Customer Services and Retail Selling By Kevin Scofield Kevin Scofield Blaine Yamamoto

Chapter 12 Overview Customer Service: all activities performed by the retailer that influence… Customer Service: all activities performed by the retailer that influence… –The ease with which a potential customer can shop or learn about the retailer’s offering –The ease with which a transaction can be completed once the customer attempts to make a purchase –The customer’s satisfaction with the transaction High-quality service: delivering service that meets or exceeds customers’ expectations High-quality service: delivering service that meets or exceeds customers’ expectations Relationship Retailing: includes all the activities designed to attract, retain, and enhance customer relationships Relationship Retailing: includes all the activities designed to attract, retain, and enhance customer relationships

Chapter 12 Overview Why is Relationship Retailing Important? Why is Relationship Retailing Important? –Loyal customer are less price conscious and less prone to shop other retailers selling the same merchandise mix –A study by the U.S. Office of Consumer Affairs revealed that it costs a retailer five times as much money to attract a new customer as it does to get a former customer to return –Instead of trying to maximize profits, retailers are focusing on building a mutually beneficial relationship with their customer

Chapter 12 Overview High-performance retailers can develop these relationships with their customers by offering two benefits: High-performance retailers can develop these relationships with their customers by offering two benefits: –Financial Frequent purchaser discounts Frequent purchaser discounts Product upgrades Product upgrades –Social Must offer excitement and entertainment Must offer excitement and entertainment

Chapter 12 Overview Common Customer Services Common Customer Services –Pre-transaction Services Convenient Hours Convenient Hours –Transaction Services Credit Credit Gift wrapping and Packaging Gift wrapping and Packaging Merchandise Availability Merchandise Availability –Post-transaction Services Complaint Handling Complaint Handling Merchandise Returns Merchandise Returns

The Nordstrom Way Gold Standard for Customer Service Gold Standard for Customer Service Empowering Front-line People Empowering Front-line People Nordstrom Salespeople Make Decisions as if Managing Own Business Nordstrom Salespeople Make Decisions as if Managing Own Business Thinking Like the Customer Thinking Like the Customer –In Customers Shoes –Thinking More About Own Organization, Processes, and Rule Book

Nordstrom Way (Cont.) At Nordstrom At Nordstrom –Taking Customers to Fitting Rooms –Walk Around Counter and Hand Their Purchase –Answer Telephone Within Three Rings –Send Thank-You Notes and Call Customers –Generous Return Policy

Nordstrom Way (Cont.) Not in the Apparel, Shoe, or Cosmetic Business Not in the Apparel, Shoe, or Cosmetic Business In the Customer Business In the Customer Business What it Takes? What it Takes? –Courage –Dedication –A Way of Life

Nordstrom Of………. Brand of a Business Philosophy Brand of a Business Philosophy We are the Nordstrom of…….. We are the Nordstrom of…….. –Civil Engineering –Plumbing –Heating and Air Conditioning –Funeral Homes –Hospitals Hospitals

Questions?

Sources 24_nord_way26.shtml 24_nord_way26.shtml 24_nord_way26.shtml 24_nord_way26.shtml ent.asp?id=4D15B6BB286D4FEF8417F9D66 4B7D8FD&title=Birthing%20Center%20Post partum%20Room ent.asp?id=4D15B6BB286D4FEF8417F9D66 4B7D8FD&title=Birthing%20Center%20Post partum%20Room ent.asp?id=4D15B6BB286D4FEF8417F9D66 4B7D8FD&title=Birthing%20Center%20Post partum%20Room ent.asp?id=4D15B6BB286D4FEF8417F9D66 4B7D8FD&title=Birthing%20Center%20Post partum%20Room 005/05/02/story5.html?page= /05/02/story5.html?page= /05/02/story5.html?page= /05/02/story5.html?page=1 ; May2005, Vol. 9 Issue 5, p18, 2p, 5c Beasty, Colin,CRM Magazine; May2005, Vol. 9 Issue 5, p18, 2p, 5c Beasty, ColinCRM Magazine