What happened to customer service?

In the old movie miracle on 34th street, Macy’s Santa sends customers to rival store Gimbels for products that Macy’s doesn’t carry. After an outcry from management, it turns out customers really appreciate this service and become more loyal to Macy’s than ever.

Today’s retailers have forgotten that lesson. Everyone is looking to cut costs. Customer service is no longer seen as a revenue generator, so it’s one of the first things on the chopping block when a retailer starts to tighten their belts.

Good customer service is good business. Create repeat customers. Returning customers are what all retailers want because it is much less costly from a marketing standpoint to sell to an old customer than it is to attract new customers.

Retailers no longer know what constitutes “good” customer service. The general feeling is that if the product leaves the store and does not come back, everything is fine. Customer service is for “problems” only, and customer service’s job is to make problems go away at the lowest possible cost. The less interaction between the store and the customer, the better.

Superior customer service demands extensive interaction between the customer and the retailer. In my Internet company we look for all possible opportunities to contact and involve the client. 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. At that time the customer receives information about the production and delivery process and is encouraged to call if he has any questions. A second contact is made shortly before production is complete. The third contact is made when the product is actually shipped. At this time, there is a detailed description of what the delivery process will entail. A tracking number is also provided so that the customer can track the product during the shipping process. The fourth contact is after delivery, when each customer is contacted to find out if he is satisfied with the product or if any additional follow-up is needed.

When we receive a request for one of our free catalogues, we send it along with a letter stating that we also offer free fabric swatches and design advice. When an order is placed, we acknowledge the order electronically and then personally send an email thanking the customer. We notify them when the product (in our case sofas) is about to be shipped. We notify them again after it has been sent. The most important thing is that we contact the customer after receiving the product to make sure everything is fine and there are no problems. When doing this, sometimes there is a minor issue that the customer might not have mentioned but that distracts them from enjoying the sofa, for example a cushion feels too firm. We send free and softer replacement cushions. The result is that instead of having a silent but disappointed customer, we now have a very happy buyer who enthusiastically recommends us to friends and family. The cost of the extra cushions is a marketing cost.

The secret behind great customer service is simply putting yourself in the customer’s shoes. What would you like the company to do if you were the customer? Treat the customer how 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 knowledgeable person who can answer their questions.

2. Respond to emails and phone messages promptly. All email phone calls should be handled as quickly as possible, hopefully less than an hour.

3. Be honest. It’s amazing how often salespeople feel that telling the truth gets in the way of making a sale. If a microfiber fabric already has a stain protector built in and doesn’t need the optional spray protector, let the customer know. Once you’ve saved them from spending an unnecessary $50, they’ll trust you completely and might even be willing to forgive minor glitches that may arise. If a sofa won’t be finished by the promised deadline, call as soon as you notice the problem.

4. Underpromise: If a delivery will take 3 weeks, figure 4. Customers are often delighted when something is ready ahead of schedule.

5. Maximize customer contact. This does not mean sending frequent ads or spam. It means keeping the customer informed about the progress of their order up to and after delivery.

6. Be knowledgeable about your products and your company. If you don’t know the answer to a question, find out quickly.

7. Surprise and surprise your customer – give them something they don’t expect. This can be as simple as delivering your product a week early, or it can involve giving an upgrade free of charge. This is particularly important when a mistake has been made and you are trying to correct it. Go above and beyond what your customer expects and they will change from disgruntled critics to enthusiastic supporters.

Retail stores have been cutting back on customer service for years. As competition grows and profit margins shrink, customer service is one of the first places to cut back. Everyone who has ever tried to call a computer company for technical support and ends up talking to someone in India knows the problem. Corporate bean counters forget that good customer service can lead to better margins. You are not forced to fight over who can offer the lowest price. Also, it is more pleasant to work in a friendly environment. When you have happy customers, you have happy employees.