culture is equally, if not more, important.

Richard J. George, Ph.D.
Richard J. George, Ph.D.
14 years ago

I would argue with the premise that “consumers killed customer service.” Consumers have always demanded a reason to shop at one retailer versus another. When retailers stopped providing any modicum of customer service, consumers responded by simply demanding a better price. In essence, she said, “If you are not going to provide me with customer service and expect me to do the work in your stores, then you will have to compensate me by lowering prices.”

If you give the consumer two equal choices and the only difference is that retailer A offers a lower price than retailer B, retailer A will win the sale every time. Our goal in marketing is to never give consumers equal choices, differentiated only by price unless we have a functional cost advantage.

As noted, Apple and Publix have done a terrific job of using customer service as a real differentiator. The irony is that we do not have to ask the consumer to dig deeply into her wallet to provide “tie breaking” customer service. Remember the equal choices example and recall your high school science class in which you had a balance scale with equal weights on each side. What did it take to shift the balance? Very little! The same goes for customer service.

We have deprived customers so long it doesn’t take much to produce a positive reaction. A couple of examples, one from retailing is Home Depot, who returned to having sales associates in the aisles offering assistance. The other is Verizon, once a consumer insulated public utility, who now uses customer service as the tie-breaker. If a former public utility can do this, can’t the local retailer figure out how to break the ties without giving away the store?

Dick Seesel
Dick Seesel
14 years ago

I’ve noted before that “customer service” can’t be narrowly defined by the old model of the traditional department store. After all, most traditional retailers have allowed their own service standards to decline, to the point where consumers have ended up voting for more value-centric models such as Walmart and Costco…and this has been going on for at least 25 years. Retail analysts need to define “customer service” differently in a value-oriented big-box store, by focusing on speed of checkout, ease of store navigation and in-stock execution.

Speaking of execution…it’s no accident that Nordstrom (more than any other retailer following the “traditional” customer service model) has continued to gain share and a national footprint by maintaining better service standards than any of its department store competitors.

Joan Treistman
Joan Treistman
14 years ago

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.

J. Peter Deeb
J. Peter Deeb
14 years ago

Consumers have definitely segmented the places that they get good service and I think that will continue as price has become more important to more consumers. However, as the economy recovers, there are definitely opportunities in many retail arenas for a strategic change. In the supermarket business there are plenty of markets where a company can step up and be the Wegmans or Publix model. It will be interesting to see which companies recognize this and fill the void.

Joel Warady
Joel Warady
14 years ago

I’m not sure we can place the responsibility of poor customer service on the customer’s quest for efficiency and low prices. The fact that consumers expect prices to remain low while companies expand their use of technology, and run a more efficient organization, does not mean that they have forced poor employee training.

Companies have an obligation to do a better job of hiring, training, and most importantly, providing a proper corporate culture that encourages pride resulting in better customer service. The CEO, whose compensation package has not diminished during the “low-price” consumer quest is the person responsible for poor service levels, not the consumer. When the CEO “gets it,” shops his or her own store and understands what consumers want, and then learns how to give it to them, then and only then will the customer service levels improve.

Let’s make sure that retail executives are not allowed to shirk their responsibility. Their job is to satisfy the customer’s needs; both on price and on service.

Gene Hoffman
Gene Hoffman
14 years ago

The consumer world is full of different-minded segments that have been trained by culture, income and also by retailers in regard to their shopping desires and expectations.

Good, friendly customer service is highly desired by many customers, such as those who shop Publix, Wegmans, HEB, Coach and others, and they are willing to pay more–if necessary–to receive better customer service or products. Such retailers know how to consistently please that large segment of consumers.

But not all customers prefer pampering over price, premium over provincial. That’s why EDLP, warehouse clubs, down-and-dirty 3-for 1 sales and highly promotional pricing gimmicks are sought by even more consumers. That’s how many retailers can stay in business and that’s why Wal-Mart sits up on top of the retail mountain.

Ben Sprecher
Ben Sprecher
14 years ago

Amen! This is an excellent article that points the finger right at one of the core culprits in the decline of customer service–consumers.

