Wait Times: How Long is Too Long

I recently came across an article about the Kronos Retail Shopping Frustrations Survey that takes a look at shopping frustrations across all retail store types and the effect that a poor shopping experience has on the retailer’s reputation. Some highlights include:

• 84% of shoppers are frustrated with lines at checkouts
• 74% of shoppers would actually leave a store without making a purchase if lines are too long
• 81% of respondents are likely to share a poor shopping experience with friends and family
• 49% of respondents say they have walked out of a store with long lines at the checkout without making a purchase
• 25% have walked out and taken their business elsewhere to find a store with shorter lines
• 51% indicated long lines with unopened checkouts as the biggest frustration

Yet at the same time, customers felt that having to wait was acceptable.

• 17% of respondents happy to have one person in front
• 44% of respondents agreeing that a maximum of two people is acceptable
• 23% of shoppers think its fine to have a maximum of three people in front of them
• 7% of respondents think it’s acceptable to have up to four other customers in front.

Commenting on the findings from the survey, Simon Macpherson, Operations Director EMEA Kronos, says: "Shoppers are happy to shout it from the rooftops when the service provided is not up to scratch, leaving retailers with dented reputations. Unopened pay points, long queues and out-of-stock products are almost without exception the result of staff not being in the right place at the right time to provide the best possible customer service. Retailers need to address this issue if they are serious about improving one of the prime differentiators between their competition - the customer experience.”

You would think that every retailer would aspire to having happy customers 100% of the time. Happy customers mean loyal customers and greater loyalty brings bigger profits, yet many retailers still fall short when it comes to providing a great customer shopping experience.

Cheers!

Bill Hogg works work with clients to help activate a “customer-focused” culture that helps employees embrace the brand promise and deliver an intentional Branded Customer Experience -- internally and externally.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.

For more information please contact (905) 841-3191.
Email: bill@billhogg.ca, Web: www.billhogg.ca

Service plays even bigger role than last year

Recent data released by TD Canada Trust found that 95 per cent of consumers say their experiences with a company can make or break a relationship with the firm or its products -- up 10 points from a year ago.

In fact, when asked which form of appreciation they are most interested in, 49 per cent ranked "just good customer service" as No. 1, followed at a distance second by rewards or loyalty programs at just 18 per cent and 17 per cent gifts.

But as we know, even more importantly, good service doesn't end with one customer but spreads to other potential customers, as happy customers become advocates. The survey also found that 89 per cent say they share their positive experiences with friends and family.

Compare this to the recent study on the airline industry. J.D. Power and Associates 2008 North America Airline Satisfaction Study indicated that overall satisfaction for the airline industry has declined in 2008 to its lowest level in three years.

Now you might expect that this would be driven by increased pricing, but the decrease in satisfaction with people factors is more than twice as large as the decline in satisfaction with price factors.

The study finds that satisfaction with “people” factors—including knowledge, courtesy and helpfulness of reservation and gate agents, check-in staff and flight crew—has declined dramatically since 2007, and is the leading contributing factor to the overall decline in customer satisfaction with airlines in 2008.

Sam Thanawalla, director of the global hospitality and travel practice at J.D. Power and Associates said, “In this unstable industry environment, it is critical that airlines invest in their employees as a means to enhance the customer experience, as there is a strong connection between employee satisfaction and customer satisfaction. Those airlines that focus on keeping their employees informed and motivated will be better able to change negative consumer sentiment and truly differentiate themselves.”

Whether banking, airlines or any other business, I couldn't have said it better.

Cheers!

Bill works with clients to help activate a “customer-focused” culture that helps employees embrace the brand promise and deliver an intentional Branded Customer Experience -- internally and externally.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop

For more information please contact (905) 841-3191.
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/

Restocking Fees

I recently received an email that is being circulated around the web about the 15% restocking fee at Best Buy in the US (Best Buy Canada does not charge this Restocking Fee). I thought it raised an interesting point about serving the organization versus serving the customer.

This particular customer was upset because they had been required to pay $45 to return a GPS when they decided to return it in favour of another brand. They were further angered because since the amount was over $200 and they had paid cash, they had to wait for a cheque to be issued from head office in 7 to 10 days.

When Best Buy US was contacted, they confirmed that when certain non-defective items are returned (i.e Notebook Computers, GPS, Digital Cameras, In-car Video Systems, etc.) they do deduct a 15% restocking fee. Their rationale is that people might borrow these items, use them and then return them to Best Buy like a lending library. The restocking fee is to discourage people from purchasing items before a weekend, special event or trip and then returning them afterwards.

