Is poor customer service really a good thing for small retail service businesses?

It is definitely an opportunity for doctors, dentists, salons, barbers, cafes and food kiosks to get ahead of their local competition and win more customers.

Millions of businesses are lining up customers every business day to wait to be served. Sometimes the wait is too long.

However, customers keep coming back in droves. They are really?

If they are in the past, these companies cannot be sure that their customers will keep coming back in the future.

Consumers will switch if they have compelling reasons. In the last five years, smartphones, social media, and review/comparison sites have changed consumers forever.

Walmart and Amazon Tested Customer Will Switch

Walmart discount stores started in 1962. They delivered a wider range of products at lower prices. Millions of shoppers had driven a few hours to shop cheaper.

Amazon.com started in 1994. It became the largest bookstore in 1997 and is now the largest online retailer in the world. And they’re not done yet.

Now, consumers can buy many things online from local or foreign retailers.

In the last year, showrooming was a hot topic. Customers go to retail stores, check the merchandise and buy it cheaper online. Retail stores, large or small, had to react to this trend.

The way customers shop will continue to change in the future.

Changes Affecting Small Service Businesses

Some big changes have happened in our communities in the last 5 years. The changes listed below have a serious impact on small retail service businesses.

market changes

• Wide use of iPhones and Android Smartphones.
• iPads and Android tablets are growing rapidly.
• Mobile apps are helpful and more categories are being added every week.
• Social Networks – Facebook, Twitter, foursquare. No explanation needed here.
• Review Sites: Yelp, Google+, and the Thousands Near You
• Deal of the Day: Groupon, LivingSocial, others

These factors will affect your current and future customers.

Smartphone penetration in the US exceeded 50% at the end of 2012 and Asymco, a well-known research firm, predicted it will reach 80% by August 2014. Smartphone penetration in international markets more advanced is growing at the same rate.

Smartphones are the foundational vehicle that brought change to retail business. Armed with connected smartphones capable of a wide variety of applications, a consumer can easily search for alternatives anytime, anywhere. With geolocation services, they are presented with alternatives when they are within a local neighborhood… even when they are not searching.

Consumers constantly check review sites to make their purchasing decisions. Good and bad reviews about your business will happen without your control.

Infographic titled “How Smart Devices and Social Media Affect Your Buying Habits” summarized research findings that consumers’ buying decisions are affected by review sites, search responses, and online posts. social networks.

There is an old saying that a happy customer will tell one person and a dissatisfied customer will tell ten others.

With social media and review sites, we know that customers can tell lots of people about good and bad experiences, very quickly through their handy smartphones.

“Everyone has now accepted that change is inevitable. But that still implies that change is like death and taxes: it must be postponed as long as possible and no change would be preferable. But in a period of upheaval, such as the one we are living, change is the norm”.

-Peter Drucker

Management Challenges for the 21st Century (1999)

Check sites and social networks

Review sites and social media will amplify the good and the bad. That can be a great marketing opportunity or a nightmare.

You cannot control the reviews your customers will write. Some will be fair, others will not. Their only defense is to provide extraordinary and consistent service. The good reviews will outweigh the bad.

Today, it is more important than ever in history to provide excellent customer service.

Poor customer service elsewhere is good for your business

Today, most customers will tell you that they have to put up with poor customer service every week.

This is an opportunity for your business to improve your customer service and enjoy the multiplier effect.

In the past, to operate a salon, we needed to find a good retail location with high foot traffic (convenience), provide great hair styling (quality), and have a pleasant in-store environment (convenience).

Those are the basics of good customer service. In the customers’ own words, they had a great customer experience.

Great customer experiences are the magic touches that keep them coming back and telling their friends and family…great service that’s convenient and enjoyable. Great service, convenience, comfort.

Does your company offer those customer experiences?

great service

You have to review your main service and make this noticeable. Keep asking your new and loyal repeat customers for their feedback.

convenience

Review the ideal clientele you want to serve. Convenience can be satisfied by:

• Service point location
• Appointment by phone or online
• Virtual queue management solution so customers can wait in comfort

Pleasant

Customer happiness can be found at every touch point in your service chain. Or it can be broken at every point.

To be on the safe side, organize yourself and your staff as mystery shoppers and visit a few of your nearby competitors.

“Low Hanging Fruits” area to differentiate

There are areas that are easier to differentiate than others. For your core service, such as hair care, dental care, and disease mitigation, customer expectations will be high and rising.

There are many other areas that most companies are not prepared to do. The book, “Raving Fans” by Ken Blanchard has many examples.

Get your team together and have a short brainstorming session. Explore opportunities before, during and after service. You’ll find many opportunities to suit your operations manager, finance manager, your staff, and you.

About the Author

SengHee Tan is the CEO of Qender Mobile Queue, a service that enables small businesses to offer their customers the convenience of “Disneyland Fast Pass.”