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In
the book, Achieving
Excellence Through Customer Service, by John Tschohl, it
is explained that in a 100 store chain scenario, if each store
lost only one customer per day the loss estimate would be $94.4
million per year. This represents about $2,575 per customer lost.
The Rule of Five states that it takes 5 times as much to gain a
customer than retaining one, this is $12,875 to gain one
customer.
Better Service Post
Direction throughout the store as convenient points of
reference. Retailing
Management Levy and Weise, 4th edition 2001 McGraw-Hill Co.
Exhibit 4-2 p. 120
Changing
Performance Beliefs .... The Supermarket might try
to improve its rating by ..., or providing more in-store
information so customers could locate merchandise more easily.
Retailing Management Levy and Weise, 4th
edition 2001 McGraw-Hill Co. Chapter 5, p. 151
Refact:
the typical annual turnover among hourly retail employees
approaches 100 percent. "Workers are
Seeking Employers of Choice" Chain Store Age October 1995, pp
103-108
.... Some
retailers maintain a want book in which salespeople
record out-of-stock or requested merchandise. This information is
collected by buyers for making purchasing decisions. Retailing
Management Levy and Weise, 4th edition 2001 McGraw-Hill Co.
Chapter 12, p. 368
Case
37: Best Buy Use Kiosks to Improve Customer Service:
Best Buy, a category specialist competing against Circuit
City, uses interactive kiosks in its stores. This case provides a
comparison of interactive technologies in a store environment
versus a non-store, electronic retail environment. Retail
Management Bart Weise, 3rd edition, 1998 McGraw-Hill Co.
The
most frequently cited reasons for disliking shopping
are long checkout lines, crowds, and poorly trained salespeople.
"Change at the Check-Out", The
Economist, March 4, 1995, pp. 31.-32
Refact:
Lack of inventory and high prices are why customers don't buy: in
every category, out of stock, wrong
size, wrong brand or insufficient advertised items account for 33%
of failed food shopping trips and 40% of apparel and home goods
shopping trips not resulting in a purchase. Mark
Kingdom, "Consumer Enhancement & Development," Chain
Store Age January 1996, section 3, p. 5
Refact:When
firms increase customer retention by 5 percent, they realize
a 25 to 95 percent increase in net present value. Fredric
Reichold, The Loyalty Effect, (Boston,
MA; Harvard Business School Press, 1996)
...
Thus, retailers need to reduce the service gap (the
difference between the customers'
expectations and perceptions of customer service) to improve
customers' satisfaction with their service, Four Factors
affect the service gap: Knowledge
gap: The difference between customer expectations. The
following discussion of the Gaps model
and its implications is based on Deon
Nel and Leyland Pitt, " Service Quality in a Retail
Environment: Closing The Gaps," Journal of General Management
18 (Spring 1993), pp 37-57; Valarie Zeithaml, A. Parasuraman and
Leonard Berry, Delivering Quality Customer Service (New York Free
Press, 1990); and Valerie Zeithaml, Leonard Berry and A.
Parasuraman, "Communication And Control Processes in the
Delivery of Service Quality," Journal of Marketing 52 (April
1988), pp. 35-48.
Refact:
Ninety-one percent of customers dissatisfied
with a firm's offering never buy from them again. These customers
will tell nine other people about their unsatisfactory
experience. Thomas Peters and Nancy Auston, A
Passion for Excellence (New York: Random House, 1985), p. 84.
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