The world of retailing is full of look alike store with look alike products and services. Some have even declared that the department store is “dead”. Not a Nordstrom. A visit to a Nordstom is a breath of fresh air after a day of trying to find whatever at other department stores. The stores are clean, well organized, they often have live piano music and plenty of sales people at hand with only one purpose – to help the customer. Most Nordstrom customers happily pay a slight premium for the higher level of service. And they come back to the store again and again.
Hardware stores have become cavernous warehouses serving both contractors and do-it-yourselfers alike. Unfortunately, there is usually little apparent rationale to what is located where, the staff is usually nowhere to be found, the lines at the registers are usually backed up and it is difficult to get an answer to any question without asking two – or three employees – once you find them. We are fortunate to have a local hardware store where we live. The hardware store is backed floor to ceiling with every conceivable thing a homeowner could need in the broad category of hardware. And every aisle seemingly has one if not two experts who glory in answering questions and pointing customers to what they are looking for. The lines are rarely backed up. This store, while not as big as the chain hardware stores does a tremendous business and always charges a premium on whatever it sells. And yet customers come back there again and again.
Even with the challenges in the consumer electronics business, there are still a number of “big box” electronics stores. They usually have anything and everything in the way of technology and entertainment products. They are staff by poorly trained sales people who seem only to be waiting for a better job. The customer service and check out people seem to be even a notch below the sales staff. The atmosphere is both oppressive and overwhelming to most customers. Then there is the Apple Store. The technology and the design of Apple products aside, much thought has gone into everything from the floor layout and materials to the training and attitude of the staff. The employees at the Apple store seem less sales people and more disciples of Steve Jobs and Apple Culture. People go out of their way to spend time in the Apple Stores and are always ready to buy the next new device or gadget from that maker, almost regardless of price.
Government at any level is not thought of as an example of striving for superior customer satisfaction. Whether at the local, state or Federal level, most avoid dealing with the government if they can help it. Think of your experiences with the US Postal Service, your state motor vehicle bureau or getting a document to or from your county government. No, not a pleasant customer experience. I recently found out that the US government is committed to be “citizen-centric” which is government consultant speak for treating you and me like we are what it is all about. I have yet to find that in my dealings with the Federal government with one exception. The Department of Education handles college student loans. Dealing with this organization sets a standard of excellence that few corporations or other organization could match. If you have had the pleasure of dealing with them you know what I mean. While they cannot command a premium price, I am sure that they do more business than they would otherwise due to their execution of the citizen-centric model.
Finally, there is the cup of coffee. Even though there has been a lot in the media about Starbuck lately it worth repeating. How many times have you bought a cup of coffee at a fast food restaurant? Not only is the coffee usually burned or watery. The level of service is poor (regardless of what their signs and ads say). The sugar and cream are either tossed at you or spread along a dirty condiment station. The overall atmosphere is anywhere from sterile to circus-like. Most likely not a place where you want to spend a lot of time or money. But Starbucks has focused as much on the level of service and the customer experience as they have on the coffee and other products. The overall experience is such that people choose to spend time at Starbucks whether to meet friends or clients. By focusing on the customer, Starbucks made the simple cup of coffee worth a premium price.
If price is the only consideration, perhaps customer service does not matter. But time and again, the marketplace shows that superior customer service will support a premium price. In addition to a healthier bottom line, excellent customer service drives loyalty. Customers come back again and again. And they encourage their family, friend and co-workers to do the same. Hopefully the examples of these establishments and others like them will spur larger segments of the market to refocus on customer satisfaction.
George F. Franks, III is the President of Franks Consulting Group – a management consulting and leadership coaching practice. Franks Consulting Group’s clients include businesses, associations and other non-profit organizations and individual leadership. George is a member if the Institute of Management Consultants (USA). He can be contacted at:
gfranks@franksconsultinggroup.com
Franks Consulting Group is on the web at:
http://franksconsultinggroup.com
