Tuesday, May 1, 2012

Customer Service in the Retail Environment


So I just finished up a course on retail management and I had a couple “wow” moments on the chapter dealing with customer service so I decided to blog about the things I have learned! Customer service in the retail environment is a key component in creating customer satisfaction. It’s the set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers. 85% of customers said that they spend and shop more at retailers who provide good service. I would totally agree with that statistic because I find myself shopping in stores even if I don’t “need” anything just to support the retailers that really care about the customers.

I was always taught that it costs a lot more to acquire a new customer rather than maintaining a present customer but when I found out that it costs 5 to 15 times more it really put things into perspective. I then started to think of the places that don’t provide great customer service and the one place I had in mind was Wal-Mart. I then understood that discount/warehouse stores don’t provide the best customer service because they focus a lot of attention on price. When asking the question “How do you feel about Wal-Mart’s customer service” the majority of people responded with negative answers. This made me think of how important Service Recovery (listen to the customer, provide a fail solution and resolve the problem quickly) is because 91% of dissatisfied customers will never shop there again and on average tell 9 people about their bad experience!

If you work in retail I hope you’ve learned a little about how important it is to treat your customers with respect!