THE RETAIL EXPERIENCE IS GOING THROUGH MANY CHANGES. HOW DO YOU WANT TO TREAT YOUR CUSTOMERS?
Perhaps it’s because I live and work in Toronto that I’ve become jaded. We think that what happens here is happening everywhere else.
So, maybe things aren’t quite as bad elsewhere, but almost every day in Toronto, I experience customer service that makes me shake my head and wonder — do they even care about my business?
A recent experience at the LCBO, our provincially owned liquor retailer, really brought this home. The store was unusually quiet and there were no line-ups. In fact, I was the only one checking out at any of the four attended cash registers.
As I walked up with my purchase, I greeted the LCBO clerk politely — and got no response or even eye contact. While she was ringing up my purchase, she and her colleague at the next register started talking about their next break.
My clerk completed the transaction and I held up my Air Miles card and my debit card — that didn’t get a response other than to enter the code for debit. In fact, I scanned my Air Miles card myself.
All the time, the conversation about the next break continued. Transaction complete, purchases bagged and I was on my way —without any “thank you” or any eye contact. Not a single word from beginning to end.
I thought of stopping and asking her, ‘What just happened here? Do you care about my business at all?’ But, like all Toronto dwellers, I was in a hurry and had no time for conversation!
Unfortunately, this kind of retail experience is common in Toronto. I think it happens far more in general retail or service environments than it does in the auto retailing one. But when staff don’t signal to the customer that they care about their business, it really shows.
Unlucky for me, I have no alternative in Ontario when it comes to purchasing liquor, otherwise I would never set foot in that store again. But that’s not the case for most dealerships.
WHY CUSTOMERS LEAVE
I remember a study that came out a couple of years ago (funded by the Rockefeller Institute) that listed the key reasons why customers leave and take their business elsewhere.
Apart from the rather morbid category — a customer died, which was a mere one per cent — by far the biggest reason customers left was that they felt the organization “did not care about their business.” That held true for about 70 per cent.
You really don’t need a study to tell you that — just think about some of your best retail experiences. I’m sure the care component was one of the top of reasons why those experiences were so good.
What is becoming more challenging for any retail or service business today is making sure you and your staff truly “walk the walk” on showing customers you care about their business.
This care is made up of four fundamental components, including values, people, processes and technology.
VALUES
The tone set by senior management in an organization will filter down and will always be felt by the customer. Most customers can tell the difference quickly between a business that really doesn’t care about building a relationship and those that want to keep their business.
If the focus is purely on transactions and revenue and excludes emphasis on building long-term relationships with customers, this will show quickly.
PEOPLE
It starts with hiring the right people. Skills are teachable, but it’s hard to change a person who is uncomfortable on the front line with customers.
As well, customers can quickly tell if staff are engaged and enjoy what they’re doing, or if they’re “just doing a job.”
This perception can be transferred easily to the whole organization and leaves the customer feeling indifferent about bringing their business back.
I see hundreds of customer satisfaction surveys where the scores are high. But the verbatim comments, often about staff, tell a different story — one that shows that the customer really didn’t feel appreciated.
PROCESS
Processes can either help staff show customers they care about their business, or they can get in the way. Two aspects of process are important in this equation.
First, if the processes that staff are required to follow are internally focused (to benefit the business, not the customer), this will make it difficult for staff to really show customers they care.
Second, we are often in an environment where staff often just don’t have the time to show customers they care because of the pressure they are under.
This is where skills and training are important. Making sure your processes can accommodate busy periods is equally important.
TECHNOLOGY
Technology opens up many doors for increased efficiency in the workplace. From a dealership’s point of view, this ranges from facilitating processes in both sales and service, to reduce the amount of what many consumers (especially younger ones) refer to as the “stupid stuff.”
But we’re still at an early stage in terms of how this technology can be deployed, and often it benefits the dealership more than the customer.
Here’s where the opportunity lies. Technology should empower your staff to do the things that will show customers you care — from knowing more about them (and their vehicle), to being transparent,valuing their time and being accurate and transparent.
New challenges
One of the challenges that will face dealerships and all retailers in the next few years is to understand how millennials (those born in the 1980s and early 1990s) will differ in the way they recognize whether or not you value their business.
A recent article in Forbes magazine written by customer experience and corporate culture guru, Micah Solomon, identifies some of the key things businesses will have to do to show they understand and care about these customers:
• Cut the “stupid stuff,” the things that really don’t help the customer at all
• Focus on the experiential
• Allow for “customer self-determination” or let the customer take more control
• Become a “speed freak”
• Bump up your values — this is becoming increasingly important
• Speak their native tongue
These are all challenges in a retail environment that is slow to embrace change and is also more complex than many — selling a car is not like selling groceries, furniture or even banking services.
But we have to change because the retail world is changing. Just witness what’s happening in the hospitality industry with Airbnb and to the taxi industry with Uber.
Millennials are growing up in this environment and many won’t remember any other models. Things are getting really interesting!