In fairness to the consumer, however, there is another driver of this mad rush to the bottom–Wall Street. The relentless focus on making the quarterly numbers has led numerous retailers to mortgage the future of their chain to reap short-term gains. As an example, Circuit City’s investors noticed that they paid their employees much more than Best Buy did, and that margins were lower as a result. Never mind that many of the most senior Circuit City employees actually knew enough to be helpful to the befuddled customers, unlike their competitors’ staff. So, what did management do? They fired their only competitive advantage. 19 months later, they filed for bankruptcy.

I am reminded of the saying “what you measure is what you get.” Most retail consumers measure prices (and it’s hard not to, since that’s the main form of messaging at the shelf), so we get low prices, at the expense of everything else. Investors measure quarterly results, so we get management teams that meet this quarters’ numbers, often at the expense of next year’s (or next decade’s). The only escape from this trap is to measure differently, and to convince your customers and your investors to do the same.

Ian Percy
Ian Percy
14 years ago

Living systems in the natural world always reach their highest potential. Living systems in the man-made world almost always operate at the lowest common denominator. Lesson: oak trees are smarter than many people.

There is no point in discussing ‘who’s to blame’ for all of us wallowing around in retail’s LCD. The correct answer is ‘all of the above’. All of us pointing to someone else means nothing will change. So many have forgotten not only the joy of serving someone well, but also the joy of being served!

Marge Laney
Marge Laney
14 years ago

Are there consumers who like a bargain and are willing to give up service to get one? Absolutely! Are there consumers who like to be wowed and are willing to pay more for knowledgeable and attentive service? Absolutely! Can one person be both of these types of consumer? Absolutely! Successful retailers know who they are and what their customers expect. Walmart is all about price and their customers know it and relinquish service to get it. Nordstrom’s is all about service and their customers know it and are willing to pay more to get it.

But, what is great retail service in the mind of the retailer? To some, great service is fully stocked shelves, automated price checkers, and self-service checkouts. Others see their people as the vehicle for the great service experience and dedicate the time and money to make that happen. Ultimately, the consumer chooses the retailer that best aligns with their expectations for a particular product or service. A retailer’s success or failure depends upon their ability to attract enough consumers with their proposition to stay in business.

Ryan Mathews
Ryan Mathews
14 years ago

Ian is spot on. The fault lies in cultural changes not merchandising strategies. There is a general decline in civility in the U.S. that impacts every social interaction we have. Triple prices and service will still suffer. The problem isn’t in the price point, it’s in the people.

Robert Craycraft
Robert Craycraft
14 years ago

Our definition of good customer service is evolving, as is only natural. 35 years ago, when I started in retail, it was measured in things like quality (“real”) pasteboard boxes, layers of tissue, hand-written sales receipts, etc. Today’s affluent consumer could well look at those same items as environmentally wasteful and slowing her day needlessly, and instead measure customer service as convenient safe parking, efficient sales help, and an increasingly clean store environment–especially in fitting rooms.

100 years ago it would have been published prices and free delivery and a fair return policy. “Customer Service” shouldn’t be looked at as a frozen list of services and benefits, but a fluid description of what your customer wants today.

Bill Emerson
Bill Emerson
14 years ago

The one missing element in Doug’s otherwise excellent discussion is the “what,” as in what is being offered to the customer in terms of product assortment. If the products are the same, over-stored retailers will resort to lowering prices, at which point it becomes an IQ test–“let’s see, I can go to this store and pay $20 for the product or that store and pay $15. Gee, which one should I go to?” Once one retailer lowers price, they all must and the downward cycle begins that ends up in lousy products and lousy service.

Personally, I think this is not about the customer, but about a deep deficit of innovation and product leadership on the part of retailers. Looking at the example of Apple, they are consistently offering innovative products that are ahead of anything else in their category and that delight their customers. They don’t have to resort to price promotions to drive sales. This results in the margins that fund exceptional service and product development, further enhancing the product experience–producing a positive cycle as opposed to the negative one described above.

If retailers want to get off the promotional needle, they need to offer products that are tangibly better than their competition. Give the customer a reason to pay more and they will. Ask Apple.

Roger Saunders
Roger Saunders
14 years ago

Tough to buy into the issue that “Consumers’ killed Customer Service”, or if customer Service is truly “dead.” Standards shift, and each of us have our own interpretation of what defines service–e.g.–is it fast, good, loyal, friendly, convenient, high standard (clean, kid-friendly, etc.), value-oriented, fit our need (do you bank online or go to the bank to deposit/withdraw–and which method equates to service for you?), Timing/availability, etc.

