Where’s the Service?
What is happening to service? We are seeing that service is becoming a challenge for more and more dealers. This is a dangerous situation for some. Too many are lacking any effective “price” response to online and other low price retailers and supply sources. They are relying heavily on their service to keep them relevant.
Whether they are consumers or pros, customers are becoming more and more demanding. Much of what they are demanding revolves around service. We all know that good service has long been a strong differentiator. But today, great service has become a competitive necessity.
Our channel has typically enjoyed a favorable service image. Recently, the home improvement channel received a good “report card” from the J.D. Power 2017 Home Improvement Retailers Satisfaction Study. 2017 overall customer satisfaction scores were up over 2016 and several key channel brands received strong customer satisfaction scores.
However, somewhat concerning of late is that our local market research, both consumer and pro studies have shown some slippage in how well service is being provided. This is coming as a surprise to some who thought they we providing good, great or even “world class” service levels. This is a problem. Not only that the service levels are slipping, but even more importantly that management is unaware. In many instances, specific service components deemed less important (from traditional thought) emerged as being of greater importance. Other service issues thought to be of high importance, actually were not.
It is interesting that a recent white paper by IBM reported that almost 90% of brands are expecting to compete on the basis of their service experience. They question is can they? Just over 80% of those companies surveyed believe they understand their customers….and can provide a great customer experience, but over 60% of their customers disagreed. That large of a disconnect gap strongly suggests that many companies should take steps to find out what their customers really want and what is most important from a service experience.
“Even in a large market like home improvement, it’s the attention to detail that can affect customer satisfaction”
Greg Truex, Senior Director, J.D. Power and Associates
Central to addressing service slippage is gaining a better understanding of service needs in your market. You need to know what are the priority service issues, how they are changing and how they differ by type of customer/end user segment. You then need to measure how well you are performing across the broad spectrum of specific service elements including (but not necessarily limited to):
Consumer Service Elements
Stronger online presence
Seamless online and store experience
Zero defect in-stock
Easy to get questions answered
Buy online and pick up/return in-store
Easy to find merchandise
Friendly flexible staff
Signage that helps select products
Individual personal service
Special services (glass, screen, keys, etc.)
Easy special order
Fast and cheap delivery
Signage that lists products for projects
Pro Service Elements
Complete and accurate orders
Good inside sales and support staff
Easy in and out
Good outside sales staff
Online job/order management/tracking
Mobile friendly and easy to navigate website
Resolves issues fast
Knowing exactly where you have service weaknesses allows you to target those with proper corrective resources. But, it is equally important to know where you excel with service. These strengths can then be leveraged to better differentiate your brand on service.
Need some help?
The Farnsworth Group provides a wide range of market research services that can help you better understand the service needs of you customers, potential customers, and examine how well you are aligning your service offerings with your market’s service priorities.
Learn how The Farnsworth Group can provide market research to assist you with your service enhancement initiatives by contacting Jim Robisch at 317.241.5600 ext. 109 or firstname.lastname@example.org.
Written by: Jim Robisch, Sr. Partner of Retail, The Farnsworth Group