Tag Archives: Customer service

April 23, 2018 · 12:04 pm

Touch Me, Feel Me

I was cleaning out some old stuff on my computer this morning when I came across a receipt for something I had purchased online in 2005. I knew I had been an online shopper for a long time. I can’t recall the last holiday season during which I stepped foot into a retail store. I mean, I don’t like to so shop for anything on the weekend due to crowds and lines so I’m rarely in a physical store between Thanksgiving and Christmas.

Given the explosive growth of online commerce, apparently many other folks prefer not to hit the stores either. I mean, the share online represents of global retail sales has almost doubled from 2015 to 2018, and is projected nearly to triple by 2021. It’s booming! That said, online is still less than 15% of retail and will be less than 20% even 5 years from now. There’s a reason for that and it’s not just shipping costs or the difficulty in finding a product.

Most people – almost 75% according to a recent study – visit stores to touch and feel products. If you’re browsing and come across an unfamiliar brand of shoe or clothing, how comfortable are you buying it without examining it for quality and fit? I’m certainly not, and I share that feeling with the vast majority, apparently. Sure, the return process isn’t as difficult as it used to be with many online stores, but who wants to deal with it? I want to see the product, which I can do on or offline, but I also want to feel it, touch it, and check it for quality.

That’s a significant advantage that brick and mortar stores have, one that they should exploit to keep market share. They can merchandise product in a way that online stores can’t. They can use in-store displays. More importantly, as we’ve said many times here on the screed, they can offer a level of personalized customer service that no online store can offer.

Try it yourself. Before you go on a shopping trip, hit the store’s online presence first. See if the two experiences are equal. If the retailer’s physical presence is doing things right, there won’t be a comparison. Shopping for a golf club or a bat or a racquet online at Dick’s Sporting Goods is nothing like going to my local Dick’s store and swinging it. I can browse through a lot more books in a shorter time at my local Barnes and Noble vs. their online store. I’m on my own online. There are pros in golf and tennis to help me in-store.

I don’t think brick and mortar is dead, not by a long shot. I do think stores will fail if they don’t take advantage of the built-in advantages they have. Cutting staff, not investing in merchandising, and simply becoming warehouses where people pick up their online purchases won’t cut it. Does that align with your thinking?.

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Filed under Reality checks, Thinking Aloud

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March 26, 2018 · 10:42 am

Going First Class

I’m going to be on an airplane later this week. I used to travel a lot for my job, often going over 100.000 miles a year. I never tallied up the time that took, but the air portion alone was probably the equivalent of 5 or 6 work weeks aloft. Add in getting to and from the airport plus time at the airport itself and travel was a significant part of my life.

JAL

(Photo credit: Wikipedia)

One great thing happened to my travel life when I made VP. Suddenly I was allowed to book travel in business or first class. Back in the 80’s and 90’s, it was a little bigger seat and some better food. Today, it’s the difference between leaving the plane with sore knees (from the person in front of you hitting your legs) and hungry vs. arriving relatively intact and ready to do business. Still, if you’re paying your own way or traveling on vacation, why fly first class instead of coach? After all, you get to the same place at the same time and the price difference is extremely significant. My answer is something that I think applies everywhere in business.

The airline business has a system now that packs people into planes in a way that maximizes profit. The seats are closer together and an in-flight meal consists of generally unhealthy snacks (stick to the peanuts, kids). You’re charged for everything from bags to blankets. Flying in first is, in short, a much better experience. You’re paying for better care, not for faster or better transportation. Once again, cost vs. value.

Here is the thing. In the course of maximizing profit, the airlines have relegated the comfort and happiness of the majority of their customers to secondary status. I suspect they’re not alone in this. One supermarket will have people walking throughout the store to help you while another will have you walk to the customer service desk if you need help finding something. Yes, the prices may be a bit lower at the latter but isn’t the former a better experience and worth a small premium? First class vs. coach in terms of the experience. Have you ever bought shoes from Zappo’s? They cost about the same as elsewhere but their customer service and support is legendary and a significant point of differentiation. It’s flying in first vs. coach once again.

Customers don’t forget. Think about the grievances you have with most businesses and I’m willing to bet they’re both relatively petty and related to the business choosing profit over customer happiness. Because I refuse to step foot on one of their planes ever again, I will pay a little more this week not to fly an airline that has treated me and many other customers like crap. I’ll also fork over a few bucks to sit in an exit row because it’s a better experience for my legs but I’m not happy about having to do so when there are open seats that in the old days I could have chosen for nothing but now cost more. The real question for your business is how can you provide that first class experience at a coach price even if the bottom line takes a tiny hit?

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Filed under Consulting, Helpful Hints, Thinking Aloud

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March 23, 2018 · 12:00 pm

Who Is Minding The Store?

I’ve been away on a little trip (which is why no posts so far this week) but I’ve managed to make my return in time for Foodie Friday. As it turns out, I was in one of the world’s great cities for food, New Orleans, and as I was departing I had an experience which prompted today’s screed.

English: Photographic portrait of Leah Chase t...

(Photo credit: Wikipedia)

One of the city’s oldest and finest restaurants is Dooky Chase. The proprietor is Leah Chase and she is the Queen of Creole Cuisine. She has fed presidents and celebrities by the bucketful and she has been honored in every way possible by the food world, rightfully so. The award of which I’m particularly impressed is the “Best Fried Chicken in New Orleans.” It didn’t look as if I’d have time to sample some this trip until I got to the airport with 90 minutes to my flight. As it turns out, there is a Dooky Chase at the airport – fried chicken, here I come!

The place wasn’t particularly crowded and I got seated right away. 5 minutes went by. Then 10. Then 15. No server appeared until about 20 minutes in, when I was asked for a drink order. I was also told they had no bartender so a mixed drink was out. Wine? After a few minutes, the server reappeared and informed me that no one knew where there was a corkscrew so I’d have to drink whatever was open. Whatever was open cost $18 a glass, by the way, something I wasn’t told until I got the bill (with no time to discuss it!).

I placed my order. Now I know that great food is cooked to order so I wasn’t expecting my plate to come out immediately. It’s not KFC, after all. However, as another half an hour went by I was starting to worry about making my flight. The hot, extremely tasty chicken arrived although I ate it so quickly I really couldn’t savor it very much. As it turns out my experience is far from unique. The reviews on Yelp and elsewhere universally praise the food and curse the lousy service. That leads us to today’s business point.

The restaurant is run by Delaware North, a company that runs restaurants at over 300 airports. They also have a division that services arenas. They know an awful lot about hospitality. Mrs. Chase knows an awful lot about food. Somehow, however, 1+1 equals zero here.

I suspect this was done as a licensing deal. The Chases provided the recipes and kitchen expertise and the Delaware Noth folks provided the rest. The real question is who is minding the store? I used to license out marks and content and always was careful to make sure that how “my stuff” was used put us in the best light. I used to buy actual products in stores and not rely on samples to assess quality. I’d view how our material was presented in context when we licensed out footage and/or marks as well. In this case, I wonder if anyone from the Chase organization has not just sampled the food but sat in the restaurant anonymously? There clearly wasn’t enough staff, and the staff that was there was seriously undertrained.

If you rely on others to present your product to the world, remember that it’s your name and your reputation on the door. I wasn’t aware that Delaware North was involved at all until the credit card receipt showed up with Delaware North, not Dooky Chase, on the top. Hopefully, most customers understand the distinction. You might not be so lucky.

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