The consumer is SMART. Set your service standard, and drive to perfection in executing upon it. The consumer will recognize the value, determine if they want to pay for it, and both retailer and customer will find a way to make it fit their satisfaction levels.

Christopher P. Ramey
Christopher P. Ramey
14 years ago

It is the responsibility of the supply chain (retailer and manufacturer) to provide reasons for a customer to shop at their store and to earn the margins necessary to provide service as expected. Consumers are still emotional and their decisions are rarely purely objective.

Blaming consumers for poor service is absurd. Successful retailers recognize the challenges and opportunities, and find the proper balance.

Paula Rosenblum
Paula Rosenblum
14 years ago

The thing is, when customer service is promised but not delivered, customers say “The heck with you” and go for the low-cost provider.

REAL customer service is ALWAYS appreciated.

Too many retailers get credit for customer service that is not truly delivered, and then they wonder why customers vote to go elsewhere with their wallets.

Li McClelland
Li McClelland
14 years ago

It’s all about the hiring of the right people and the training. The price of the items sold is irrelevant towards a store having engaged employees providing smiles, courtesy, a swept floor, and efficient, accurate checkout. In these particular areas a least, our local Goodwill store provides far better customer service than our local Macy’s.

Herb Sorensen, Ph.D.
Herb Sorensen, Ph.D.
14 years ago

When retail moved from personal selling to SELF-service 100 years ago, it was a part of a massive societal shift in efficiency: mass production, mass distribution, mass retailing (self-service) and mass media.

Certainly some vestiges of retailer service remain in the system, but even Nordstrom is largely self-service, as are all the other emporia maintaining a good service reputation. The key to a return to “personal” service at self-service retail is the movement of the internet into the stores, beginning with VideoCart, MediaCart, Modiv Shopper and others, and evolving to the iPhone, PDAs and other cellular computing devices.

This doesn’t mean that staff on the sales floor will become irrelevant, but just that a more efficient way of having meaningful “personal” communication with shoppers will involve both retailer direct conversation with the shopper, as well as ubiquitous online social media.

Remember the railroad building, steel driving, John Henry’s competition with the steam drill? Well, John Henry better “get him a steam drill too!” (A nod to the Smothers Brothers.) PDAs are the modern “service” steam drill.

David Livingston
David Livingston
14 years ago

I think the government is somewhat to blame for having such high taxes that it requires many households to now have two breadwinners plus having to pinch pennies. Still, we are all greedy. As a consumer, I can make someone give me good customer service. It just depends how bad I want it.

Gene Detroyer
Gene Detroyer
14 years ago

Cross industry analysis of customer service can be very misleading. Customer Service is not a standalone issue, though we seem to want to treat it as such. Across the retail industry, Walmart may get poor grades for customer service, depending on the questions. But, if we measure customer service “expectation” or “satisfaction” as a function of the shopping experience, Wal-Mart is likely to rank very high. Maybe as high as 100%. Where would the typical department store rank? 50%? 40%? 20%? Lower?

This is not anybody’s fault. High levels of customer service are not a requirement in every retail model. What was the most successful retail model this holiday season? Online retailing! By traditional definitions of customer service, most would say they have none. By level of satisfaction, most would grade them very high.

We have family in France. We bought all of their presents at Amazon.fr. No international postage! No customs forms! Quick delivery! Even gift wrapping! How do I define that customer service? OUTSTANDING!

Customer service is not how well a sales associate fawns over a customer. Customer service is how well the retailer meets the customer’s expectations and needs.

Mark Leventhal
Mark Leventhal
14 years ago

I have an rule for businesses I consult with. Ask your customers what they want. There are three parts to doing business with me. You can only have two…pick the two that you want:
Quality products;
Fast delivery, or;
Price.

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.
14 years ago

Today’s marketplace has the perfect storm: low levels of service so consumers demand low prices, a bad economy so consumers are shopping for lower prices, retailers finding it difficult to train and keep employees who can offer high levels of service, retailers that have a me-too mentality in terms of shopping and merchandising, and a lower level of cultural civility.

The good news is that it will take little movement to stand out in this marketplace. However, it will take commitment, training and the ability to reward new behavior.

