How Consumers Killed Customer Service

By Doug Stephens

A recent Brandweek article titled “Retail Customer Service Stinks” reported that the service received by shoppers in over 1000 retail interactions in the study rated 48.2 out of a possible 100 points – a flunking grade. The study, conducted by the research firm The Salt and Pepper Group, examined retail interactions in 73 stores over a four-month period. It went on to cite specific issues including the failure of staff to identify selling opportunities or handle multiple customers. Essentially, staff weren’t actively anticipating or delivering on the needs of their customers. 

As the report made its way into the retail community it was met with a combination of surprise, disgust, and a dose of self-righteousness by industry experts. There was a landslide of opinion and commentary citing the need for retailers to properly train their staff to sell and the failure of store management to lead their salespeople. Some suggested that it was the fault of retailers who treat employees as costs instead of assets. And others called out the need to get back to the basics of retailing.

The Big Problem

The problem is that retailers didn’t make this happen. We—the consumer—did. The fact that “service stinks” is entirely our fault. We’re the only ones to blame.

We demanded the lowest airfare wherever we flew. We went to the buy-one-get-one sales. We made Walmart what it is today. We camped out for Black Friday. We built the dollar store channel. The bottom line is that we voted with our wallets and customer service lost. We killed customer service.

Minimum Wage = Minimum Service

The consequence of our lust for cheap stuff combined with the retailer’s hunger for profit is that there’s barely a working wage left in it for most retail employees. And yet with most retail workers at or near minimum wage, we somehow expect them to sweep us off our feet and treat us to a profound in-store experience. We expect them to dazzle us with their knowledge and helpfulness. It’s delusional.

And our preference for price didn’t only erode wages, it trimmed recruiting costs, eliminated training budgets, slashed worker medical benefits, and put a virtual moratorium on employee corporate mobility. We made it so. We demanded it.

Service Isn’t Completely Dead… Yet

Despite the devastating effect of discounting on the market in general, there are still some remaining vestiges of service. The Apple Store, Lululemon, Nordstrom, and Publix Super Markets are a few names that consistently rise to the top in discussions on in-store experience. Their closest commonality apart from superior service is that none of them have staked their reputation on price; they haven’t allowed us to drag them into the mud like so many others.  They prove that in a world of price promotion, it’s still possible to differentiate and create remarkable brand experiences that people will pay a premium for. Rarities like Southwest Airlines that manage to combine low price and great service are exactly that – rarities. In the vast majority of cases, we get exactly what we pay for (or don’t pay for) as it were.

The question we need to ask ourselves the next time we’re confronted with bad service is: would we pay more to have a great experience? Would we literally reach into our pockets and pay an extra 20 percent or more for excellent service? It’s not as easy a decision as one might think.

Trades and Concessions

For most of us it’s become a matter of making trades and concessions based on the type of product, the brand, or the store we choose to shop at. Just as we don’t expect the lowest price for a laptop at the Apple Store, we can’t in good conscience demand brilliant service at Sears, whose stores have become a virtual sea of sale banners. And if in fact we really can’t live with that trade-off, then I’m afraid we’ll need to rethink our definition of value as consumers and as a society.

51.8 Reasons to smile

If all we conclude from this study is that retailers scored 48.2 and “service stinks” then we lose again. The real story here is that there are 51.8 points of unclaimed turf for smart retailers who want it. The service gap has never been larger. Never have the opportunities to shine and create remarkable customer experiences been more abundant.

As far as I’m concerned that’s good news for the future of great retail.