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| Customer Service Vs. Customer Satisfaction Editorial Staff |
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By William Ernest Waites Even the most unenlightened business people claim to understand the importance of customer service and profess their dedication to it. Unfortunately, as the 1990s dissolve into the 21st Century, providing customer service simply is not enough. What customers want is satisfaction. This not just a 90s phenomenon, however. Decades ago, Sears, Roebuck & Co. figured out they could build a business by promising customer satisfaction, not just customer service. The sign above the door to every Sears store says, "Satisfaction Guaranteed or Your Money Back." As a result Sears customers go there first to buy what they need. They know if they are not satisfied, for any reason, they can return the merchandise for a full refund. Many of them figure they will shop elsewhere for similar products and, if they find something better or at a better price, they'll take the Sears purchase back. Guess what? Once they have what they want, they don't bother to shop around. Maybe they don't have the time. Or maybe their original purchase has "satisfied" their needs and they move on to other priorities in their lives. Here's another story of satisfying the customer, not just providing service. It's told about Nordstrom's in Chicago. It seems a man came in with a shirt he wanted to return. The clerk looked at it and noticed that it was not a Nordstrom's brand. He rejected the man's request. The store manager, seeing the encounter, approached the man and asked how much he had paid for the shirt. "Twenty dollars," the man said. "Here," the manager said, reaching into his own wallet. He gave the man $20. "Thank you for patronizing Nordstrom's." After the man walked away, the clerk protested, "But, sir, that wasn't a brand we carry. It was from Marshall Field's." "I know that," said the manager. "But tell me, would you rather have that man walking around Marshall Field's with a loose $20 in his pocket, or here in Nordstrom's?" As the light began to dawn on the clerk, the manager said, "Now, please take this shirt to Marshall Field's and get my 20 bucks back." If customer satisfaction was important back when Sears got started or on the retail floor at Nordstrom's, it has become even more critical in recent years. And it appears to be increasing in importance as the Internet's influence is felt in commerce. More and more customers are coming to demand satisfaction from their transactions and will not settle for anything less. Sharon Waite (no relation to the author) recently described an Internet encounter that helps to make the point. Writing in the I-Sales Digest, she reported that she had contacted a software company, filled out a request for more information, and mailed it the company. The next day, the company called her. She asked the caller her questions. After a long pause, the company representative said, "I don't know that." Waite asked if she was talking to Sales Department and was reassured that she was, but if she wanted the particular product information she was looking for, she would have to call a non-toll-free number to get it. She went on to comment, "Not only was this person not helpful, but I was treated like I was asking for money or something... not respected as a potential client." She continued, "After I hung up I decided I would not do business with that company." Her point? "Treat each call and contact as if your business depended on their satisfaction," she says. "Instead of saying 'I don't know,' say, 'I'll find out.' Treat customers with respect." On the Internet, your competition is just a click away. If you do not offer your customer satisfaction, they will go to someone who does. This behavior is being transferred back to face-to-face transactions as the customer is conditioned to expect more. Price is becoming less of a factor since comparative pricing is so easy to obtain. Satisfaction with the transaction and interaction becomes more and more important. Constance L. Hays reported on the recent Christmas shopping scene in the New York Times in an article entitled, "Service Takes Holiday." She cited The Container Store as a retail operation that gives its sales people 185 hours of training, exponentially more than the industry average of less than 10 hours. They train their salespeople to think of themselves as counselors or problem solvers. It's reported that customers have come to them and said, "This is better than a visit to my shrink." Ms. Hays also reports on a store where, according to a customer, "There were enough sales people hovering, but the store did not have gift wrap, which was annoying at Christmas time." I'll bet that store thought they were bending over backwards to provide customer service. They lost sight of what it takes to satisfy the customer. Locally, Jim Glennon, CEO of Modern Service for Home and Business, (formerly Modern Air Conditioning) realized his company was in the service business when he expanded their coverage to plumbing, electric, and major appliances. More than that, he recognized the need to be in the "satisfaction business" when he also added a guarantee that his service people would arrive within two hours of the time promised or they will pay the customer for every hour they are late. Royal Shell Vacations on Sanibel uses the pleasant surprise to create an environment of customer satisfaction. They offer condos and private homes for vacation rentals. According to owner, Randy Basek, not only do Royal Shell reservation agents work hard to determine the precise needs of each client, but the company goes a step further. Every vacationer who arrives at a Royal Shell property discovers a small welcoming package, filled with sunscreen, coupons, maps and other helpful island items. There is no hype. It isn't advertised. It's just there as a thank you for the business. It also includes a feedback card so that guests can register their satisfaction or, if they have any, complaints. This way, Royal Shell can respond and satisfy them after the fact. With over 60 percent of Sanibel visitors saying they will come back next year, Basek is out to keep as many as possible. In the real estate field, builder John Globetti, president of A.R.B.C. Arthur Rutenberg, believes that customer satisfaction is the bedrock of his business. Globetti says that he takes special pride in the amount of repeat and referral business he gets. He believes it's because he is dedicated to delivering complete customer satisfaction. "We don't try just to make people feel important. We recognize they are important." To prove the point, every home Globetti sells includes a guarantee that construction will be completed, a guarantee of service after the closing and comprehensive interior design services for each buyer as part of their home purchase. In closing, Murray Raphael, who writes a regular column on retailing for Direct Marketing magazine, believes the correct response |
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