Kai Clarke
Kai Clarke
14 years ago

Wrong, wrong, wrong! Service meets our needs, otherwise consumers would not shop there. How many “online” purchases were part of this survey? Did they speak to Buy.com, Amazon.com, or the thousands of websites that cater to consumers from Wal-Mart to Best Buy by offering a better price, without individual customer service? It does not appear so.

How many grocery stores did they go into? I cannot think of the last time I had a “bad customer service experience” in a grocery store. We have very few expectations for customer service in most grocery stores, since they are self-service.

How many gas stations were part of this survey (yeah, they sell gasoline, which most Americans will gladly stand in line for to save a few pennies)? Americans purchase with their dollar votes, and these clearly say that self-service, low customer service, is what we want, when better product pricing is at stake.

Jonathan Marek
Jonathan Marek
14 years ago

The real story here is the ongoing “Collapse of the Middle” in retail (and many other businesses). Consumers don’t gravitate toward an average price/service experience. They either want to “win” by getting great prices or “win” by getting great service (or exceptional product quality, especially in restaurants/service businesses where the product and service are far more tightly linked).

What this has pushed is tremendous innovation on the high end and low end. For example, “mass high end” coffee like Starbucks, or expanded consumer reach for folks like Apple, or the celebrity chef push into branded ingredients, cookware, and fast casual restaurants. On the low end, Walmart has innovated to lower prices in ways unimaginable 20 years ago. In the middle (think Macy’s or your supermarket), there’s not a whole lot of innovation.

This has been going on for decades, and the blips of low prices and good service (Trader Joe’s? Southwest Airlines?) will continue to be few and far between.

Phil Rubin
Phil Rubin
14 years ago

Like many arguments in today’s world, “blaming” the decline in retail customer service on customers is akin to blaming the whack job who tried to blow up the plane en route to Detroit the other day on one President or another. It’s a systemic problem, with a number of factors that have driven about half of retail to the sorry state it’s in.

Just a few key factors for consideration:

1. Increased competition (more retailers, more stores/channels/doors) leads to price as a primary differentiator rather than more strategic, profitable and sustainable dimensions. It’s easy to cut prices and think you can win. It’s harder to realize it’s only a short-term gain, if at all.
2. Excessive financial engineering (e.g., look at what the original LBO and subsequent acquisition by Federated did to Macy’s.) puts added pressure on short-term performance, which is usually addressed via discounting.
3. Commoditization of location and merchandise selection. Too many stores selling the same thing in the same places. This one factor is diminishing as more stores close and companies right-size.
4. The customer being missing from the business strategy, with key exceptions including Amazon, Nordstrom and Publix.
5. Related to #4: not all customers are created equal. It is paramount for any business, retail included, to determine the right customers to focus on given its business model, (and/or modifying the business model) so that it’s optimal for its size, attributes, brand, distribution, merchandise mix, etc. There are very few retailers who can focus on ALL customers while being competitive and profitable.

Rick Miller
Rick Miller
14 years ago

As the lead analyst and author of the study in question, I thought I would pipe up here–first to clarify one minor error and then to pass on some kudos.

The error: The BrandWeek article and a few other media outlets (including the New York Times last week) took the 48.2 Retail Service Quality Index score and sensationalized that with adjectives like “stinks.” As an analyst, I think to say “Retail customer service stinks!” with no qualification or clarification is doing both my report and the industry at large a disservice.

Our study found that there are many, many aspects of service that need to improve (and I’m sure that doesn’t surprise anyone in this forum). We also found a number of things that retailers are doing well. Shopping environments are clean. Transactions are processed quickly. To simply say “things stink” overlooks some of the bright spots.

However, the study did find some significant shortcomings in the service provided during many of the personal interactions between retail associates and shoppers. And this is where my kudos to Doug and all my fellow commenters begin.

It seems everyone here sees the findings more clearly than the brief news stories can portray them. (No offense to my media colleagues; as a former reporter I understand the column-space and time limitations under which you work.) As Doug notes: these findings indicate a wealth of opportunity, not gloom and doom.

And as the more detailed findings of our report show, the behavioral changes retail associates need to display to drastically improvement their score are relatively minor. Joel Warady cites the obligation retail companies have to hire better and train better, and our findings indicate this is likely true. No one will solve the minimum wage dilemma for retail associates any time soon–but good retail leaders will realize that the paycheck isn’t the only reason many associates choose to work in retail…and leaders who can capitalize on that will have an advantage in getting associates to approach the customers with a sense of accountability.

