Great Expectations for Customer Service

There is plenty of evidence confirming that exceeding your customers’ expectations can be a challenging task. In response to the collection of letters we receive about poor levels of customer service in retail, we have taken a closer look at how the experiences and expectations of consumers have shifted. Ellie Cummins sat down with marketing academic Debra Harker to discover if the level of customer service is deteriorating, or if customers are simply expecting much more.

Today’s world of retail is a turbulent one and there are many challenges that retailers need to understand and leverage. In addition to the consequences of a fluctuating economy, there is ferocious competition that has provided an overwhelming array of choices for customers.

University of the Sunshine Coast Associate Prof of Marketing Debra Harker said the past few years have seen significant changes in how Australian consumers shop.

“You go from 30 years ago when we didn’t have the internet and people just learnt through word-of-mouth and perhaps reading a bit,” Debra said. “Nowadays consumers are computer savvy and inform themselves all the time with the internet.”

As consumers become increasingly informed, a significant shift in the retail industry has taken place.

“People are also now more aware of their rights … when consumers know their rights you get this sense of consumer knowledge, which is very important for consumer confidence and consumer empowerment,” Debra said.

With more knowledge and power than ever, customers understand that they do not have to put up with poor customer service, so they move.

“People are much more willing to switch, so they are more likely to switch brand and store loyalty,” Debra said. “The costs of switching these days are much easier which makes people less brand loyal.”

Customer service has always been one of the crucial factors behind conducting a successful business with high-quality customer service helping to establish customer loyalty. Yet statistics released by the Australian Customer Service Awards (ACSA) revealed that the reason the average business turned away 68 per cent of its customers was due to poor service. ACSA director Alan Lowe said “if you don’t take care of your customers, someone else will.”

To offset the growing competition in retail, many businesses are investing large amounts of time and money in finding ways to attract and retain customers. While most businesses have sound investments in advertising, marketing and promotions, consistent customer service seems to be an area where businesses often neglect. And there is hardly any sense in paying to get new customers into the store, if they are likely to be unimpressed when they get there.

There is no doubt that consumers have been trained to expect certain things during the retail experience. In general, consumers are not solely interested in the quality of the product or service being purchased, but they also seek the additional elements of service, which includes the obvious greetings, assistance when it is required and understanding when making a return. So, just where are businesses going wrong?

Debra said it was important to come back to basic marketing, with one technique being to mirror the staff with the clientele. 

“If you have Generation Y store, then you staff it with Generation Y people because you are going to get Generation Y customers come in and they can understand each other,” she said. “I think empathy is a big thing … how would you like to be treated in that store?”

 Many retailers have very detailed manuals that list what should be said as soon as a customer walks in the store but because everyone is different, people do not always relate to the textbook example.

“We need better trained staff rather than hiring the cheapest you can get. It seems obvious that you train your staff in things like body language and non-verbal cues,” said Debra.

For the more expensive, high-involvement purchases there are small things you can do that customers genuinely appreciate. Offer a cup of tea or coffee for those customers that are testing out the sofas and lounges in a furniture store. It is about finding those things that don’t take a lot of effort but delight the customers. The simple ways to manage and exceed customer expectations.

From the retailers’ perspective, staff may not be the only ones to blame for a dissatisfactory shopping experience. As generational changes occur, customers need to take some responsibility with old-fashioned manners and patience.  

“You can’t always beat up the manufacturer,” she said. “People want things now and they can’t always have them now. There is a trade off between wanting it now and getting exactly what you want in terms of colour and finish, but you are going to have to wait for it.”   

Overall, Debra believed that as consumers become more protected through legislation, the Trade Practices Act, Consumer & Governmental Affairs Bureau, and the Australian Consumers Association, customer service had actually improved.

“We all think customer service has got poorer but I actually think it has gotten better. The trouble is you notice bad service much more than you notice good service. It hits you in the face,” she said.

Unfortunately, consumers tend to tell more people about bad experiences than good experiences.

“Good marketers will use complaints as a way of improving business, building a relationship with the consumer, and as a way to gain market intelligence,” Debra said.

To become a business that is renowned for open communication, Debra suggested providing customers with a platform to tell them about their negative experiences.

“If you never ask, you will never know,” she said. “People don’t necessarily want to complain all the time but perhaps you need to have the negative feedback before you get the positive.”

Why businesses lose customers

Customer turned away because of poor service - 68%
Customer unhappy with product - 14%
Customer attracted by competition - 9%
Customer influenced by friends - 5%
Customer moves away - 3%
Customer dies - 1%

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