08 February 2010

Customer Satisfaction is No. 1

AP

When Moosejaw learned that a customer's coat had been stolen, the Madison Heights outdoor sports retailer sprang into action, enlisting its Twitter followers to vote on one of three possible replacements. Forty-five minutes and 200 votes later, Moosejaw shipped the winning jacket to the customer, an Oakland University student, at no charge.

"It's not enough that we make customers happy or satisfied," said Eoin Comerford, vice president of marketing for Moosejaw Mountaineering and Backcountry Travel Inc. "We want them to go away loving us."

Companies like Moosejaw are changing the standards for customer service as the recession forces them to adapt to a highly competitive marketplace and win over tight-fisted consumers -- or perish.

For companies caught between a weak economy and a technological revolution, the nature of service is evolving, becoming faster, friendlier and more fun, whether selling jackets, airline tickets or cars.

"The voice of the company is the first impression many people have," said Chris Stark of Troy-based global staffing firm Kelly Services Inc.

Whether on the phone, the Web, or in person, service is the No. 1 factor in determining whether customers will return.

The resurgence in customer service recalls another more gracious era, when polished personnel strove to keep customers comfortable and represent their brand. That level of service all but disappeared in the 1990s with the advent of self-checkout lines and the rise of the self-service economy.

But the recession and digital media have returned power to the consumer, and with the Web as their megaphone, many consumers have become activists, taking companies to task for more than a refund -- many want public retribution.

"Customers want to be heard," said Marilyn Suttle, co-author of "Who's Your Gladys?: How to turn even the most difficult customer into your biggest fan." In many cases, "if you don't make eye contact, they're out of there. It's become, you better make me feel important or I will leave."

Just ask dissatisfied shopper Ashley Cook of Pontiac, who waited three months to have some water bottles replaced after a recall, only to learn that the company lost the bottles she shipped -- at her own expense -- after a frustrating, two-week e-mail correspondence.

"There are so many different options out there without having to support a company like that," Cook said. "A well-run company would have reacted differently."

But with Twitter, Facebook and other social media services, the two-way dialogue often lets companies find naysayers and impress them with unexpected service.

"In the past, those (complaints) would have gone on without any remedy," said Tom Aiello, spokesman for Sears and Kmart.

Engaging the customer

Many companies have customer service teams to trawl the Web for complaints. Moosejaw has as many as 20 workers dedicated to helping customers by e-mail or Web chat. Another works exclusively on its Facebook page. The company receives consistently high marks for customer service due to its creative use of text messages to update customers on order status and social networking.

"We see every touch point as an opportunity to engage the consumer," said creative director Gary Wohlfeill, who oversees Moosejaw's Twitter feed. "We look to interact with customers where they are."

Even so, the retailer's call center is still twice as large as its Web team, Wohlfeill said.

"People continue to like to hear a live voice, especially when they have more detailed questions about an order."

While it may seem counterintuitive to invest heavily in customer service at a time when companies are downsizing, those that do are best poised to survive the recession, said Suttle's co-author Lori Jo Vest.

"Small businesses in this economy have been stripped down and the emphasis is on getting the job done," Vest said. "There's no time for training though they need it now more than ever."

In fact, service is increasingly important at dental and doctors' offices. Many people prefer a mediocre doctor with a helpful desk staff to an excellent doctor with a lousy staff, she said.

Points of frustration


But it's not necessarily the small businesses that struggle the most with customer service. Corporate Goliaths, especially ones that traffic in high-stress situations such as air travel, can be impenetrable, forcing callers to navigate a telephone maze and endure outrageous waits.

"There's such pressure on companies to cut and improve the bottom line," said Tod Marks, senior projects editor at Consumer Reports. "We do know in general that people are incredibly frustrated."

Cable and satellite television (tied with newspapers) are considered the worst offenders, according to the most recent American Customer Satisfaction Index survey, taken quarterly at the University of Michigan since 1994, which measures the quality levels of goods and services.

Airlines scored one point better on the index's 100-point scale.

"On just about all airlines, the service in the main or coach cabin is barely holding its own or getting worse," said Terry Trippler, a Minneapolis-based aviation expert. "The airline management doesn't really care. They really don't."

Cost cutting by the major airlines has demoralized crews and created an atmosphere that equates customer service with hawking sandwiches or candy in-flight, he said.

Delta Air Lines, for its part, said its Detroit customers have seen upgrades to customer service including more food and entertainment options, said spokeswoman Susan Elliott.

Soft drinks, personal care and cleaning products, pet food, breweries, full-service restaurants, credit unions and autos all scored well on the survey.

Scores were generally low in the 1990s, as frustrated customers grappled with self-checkout stations and e-mail; by the turn of the century, most people had mastered the technologies and satisfaction began to improve.

Old-fashioned service

But some older customers who are uncomfortable with technology may never be satisfied with digital-based service, said survey director David VanAmburg. They want traditional service, "which is lots of people on the floor, in every aisle, who can help you with something."

The survey shows the best companies rely heavily on old-fashioned service, such as Nordstrom, legendary for its attentive staff and flexible return policies.

The Seattle-based department store is the epitome of good service, said Hans Sternberg, author of "We Were Merchants," whose family owned the Baton Rouge, La.-based Goudchaux's and Maison Blanche department stores. Perks such as free gift wrapping, shipping and coffee keep customers comfortable. Real service means having enough floor staff to approach and assist shoppers quickly.

"The highest level of service is having what the customer wants -- in the color and size she wants -- at the price she is willing to pay," Sternberg said.

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