Some still remember when full service was status quo. Customers were important and helping them was not only expected, it was just good business. It seems those days may be making a comeback.
Retail Customer Experience reported on two interesting examples of the return of full customer service. First Sears, who has been struggling in recent months, has decided to re-introduce their full service beauty departments. Apparently, they pulled out of cosmetics some eight years ago. Now in an effort to lure shoppers back in the doors they will feature brands like L’Oreal, Maybelline and Covergirl with counters and attendants just like you find at Macy’s for Estee Lauder and Bobbi Brown. Sears choice of brands is interesting for several reasons. These brands are usually relegated to mass and drug stores where shoppers have no opportunity to try before they buy. You have to know the product or be willing to take the risk. There is a built in base of customers in those drug store shoppers that are hesitating more now than before for fear of wasting money on a lipstick that is just the wrong color. In addition, all of these brands, Covergirl in particular, have a strong following of younger women who typically do not shop Sears. Pulling them into the Sears store with an opportunity to sample their favorite low-cost brand while getting luxury brand service is pretty savvy. Not to mention, the one thing that will sell in a down economy is lipstick.
On the grocery side of things, a Staten Island ShopRite is offering valet parking. No, not Whole Foods, ShopRite. One of their shoppers was quoted as saying, “I don’t need the valet service,” as she walked to her car. Which begs the question, how much service is too much. There’s a difference between a well thought out plan that targets customers based on understanding their needs and lifestyles and creating unnecessary bells and whistles.
Do retailers have to be careful not to go overboard in trying to win customers? How do they go about striking the right balance?
4 Comments
Has anyone thought about making sure there is enough personal interaction with an associate? In these times companies are quick to cut payroll for sales associates, leaving the customer to go unattended. What good is it to have a customer in your store if you can’t take care of them?
If companies want to improve their sales, maybe they should understand what customer service really is.
Good point, Therese. It’s a tough balance for retailers right now. I wonder if we’re going to see more digital help in-store over the next few years if it proves less expensive than associates. Could shoppers be re-trained to interact with kiosks at retail?
I have seen a number of retailers going the opposite way — cutting back on non-store costs in order to beef up sales associate coverage in stores. As an example, Home Depot recently cut 1000 HR managers from their stores and re-deployed those costs to additional in-store coverage. I think too often we mistake a cut in retail company staff to mean a cut in their store staff — I no longer think this is the case. I think they are cutting their non-store staff!
I also believe companies are increasing their investment to improve their communications to customers via static and digital means. We are seeing more use of digital content at the shelf level to provide product information and product comparison — especially for “highly considered” product categories (that is products that take a while for a consumer to make a final determination as to whether to buy it or not). This is a perfect use of digital technology at the store level. With the dramatically reduced cost and smaller footprint of digital viewing devices, the return on investment for retailers is becoming compelling.
On balance, customer service at retail has gotten so bad the past several years, that going the “extra mile” is no longer necessary. Just going the extra ten feet can differentiate a retailer nowadays. Too bad. What this really means to retail is that your customers now have the option to “de-select” your store and you may never really know why. Attention to service (or lack thereof) may be the slim line between success and Chapter 11.
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[...] through signage boosts sales. This is very different for beauty counters which are typically a full-service, luxury experience. Estee Lauder’s beauty brands like Clinique are synonymous with personal [...]