1. 5.01 V OCABULARY W ORDS customer Relationship Management (CRM) customer service full-service retailing (service positioning) loyalty programs medium-service retailing (value positioning) self-service retailing (price positioning strategy) service features service quality

2. 5.01 Understanding the impact of customer service in the fashion industry

3. C USTOMER S ERVICE Customer Service is the total of all enhancements offered to customers. Directly related to the sale of goods

4. C USTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management is the merging of database information technology with customer service to analyze customers, respond individually to their needs and build and maintain lasting relationships

5. S ERVICE Q UALITY Service Quality is how well services are performed. Shoppers who are willing to pay more, also expect more. Friendly, polite, approachable, trustworthy, reliable. Hassle-Free shopping

6. S ERVICE F EATURES – ACTUAL SERVICES OFFERED Examples: Complementary tea, cookies, etc. Walmart Contests Journey's Call buttons in fitting rooms Victoria Secret In-store events Kellogg’s Mariachi Band at Walmart Product demonstrations Grandad’s Apples Interest-free credit Best Buy Page 364 in textbooks Include accessible location and parking, convenient shopping hours, complain resolution, knowledgeable salespeople, credit, layaway, packaging, gift wrapping, fast checkout, gift cards, delivery, alterations, and guarantees

7. F EATURES OF SERVICES OFFERED BY RETAILERS Self-Service – This service level allows consumers to perform most or all of the services associated with retail purchasing. For some consumers self-service is considered a benefit while others may view it as an inconvenience. Self-service can be seen with: 1) self-selection services, such as online purchasing and vending machine purchases, and 2) self-checkout services where the consumer may get help selecting the product but they use self-checkout stations to process the purchase including scanning and payment. Assorted-Service – The majority of retailers offer some level of service to consumers. Service includes handling the point-of-purchase transaction; product selection assistance; arrange payment plans; offer delivery; and many more. Full-Service – The full-service retailer attempts to handle nearly all aspects of the purchase to the point where all the consumer does is select the item they wish to purchase. Retailers that follow a full-price strategy often follow the full-service approach as a way of adding value to a customer’s purchase. Validated parking Gift wrapping Fast checkout Delivery service Alterations Gift registry Gift cards Returns and complaint resolution

8. S ELF -S ERVICE R ETAILING Self-Service Retailing uses price positioning. Customers locate, wrap, compare, and checkout items themselves.

9. S ERVICE L EVELS Minimal Service Moderate Service Extra Service Offered I I I Basic needs-such as checkout Minimal customer satisfaction Above & beyond expectations-WOW effect Minimal Levels of Customer Service focus on the basic process or procedure. It focuses on the goal of speed and accuracy of the transaction. The only competitive advantage this level may have is price since they may not have some of the amenities the other levels offer thereby reducing the basic cost of doing business. Medium levels of Customer Service focus on satisfying the customer as an element of their process or procedure. It focuses on the goal of seeing the consumer as more than just a number and wishes to offer friendly service and good quality in an effort to meet customer expectations. The only competitive advantage this level may have is training employees so they focus not only on sales but also the service and the skills to offer this level of service. The Full Service level of customer service focuses on establishing a relationship with the customer that is flexible and responsive with the goal of exceeding expectations so as to develop customer loyalty. They care enough to value the client experience. Their competitive advantage is retained business, customer loyalty, employee retention and word of mouth referrals. Clearance store with items unsorted in boxes Avon Fashions Retail sales rep- one for the department per shift- Belks Personal shopper service Niemann Marcus

10. S ERVICE L EVELS Self-Service PRICE POSITIONING Medium/Limited Service VALUE POSITIONING Full Service SERVICE POSITIONING MOST SERVICES OFFERED Characteristics Store Types Very few services Low Prices Staple goods Convenience items Discount stores Warehouse clubs Mail-order retailers Vending machines Supermarkets Medium amount of services Goods with some selection and comparison features Chain stores Department stores Door-to-door sales Many services Upscale fashion goods and specialty items Upscale department stores Specialty stores

12. I MPACT OF C USTOMER S ERVICE ON T HE I MAGE OF F ASHION R ETAILERS Be fast. Social media moves at rapid-fire pace and functions 24/7. Establish standards for how quickly social media inquiries should be answered. Be thoughtful. If a customer has a question or expresses a concern, a caring, thoughtful response goes a long way in establishing that your brand has both character and personality. Dry, boilerplate responses can obstruct an opportunity to build a real connection with the customer. Always respond to problems. Customers appreciate being acknowledged by brands. No matter how big or small the issue is, it’s essential to recognize the person and the problem, and to let them know that you’re listening and you care. The interaction also lets other customers know that you’re able and willing to fix problems, and sends a message that they can trust the integrity of your product and service. Send customers to where you want them to be. If it’s an issue that can’t be solved, give customers a direct email address, and be sure that they are responded to. Share success stories. If you have happy customers, share their stories. If a customer shares a gorgeous product photo or has a great comment about your service, let potential customers know. Cultivate brand advocates. Rewarding brand fans with a feature on your company blog, a “thank you” promotion code, or just a note expressing your gratitude for their support goes a long way in building relationships. Happy customers are the best advocates your brand can have. Double-check spelling and grammar. People will judge your brand and the competence of your customer service professionals in those few characters, so make sure they perceive you as quick and capable. Be proactive in sharing product and company updates. Do you have a product that’s back in stock after a backorder? Are you switching warehouses, or performing inventory counts that will result in a shipping delay? Let your customers know ahead of time, and be prepared to respond with answers to frequently asked questions. Go beyond the product. Be a resource for your customers beyond just the products you sell.. Become a resource and place of inspiration for our customers — even after they’ve made a purchase.

13. L OYALTY PROGRAMS Loyalty programs are structured marketing strategies designed to encourage customers to continue to shop at or use the services of businesses associated with each program. There are large numbers of such programs in existence covering most types of business, each one having varying features, and rewards schemes. 7 Loyalty Programs That Add Value

14. L OYALTY P ROGRAMS L INK http://blog.hubspot.com/blog/tabid/6307/bid/31990 /7-Customer-Loyalty-Programs-That-Actually- Add-Value.aspx