Customer Service

1. Customer Service

2. Services Offered by Retailers Department and specialty store Discountstores Acceptance of credit cards Alteration of merchandise Child care facilities Credit Delivery to home Demonstrations of merchandise Displaying of merchandise Dressing rooms Extended store hours Extensive signage to identify merchandise

3. Services Offered by Retailers Department and specialty store Discountstores Gift wrapping Facilities for shoppers with special needs (physically handicapped, etc.) Parking Personal assistance in selecting merchandise Play areas for children Presentations on how to use merchandise Repair services

4. Problems in Providing Quality Service • Intangibility of benefits • Difficult for customers to evaluate service quality • Difficult for firms to evaluate quality of service delivered by employees • Inconsistencies of service provided • Employees are not machines

5. Customer Service Strategies • Customized • Greater potential benefits to customers • Greater inconsistency • Higher cost • Standardized • Lower cost • High consistency • Meets butdoes not exceed expectations

6. Role of Expectations in Evaluating Retail Service Service quality Perception of service delivered Satisfaction with Past service quality experiences Customer expectations Dissatisfaction with Competitive service quality offerings Perception of service delivered

7. Cues Customers Use to Evaluate Retail Service Quality • TANGIBLES • Appearance of store • Display of merchandise • Appearance of salespeople • UNDERSTANDING & KNOWING CUSTOMER • Providing individual attention • Recognizing regular customers • SECURITY • Feeling safe in parking lot • Communications & transactions treated confidentially • CREDIBILITY • Reputation for honoring commitments • Trustworthiness of salespeople • Guarantees & warranties provided • Return policy • INFORMATION PROVIDED TO CUSTOMERS • Explanation of service & its cost • Notes sent to customers informing them of sales • Assurances that a problem will be resolved

8. Cues Customers Use to Evaluate Retail Service Quality • COURTESY • Friendliness of employees • Respect shown to customers • Interest shown in customers • ACCESS • Short waiting time to complete sales transaction • Convenient operating hours • Convenient location • Manager available to discuss problems • COMPETENCE • Knowledgeable & skillful employees • Customer questions answered • RESPONSIVENESS • Returning a customer’s call • Giving prompt service • RELIABILITY • Accuracy in billing • Performing service at designated time • Accuracy in completing sales transaction

9. The GAPS Model for Improving Service Quality Knowledge gap Customer expectations Management perceptions of customer expectations Service gap Standards gap Retailer communications about services Standardsspecifying service to be delivered Delivery gap Communication gap Actual service delivered Customer perception of service

10. Closing the Knowledge GAP • Customer research • More interactions between managers and customers • Better communications between managers and service providers

11. Closing the Standards GAP • High quality service commitment • Innovative solutions • Define the role of service providers • Set service goals • Measure service performance

12. Closing the Delivery GAP • Information and training • Internal communications • Reduce conflicts • Empower employees • Providing incentives

13. Closing the Communications GAP • Realistic commitments • Managing customer expectations

14. Service Recovery • Listen to the customer • Provide a fair solution • Resolve problem quickly • Reduce number of contacts • Give clear instructions • Avoid jargon

15. Retail Selling

16. Steps in the Selling & Buying Process 1. Approaching the customers 2. Collecting Information 3. Presenting & demonstrating merchandise & overcoming reservations 4. Making the sale 5. Building future sales

17. Steps in the Selling & Buying process 1. Problem recognition 2. Information search 3. Alternative evaluation 4. Alternative choice 5. Postpurchase evaluation

18. Selling Benefits, Not Features PRESENTATION EMPHASIZING FEATURES This chinawear has a hard glaze that is applied after the pattern is on the cups and plates. The handles are molded into the cup before it is fired. All the china is fired at 2600 °F. PRESENTATION EMPHASIZING BENEFITS This chinawear will last a long time. It is stronger than most chinawear because it is fired at 2600 °F. To prevent the cup handles from breaking off, they are molded into the cup body before it is fired. The pattern will also last a long time. It won’t fade because a hard leadless glaze is applied over the pattern.

19. Types of Reservations Store I don’t know about this store’s return policy. Location I can’t find it. Timing I haven’t made up my mind. Merchandise I don’t think this is made well. Price This is too expensive. Salesperson I don’t like him.