The different points of view so many of you take in your comments indicates a tenet we’ve held true for a while: customer service is much more complex than “outsiders” can imagine. The type of service Costco strives to provide will indeed be different than what Saks provides or Abercrombie & Fitch or Guitar Center. Customer service is brand-dependent, and it is but one aspect of the retail experience. Pricing and merchandising strategies are equally as important–but none of these operate in a vacuum.

Everything counts.

Michael Boze
Michael Boze
14 years ago

I think good prices and good customer service can coexist. Customer service is a perception the retailer and the customer place on the shopping experience.

A well run Costco Warehouse Store has good customer service. As customers, our expectation for a one to one service is limited in that shopping environment but we have high expectations that the front end of the store and the customer throughput at the checkout stand is very good. That in my book is excellent customer service in a warehouse shopping environment. Compare that to a home improvement retailer that takes its price reductions at the front end checkout and slows a transaction and customer throughput down because of poor marking of products or inadequate training for the cashier. Both retailers offer very good prices. One doesn’t understand that a poor front end of a store is part of the customer service equation.

Looking at other presumably higher-end, one-on-one customer service retail outlets in this post Christmas shopping, I was shocked at how poor the Brooks Brothers store in downtown Seattle was operating. It was the same sleepy store that dragged a sale sign to block the entry of the store. Understaffed and under-served customers. Great product offered at a good value.

Bottom line is I have a different set customer service expectations for Costco than I do for Brooks Brothers. These expectations of service were set by the retailer and conveyed to me as a consumer.

Every retailer has a value set of expectations right next to the service expectations. The retailer needs to embrace both the yin and yang of this business to be a great retailer.

Blair Johnson
Blair Johnson
14 years ago

There has been a lot of mention of the definition of ‘customer service’ throughout this discussion. I tend to side with the idea that customer service is a broad, fluid thing, that is only tangible in the eyes of the consumer. Customer service can be many things. At the strategic level it is simply a matter of developing a strategy that embodies and delivers that strategy to your customer.

I do not think this is a matter of consumers “killing” customer service. Consumer segments are always going to find value in different things. To that end, the value that the segment finds must be what your strategy delivers.

If a retailer chooses to compete on price, the results in the long run are always failing. There is no end to price competition, and unless low-pricing is a SUSTAINABLE competitive advantage, you will spend your days slashing expenses and endlessly watching your budgets shrink. Any business economics class teaches you that price wars are not feasible long-term paths to success. The only true, sustainable competitive advantage is differentiation. With retailers, that means figuring out what customers value, and delivering it. Unfortunately, many retailers have fallen prey to short-run results and have been short-sighted to think that consumers will always find value only in low prices.

My experience and reading suggest that many retailers are missing the mark with the assessment of customer value. Realistically, if you sell something, someone else will under-price you. You must deliver some form of value to the customer for the extra cost that they are paying. Many retailers are not both the price-leaders AND failures at providing quality service. This is where retailers are losing the most ground and have the most opportunity for sustainability.

Ted Hurlbut
Ted Hurlbut
14 years ago

I’d like to echo what Jonathan Marek wrote. The middle has collapsed, but I find it hard to attribute it to anything other than the efficient functioning of the marketplace. For the vast majority of consumers, for the vast majority of consumer staples, price and convenience are the drivers. For these highly commoditized basics, the consumer has consistently rewarded those retailers who can deliver the goods faster and cheaper.

What that has left is a small segment of consumers and goods where quality, service and experience trump cheap. Retailers in this segment have the margins to offer their customers better quality, service and a more compelling shopping experience, but the competition is just as fierce in that space as those retailers fighting it out in the mass-market race to the bottom.

George Whalin
George Whalin
14 years ago

If customer service is poor these days, blaming it on the customer is madness. I have spent my entire adult life in and around the retail industry. I am 66 years old and I’ve seen retailers chase customers off with fewer employees, rudeness, lack of product knowledge, policies and procedures that favor the retailer over the customer and the desire to offer the absolute lowest prices.

To blame poor service on the customer’s desire for lower prices is absurd. Customers didn’t invent discounting, retailers did. At the same time, many consumers simply don’t care about what in the past might have been described as “good customer service. They don’t want it and aren’t willing to pay for it. Retailers such as COSTCO offer a great selection of well-priced merchandise but if you are looking for good customer service you won’t find it in their warehouse stores.

