I loved the opening line of this recent news story, written by Joyce Smith of McClatchy Newspapers:
” It’s not only the Grinch who stole Christmas. Some grouchy salesclerks do, too.”
The article states up to 40 percent of revenues for a retailer can come from holiday sales. Yet, at precisely the moment they should be displaying their best efforts when it comes to building a customer relationship, many businesses put poorly trained employees on the front lines.
Could that be part of the reason Sears Holdings, Inc. — the parent company for both Sears and Kmart — announced this week they will be closing as many as 120 stores? I think so. What was your experience the last time you shopped at either of the two?
Naturally, Sears Chief Executive Lou D’Ambrosio told employees in an internal memo the retailer had not “generated the results we were seeking during the holiday.” Then, he did what it seems every CEO does at times like this — he cuts the level of service and access customers have to do business with him.
Does this approach EVER work? Sears/Kmart is closing locations — meaning there will now be 120 fewer dirty, crappy stores — but saying nothing about how they are going to enhance the customer experience for those remaining open. Which means — think Circuit City, Borders, and the like — they somehow believe providing less for customers will somehow turn their business around.
Sure, they have the advantage of Craftsman tools and Kenmore appliances — but, is there REALLY a compelling reason to go to Sears? And, good grief, Kmart?
It’s pretty obvious that Walmart can sell it cheaper — and Target will sell it hipper — so why would you go to Kmart? What advantages does Sears have over any competitor?
As I stated in “Collapse of Distinction,” if you can’t define why your customer should and would choose you over the competition, you are doomed. I seriously do not believe Sears and Kmart can currently answer that question.
If I was in their shoes, I would announce an all-out assault on the customer experience. Sure, some locations may have to be closed — but, those remaining must be updated with a fresh, modern appearance. New standards would be established and educational programs instituted for everyone from clerks to managers on how to deliver an Ultimate Customer Experience ®. Sears and Kmart would put their flag in the ground that their customers will be treated in a way you will never encounter at Walmart or Target…it would become a point of significant differentiation.
The McClatchy article stated: “A study this year by American Express found that nearly 80 percent of Americans have ditched intended purchases because of poor service. But on the flip side, consumers said they would spend an average of 13 percent more with companies that provided excellent service.” Just getting current customers to stop ditching Sears/Kmart and spend more money with us because of excellent service could be an important first step to right the ship.
Here’s what’s important for you and your business: What is the compelling reason customers would come to YOU?
Are you delivering such a superior experience they won’t ditch the purchase — and, instead will decide to spend more money with you?
If the answer is “yes” — welcome to a great 2012.
Is there a compelling reason to go buy from Sears, Kmart, or YOU?
December 29, 2011 · 8 comments
I loved the opening line of this recent news story, written by Joyce Smith of McClatchy Newspapers:
” It’s not only the Grinch who stole Christmas. Some grouchy salesclerks do, too.”
The article states up to 40 percent of revenues for a retailer can come from holiday sales. Yet, at precisely the moment they should be displaying their best efforts when it comes to building a customer relationship, many businesses put poorly trained employees on the front lines.
Naturally, Sears Chief Executive Lou D’Ambrosio told employees in an internal memo the retailer had not “generated the results we were seeking during the holiday.” Then, he did what it seems every CEO does at times like this — he cuts the level of service and access customers have to do business with him.
Does this approach EVER work? Sears/Kmart is closing locations — meaning there will now be 120 fewer dirty, crappy stores — but saying nothing about how they are going to enhance the customer experience for those remaining open. Which means — think Circuit City, Borders, and the like — they somehow believe providing less for customers will somehow turn their business around.
Sure, they have the advantage of Craftsman tools and Kenmore appliances — but, is there REALLY a compelling reason to go to Sears? And, good grief, Kmart?
It’s pretty obvious that Walmart can sell it cheaper — and Target will sell it hipper — so why would you go to Kmart? What advantages does Sears have over any competitor?
As I stated in “Collapse of Distinction,” if you can’t define why your customer should and would choose you over the competition, you are doomed. I seriously do not believe Sears and Kmart can currently answer that question.
If I was in their shoes, I would announce an all-out assault on the customer experience. Sure, some locations may have to be closed — but, those remaining must be updated with a fresh, modern appearance. New standards would be established and educational programs instituted for everyone from clerks to managers on how to deliver an Ultimate Customer Experience ®. Sears and Kmart would put their flag in the ground that their customers will be treated in a way you will never encounter at Walmart or Target…it would become a point of significant differentiation.
The McClatchy article stated: “A study this year by American Express found that nearly 80 percent of Americans have ditched intended purchases because of poor service. But on the flip side, consumers said they would spend an average of 13 percent more with companies that provided excellent service.” Just getting current customers to stop ditching Sears/Kmart and spend more money with us because of excellent service could be an important first step to right the ship.
Here’s what’s important for you and your business: What is the compelling reason customers would come to YOU?
If the answer is “yes” — welcome to a great 2012.