Showing posts with label Customer Service. Show all posts
Showing posts with label Customer Service. Show all posts

Thursday, April 28, 2011

Unhappy With Sears' Service? Please Do Not Threaten To Blow Up The Store

The Consumerist
By Chris Morran

No explosions, please.

We've probably all been driven to the point of anger by horrendous customer service. Some of us have probably even said things in the heat of this anger that we didn't mean. But in a day and age when taking a photo on a plane is considered suspicious activity, you can't just go threatening to blow up a Sears because you're ticked off. But that's exactly how the police ended up at the house of an 80-year-old California man over the weekend.

According to police, the man had called Sears to complain about some repair service he'd received when he was transferred to a Florida call center. This apparently pushed him too far into the red.

"He made a comment about bombing the Laguna Hills Sears store," and Orange County Sheriff's Sergeant told the OC Register. "He thought he was getting the runaround."

After police questioned the man at his house, he admitted to making the threat. Authorities determined that he hadn't intended on making the Sears go boom, so no arrest was made.

One could imagine this story could have ended differently if the customer wasn't 80 years old or if the police hadn't exhibited common sense. So remember: The next time you're at the explosion-threatening point of your customer service nightmare, make it a perfectly safe and legal executive email carpet bomb. (But really, just refrain from using the term "bomb" whenever you're talking to customer service.)

When 'No Service' Is 'Great Service'

Once upon a time, the words 'personal' and 'service' went hand in hand.

'Service' was delivered by living, breathing humans and department stores did it better than anyone.

No longer.

In a recent survey of 6,000 US consumers by the Temkin Group, the top three companies rated for excellent customer service were Amazon, Kohl’s and Costco. Department stores didn’t rank in the top 10.

Think about that for a second. Amazon is an internet retailer, Kohl’s is a value department store, and Costco is a wholesale club. Essentially, these are self-serve retail environments, yet customers are rating them very highly indeed on service. So what’s going on?

Firstly, service perceptions are very much based upon expectations. As a customer, you don’t expect lavish personal attention from, say, Costco. So a smile here or a helping hand there is all it takes to surprise and delight you.

Secondly, customers these days are comfortable with automated service processes, so long as they deliver an outcome. When you visit Amazon, the site remembers who you are and what you’ve shopped for previously, makes helpful product recommendations and allows you to purchase with a single click.

2011 customers want to be in control. Self-serve environments and automated processes put the customer in charge of their own service destiny. The personal touch? A nice to have, but not a got to have. In the new retail era, no service (at least in the traditional people-based sense) can be considered great service by customers. It’s a case of service outcomes being more important than human inputs.

Tuesday, April 19, 2011

Cleo Cummings, A Top Macy's Saleswoman, Retires After 73 Years

The Oregonian
By Laura Gunderson

Deep in Cleo Cummings' employment file with Macy's, and before that Meier & Frank, is a copy of the letter her grandfather wrote to help his 16-year-old granddaughter get a job at the downtown Portland store in 1938.

Cummings got the job, loved it and stayed -- for 73 years.

In her signature red up-do and two-inch black heels, Cummings retired from Macy's last Friday at Lloyd Center with family, long-time co-workers, executives and models she'd tapped for the fashion shows she organized years earlier.

They came to celebrate one of the department store chain's top saleswomen. But Cummings may be more important to company executives who say she created the much-copied personal shopper program, where she pushed scores of Portland shoppers into trying her favorite new fashions, while at the same time being lovingly honest when a fit faltered.

Cummings, who so fiercely has hidden her age that she missed a few years of pension pay-outs, hated to leave. She's cried often over the past few months at the thought, she admitted, choking up several times Friday as she talked about leaving.

"I'm not tired," she said, finding a seat and slipping the shoes off her black-stockinged toes, "but my feet are."

She loved fashion, and at that time department stores were at its core. She worked at Meier & Frank on and off through the next ten years, taking breaks only for a temporary move to California and to have her daughter. She returned full-time to the Portland chain in 1948.

