The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings
Issue link: https://www.e-digitaleditions.com/i/1524754
RETAILOBSERVER.COM AUGUST 2024 24 I f you want more of anything, whether it's customers, sales, or profits, I have three words of advice: Reduce the friction. You must eliminate anything and everything that may be getting in the way of people doing business with you. For most companies, the roadblocks could include hours of operation, technology, or procedures and policies that are making it hard or impossible for people to buy your products and services. Even if your employees are the friendliest and most capable in the world, if you aren't making it easy to do business with you, you're spinning your wheels. Whether you're an owner or executive, you must make it a priority to understand how you're interacting with your customers, and find out what you can do to improve those interactions. Amazon founder Jeff Bezos says, "If you want more of something, reduce the friction." If you want to drive sales, you must create loyal customers who enjoy doing business with you and wouldn't dream of leaving you for your competitors. Many of us are focused on the bottom line – we're "numbers people." But let me share some numbers with you that I believe will open your eyes and motivate you to up your game when it comes to attracting and keeping customers. Apple is one of the world's most customer-friendly companies. If I have a problem with my Mac or iPhone, I don't have to pack it up and ship it, or even haul it to a store; I can call Apple and explain the problem, confident that an employee will efficiently walk me through the process to solve my problem. How does Apple's customer service impact its bottom line? The company has had $100 billion in profits over the last several years. In 2023 Apple had sales of $383.3 billion and net income of $97 billion. Impressive. Costco had $237.7 billion in sales last year, an increase of $15 billion over 2022. Costco has 316,000 employees in 871 locations and has made customer service its top priority. An example: If you buy steaks from Costco and they aren't as good as you expected, you don't even have to bring them in to get a refund. You can simply go to Customer Service and tell the employee your problem, and get a refund. You don't even need a receipt – your purchase information is in the company's computer system. Then there's Amazon, one of the world's most customer-centric companies. Amazon does many things right, and reaps the rewards. In 2023 Amazon's sales reached a whopping $574.8 billion, an increase of $60.8 billion over 2022, with net income of $30.4 billion. How are you using technology? Are you using it to tick-off your customers and avoid human contact, or are you using it to recognize the customers and build relationships? Amazon uses tech as a magnet to help the customers and draw new customers in. Placing an order on Amazon takes just seconds, and Amazon will acknowledge your order in less than a minute, with a reliable expected delivery date. And if the order doesn't meet your expectations, you can return it easily, at no cost to you. The most important step you can take toward attracting new customers and creating customer loyalty is to know who your customers are. What hours and days should you be open for business and available to meet your customers' needs, in person or through technology? For example, if you're selling vacation travel, you must be open and available nights and weekends when the customers aren't in their offices and are free to book flights and hotels. Don't be like RCI, the world's largest timeshare exchange, which closes at 6 p.m. Saturdays and is closed Sundays. If you own a dental clinic, you'd better have evening and Saturday hours to accommodate your clients' schedules. The opportunities to accommodate your customers are endless – it's just critical to know who your customers are, and be committed to doing everything possible to meet and exceed their expectations. What do all customers want? They want great quality, great prices, great speed, and great service. Deliver on all four and your sales will skyrocket. Visit www.customer-service.com for more information on John Tschohl and the Service Quality Institute. John Tschohl Customer Service John Tschohl is the founder and president of Service Quality Institute, a global leader in customer service. He is considered one of the world's foremost authorities on all aspects of customer service, and is the author of several books including Moving Up: A Step-by-Step Guide to Creating Your Success. His monthly strategic newsletter is available online at no cost at www.customer-service.com. REDUCE THE FRICTION And increase sales and profits RO