A recent Brandweek article titled "Retail Customer Service Stinks" reported the results of The Retail Service Quality Index, released by consulting firm The SALT & Pepper Group. It stated that the service received by shoppers in over 1,000 retail interactions in the study rated 48.2 out of a possible 100 points. It's a flunking grade, but the fact that "service stinks" is entirely our fault - we consumers, that is.
We demanded the lowest airfare wherever we flew. We went to the buy-one-get-one sales. We made Walmart what it is today. We camped out for Black Friday. We built the dollar store channel. The bottom line is that we voted with our wallets and customer service lost.
The consequence of our lust for cheap stuff combined with the retailers' hunger for profit is that there's barely a working wage left in it for most retail employees. And yet with most retail workers at or near minimum wage, we somehow expect them to sweep us off our feet and treat us to a profound in-store experience. We expect them to dazzle us with their knowledge and helpfulness. It's delusional.
And our preference for price didn't only erode wages, it trimmed recruiting costs, eliminated training budgets, slashed worker medical benefits, and put a virtual moratorium on employee corporate mobility. We made it so. We demanded it.
Despite the devastating effect of discounting on the market in general, there are still some remaining vestiges of service. The Apple Store, Lululemon, Nordstrom, and Publix Super Markets are a few names that consistently rise to the top in discussions on in-store experience. Their closest commonality apart from superior service is that none of them have staked their reputation on price; they haven't allowed us to drag them into the mud like so many others. They prove that in a world of price promotion, it's still possible to differentiate and create remarkable brand experiences that people will pay a premium for. Rarities like Southwest Airlines that manage to combine low price and great service are exactly that - rarities.
The question we need to ask ourselves the next time we're confronted with bad service is: would we pay more to have a great experience? Would we literally reach into our pockets and pay an extra 20 percent or more for excellent service? It's not as easy a decision as one might think.
If all we conclude from this study is that retailers scored 48.2 and "service stinks" then we lose again. The real story here is that there are 51.8 points of unclaimed turf for smart retailers who want it. The service gap has never been larger. Never have the opportunities to shine and create remarkable customer experiences been more abundant.
As far as I'm concerned that's good news for the future of great retail.
Discussion Questions: Are consumers largely responsible for any deterioration in customer service at retail? To what degree would better compensation for store associates solve most issues? Are most consumers near a point where they'd likely pay a premium for better service?