Customer service training is back on the agenda, big time! In the run-up to Christmas you might have seen advertisements featuring Darth Vader, R2D2, Chewbacca and other characters from Star Wars; but it was not promoting some new toy or video game. Instead they were adverts for Currys’ electrical stores, extolling the virtues of its well-trained staff.
There have been few TV ads emphasising the customer service skills of staff – Federal Express and British Gas being among the exceptions. So why has Currys decided not only to do the training but to tell everyone about it?
The main reason is market forces and competition from the internet. Currys, along with many other high street stores, is feeling the squeeze from online providers and although the company has a ‘clicks and bricks’ strategy it is still hurting. The challenge is to find a strategic advantage over the internet and the answer is clear – deliver good customer service.
The best prices may be found on the internet, but will you purchase the best TV or washing machine for your purposes and your pocket? To buy online requires that you be an expert in TVs or washing machines, and most of us have neither the time nor the patience for that. What we want is a knowledgeable and helpful adviser to guide us to the best solution. This isn’t possible on the net, which is why the majority of people still prefer to visit the showrooms.
Currys has also noticed that highly successful customer-oriented stores such as John Lewis are increasing their share of the electricals market through the use of intelligent and customer friendly staff. Currys doesn’t want to be caught in the pinch between the internet and more customer oriented stores, hence the big training effort and the campaign to inform customers that they can get good informed service. Some 20,000 Currys and PC World staff have been trained to deliver better in-store advice and this is good news for them, for the company and for the buying public. It has also revamped the appearance of its stores so it makes good sense to also upgrade the skills of staff too.
So has the strategy worked? Well, the Christmas trading figures for 2011 were 5 per cent down on 2010, but that was when everyone was buying to avoid the VAT increase. In difficult trading conditions this should be seen as a solid performance, particularly when competitor Best Buy is closing its UK stores.
Some twenty-five years ago I visited DSG headquarters (the owners of Currys and PC World) to learn about their customer service training campaign, which was modelled on the success of British Airways’ ‘Putting Customers First’. It seems like the lessons of good customer service are being learnt again.
It is encouraging to see that good customer service is back on the agenda. It would appear that the only way some specialist retailers are managing to stay competitive is by offering unrivalled advice and service.
John Lewis have a great reputation for delivering top notch service through well informed staff and have reaped the benefits of this investment.
Majestic Wine are another retailer that continue to invest heavily in the training and development of their staff. This would appear to have paid dividends with sales and profits up, a share price on the rise alongside ambitious expansion plans – all of this delivered in a very tough retail climate as John higlights above.
It is clear that delivering customer service excellence is a key differentiator in what is a fiercely competitive retail sector.