Deep into the last century, many years before the internet (it existed, we just didn’t know), I joined Boots the Chemists as a Saturday Assistant. As my profile attests, it gave me my first experience of sales. Perhaps more critically, it gave me my first coaching of Customer Experience. The lords and masters were clearly prescient, because each week, before doors opened (and yes, I did get to have a turn at doing this), I had 30 minutes of training by the department supervisor. On the Chemist counter, it covered product, but, it also covered expectations when dealing with customers. We even did a little role play, particularly when it came to “unhappy customers”. Saturdays were busy, it was not uncommon to see a scrum of customers 3 deep the whole length of the counter, with 10 of us serving the 20 or so waiting. Even then, coaching was readily available, not just from the supervisor, but from more experienced colleagues too. The coaching occurred (whether we wanted it or not, mattered little) because “we” valued “our” customers and took huge store (forgive the pun) from them returning, each week when other alternatives were available.
When I transferred to “Audio Visual” (still my dream promotion!), I was responsible for much more valuable items, (such as Hi Fi systems) that invariably would fail and would need to be returned. How we dealt with the complaint was critical for our business. We didn’t study the receipt closely (if there was one) to find a way of neglecting our responsibilities, nor did we accuse the customer of maltreatment of the item. Rather, we replaced the item, if it was clear that there was a manufacturing fault, or sent it away for an independent view to determine the fault and more importantly, the remedy. We took initial responsibility for problem resolution and determined who bore the cost later. The key is, we provided fantastic Customer Experience.
Fast forward 20 years from this rather quaint way of B2C sales, and the internet reared its ugly head and eCommerce was established, leaving many traditional High Street retailers trading in the wake of the online shopping revolution. Initially, it was all about price, then convenience of delivery and ultimately both. Whilst beomoths such as Amazon, boohoo, even eBay have subsequently prevailed, there have been a succession of High Street retailers crushed in their wake. Whither: Comet, ToysRUs, Maplin, Dixons and PC World (now small parts of Currys), Debenhams which is “seriously ill” and now House of Fraser finally looks set for a date with the grim reaper. Even Boots has had to reinvent itself to survive (who knew it used to sell vinyl and cameras in addition to Hi fi?!).
Is this just about comparable cost or are there other factors? Certainly, cost is a huge contributory factor, particularly when there is little to differentiate between stores for some large ticket items (Flat Screen TVs, and white goods are two items that spring to mind). Yet, there are some retailers that are bucking the trend. John Lewis continues to trade well nationally when logic dictates otherwise. Similarly, we have a local independent (predominantly) white goods retailer that also continues to trade successfully (from whom we have bought all of our items in the past 10 years) and I continue to purchase camera equipment from stores rather than just online. In both examples, price is clearly not the determining factor. So what is it?
Customer Experience, silly. In the case of John Lewis and our local retailer, prices are not the cheapest (and neither are Amazon’s necessarily either!), but they offer a differentiated Customer Experience. Rather like an insurance policy, I like to know what happens if it all goes wrong and the item fails, how they deal with you. Unsurprisingly, the local retailer has fared well, but, perhaps more surprisingly, Amazon is my preferred outlet for many items because of the way they deal with any post sales issues.
This week I have had an appalling experience with Argos who seem to be trying to meld the worst of online shopping with the worst that High Street has to offer. I attempted to return a pair of headphones, 18 months old, hardly used, in fabulous condition, but with one problem: the sound only passes through one channel, rendering them useless. The store hid behind the “one year warranty”, as did the online chat (more stupid and un-cooperative than any bot) when the reality is under EU Directive 1999/44/EC, we, the consumer, have two years to gain a repair or replacement should the fault be due to a manufacture defect. Of course, I have subsequently discovered that “we” seemingly have to prove it, which Argos has “helpfully” pointed out. (Including “Maxine” a member of their CEO’s office, after I wrote to them I hasten to add). What they could have done of course is to accept the return, send them back to Sony for an assessment, then either repaired or replaced (as they are liable to do under this directive) or charge me for the repair if it was deemed to be my responsibility. They would have lost nothing from this of course, but I would have been a huge advocate of Argos and my positive experience would have been the focus of this blog. Customer Experience, silly.
No, it’s easier to obfuscate a customer, who made a conscious decision to support the High Street because they believed “after sales” may be better. (Price was slightly higher at the time). Instead, they have lost a customer, forever, and made me a detractor to all of those that want my opinion, and a good proportion of those that don’t!
So, what is the point of all of this you may ask? A business is nothing if it isn’t relevant. Relevance can come from price, but this is short term and not sustainable. I contend that relevance comes from value. This can exist in many forms: operational efficiency, (cost savings and increased revenue), operational effectiveness (which should lead to the former), but in the long term it will emanate from how you behave as that supplier. Treat your customers in the same way that you would expect to be treated by your preferred retailers. Customer Experience, silly.
If you are driven by a price led conversation then there is no perceived value in what you are offering. It could be of course that you are not demonstrating value. At some point, you will lose that race to the bottom and cease to be a supplier, simply because you cannot afford to anymore, unless you have that differentiated position. Even the most basic of product propositions can be demonstrably valuable.
In the case of the High Street, the unending battle for survival will continue. The end really is nigh for many more retailers, including Argos and deservedly so. There are bucks to this trend, Dunelm (who I posted about a few weeks ago) and even this morning, Hays Travel has announced that they will purchase Thomas Cook’s retail arm when many commentators suggested it was at the core of its demise. There is clearly a business opportunity where value can be demonstrably provided.
As so many stories emerge about the going beyond the call of duty by former Thomas Cook employees after the Company’s demise, there is one common thread that clearly was close to most of their hearts: Customer Experience. Small wonder then that there is a clamour by other organisations across the spectrum of the travel industry to re-employ them.
