Tuesday cover- customer service at the holidays

Some grouchy sales clerks do, too.

Shopping is now at its peak and holiday sales can account for up to 40 percent of a retailer’s annual revenue. But just when stores need to put on their best customer service show – to not only get sales now but get customers to come back next year – they may have the hardest time keeping their standards high or even acceptable. Overworked employees – some just seasonal or poorly trained – can blow the bottom-line.

A recent study by American Express found that nearly 80 percent of Americans ditched an intended purchase because of a poor customer service experience. But on the flip side, consumers said they will spend an average of 13 percent more with companies that provide excellent service.

“The holidays might be the only time you get that customer in the store. You have to leverage that one time encounter,” said Richard Shapiro, founder and president of The Center for Client Retention in New Jersey, which does research on customer satisfaction. “It’s important to engage them. You can’t lose those people. Business is too hard to get.”

What consumers expect

Customer service checklists can includes well-trained, pleasant workers, relaxed return policies, extended hours during the holidays, free gift wrapping and shipping, and perks like valet parking – with some services more costly to implement than others.

But some customer service initiatives cost little more than making an effort. It can be a smile and eye contact when seeing a customer, a quick ‘do you need help?’ or ‘thank, you for coming in.’

But a survey by American Express earlier this year, found that 6 in 10 Americans believe businesses have not increased their focus on providing good service, and more than 50 percent say they have lost their tempers with a customer service employee, usually by insisting on speaking to a supervisor, hanging up the phone or threatening to switch to a competitor.

Americans also are very vocal about their experiences, sharing good experiences with an average of nine people, but sharing bad experiences with nearly twice as many people. But three in five Americans would try a new brand or company for a better service experience. A majority of the respondents also feel smaller companies place a bigger emphasis on customer service.

Another study by Oracle found customers want instant gratification when they walk in the door. They want the same or better pricing and promotions in the stores as they saw on the store’s website, and if an item they want is out of stock, they expect an employee to find one in their network and have it shipped. Online, they want more detailed product information, better searches and easier access to customer service representatives through live help options.

“It really is all about the customers, meeting their needs and expectations,” said Tom Sclafani, vice president, public affairs at American Express. “Each customer encounter is not just a transaction but an opportunity to deepen the relationship.”

Who’s Naughty, Who’s nice?

Consumer Reports recently revealed its new “naughty or nice” holiday list – looking at the good and not-so-good shopping policies and the retailers behind them.

Among the nice: American Express for offering its customers peace of mind with a guarantee of full refunds on any charged items up to $300 that are returned to a store within 90 days after purchase, and Costco for a generous return policy and free tech support on many electronics products and automatic extended warranties.

Among the naughty: RadioShack for having a higher price in the store than online, and American Apparel for a more stringent in-store return policy.

A recent survey of 9,374 shoppers by the National Retail Federation Foundation and American Express also named 10 finalists for the best in customer service and the official ranking will be released in mid-January. Among the top 10 are Amazon.com, JCPenney, Kohl’s, Land’s End, Nordstrom and QVC.

Nordstrom, for example, has offered customers free shipping, free gift wrapping, personal stylists, buy online/pick up in the store offers, free Wi-Fi and even a virtual gift card during the holidays. JCPenney is one of the retailers offering extended hours as the countdown to Christmas gets closer and Kohl’s offers a “hassle-free” return policy where customers can return any Kohl’s item at any time for any reason with or without a receipt.

This season, locally based merchants have been rewarding their loyal customers with discount events. Park Place held a customer appreciation night with merchants like Annabelles Fine Linens and Gifts and Bella B’s Boutique offering 20 percent off entire purchases. Other stores in the Leawood center offered 20 percent off specific items like holiday merchandise. The event also included trunk shows.

Function Junction, a housewares store in Crown Center, offered a 20 percent discount on all regularly priced items on its “Friends Family Day” to show “our appreciation for your friendship and support over the years.” The event also included house-made coffee cake and warm beverages.

