Thursday, October 29, 2009

Proactive Customer Service

During one of my recent interactions with a leading Indian retailer, I was asked what is the fundamental difference in processes between North American and Indian Retailers. It was an interesting question, and my answer was straightforward, NOTHING! I went on to point out that Indian retail has evolved over the years, and Indian retailers are as technically adept as their western counterparts riding on the back of investments in state of the art retail solutions.

But I also pointed out that even if process and technology wise Indian retailers are more or less at par, proactive customer service is one critical area where Indian retailers are lagging a wee bit behind their North American counterparts.

Last year, I purchased a weather temperature reader from a leading retailer, and later I realized that it was reading the same irrespective of outdoor or indoor temperatures. Now, I had misplaced the receipt / bill, and couple of months later I was not sure if the  retailer would take the product back without the original pack. With a sense of trepidation, I walked into a different outlet (not the same store from where I had made the purchase) and explained the customer service desk my predicament. And true to the outlet's “no question” asked return policy, the friendly desk representative, took the product back and issued a gift card

And this is not the lone example, at a Starbucks outlet, the billing assistant, was unable to process my membership card due to a technical glitch. A steady stream of customers was building up, and gauging the impatience of the customers in the queue, he promptly said to the folks behind me that whatever they order will be “on the house”. An average Starbucks grande coffee costs around 3 USD, and there were close to 6 customers, and that would have added upto not less than 20 USD, which is quite a lot of money.

I hired a cab once, and it arrived 45 mins late, and of course I did not mind, but on reaching my destination, the fare was 23 USD, and the driver refused to take the fare from me saying that since he was late, he is not going to charge a single penny. Amazing!

These examples explain the stupendous success which most of the North American businesses have enjoyed. It is not about processes, but consistent proactive customer service and customer gratification. For them, a customer is not a one – time customer, but one who would bring them more business for years to come. At times such flexibility in return policies have been taken for granted by customers and misused but that has not deterred business firms. Proactive customer service is a legacy, which has been inherited by generation next.

There are countless instances where Indian retailers have walked the extra mile to satisfy their customers, but such practices have not been consistent. Being a retailer myself, during my initial days in my role as a store manager, I would have refused quite a few returns because the stipulated time duration set for returns would have lapsed. Going by the book was the order of the day, because such a stance was a result of impending consequences if we display a wee of bit flexibility in policies.

5 comments:

Ravi Shetty said...

Good one Bala.While customer service needs drastic change in retailers mindset,but this also requires focus on customer education in Indian market.How many retailers today make an effort to measure customer experience?This applies to even retailers from US and Europe.Its not one of their key performnce indicators.How many retailers have customer experince managers in their senior management teams.Its always positioned at their convenience to suit them.Many of them seem to be reciting the mantra of customer centricity,but they also know its not going be easy to execute effective customer service.Proactive customer service requires a cultural change,training,organisational restructuring & investment of time and enegy.
Infact Best Buy is one of the first companies to invest in customer centricity way back in 90's.

Unknown said...

wonderful bala...It actually reminds me of all the good things that i experienced in Wal*Mart..Infact i remember going in there for a petty issue, just to point out that one of the brands that they sold does not stand to its promise.(The milk products got spoilt just 1 day before the date). I had no receipt. But this guy simply asked me, how did u pay the money and do u want a cash return? I was amazed by their no questions asked policy!!

I still do not agree that Indian retail is close to what American retail is, simply due to to the discipline. We might have invested crores in the best technologies, but dont spend time using them . whatz the point?

Anil Gudimalla said...

Good one Bala.The customer service in US is way ahead of ours.I experienced a similar incident.Not in Retail but in a Hotel where I stayed.During my last visit to Scottsdale,my travel desk made a online reservation for my stay at Marriot.When I went to check-in my hotel,they are able to see my reservation but they are not able to bill the same(due to technical reasons).They didn't charge me anything and inturn upgraded me to a suite for two days because of their mistake.I really felt thrilled by there customer service.I am wishing that FDI in Retail should open quickly for more than one reason.I am hoping the more and more walmarts, Tescos in India will atleast increase the Organised retailing competition and in turn they will teach us how to deal with a customer. Proactively.....

Bala said...

Thanks for sharing your thoughts on my post, it is your views and ideas which will act as a catalyst.

Navin Ramnane said...

Great.very well written and explanied... simply wow!!!