Mad 4 Blog

My wife loves that new TV series, Undercover Boss, because she thinks it is high time that CEOs and company managers got out from behind their desks to see how things are really working on the front lines.  I couldn’t agree more. But honestly, isn’t this something that every CEO should be doing every year? Surely, they could learn a thing or two about their employees, and more importantly, how to better serve their customers.

Take my recent visit to the Boca Resort Hotel. When my wife asked whether there was a ladies’ room on the floor that we were on, the hotel worker’s response was, “Of course there is.” Not the kind of answer you’d expect from a hotel that thinks it’s as good as a Ritz Carlton now is it?

What would the CEOs of other companies discover if they spent a day or two on the front lines? Well, the CEO of Home Depot might be surprised to see how difficult it is to find an associate to help them in the plumbing department without searching aisles away in electrical or lumber. So I say, let the CEO of Hess find out how many gas stations don’t refill the receipt paper at the pumps and require customers to walk inside to retrieve it. Good way to sell an extra coke and a bag of chips though, don’t you think? Let the CEO of Sports Authority try to buy a pair of athletic shoes and discover that there’s little customer service, nothing in his size, and no suggestion to find it at another store, or ship it to his home. Let the CEO of Office Depot find out how there’s nobody in Business Machines who knows anything about the products they’re selling. Let the CEO of Bank of America stand in line with 6 customers in front of him or her because there’s only one teller window open, yet there are 3 bank officers sitting at their desks with no customers.

In fact, let the CEO of virtually every large corporation in America call into customer service and be taken from one automated operator to another, pushing button after button, and still wait forever to get a “live” person on the other end.

In other words, just be a customer for a day, or a week, and see what your employees are doing right and wrong. Find out what’s working for your customers and what’s not. And for heaven sake, start putting the customer first!

By Stuart Dornfield

If you know anything about Zappos then you know that it’s a successful online retailer that built its brand not only by selling a great assortment of footwear, but by delivering an exceptional customer experience. Perhaps that’s why Amazon paid so much leather to buy them. Zappos proved that if you deliver winning customer service you get back loyal customers who spread the love about your company. So then, why are retailers so reluctant to spend money to recruit better employees, provide ongoing training, and delivering great customer service at the expense of paid media and other marketing initiatives?

If you listen to Pete Blackshaw, Nielsen VP and author of “Satisfied Customers Tell Three Friends, Angry Customers Tell 3000,” it’s the failure of retailers in deeply understanding emotional psychology. That’s probably true. But I also think that C-suite executives living in the lap of luxury are so far removed from the “real” world that they have forgotten what it’s like to walk into a store as an “average customer” and sense how little their own stores offer in the way of service. Walk into Sports Authority and try to buy a pair of athletic shoes.
No one is there to help you find your size among a wall of boxes. (Chances are, they don’t even have your size in stock) Nor will a store associate try to locate it from another store, or order it for you and have it shipped. You’re much better off buying from them online and skip the expectation of in-store customer service altogether. Which is precisely what many retailers today are pushing their customers to do.

Not so at Apple. I have had nothing but great things to say about them to dozens of friends and colleagues. Why? Exceptional customer service. The staff is motivated and interested. They’re knowledgeable and accommodating. And they surprise and delight customers at every turn. From the Genius Bar in the store to their “expert” online. In fact, just a month ago, I went to their store because my 2-year old battery was shutting down at 14% remaining capacity.
The tech gave me a new battery…free!

Of course, good customer service extends beyond brick n’ mortar to a merchant’s online store, as well. Take Best Buy for instance. I recently purchased a 46-inch Toshiba at bestbuy.com and 3 days later saw a competitor  with a much lower price. So I contacted bestbuy.com and was told that the Best Buy Price Guarantee was only valid on purchases made at the store, not online. What? You’ve got to be kidding me? I’m not entitled to a “store policy” because I purchased  the item at your online store?  What’s more, the price guarantee is only valid if you find a lower price at Best Buy, not a competitor’s. Here’s the language of their policy: “The BestBuy.com Price Match Guarantee does not apply to other retailers or other websites. It also does not apply to Best Buy Retail Stores or BestBuy.com.” Shame on you Best Buy. You have lost a customer forever!

It’s instances like these that make me love Apple even more. But the real question is:  Does exceptional customer service cost so much that other retailers can’t replicate it and still earn a decent profit?  Why can’t Office Depot do it? Why can’t Macy’s do it? Why can’t Walgreens do it? Why can’t Best Buy do it?

Blackshaw thinks customer service is a competitive advantage. I couldn’t agree more. But I think retailers, especially the brick n’ mortar stores, need to get much better at this.  I fear, though, as the recessionary pressures continue to weight heavy on retailers like Best Buy, even Nordstrom, you may even begin to see these great customer service models begin to unravel.