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How retailers can improve customer service

RJ Horsley, president, SpotOn Transact, offers insight on why customer service can't be limited to simply having well-trained, friendly staff anymore. Rather, retailers must focus on extending customer service to include every customer contact point.

Photo by istock.com

November 19, 2019

By RJ Horsley, president, SpotOn Transact

The way people shop has changed drastically from years past. Nowadays, even when a customer is shopping in-store, they are connected to the online world with their mobile phone — checking a competitor's prices, reading product reviews, scoping out a brand's social media presence, or simply sharing their experience with a friend via text message.

To provide a customer service experience that meets the modern customer's expectations, it's important for retail businesses to take these factors into consideration. Customer service can't be limited to simply having well-trained, friendly staff anymore. Rather, businesses should focus on extending their customer service to include every customer contact point, both in person and online. This requires having clear policies and communication channels in place so staff members can respond appropriately when customer issues arise.

Have a clear return policy

Having and communicating a clear return policy is a foundational first step in offering top-notch customer service. A sound return policy should be fair for all parties involved, ensuring the business is not taking excessive returns while still giving customers enough flexibility to return items for legitimate reasons.

There's no recipe for the perfect return policy that will work for all retail businesses, but generally speaking, the policy should specify the limitations of returns (e.g. whether a receipt is required, if the product needs to be unopened, if there is a time limit, etc.), and how the customer will be refunded (e.g. cash, gift card, store credit, etc.).

Once those details are determined, it's all about communication, communication, communication! Numerous customer service problems, as well as costly chargebacks, can be avoided by simply making sure that customers know what the return policy is with a multi-channel approach: in-store with clear signage at the cash register, on the customer receipt, company website, company's social media pages, and the company's business profile pages on review sites such as Yelp, as well as anywhere else the business has a presence.

Taking this approach creates an important precedent for how all customer-related policies need to be communicated on a continual basis, and it also spreads the responsibility for customer service across the organization to involve not only sales associates and managers, but also marketing and social media.

Make sure customers know you're listening

The days of customers asking to speak to a manager in person when they have an issue are largely gone. The modern customer is more likely to levy a complaint online, especially if a business doesn't make it easy for customers to contact them. If a retail business has a preferred method of handling customer support issues — say via a toll-free phone number or through email—that should be prominently communicated across all channels, just like with the return policy. Doing so will funnel the majority of customer service issues to the correct channel, but it certainly won't capture all of them.

Many customers will write complaints on Facebook, Instagram, or Twitter. Others will leave negative reviews on Yelp or Google. These sort of customer actions requires swift and immediate response because, unlike a private email or phone call, they are public-facing and anyone on the internet can see them. If a customer makes a public grievance, the business should make a public response so that anyone who comes across that review or post knows the business takes customer service seriously.

The best practice in these scenarios is to acknowledge the customer's problem, apologize that they experienced the issue, and then explain how the business will make it right. In doing that well, a retailer can not only keep that individual customer happy, but also maintain a positive online reputation that will attract more new customers.

Make sure you're communicating across multiple channels

By necessity, a certain portion of customer service is reactive to circumstances that are unavoidable, but in most cases issues can be avoided altogether by taking a proactive approach and clearly communicating with customers on a regular basis. Take, for example, a holiday where a retailer might be closed or have shortened hours. If a customer expects that store to be open and drives there only to find it closed, they will be unhappy and more likely to voice their displeasure online or simply never return again.

This type of scenario is one hundred percent avoidable by simply informing customers in advance. Again, an effective communication strategy will use as many channels as possible. This should include but not be limited to:

• In-store signage.
• Emails sent to customers.
• Social media posts.
• Call-out banners on the business website.

This multi-channel communication strategy can be used in a wide variety of use-cases, from announcing changing store hours, special events, new product offerings, forthcoming discontinuation of items, holiday specials, etc.

Taken altogether, the added benefit of having a clear return policy and having clear pathways for communicating regularly with customers goes far beyond proactively avoiding customer service issues. Doing these things well ensures that a retail business will stay top-of-mind with customers, meaning they will be more likely to visit on a regular basis, leading to improved revenue.