Importance of customer
service Day 1
Session 4
Session Content
• Key success factors in retailing
• Why is customer service important
• Lifetime value of a customer
• Customer service in retail
• What is customer service
Key success factors in
retailing today…
• Ability to create long-standing
relationship with customers
• Customer focused product
range
• Sustained availability
• Trained personnel
• Inventory management
Selling per Sq. foot is Out
Selling per Consumer is in
If we don’t change
Our Customer will!!!
The Customer
Key to Long Term Business
Success
.....IS TO CREATE & RETAIN
CUSTOMERS
Goal : Acquiring Life time value of
a customer!!!
Customer Loyalty Ladder
Prospect
Shopper
Customer
Client
Advocate
Customer Advocacy
• Is more effective than
any advertisements
• Customers speak on an
average to 8 people If
they are happy with store
customer service
• Customer speak on an
average to 22 people if
they are unhappy with
store customer service
Customer expectations from
retail
The Customer Everybody is pursuing the customer
• Customer
– Exposed to competition
• Getting used to being pampered
– Options of spending growing
– Upto date with international trends &
standards
– Better informed
• Less forgiving
• Less loyal
The Customer • Customer
– Brand conscious but not
necessarily brand loyal
– Demands value
• For money
• For time
– Shopping is coupled
with social activity
• Dinner
• Movie
• Meeting over coffee
Customer expectations
• Feeling important
• Higher satisfaction
• Better shopping
experience
• Higher Convenience
• Easier buying
• Better value
WE MUST
• Surpass customer
expectations today…..so that
he/she returns to our store
again and again
• Build customer loyalty
– Repeat customer
– Lifetime value of the customer
– Meet their needs and wants for
the future
The Customer
The Single Differentiator
CUSTOMER SERVICE
is the sole differentiator
between stores
What is Customer Service?
TRUST=
COMPETENCE + CHARACTER
Exercise
• Discuss examples from your experience
as customers:
– When good customer service has built your
loyalty to a store, or made you an advocate
– When poor customer service has driven
you away from a store, and tell others
about it