The set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers
Increases the value customers receive from the merchandise and service they purchase
Strategic advantage through customer service
Good service keeps customers returning
Generates positive word-of-mouth, attracting new customers
Consistent good service = opportunity to develop sustainable competitive advantage
Personalized customer service approach
Encourages service providers to tailor their service to meet each customer's personal needs
Greater benefits to customers
Greater inconsistency
Higher cost
"Go that extra mile"
Standardized customer service approach
Based on establishing a set of rules and procedures for providing high-quality service and ensuring that they get implemented consistently by service providers
Lower cost
High consistency
Meets but does not exceed expectations
"Just supply the basics"
Cost of customer service
High levels of customer service can be costly
Good customer service is worth an investment
Costs more to acquire customers than to generate repeat business
Customer assessment of service characteristics
Reliability
Assurance (trust)
Tangibility (appearance)
Empathy (personalization)
Responsiveness
Service gaps
Occur where customer service doesn't reach consumer expectations
GAP model for improving retail customer service
Knowledge Gap: knowing what the customer wants
Standards Gap: setting service goals
Delivery Gap: meeting and exceeding service goals
Communications Gap: communicating the service promise
Knowledge gap
Solution: knowing what the customer wants
Comprehensive studies
Gauging satisfaction with individual transactions
Customer panels and interviews
Interacting with customers
Customer complaints
Feedback from store employees
Standards Gap
Solution: setting service goals
High quality service commitment
Define the role of service providers
Set service goals
Measure service performance
Give information and training
Management's role in service quality
Top management's leadership and commitment sets service quality standards
Store managers are the key to achieving those standards
Delivery gap
Solution: meeting and exceeding service goals
Provide instrument and emotional support
Improve internal communications
Empower store employees
Provide incentives
Develop solutions to service problems
Develop new systems
Use technology
Instrumental support for service providers
Associates need to have the appropriate systems and the right equipment to deliver the services
Emotional support for service providers
Associates need emotional support from their coworkers or a concern for the well-being of others
Empowerment
Allowing employees at the firm's lowest levels to make important decisions regarding how service is provided to customers
Stimulates initiative
Promotes learning
Teaches responsibilities
Communications gap
Solution: communicating the service promise
Can be reduced by realistic commitments to corporate ideas and managing customer expectations
Service recovery
Enable the retailer to demonstrate its commitment to providing high-quality customer service
1) Listen to the customer
2) Provide a fair solution
3) Resolve problem quickly
Distributive fairness
Customers want to get what they paid for
Procedural fairness
Perceived fairness of the process used to resolve complaints