Communicating for Profits and Customer Satisfaction
The President of a 200+ store division of a major retailer
learned of a serious communication problem and commented that
'this was to be expected in large organizations'. Well, that
clears everything up. Many retail executives don't believe that
communication is important enough to get it right by coming up
with a methodology that will ensure accurate and timely
communication to field personnel. They don't think communication
is an issue that will affect the business one way or the other.
They readily accept mediocrity in their communication methods
because their organization is 'large'. How interesting. You've
got to wonder...does this extend to other critical areas of
their business such as customer service and product quality?
Does it extend to their employment practices and their
commitment to labor standards? Does 'large' mean cumbersome,
ineffective and inefficient?
Consumers know that customer service in the majority of retail
stores is indifferent, at best. Of course, there are some
retailers who treat their customers with respect and who work
very hard to serve them well. I am not talking about those few.
I am talking about the majority. Do you know why the majority
are indifferent to their customers? It's because so many leaders
are indifferent. Accountability for service at store level rests
squarely on the shoulders of upper management.
Let's look at a Store Manager who is an experienced,
intelligent, customer service oriented individual. She wants to
do a good job by providing customers with a good shopping
experience; by providing the company's stakeholders with a
return on their investment and by providing a decent lifestyle
for her family. You may think this individual does not exist in
retail, but she does. Unfortunately, the upper management of her
company does not realize she is an important part of the
organization. They think and say they do but, as evidenced by
their actions, clearly they do not.
This Store Manager must receive accurate and timely
communication (which includes training) from her Head Office in
order to do the job well. Yet she is close to the bottom of the
list of people who are deemed worthy of receiving this
communication. Below her on the list are the store associates.
As backward as that sounds, it's true. Most customers interact
with the Store Manager and associates. Hmmm...could this have
something to do with the problems consumers encounter in retail
stores every day? I think it has everything to do with it.
Ineffective communication results in aggravated customers -
let's say you receive a promotional offer in the mail and you
take it to the store only to find out that the store personnel
has no idea that the promotion is in effect. How that store
personnel handles your situation will make the difference
between satisfaction and aggravation. Hopefully, the store
personnel will use good judgment and common sense and will find
a way to satisfy you. If not, you are going to be an aggravated
customer. You have been inconvenienced - you've wasted your time
and, once again, you are let down by a retail organization.
Ineffective communication results in high employee turnover -
let's say the scenario mentioned above is just one more in, what
seems to be, a never ending communication nightmare. The store
personnel are embarrassed and made to look foolish through no
fault of their own. They do not want to be continually badgered
by disappointed customers. At some point, the management and
staff decide to move on, having lost all confidence in their
company's ability to get it together and keep them properly
informed. No employee wants to appear uninformed. And, contrary
to popular belief, there are many retail employees out there who
really want to look after customers properly and who feel
embarrassed when they don't have the information they need to do
it.
Ineffective communication results in lost sales - if the store
staff doesn't have product information - features, delivery
schedules, pricing, etc. - they can't advise and inform the
customer. The more information they have, the better equipped
they will be to influence buying decisions. Isn't it desirable
to have associates who are able to positively influence the
customer to purchase what the store has to offer?
Every problem we encounter in a retail store, with the possible
exception of rude behavior (and I do mean 'possible' exception),
can be traced back to a lack of accurate and timely
communication.
It's time for retailers to embrace an effective communications
methodology and stop accepting mediocrity just because their
organization is 'large'. It's time for the self proclaimed
'highly important' people at the Head Office of the 'large'
organization to be brought up to speed as to where, and by whom,
sales are made and customers are satisfied.