in the old movie Miracle on 34th StreetMacy’s Santa sends customers to Gimbels’ rival store for products Macy’s doesn’t have. After an outcry from management, it then turns out that customers really appreciate this service and are becoming more loyal to Macy’s than ever before.
Today’s retailers have forgotten this lesson. Everyone is looking to cut costs. Customer service is no longer seen as a source of revenue, so it’s one of the first things put on the chopping block when a retailer starts tightening its belt.
Good customer service is good business. Creates repeat customers. Repeat customers are what every retailer wants because it is much less expensive from a marketing point of view to sell to a previous customer than it is to bring in new customers.
Retailers no longer know what makes for “good” customer service. The general feeling is that if the product leaves the store and does not return, then everything is fine. Customer service is only for “problems” and customer service’s job is to remove problems at the lowest possible cost. The less interaction between the store and the customer, the better.
Superior customer service requires extensive interaction between the customer and the retailer. At the Internet company I work for, we look for every possible opportunity to connect and engage the customer. Once a customer has placed an order, the company will contact them at least four times during the 4-week period between sale and delivery. The first contact is to acknowledge the order and thank the customer for their purchase (or purchase). At that time, the customer receives information about the production and delivery process and is encouraged to call if there are any questions. A second contact is made shortly before production is completed. The third contact is made when the product has actually been shipped. At this time, there is a detailed description of what the delivery will entail. There is also a tracking number provided so that the customer can track the product during the shipping process. The fourth post-delivery contact is when each customer is contacted to see if they are satisfied with the product or if some additional follow-up is needed.
When we receive a request for one of our free catalogs, we send it with a message indicating that we also offer free fabric swatches and free design advice. When an order is placed, we acknowledge the order electronically, and then send an email thanking the customer personally. We inform them when the product (in our case the sofas) is about to be shipped. We inform them again after they are shipped. Most importantly, we communicate with the customer after receiving the product to ensure that everything is in order and that there are no problems. In doing so, there is sometimes a minor issue that may not have been mentioned by the customer but which distracts from enjoying the sofa – for example, the cushion feels too firm. We send free replacement and softer pillows. The result is that instead of us having a silent but frustrated customer, we now have a very happy buyer who will enthusiastically recommend us to friends and family. The cost of extra pillows is a marketing cost.
The secret behind outstanding customer service is simply to put yourself in the customer’s shoes. What do you want the company to do if you are the customer? Treat the customer the way you want to be treated.
1. Answer phone calls promptly. It’s amazing how grateful a customer can be when they realize they’re talking to a real, real, knowledgeable person who can answer their questions.
2. Respond to emails and phone messages promptly. All phone calls via email must be dealt with as quickly as possible, hopefully in less than 1 hour.
3. Be honest. It’s amazing how salespeople feel telling the truth gets in the way of selling. If your microfiber cloth already has a stain protector in it and doesn’t need an optional spray protector, let the customer know. Once you save them from spending an unnecessary $50, they will fully trust you and may be willing to forgive minor mistakes that may come up. If the sofa is not finished by the promised deadline, call as soon as you become aware of the problem.
4. Promise – If delivery will take 3 weeks, estimate 4. Customers are usually happy when something is ready ahead of schedule.
5. Maximize contact with the client. This does not mean sending repetitive ads or spam. It means keeping the customer informed of the progress of their order up to and after delivery.
6. Be aware of your products and your company. If you don’t know the answer to a question, find out quickly.
7. Surprise and wow your customer – give them something they don’t expect. This can be as simple as having your product delivered for one week right away, or it can involve offering an upgrade at no cost. This is especially important when an error has occurred and you are trying to correct it. Go further than your customer expects and they will change from disaffected critics to enthusiastic supporters.
Retail stores have been underestimating customer service for years. As competition grows and profit margins shrink, customer service is one of the first places to cut back. Anyone who has tried calling a computer company for technical assistance and ended up talking to someone from India knows the problem. Corporate bean counters forget that with good customer service you can earn better margins. You don’t have to fight about who can offer the lowest price. Moreover, it is best to work in a friendly environment. When you have happy customers, you have happy employees.