Today, many retailers herald employees who stick around a decade. A few celebrate silver anniversaries. The Bureau of Labor Statistic's most recent tally shows the median tenure for a retail employee at a little more than three years -- an increase from the two and a half years employees reported in 2000.

"Cleo has always had such a commitment to the company," said Bruce Randall, a Macy's Inc., vice president and former manager of the Lloyd Center store during Cummings time there. "On her original contract, there was a line about 'serving Meier & Frank faithfully.' Cleo signed that and she absolutely has."

Cummings, who earned a two-year diploma from Girls Polytechnic High School, worked her way up through the years into the executive position of fashion director for Meier & Frank. She loved the job, but hated the public speaking component required in running the department store's regular fashion shows.

"She'd freeze in front of people," said Pati Palmer, a longtime friend of Cummings' and as Meier & Frank's former corporate home economist, a one-time colleague. So Palmer encouraged Cummings to join her in co-teaching fashion awareness classes to smaller groups of women. Cummings eventually overcame her fear and, after moving back to Lloyd Center's sales floor, she began giving regular presentations on trends.

Although she retained her executive title, Cummings was frustrated as she'd been moved around the company as others with advanced degrees were promoted, said Kevan Anderson, Cummings' niece. Still, she loved the work and always found a way to reinvent herself at every new station.

She'd been in a bit of a funk after moving to Lloyd Center in the early 1970s, when in need of some extra cash, she launched a side business helping women sift through their closets. For $50, she'd help clients toss clothes that didn't meet Cummings' high standards, make a list of what was needed to round out the wardrobe and visit Meier & Frank for certain pieces and accessories.

Grieving her mother's death, Cummings later shut down the business. But soon after, Palmer and others encouraged her to relaunch it within the Lloyd Center Meier & Frank.

The idea was approved by Judy Hofer, then president of Meier & Frank's Oregon stores, and soon Cummings had a long list of clients who made appointments to go see the hand-selected items chosen for them at the store. They'd clink glasses of "champagne" -- water in plastic cups -- and hunker down in her back room.

Her strategy when clients shied from a new style?

"You just put them behind that door and nothing was hard," said Cummings, wearing her go-to scarf and "something surprising on your shoulder" (in her case Friday, a sparkly crystal brooch). "They trusted me. I always told them if it didn't look good."

Cummings would take customers around the store for Christmas. Husbands knew right where to go for dead-on gifts. Soon, all Meier & Frank stores adopted the personal shopper program, followed by the entire May Company chain and eventually, competitors including Nordstom and Macy's.

Cummings' skills translated to company-topping sales.

In 1999, she was named to Meier & Frank's President's Club with $683,107 in sales that year. Two years earlier it was $577,500 and in 1991, $552,000.

"She broke my postage budget," said Randall, recalling the piles of cards Cummings would mail to her clients. Even just a couple years ago, the company struggled to get Cummings out the door each night if she hadn't met her personally set sales goals.

Cummings still has a goal for herself: Move on. She plans to volunteer at the Albertina Kerr gift shop in Portland and hopefully, with the Dress for Success program that provides professional clothing to low-income women hunting for jobs.

"I'm not going to sit at home, I'll be out trying to get into trouble," said Cummings, with a wink behind her dark glasses. "It's hard, but you have to learn to start all over again and not pout about it."

Monday, April 11, 2011

At Macy's, a Makeover on Service

Wall Street Journal
By Rachel Dodes

Several Macy's sales associates sat in a training room in the chain's Christiana Mall store recently hashing out sales-floor scenarios. Mary Martin, Macy's vice president of learning and development, directed the group's attention to a card at the center of the table with a statistic: Forty-eight percent of Macy's customer complaints are focused on interactions with sales associates.

The training session is part of a new strategy by the department store to improve its track record on customer service, which in recent years has dented the reputation of the storied retailer, lowered its scores in annual customer service rankings—and most likely slowed growth.