Resultant, the store ends up subsidizing this customer because they now have an obviously open package, potentially causing future buyers to avoid purchasing unless discounted. Their basis is that this way the customer who "changed" their mind bears some of the loss associated with this opened product.

When you compare this policy to some of the stories we hear -- returned tires at Nordstrom when they don't sell tires, or fur coats from Macy's used for a weekend benefit ball and returned -- you can clearly see the difference in their customer-focus.

While I don't agree that customers should take advantage of companies who put customers first, I think we must consider what message our policies are sending. For example, do we insult 99% of our customers with a policy of no more than 3 items into a change room to prevent the 1% who is intending to steal?

Have a look at your policies and ask yourself -- are they for the organization, or are they for the customer? Something to think about!

Cheers!

When a discount offer does more damage than good

As a subscriber to the Mirvish series, I received an email today, inviting me to a special presentation to meet the final 10 contestants for the title role of Maria in their upcoming production. I expect the purpose of this offer was to add value to my subscription and make me feel like an insider -- hence increasing my loyalty and emotional connection to the Mirvish company. This sounds like a good idea.

However, added at the end of the email was the following message. REMINDER: Order extra tickets for The Sound of Music at 15% off of the regular price before they go on public sale tomorrow. Call 416-593-4225 or 1-800-771-3933.

This sounded like a good idea so I called to book an extra ticket to take my young daughter. However, when told the final price I was told that the 15% discount was only available on certain performances -- the performance that I already had my 2 subscription tickets for was not included.

When I questioned this in the context of the actual message in the email, which communicated no such conditions, I was told that this was a reminder of a previous email and in that original email they had explained the offer was only available to certain performances.

My option was to trade my existing 2 tickets (5th row, 2nd Friday night of the run) for another mid-week night later in the run.

Now as a subscriber for almost 15 years, this treatment didn't make me feel like an insider. In fact, I was more disappointed about the outcome than if I hadn't been made the offer at all. I paid the full price, but with a bad feeling about how I had been treated. The onus was put on me to track the offer through multiple emnails to ensure I knew the deatils of the offer.

Clearly when the Mirvish team was crafting this offer they were not thinking from their customer point of view, but were simply looking for a means to sell more tickets.

Net outcome, I now have less loyalty, because they have not demonstrated loyalty to me, their long-term customer. Further, when presented with the problem, they made no real effort to recuperate when I highlighted the disconnect between their messaging and their rules.

So be careful when making an offer to an existing customer (or any customer). Make sure you are looking at the offering from their perspective, not just your own. Treat them like gold, since it cost 5 times more to get a new customer than keep a old customer.

Cheers!

The Importance of Goal Setting

A critical step to achieving exceptional performance is goal setting. Clear goals and corresponding measures, ensures employees understand what is important to succeed.

Ken Blanchard, in Customer Mania!, tells the story that when he was a college professor he used to give the final exam at the beginning of the course, and then spend the rest of the course teaching students the answers so they would know how to be successful on the final exam at the end of the course.

Real life should be like that. We should know what the final expectations are in advance, so we can develop the skills necessary to be successful.

Goals are set at the top and cascade down through the organization. Personal goals must be clearly linked to organizational goals. There should be a clear line of sight between the goals at the top of the organization to each individuals goals and activities. Every employee should be able to see how there daily activities align directly to and are supportive of the overall organizational goals.

For example, if an organizational goal is to increase sales, as a server, I must be able to see how my daily activities deliver excellent customer service and translate into a happy satisfied customer who will return often and tell their friends about their experience.

Only when each employee sees the importance their daily activities play in achieving overall goals will they internalize the organizational goals and recognize how valuable their contribution is to the success of the organization.

Cheers!

The Customer Speaks

I am sure you have heard about the recent "layoff" of an Owen Sound Ontario employee who shaved her head to donate the hair for a Cancer fundraising. It would be almost impossible to miss unless you were on a deserted island.

In spite of the fact that the events took place in a northern Ontario community, I have read coverage on all the major US news feeds and even in the UK. Clearly this situation got people's attention.

However, I think the most telling quote was from the owner, "the public outcry has been devastating to the restaurant and has upset the other employees". He goes on to say that he wished they could have sorted something out before she went to the media.

