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