For years we’ve heard about how good customer service is at Nordstrom. As a Nordstrom customer, I like their service. One reason it seems so good is that it is so bad in most other department stores. The contrast between Nordstrom’s customer service and their competitors is often startling.

Let’s not blame the customer for poor service and take steps to understand where good customer service really makes a difference and how it can be improved.

Ed Dennis
Ed Dennis
14 years ago

The American consumer is a trained consumer. None of us put off an essential flight because of a high fare. Most of us grew up in areas where we had little choice of airline carrier. However when a second carrier entered the picture it was usually cheaper and quicker for them to build some share by offering better prices that the incumbent. If the service wasn’t quite as good, well you got what you paid for!

The consumer did not bring this upon themselves, it was jammed down our throat by corporate marketers who long ago determined that training workers was expensive, especially when few consumers could resist the offer of a bargain. The people who are willing to pay for service get it and most people insist on service at certain times and forgo it at other times. Our system is capable of delivering service and does it every day. Our restaurants are a prime example of excellent service and no service. However, the no service, fast food restaurants are fanatical about service. The spend millions to get your food to you at the drive through or counter hot and “fresh” (their terminology) and their employees are almost never surly.

So why is it that retail does not seem to be able to duplicate the Fast Food service model? Lazy, weak management operating in a moderately strong union environment have given us an employee who can’t be bothered by customers. But the customer didn’t cause this. The customer is the victim. The consumer is simply a credit line to be manipulated by marketers.

Doug Fleener
Doug Fleener
14 years ago

While I don’t agree with the premise that the consumer killed customer service, I love how Doug was able to engage so many of us and to see the true complexity of customer service.

I think Marge says it best. “Ultimately, the consumer chooses the retailer that best aligns with their expectations for a particular product or service.”

Tim Henderson
Tim Henderson
14 years ago

Yes, retail customer service is pretty shoddy–and that’s being overly kind. But I can’t place the blame for this sad state of affairs on low wages or on any retailer’s desire to keep costs in check or any consumer’s desire to keep spending in check.

The problems with customer service go much deeper. For example, every consumer has their own definition of what comprises good service, and it’s likely to differ according to the product category that individual is shopping. Shopper J. Doe may have a deep personal knowledge of technology so he/she needs little to no assistance when scouting for a new smart phone. But that same consumer may need plenty of hand holding when shopping for a new oven.

A very good case could also be made that changes in society in general (e.g., more cynicism, more time-starved lifestyles and more demanding consumers) contributes to bad service. And does the wrong-headed belief that retailing is a dead-end job help customer service? Those are just three examples of what contributes to bad service. And there are plenty more.

Just as the factors contributing to bad service are plenty, so too are the factors contributing to good service. We don’t need another report to tell us retail customer service is bad–we know that. What we need are solutions that work across a multifaceted industry comprised of numerous buying channels, millions of products and millions more associates and shoppers, as well as solutions that address some of the long-held stereotypes of retailing.

And there are indeed many solutions that can help address specific issues like product knowledge, checkout wait times and call center interactions. But there is only one solution that can reach across the breadth of the retail industry–from the door greeter to the CEO, this industry needs people who really like retail and want to be merchants.

Scott Knaul
Scott Knaul
14 years ago

If you can provide the right service with the right environment you can still give the consumer the value they are looking for. Apple is the prime example. Great product, great service, and very unique experience. When combined, customers are still willing to shell out big bucks for their products. Apple has certainly figured this out; who will follow their lead?

geri cunningham
geri cunningham
13 years ago

I am an American living in the United Kingdom. Reading your comments has made me homesick in many ways! The customer service I am used to was the original service that Federated Stores was applauded for many years ago.

While I agree with most of your comments, I am now teaching retail instead of managing in it. If you think America is short on service, you should shop here just once! Customer service is totally unacceptable here. Even my students recognise it!

To get it right, you have to get the mix right; it may start with hiring the right people, training them properly, rewarding them for their loyalty and thanking them daily for their hard work. I never once had a problem with any of my staff not giving the excellent customer service that I required from them.

Without the customer, you would not have jobs, that’s what I told them daily and they learned to live by it.