Independence Center gives customers a one-stop-shop at its customer service counter by offering an American Express gift card that can be used at any of Simon shopping centers across the country. Customers also can pick up Missouri lottery tickets, Ticketmaster tickets, retailer gift cards, check-out the latest discounts at area stores, and tap into wireless Internet on their laptop, phone or PDA.

The Independence mall takes guest services employees through a 6-to-8 week training period making sure they are adept at all the systems from ticket sales to the security policy, and how to deal with stressed shoppers.

“We train them for all situations. If a customer is having a bad day we let them know not to encourage it but to try to work with them to get them through and make it a good day for them,” said Karen Reichert-LaSage, spokeswoman for Independence Center.

Oak Park Mall in Overland Park is offering a $5 valet service through the season, customers can call or text the valet service to have their car warmed up and waiting for them when they want to leave. The Legends Outlets Kansas City in Kansas City, Kan., also introduced a similar service in early November that will be ongoing after the holidays.

Clair de lune, an upscale lingerie, hosiery, loungewear, robe and pajama store in Overland Park, offered a “men-only” shopping event Sunday, scheduling it just after the Kansas Chiefs played the Green Bay Packers. The store also offered free gift wrapping and refreshments. The shop also keeps preferred brands and sizes on file and offers free gift wrapping.

Jill Hathaway, owner of J. Hathaway Shoe Boutique in Leawood, sends thank you notes to her customers, calls them when limited edition and exclusive items come in in their sizes, and will even take shoes to the home or businesses of time-starved customers. And if she runs out of a particular shoe a customer wants, she won’t push another shoe style but will call her representative or even a competitor to try to find the exact product.

“Customers are my bread-and-butter so whatever it takes to take care of them,” Hathaway said

Lori Scott, director of specialty retail at Park Place and a longtime retail consultant, said retailers have to look at customer services expenditures as part of their marketing costs.

“It’s such a great opportunity for a retailer to form a great relationship,” Scott said. “Retailers need to send the same message in everything they do – from sales help, to return policies, to the quality of their packaging.”

ONGOING efforts

Good customer service starts with the front line employees at brick-and-mortar stores and at Internet call centers.

Retail experts advise recruiting employees who have shown an interest in helping others, perhaps through coaching a Little League or helping at a soup kitchen. Then train them well in the customer service mindset, even empowering them to make some decisions without first checking with a supervisor. So if they are stocking shelves but a line is forming at the check-out they could wait on customers without flagging down a manager for approval to switch jobs.

Employers also can tap into a wealth of market research just by listening to their front line employees who have the most direct contact with customers.

Shapiro of the Center for Client Retention and author of the forthcoming book, “The Welcomer Edge: Unlocking the Secrets to Repeat Business,” which will hit shelves in February, said retailers need to get back to the basics of treating customers as individuals with unique needs

“You can’t just hire bodies and put them at the sales counter or you might as well be all self-service,” he said.

Permanent employees can hand out their business cards at the holidays, saying ‘this is my card, these are my hours, and please come back.’ After the holidays, retailers should put their most experienced and nicest employees at the return counter.

“Most people don’t like returning items but this can be used as an opportunity to build the relationship,” Shapiro said. “Ninety percent of the time the loyalty is not to the company but to a person who works at the company.”

Other retailers are opting to offer bi-lingual representatives, and websites, instructions, and directions in both Spanish and English to be more welcoming to a growing Latino population.

The Oracle study also found 30 percent of consumers ages 18 to 24 say they are, or soon will be, using their mobile phone as a payment device in stores (though 25 percent of consumers are still worried about security breaches). So retailers wanting to be on the cutting edge of service need to lay out funds for new checkout devices.

“We are all choosing, very carefully in this economy, where we are going to spend our discretionary dollars,” Scott said. “Retailers have to go above and beyond in customer service and friendliness, 200 percent all day, everyday. We want a lovely, memorable experience.”

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