Chapter Thirteen: Customer Service in Retailing · services for retailers and e-tailers...
Transcript of Chapter Thirteen: Customer Service in Retailing · services for retailers and e-tailers...
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Chapter Thirteen: Customer Service
in Retailing
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Being on par in terms of price and quality only gets you into the game. Service wins the game.
– Tony Alessandra, professional speaker on customer service
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Integrated Retail Management Flowchart
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Objectives
• Explain why the targeted customer is always right.
• Define customer service and explain the rater system.
• List and explain the key customer service activities for retailers and e-tailers.
• Explain customer response marketing and why it is important in retailing.
• Identify and describe various customer service levels.
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Customer Service
• Customer service can
– Make or break a retailer
– Impact image and equity
• In general customers are willing to pay more for excellent customer service
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The Targeted Customer is Always Right
• Retailers do not need to satisfy everyone’s wants and needs
• Retailer “selects” customers that are a good fit for the retailer
• Developing customer profiles helps to understand target
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Undesireable Customers
• A customer that:
– Buys goods for a “special event” and returns them after the event for a refund
– Steal
– Cannot legally purchase products/services
– Verbally or physically abuses the retailing staff
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Identifying and Segmenting Customers
• Develop customer profile(s)
• Customization
• Retailers must manage expectations
– Customers should understand why some get special perks
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Customer Perceptions
• Consumer perceptions are influenced by gaps:
– Not knowing what customers' expect
– Providing the wrong service-quality standards
– Expected vs. actual service
– Ensuring that delivery of service matches promises made by the retailer
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Consumer Perceptions
• Consumer perceptions fall into 5 main areas:
1. Reliability
2. Assurance
3. Tangibility
4. Empathy
5. Responsiveness
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Customer Services
• Goal of customer services
• Examples of basic service offerings for retailers and e-tailers – Convenient retail location or cyberlocation
– Convenient hours of operation
– Product availability
– Online retailing
– Faculty cleanliness
– Security and privacy
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Customer Services (cont’d)
• Examples of additional/luxury services for retailers and e-tailers
– Adequately staffed retail site
– Customer service toll free number
– Gift wrapping, personalizing, product packaging and shipping, personal shoppers, kiosks, bridal registry, valet parking, etc.
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Customer Services (cont’d)
• Customer service levels have declined at brick and mortar sites
• E-tailers – Key customer service activities
• Effective handling of complaints • Electronic confirmations of orders • Developing cyber-relationships with customers
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Service Policies
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Customer Focus
• Simple actions have significance
• Tools to gather information
– Surveys
– Bill-stuffer questionnaires
– Questionnaires accompanying warranty or registration cards
– Shopper’s panels
– Trade associations
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Customer Retention Strategies
• Must be top-down and bottom-up commitment to providing customer service
• Training programs
• Reward employees
• Get rid of employees who don’t perform
• Empower employees
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8 Cs of Creating Loyalty in E-tailing
• Customization
• Contact interactivity
• Cultivation
• Care
• Community
• Choice
• Convenience
• Character
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Customer Response Management
• Also called customer relationship management or customer-responsive management
• Uses databases to collect information from customers
• Must be integrated with all aspects of the IRM
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1:1 Marketing
• Focus on increasing business from current customers
• Most important factors
1. Customer communications
2. Executive buy-in
3. Maintaining a long-term focus
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Customer Service Levels
• Must match customer and retailer expectations
• Must consider
– Cost of providing service vs. benefits
– What the competition is doing
– Store characteristics
– Income level of target market
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