Customer Bob
 
What's Going On In the World Of Business In The Opinion Of Bob Connolly

 

 

 

 

         
 

2007 Issue 3

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.com

To arrange for Bob to consult with or present to your company, contact him at bob@customerbob.com

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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