Retailers & Shoppers Differ On Service
 By Alex R. Merriman

If you want to be the best retailer on the block, you’d better listen to what your customers have to say about service.

It seems most retail merchants and their customers agree that superior customer service is important. But they can’t seem to agree on what exactly what actions constitute superior service.

That’s the finding of a January 2005 survey released by the NRF Foundation, an arm of the National Retail Federation, and the American Express Company.

When asked what customers thought was important, many merchants in the survey overestimated the value of certain service elements. For example, 61 percent of merchants expected customers to say that it was extremely important for store employees to be well educated about the merchandise. But surprise! Only 52 percent of customers actually cited that factor as being very important.

The disconnect was even greater in other service areas. For instance, 44 percent of merchants thought their customers would find it extremely important that employees get to know customers. But only 25 percent of customers saw it as extremely valuable.

More than a third (35 percent) of the merchants surveyed thought that their customers would place a high importance on the quality of merchandise offered. Surprise again. Only one in five consumers felt quality was extremely important.

“While most retailers are convinced that customer service is an essential component of their business success, understanding exactly which elements of service their customers value most is an ongoing challenge,” says John Theiss, vice president of retail industries for American Express Establishment Services. “It is a challenge very much worth pursuing for every retailer.”

So what do retail customers see as elements of superior service? In the survey, nearly three out of four customers (71 percent) said they are extremely concerned with accurate item prices. But only 58 percent of merchants cited accurate pricing as important to customers.

Additionally, three out of four shoppers (73 percent) said that it was extremely important that retailers not share information with other companies. Only 59 percent of retailers saw this as important to shoppers.

Staffing levels was another area where gaps existed between retailers and consumers. Only 31 percent of retailers felt it was extremely important to customers that their stores were staffed with an adequate number of employees. But 47 percent of customers thought that aspect was extremely important.

“In some areas, merchants are aligned with their shoppers, but in others, they are not,” says NRF president and CEO Tracy Mullin. “There appears to be a disconnect in what consumers feel is important and what retailers value. When retailers are able to determine what their customers want, they can focus on improving areas where customers find real value.”

So how can you find out what your customers want in terms of service? Ask. Create a quick survey. Hand it out to customers in your retail establishment or mail it to customers. For mailing, print the survey on a pre-paid, return postcard and mail it in an envelope.

Here’s the wording you can use:

• At XYZ, we want to provide you with the best service. Please tell us what’s most important to you as a customer. Rank these items in order of importance, from 1 to 6, with 1 being most important and 6 least important. Thanks for your help.

• Accurate pricing of merchandise

• Quality of merchandise

• Adequate number of staff people in the store

• Maintain your privacy by not sharing your information with other companies

• Staff that gets to know you as a customer

• Staff that is knowledgeable about the merchandise

When the questionnaires are returned, you might be surprised at the answers. Make changes in your small business to meet customer expectations of service. You’ll be rewarded with more sales and happier customers.

(Posted February 2005)

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