Part of the problem may be attributed to Macy's Inc. 2005 merger with May Department Stores Co., after which the company struggled with poor customer service as it focused on integrating various regional chains under the Macy's banner.

"A couple of years ago we had seven different divisions, so we had great service in some divisions and not as good in others," said Terry Lundgren, chairman and chief executive of Macy's, in an interview.

Moreover, as the recession wreaked havoc on consumer spending, many leading retailers—including Macy's—cut costs, closed underperforming stores and invested in technology to improve efficiency, drawing attention away from customer service.

But now, as retailers return to growth mode, the focus has turned to sales associates who operate on the front lines. "We are talking about a cultural shift … becoming more of a growth company," said Mr. Lundgren.

The new training program, dubbed "Magic Selling," requires new sales associates to attend a three-and-a-half-hour session when they start at the company, as opposed to watching a 90-minute interactive video in a booth, as they did under the old program.

It also includes seasonal refresher courses and coaching from managers while they are on the sales floor. To monitor their progress and set quantifiable goals, associates receive weekly "scorecards."

Macy's has set lofty goals for the program: It should be the biggest driver of an expected 3% growth in fiscal 2011 sales at stores open at least a year, according to Mr. Lundgren. He declined to say how much the program costs, but with 130,000 associates, he says it is "substantial."

Under Macy's previous sales training program, associates were given scripted steps in making a sale, such as "smile," "thank the customer," and "always say the word 'outstanding.'"

"Customers were telling us, 'Stop saying everything is 'outstanding,'" said Kristen Cox, group vice president of selling effectiveness and store communications.

Under Magic—an acronym which stands for Meet and make a connection; Ask questions and listen; Give options and give advice; Inspire to buy; and Celebrate the purchase—sales associates are instructed to make more natural connections with shoppers.

At the recent session in Delaware, Ms. Martin asked the class what they would say to creatively engage a customer pushing a double stroller containing two loud children.

"Looks like you've got your own personal choir following you around," said Becky King, a fashion jewelry associate. Ms. Martin praised Ms. King for acknowledging the customer in a humorous way.

According to Bain & Co., when interactions with sales associates are viewed by customers as positive, the number of items a customer buys goes up by 50%. "The odds of repeat visits also go up significantly," said Aaron Cheris, a partner at Bain's retail practice.

A reputation for shoddy service can be exacerbated by social-networking sites that enable customers to broadcast negative experiences. For example, following a March visit to Macy's, Mike Culyba, a 37-year-old documentary film editor from Brooklyn, N.Y., wrote on Facebook, "Sorry Dante, but the 9th ring of hell is the Macy's customer service counter." On Twitter, Houston yoga instructor Darla Magee wrote, "I remember why I don't shop at Macy's or Macys.com. Worst customer service ever."

"It's important that we take all comments seriously, both positive and negative," said Macy's spokesman Jim Sluzewski, noting that the Magic Selling program has enabled the company to react faster and improve.

There are some early signs that customer service at Macy's is gaining ground since Magic was implemented, although Mr. Lundgren said the results won't really be visible until the end of the current fiscal year.

The most recent American Customer Satisfaction Index survey showed that Macy's made the biggest improvement among department stores in the critical fourth quarter of 2010, with scores up 7%. However, it still lags behind rivals such as Nordstrom Inc., J.C. Penney Co. Inc. and Kohl's Corp. In the National Retail Federation's most recent annual survey, Macy's ranked No. 19 in customer service.

Sunday, April 10, 2011

Why Is This Man Smiling?

New York Times
By Motoko Rich
Published: April 8, 2011

His company, Zappos, is a retailing phenomenon. His book, “Delivering Happiness,” is a best seller. But Tony Hsieh remains a mystery.

Although The New York Times is charging for some of their content, readers coming through links from search engines, blogs and LinkedIn will be able to read any article without restriction.
Click here to read the entire article at www.nytimes.com:
Why Is This Man Smiling?