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2007 Issue 3
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What's Happening?
We all know
about the judge whose ludicrous $54 million lawsuit was dismissed
against the dry cleaners who lost his pants. An extreme claim,
yes, but let me tell you about my $100,000 shirt. Last year I
stopped by my then dry cleaners to pick up my laundry.
After presenting
my ticket, I was greeted with this response. “We are not
paying you anything for this shirt, it has dry rot and the damage is
not our fault.” Despite that warm greeting, I was
amazed to find that a condition I thought primarily attacked old
wooden ships and dilapidated boat docks had found its way to one of
my shirts.
This particular
shirt is of a delicate fabric and I suspect the cleaners burned a
hole in it while ironing or maybe the hole was caused during the
heat of the cleaning process. Or dry rot. What I did expect was an
offer to cover the dry cleaning bill for that day ($26) or six times
the cleaning charge for the shirt ($30) per the cleaner’s own
policy. Instead I got “idiot, your shirt has dry rot.”
Now what did it
cost the cleaners? $100,000.
Last year we
spent approximately $5500 on dry cleaning, and assuming as our
insurance advisers do that we will both live at least 20 more years,
then the cost to this dry cleaner is over $100,000. Because we will
never go there again.
We will not sue,
we will not threaten, we will just never return. This is a small
independent establishment, and if they lose 20 customers a year, it
could cost them $100,000 a year. And when this dry cleaner goes out
of business, who do you suppose they will blame?
So personally I
hope the dry cleaners in the headlines made a good faith
accommodation offer to the judge when they misplaced his pants.
Because to be successful in a service industry, you must treat
your customers as clients, not transactions.
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About Bob
Bob Connolly retired from
Wal-Mart Stores, Inc. in 2006 where he most recently served as Executive
Vice-President for both Merchandising and Marketing.
In 2000 Bob was named the first Chairman of the Center for
Retailing Excellence at the University of Arkansas' Sam M. Walton
College for Business. In 2005, an endowed scholarship in
retailing was established in Bob's name. Bob co-authored
"The Big Middle", published in the Journal of Retailing.Bob now works both privately and in conjunction with the Center for Retailing
Excellence, consulting and advising corporations and business groups worldwide
on how to take advantage of trends, business analysis from the customer's point
of view, and the miracles and missteps of branding. Bob has worked with
Disney Corp, International Resources Inc., Spectra and Massmart.
Bob serves on the Board of
Directors for Husqvarna in Sweden and Ascendia Brands in the United
States. He travels extensively, giving him a first-person view of
the ever-changing world of the consumer. Bob publishes a monthly
newsletter at
www.customerbob.comTo arrange for Bob to consult with or present to
your company, contact him at
bob@customerbob.com
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It'$ The
Cu$tomer, $tupid!
My point of
this month’s article is I suppose to encourage the small
businesses to think differently, to look at each customer as
lifelong assets and not as a statistic. The following three
entreprenurial businesses understand that we are customers, not
transactions.
Blakeman’s
Fine Jewelry:
This is a gem of a jewelry store in Northwest Arkansas owned by Don
and Lyn Blackman. They have a great selection of fashion jewelry
(often designed by Don), diamonds, Rolex watches, David Yurman and
much more. Our first purchase at the store, a simple pair of gold
hoop earrings, was not exactly going to make the year for the
owners. We did not know Don at the time, yet he treated us and our
small purchase as though it was the biggest sale he had ever made.
We were not just shoppers who happened through his store that day,
we were his investment, his most important customers ever.
Blue Dolphin
Café:
This is a small café open from 7 a.m. to 3 p.m.
serving breakfast and lunch on St. Armand’s Circle in Florida. When
you walk in the door the greeting is “good morning, sit anywhere,
would you like some coffee?” Now I like things like gazpacho
and toasted tuna and tomato sandwiches for breakfast, and guess
what? I can get those for breakfast. I can get fruit as a side or
potatoes or grits. I can have a tomato on my sandwich or cheese or
gravy if I want. I do not have to wait until some magic time of day
to order my lunch. Coffee is constant and when I leave, I can take
a cup with me for no extra charge. A tuna fish sandwich for
breakfast. They get it. PS: The Blue Dolphin also has a dog water
bowl outside of their door.
Key Concierge: This is, as the name implies, a concierge service.
Their primary business is house-watching, but they can pretty much
do anything you want. For us they have at least twice saved our
home from what could have been extensive damage when we were not
home. Just last week, while we were away, one of our air conditioner
drain lines backed up. They did not call us first, they simply got
it fixed. We can leave our home for extended periods of time
knowing that if a problem arises, it will be taken care of first and
discussed second. Now that may seem obvious but how often have you
encountered service providers lacking common sense and intuitive
thinking? Key Concierge will also have a stocked refrigerator
waiting for you when you come home, get your Christmas presents
wrapped, your house cleaned, pay your bills, have your car serviced,
and anything else you may want to have done.
Don’t you love the independent businesses, the small
retailers, restaurants and service providers that get it?
Think About This
Well, I have to still be critical of something,
so here goes.
In recent earnings releases, Best Buy,
Circuit City and Lowes have
all had disappointing results. They blame gas prices, the home building
slowdown, and product margin issues. Maybe. But consider this. I recently
tried to buy a computer at Best Buy to find that they were out of both my first
and second choices, not only in the store, but also the warehouse. Circuit
City, across the street from Best Buy, had the computer, but not all the
software.
Lowes was out of stock on a bathroom cabinet which was their best
selling model, according to the sales associate. Last Christmas, Office Depot
was out of stock on the ever popular HP printer cartridge #97, black. However
they did have popcorn tins and slippers on display. What’s my point? Instead
of investing in massive ad campaigns, instead of spending time trying to sell
charge accounts and service contracts, why not first concentrate on stocking the
products you sell?
Just saw a great TV commercial from a company
called City Mattress. CEO announced that the new federal fire retardant laws
are going into effect soon so he is selling out all of his current stock fast.
Now think about that.
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