Customer Service: Home DepotIntroductionWhat is Customer Service?Relationship RetailingCost of a CustomerTypes of Customer ServicesWhy Customer Service?Improving Customer ServiceSlide 9Our SuggestionsFactors to ConsiderCustomer TypesWhat Customers ExpectSummarySourcesCustomer Service:Customer Service:Home DepotHome DepotArticle: One Tough CustomerArticle: One Tough CustomerTyler LambertsTyler LambertsAshley PriceAshley PriceMatt VosburgMatt VosburgIntroductionIntroduction•Explain customer service•Improving customer service–Home Depot example•Variety of factors and customers•SummaryWhat is Customer Service?What is Customer Service?•Customer Service consists of all those activities performed by the retailer that influence:1) ease of shopping or learning of offers.2) ease of transaction with attempted purchase3) customer’s satisfaction with the transaction.Relationship RetailingRelationship Retailing•Defined as: all the activities designed to attract, retain, and enhance customer relationships.•Transient Customer: customer who visits a retailer and finds the service level below expectations or the product “out of stock”.•Two ways to develop relationships:1) Financial benefits2) Social benefitsCost of a CustomerCost of a Customer•U.S Office of Consumer Affairs- it costs a retailer 5x as much $ to attract new vs. former customers. •Focus on building mutually beneficial relationships rather than maximizing the profit of each transaction.Types of Customer Services•Pre-transaction: prior to entering the store.- Convenient hours- Informational Aids•Transaction: offering conveniences customers need and a quick departure.- Credit- Layaway- Gift wrapping and packaging- Check Cashing- Merchandise availability•Post-transaction: provided after the sale has been made.- Complaint handlingWhy Customer Service?Why Customer Service?“More and more, customer service is taking on a larger contribution of purchasing decisions.”•Home Depot is a $90 billion giant and overall Number 2 retailer behind Wal-MartImproving Customer ServiceImproving Customer Service“…customer services is one of the few remaining opportunities for companies to differentiate themselves from rivals…product and design innovations seem to get copied faster than the latest trend in fashion.”•Better training for employees–Who they hire•Gain trust of customersImproving Customer ServiceImproving Customer Service“Our customers have demanded that we do better…and we are listening.”•Implementing new technologies•Up to 70/100 from 67/100 in recent American Customer Satisfaction IndexOur SuggestionsOur Suggestions“Consumers are all saying the same thing: I’m sick of companies wasting my time.”•Store maps from greeter as you walk in•Store employees as guides•Other servicesFactors to ConsiderFactors to ConsiderExhibit 12.5 (page 422)Customer Service MixType of Merchandise HandledPrice Image of StoreServices Offered by the CompetitionRetailer’s CharacteristicsCost of Providing ServiceIncome of Target MarketCustomer TypesCustomer TypesDefensive Interrupter DecisiveIndecisiveSociable ImpulsiveWhat Customers ExpectWhat Customers Expect•Has increased over time•Different in each industry•To be taken care of•Knowledgeable staff•Enjoyable experienceSummarySummary•Know your customers–Customer service on a one-to-one basis•Differentiate your company•In the long run, customer service will lead to higher returns than cutting costsSourcesSourcesApplebaum, Michael. “One Tough Customer.” Brandweek 48 3 March 2007: 18-24. Academic Search Premier. EBSCOhost. Oregon State University Valley Library, Corvallis, Oregon. 2 May 2007. <http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=24427578&site=ehost-live>.Dunne, Patrick M. Retailing. Mason, OH: South-Western,
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