Merchandise Concepts Article #51

Productive Customer Service: The Key to Being Recession Resistant

By Anne M. Obarski

Businesses are looking for a magic bullet when the economy is in a downturn. The good news is that the magic bullet is literally under their noses. At a recent customer experience conference, a manager was quoted saying, "Use great service to help establish a premium for product opportunity in a downturn". I think that amazing, productive service is the premium that any business should focus on in any economy.

Three areas that were pinpointed to increase customer advocacy were improving the company's web site, creating a distinctive brand and achieving call center excellence. All of the information in the case studies sounded like graduate level marketing class.

Then I ran across an article about that was the perfect example of a "best practice in customer service" in a small shoe store in St. Louis, Mo

The shoe store focuses on serving and selling to those people who are avid runners. The owner and co-owner look old enough to be my kids. I thought, "What could they possibly know about running, pardon the pun, a retail business?"

As young entrepreneurs, they did many things right. Here is a brief list that is helping them be "recession-resistant" as a specialty retailer.

1. Potential niche: As runners themselves, they knew the market, the need and the retailers and websites where they could buy the right running shoes. They also chose their location based on its closeness to parks where runners and walkers are drawn to.

2. Potential growth: Their research proved that the running industry is growing. Fitness programs and health care providers all preach the need for walking or running for aerobic exercise. The Susan G. Komen Race for the Cure events has driven a large participation in walking and running.

3. Potential Sales: Research also showed that specialty running stores nationwide have shown sales in excess of $600 million and that number is increasing. Obviously there is a market of runners who are willing to spend money for good running shoes.

4. Potential competition: Just like any other retailer, even this specialty store is not immune to competition from the internet. There are a number of websites that sell the identical product that this store does as well as "big-box" sporting goods stores all around the city, and many at prices far less. These entrepreneurs know that people could come to their store and get fitted and then go on a competitor's website to buy the same shoes for less. Their goal is to give such superior service and show knowledgeable fitting skills that the customer wouldn't think twice before saying, "I'll take them"!

5. Potential Service: These young managers decided that their prices were higher than their competition but that their "knowledge" of a how a customer's foot moves as well as their shoe needs would be a competitive advantage.

6. Potential Customer Experience: Their current customer base is their biggest advocates. Word on the street says that the personal attention is much better than at the sporting goods stores. They even go so far as to say that their customers are more likely to cut from other parts of their budget before they cut from their running "budget".

7. Potential Expansion: These owners are looking to expand further in the area. By following the "template" they have developed for their first store, they have the potential of being successful in other locations.

All seven of these steps can be applied to any company to stay recession resistant. The key is to focus on a productive customer service model that creates customers who become loyal cheerleaders for your business and wouldn't think of shopping elsewhere.

I may not be a runner, but I know there are a few stores that I will shop at even when money is tight. I will just choose to stop buying something else. The question is, what business did I decide not to patronize? Will it be yours?

Anne M. Obarski is The “Eye on Performance.” Anne works with organizations who want to focus on becoming CONTAGIOUS! Anne provides keynotes and breakout training sessions on how to develop the right strategies to effectively keep your customers coming back and referring others along the way. For your Free Business Health Quiz, email Anne at anne@merchandiseconcepts.com. With the words “BHQuiz” in the subject line. Visit her website at www.MerchandiseConcepts.com

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