Lecture Retailing management (6e) Chapter 19 Levy Weitz

Lecture Retailing management (6e) Chapter 19: Customer service. The following will be discussed in this chapter: services offered by retailers, customer service strategies, standardization, cost of customer service, gaps model for improving retail customer service,...

Managing the Store

Store Management

Customer Service Layout, Design and

Visual Merchandising

Services Offered by Retailers

Customer Service Strategies

Customization Approach encourages service provider

to tailor the service to meet each customer’s personal needs.

Store – sales associates offer individual customer service

Electronic Channel – instant messaging

Drawback : Service might be inconsistent

Customized service is costly

Standardization Approach is based on

establishing a set of rules and procedures and

being sure that they are implemented

Cost of Customer Service

High levels of customer service can be costly, but good

customer service is worth an investment

PROFITS

COSTS

It costs more to acquire customers than to generate repeat business

Customers Evaluate Service Quality

Role of Expectations: based on knowledge and

Assessing Service Characteristics

• Reliability: accuracy of billing, meeting promised delivery dates

return policies

• Tangibility: appearance of store and

salespeople

and emails, recognition by name

giving prompt service

Perceived Service

Cues used to assess serviceReliability

Assurance

Tangibility

Empathy

Responsiveness

Improving Service Quality

Gaps Model for Improving

Retail Customer Service

customer wants

service goals

the service promise

Closing the Knowledge GAP

• Customer research

• More interactions between managers and

customers

• Better communications between managers

and service providers

Market Research

use this information to improve service

Comprehensive Studies

Gauging Satisfaction with

Individual Transactions

Customer Panels and Interviews

Interacting with Customer

Customer Complaints

Feedback from Store Employees Steve Cole/Getty Images

Customer Complaints

Complaints are a source of information for retailers

Information about merchandise and its quality

Information about services

This feedback can be used for buyers, planners and customer

service representatives Retailers need to encourage

complaints because most customers will not complain.

Closing the Standards GAP

• Innovative solutions

• Set service goals

• High quality service commitment

• Define the role of service providers

• Measure service performance

What Does Good Customer Service Mean?

• Retailers need to provide clear definition

of this to employees

• Description of service must be specific

so expectations are clear

• Service goals should be measurable

customer surveys

mystery shoppers

Royalty-Free/CORBIS

Closing the Delivery GAP

• Instrument and emotional support

• Internal communications

• Reduce conflicts

• Empower employees

• Providing incentives

Support for Service Providers

have the appropriate systems and the right equipment to deliver the services

emotional support from their coworkers or

a concern for the well-being of others

The Target of Empowerment:

Excellent Customer Service

Stimulates initiativePromotes learningTeaches responsibility

Empowerment is Not for Everyone

• Some employees will not take the

Using Technology

Retailers are using

technology to assist sales

More Technology

• Hand Held Scanners – help to provide customer

service by allowing customers to scan large

merchandise instead of struggling with the

product to checkout

• Intelligent Shopping Assistants – a device

connected to a shopping cart with customer

database to provide personalized information to

Closing the Communications GAP

Realistic commitments

Corporate ideas – reality of store operations need to be communicated

Managing customer expectations

• Provide explanation

• Describe how retailer is improving situation

• Provide accurate info at point of sale

The difference between the service provided by

the retailer and the service actually delivered

• Listen to the customer

• Provide a fair solution

Distributive fairness

Procedural fairness

• Resolve problem quickly

Reduce number of contacts

Give clear instructions

Avoid jargon

What’s Fair?

what they paid for

the process used to resolve complaints

• Did the employee collect information about the situation?

• Was this information used to resolve the complaint?

• Did the customer have some influence over the outcome?