20. Building Relationships With a Customer 11-10-97 Dear Ms. Marker, It was a pleasure meeting you and assisting you with your sunglasses from our accessories dept. at our Neiman’s Northpart store. Looking forward to seeing you again soon, and please do not hesitate to call for any assistance. Sincerely, Diana Carreon Neiman Marcus Diana Carreon SALES. FASHION . ACCESSORIES 400 NORTHPARK CENTERDALLAS, TX 75225 (214)363-8311Ext. 2127Res. 327-2258

21. Patterns of Nonverbal Communication INTERPRETATION BODY ANGLE FACE ARMS HANDS Power, dominance, superiority Exaggerated leaning over. Piercing eye contact. Hands on hips. Hands behind neck or back. Steepling (fingertips touching). INTERPRETATION BODY ANGLE FACE ARMS HANDS Nervousness, submission, apprehension Fidgeting or shifting from side to side. Head down. Minimum eye contact. Constant blinking. Hands to face, hair. Rubbing back of neck. Wringing hands. Fingers clasped. Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Parternships, 3rd ed. (Burr Ridge, IL: Irwin/McGraw-Hill, 1998).

22. Patterns of Nonverbal Communication INTERPRETATION BODY ANGLE FACE ARMS HANDS Disagreement, anger, skepticism Turning body away. Negative shake of head, frown. Lips pursing. Eyes squinting. Chin thrusting out. Arms crossed. Finger under collar. Fist. Finger pointing. Hands gripping edge of display. INTERPRETATION BODY ANGLE FACE ARMS HANDS Boredom, distinterest Slouching against display. Lack of eye contact. Looking at door, at watch, out window. Blank stare. Playing with object on display case. Drumming on display case.. Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Parternships, 3rd ed. (Burr Ridge, IL: Irwin/McGraw-Hill, 1998).

23. Points to Consider in Handling Objective Anticipate objections Create opportunities from objectives Maintain a positive attitude Understand customer objections

24. Sources of Objections • The customer may be objecting due to lack of information • The customer may be setting a condition • The objection may be genuine

25. Indicators of Assertiveness Less AssertiveMore Assertive “Ask” oriented “Tell” oriented Go-along attitude Take-charge attitude Cooperative Competitive Supportive Directive Risk avoider Risk taker Makes decisions slowly Makes decisions quickly Lets others take initiative Takes initiative Leans backward Leans forward Indirect eye contact Direct eye contact Speaks slowly, softly Speaks quickly, intensively Moves deliberately Moves rapidly Makes few statements Makes many statements Expresses moderate opinions Expresses strong opinions

26. Indicators of Responsiveness Less ResponsiveMore Responsive Controls emotions Shows emotions Cool, independent Warm, approachable Task oreinted People oriented Use facts Uses opinions Serious Playful Impersonal, businesslike Personable, friendly Moves rigidly Moves freely Limited use of gestures Gestures frequently Formal dress Informal dress Disciplined about time Undisciplined about time Controlled facial expressions Animated facial expressions Monotone voice Many vocal inflections

27. The Social Style Matrix Low Responsiveness D C B A 1 1 ANALYTICALS DRIVERS 2 2 High Assertive Low Assertive EXPRESSIVES 3 3 AMIABLES 4 4 D C B A High Responsiveness

28. Cues to Identify the Social Styles of Customers Analyticals Technical background Achievement awards on wall Office is work-oriented, showing a lot of activity Conservative dress Like individual leisure activities, such as reading, individual sports Drivers Technical background Achievement awards on wall No posters or slogans on office walls Calendar prominently displayed Desk placed so contact with people is across desk Conservative dress Like group activities, such as politics, team sports

29. Cues to Identify the Social Styles of Customers Amiables Liberal arts background Office has friendly, open atmosphere Pictures of family displayed Personal mementos on wall Desk placed for open contact with people Casual or flamboyant dress Like individual leisure activities, such as reading, individual sports Expressives Liberal arts background Motivational slogan on wall Office has friendly, open atmosphere Cluttered, unorganized desk Desk placed for open contact with people Casual or flamboyant dress Like group activities, such as politics, team sports

30. Versatile and Non-Versatile Behavior Less Versatile Limited adaptability to other’s needs Specialist Well-defined interests Firm of principle Predictable Single-minded More Versatile Able to adapt to others’ needs Generalist Broad interests Negotiates issues Unpredictable Looks at many sides of issue

31. Techniques to Alter Sales Behaviors Reducing Assertiveness Ask for customer’s opinion Acknowledge merits of customer’s viewpoint Listen without interruption Be more deliberate don’t rush Let customer direct flow of conversation Reducing Responsiveness Become businesslike Talk less Restrain enthusiasm Make decision based on facts Stop and think

32. Techniques to Alter Sales Behaviors Increasing Assertiveness Get to the point Don’t be vague or ambiguous Volunteer information Be willing to disagree Take a stand Initiate conversation Reducing Responsiveness Verbalize feelings Express enthusiasm Pay personal compliments Spend time on relationships rather than business Socialize--engage in small talk Use nonverbal communication