Improvement of Customer Service in Retail Businesses

            One of the major reasons businesses fail today is due to poor customer service. When a retail business is born, its main objective is to gain and build a strong customer base. Many businesses today are successful because of this strong customer base. Businesses advertise on radio, television and newspapers all the time. Huge budgets are spent on commercials. It is not the advertising on television or in newspapers that will retain the customer. It is the ability of management and its staff to retain those customers   that will contribute to the success of the business. A bad taste or feeling left with a customer at any time would leave a lasting impression. Therefore, the business must always provide excellent customer service, no matter the situation. It is always important to leave a good impression with your customers.  The old adage is correct:  The customer is always right!

           The impact of customer service is especially noticeable at the front counter. This is the first place a customer goes to make an inquiry and where the customer checks out.  It is the last place they go before leaving the retail store. It is said "the first impression is usually the last impression."

A study was done in June, 2000 by Bain & Company, Mainspring with over 2000 customers in three retail segments: apparel, groceries, and consumer electronic/ appliances. It showed that 10 percent of customers would rather shop online because they believe they would get better and faster service just with the interaction on the internet… no telephone conversation, no long queues at the retail stores.

 The study cites that a 20 percent increase in customer satisfaction generates a 5 percent increase in customer loyalty and a 20 percent increase in profits. Bain and Mainspring found that the level and quality of customer support was the top-ranked factor driving repeat purchases by customers.

"Companies that are able to maintain their loyal customers and keep them there with a superior value proposition have a huge built-in advantage over pure plays" said Darrell Rigby, director at Bain & Company. "They need to focus on getting the basics right: superior service leads to satisfied customers; satisfied customers lead to referrals and referrals are the most effective way to build an unmatchable customer base."  The study that was conducted by Bain & Company highlights the following as a way of improving on poor customer service:

• Identify your best customer segment and understand their needs precisely.  It is important to note that not all customers are profitable. Hence, tailor your offer to your best customers. Make sure to understand what your best customers really need and why they are no longer customers.

• Use available technology to improve customer service and management cost: A self served checkout area could help to enhance the service offering to customers, reduce long lines on the checkout areas while keeping costs down. Customers can check-out on their own without waiting for store employees to ring up the sales and finish the transaction ;thus, reducing overhead in the store. (www.retailindustry.)

• Tackle company traditions that threaten implementation of service initiative.Some retail businesses have ingrained behaviors and attitudes that hinder delivering superior customer service. Implementing new ideas focused on the customer may be difficult until those old beliefs are buried. Appointing a customer service champion at the board level can help infuse new thinking into the company. Linking rewards to service measures can create some momentum behind the implementation.(www.retailindustry.com)

• Retail businesses need to train, train and re-train employees on the best methods of treating customers. It is important to note that when someone walks into a store that there is potential for making money. The employees should try and see how best to help the customer.

                                      Delivering Fast and Friendly Service

           Exxon Mobil is an industry leader in each of its core businesses and has an unmatched array of proprietary technologies aimed at increasing the productivity of its assets and employees. The company conducts business in almost 200 countries and territories around the globe.  It has established a new definition for world-class scale and efficiency in the fuel marketing business.

            There are ways in which a retail business is able to improve its poor customer service.  The study that follows is research on Exxon Mobil store #26885.  Methods were discovered in how the company was able to improve its customer service.

            Exxon Mobil Company operated Retail Store in 2007 and rolled out its tool called the "TRI MASTER III" (Fast and Friendly Service). This tool addresses the issue of customer service starting with the frontline employees who face these customers every day. To help bring this information to the store, the company required all the managers and district managers to undergo the same training. They will in turn train the sales team members to be effective in delivering quality customer service. They were trained in all aspects of customer service. It ranged from the image of the location, clean and attractive facilities, neatly kept uniforms expected from the employees and quality fresh food   available from the location.

            The tool pointed out 6-steps to customer’s satisfaction which are as follows:

1. Make the Customer Feel Welcome


2. Be Energetic and Helpful


3. Acknowledge Customers in Line


4. Provide Fast Transactions


5. Close the Sale Accurately


6. Thank the customer.

Prior to rolling out the "TRI MASTER III" program, the company had another customer service program G.U.E.S.T:

         G - GREET customers with a hello and offer to help.

         U - UNDERSTAND if customers voice a concern or need

         E - EYE CONTACT when listening or speaking to customers

         S - SMILE whenever customers see you

         T- THANK customers for their business

            The G.U.E.S.T program was a good tool but not effective until the introduction of "TRI MASTER III" and the training of all the employees. There was also a deadline in place by the company to have everyone trained and ready to go. The introduction of the customer service tool, "TRI MASTER III" helped improve the mystery shop results greatly and there was good feedback from all employees.