I guess he still doesn't get it. It should have been sorted out before he made the statement. He sees the problem being that his behaviour was actually held up for scrutiny, not that his initial behaviour was inappropriate.

How often do we hear about companies that talk a good game, but when the rubber hits the road, they don't walk the talk.

If this company culture was one that put people first, do you think his initial decision would have been to send her home for the summer. The initial decision is the one that gives us the insight into the culture, not the belated apology.

Now, the people have spoken and I am sure that the business will pay the consequences. Would you go to a restaurant that treats its employees with such disrespect? Would you expect good service from employees who are treated so poorly?

So even if the product was great, the experience can overshadow the product to such an extent that it defines the brand.

A real life example we should all reflect on from time to time.

Cheers!

6E's for Easier Implementation

I recently visited a website devoted to developing Character Communities (http://www.charactercommunity.com/), a significant initiative in the schools and businesses in my local community.

The thing I was struck by was the many similarities between developing a Character Community and developing a Customer-Focused organization. I guess that's because both are based on a clear vision of what kind of culture you are trying to build.

I thought I would share a list of 6E's developed for emphasizing character in schools.

1. Example: The way we behave provides examples


2. Explanation: Character development is not a program of do’s and don’ts but rather a dialogue to gain understanding and appreciation of the benefits


3. Exhortation: This is about urging and praising desired behaviours


4. Environment: This is all about relationships, which provide safety, synergy, and a stage for achievement


5. Experience: Providing students with experiences and reflections that would balance the bombardment of experiences from media and entertainment


6. Expectation: High expectations for students and staff

These are the 6 steps being used as strategies to build character throughout our local schools. If we keep these 6E's in mind, we will be well served in developing our own culture as well.

Cheers!

The Secret of Enduring Greatness

I thought I would take a break today and let Jim Collins (Good to Great) speak. I recently came across an article he wrote for Fortune magazine in which he talks about the importance of culture in great companies.

In the article, he was responding to the concept that great companies can't endure based on the work of Joseph Schumpeter, the great economist who wrote about the "perennial gale of creative destruction" wherein technological change and visionary entrepreneurs give birth to new things that obliterate old things, only to see those new things become obliterated by the next generation.

You can imagine that Jim took exception to this notion as an all encompassing point of view.

What I found most interesting in his article was that when giving examples of great companies that endured, he repeatedly made references to their cultures. "These companies trained leaders who could evolve and create a portfolio of flywheels - from candles to Pringles, from medical plasters to Tylenol, from light bulbs to jet engines - yet they also held tight to core values that have remained fixed for 100 years or more."

He used the example of Wal-Mart and Ames to illustrate his point. In the early 70”s these 2 companies looked very similar, yet one thrived and the second disappeared. When examining the reasons for their differences, Jim points to internal conditions versus external influences.

He sums it up beautifully, “Companies do not fall primarily because of what the world does to them or because of how the world changes around them; they fall first and foremost because of what they do to themselves.”

When he talks about what they do to themselves, he specifically talks about internal culture as one of the key influencers.

“When you've built an institution with values and a purpose beyond just making money - when you've built a culture that makes a distinctive contribution while delivering exceptional results - why would you surrender to the forces of mediocrity and succumb to irrelevance? And why would you give up on the idea that you can create something that not only lasts but also deserves to last?”

As you can see, he makes the point far better than I, so I encourage you to read the article in its entirety.

Cheers!

Empowering Employees

I have set a goal to read (or reread) 1 business book every 2 weeks. I was recently at the Canadian Franchise Conference, so I decided to re-read "Customer Mania!" by Ken Blanchard since it is the story of how YUM! Brands --owners of KFC, Taco Bell, Pizza Hut, Long John Silver's and A&W Restaurants in the US -- is building a Customer-Focused company.

I was rewarded by having a couple concepts refreshed in my own mind; one was empowering employees.

In this book Ken tells the story of how Ritz-Carlton gives every front-line employee a $2000 discretionary fund to solve a customer service issue -- without manager approval.

David Novak, CEO for YUM Brands! liked this idea so much he implemented a similar policy, except the value was $10.

Although the values are quite different, they are actually very similar. Both amounts are significant in the context of the products available at the company.

In both cases the employees feel respected and empowered. They have the ability to address customer issues immediately and appropriately based on their first hand knowledge of the issue.

This discretionary fund becomes a competitive advantage because the person closest to customer -- and the problem -- feel they can make decisions and solve problems. This in turn develops an ownership attitude and customer service that creates fans!

Cheers!