Duncan, Managing Partner of brand architects Yellowwood (Cape), told members of the South African Council of Shopping Centres recently, that retailers could lose up to two thirds of customers through bad service. Only 15% of defections were as a result of consistent poor quality.
Many shopkeepers driven by product quality, he said, often lost the battle for market share by simply undervaluing service, an essential ingredient in the mix. He warned that service staff usually had only seconds in which to grab and hold the attention, and eventually the loyalty, of the customer and should use the time productively.
He pointed out the futility of expensive advertising and publicity campaigns by retail stores when they were destined to lose customers attracted by the ads, shortly after they walked through the door.
Duncan advocated that retailers should go back to their roots, to adopt a corner-shop approach of friendly helpful service. "We need to be more aware of people and their needs, to approach them as individuals, dispel any notion that they are regarded merely as numbers."
With the proliferation of retail offers via the web, the myriad retail outlets in the country and the ever-growing spectrum of retail product ranges, customers were becoming paralysed by choice. The wise retailer, he said, would realise that this was the time when customers would be drawn to brands they trusted - and a big part of that trust was vested in the service they received.
He advised retailers to get to know their customers and care what mattered to them; to streamline business practices that impact on the customer, and deliver a seamless experience across all channels. Most importantly, he advised training of sales staff, reward programmes, and service monitoring.
"You have to earn customer loyalty and the service culture of this country has to start from the top. For us to succeed as a trading nation, we have to ingrain good service into the culture of South Africa. This includes all sectors, both public and private," he said.
Chris Lawrence, President of the South African Council of Shopping Centres, said his organisation endorsed the call for improved service: "Notwithstanding the vast impact of the discount chains, many shoppers are still looking for good personal service with a smile. They want a relationship and are prepared to pay for it, by their loyalty, through repeat business, and also by paying more for the product. Good service will be rewarded by 'the take' at the tills."
The breakfast in Cape Town was sponsored by Broll Property Group.
