An innovative report investigating best practice in customer service through some of the leading retail businesses operating within the UK.

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This report highlights examples of customer service processes, procedures and initiatives from key retailers on the UK high street. An innovative model was developed to help retailers assess their current customer service strategy both offline and online. The model highlights three key layers for retail customer service delivery: leadership, enablers and the customer journey.

This model will help retailers identify areas for improvement by practically comparing their business to competitors.

The report features:

  • Case studies from retailers of different size and specialism in the UK
  • An insight into some of the best customer service in UK retail
  • A practical model for assessing retailers current customer service performance

Key Findings

Retail is the UK’s largest private sector employer accounting for around 10% of the workforce. Just under three million people work in the sector, and around 1.45m are in sales and customer service roles.

Customer service is a vitally important differentiator across the retail industry. Nevertheless, regardless of whether the customer proposition is higher value or basic/simple, the challenge is to treat each customer as an individual and to maintain satisfaction and loyalty levels. It is clear that expectations have changed over the past decade:

  • UK customers are no longer reluctant to complain
  • Foreign travel has exposed them to the best in customer service in the world market and domestic retailers need to continue to raise their game
  • Broken customer service promises are no longer tolerated by consumers
  • The internet has directly affected the level and nature of customer service required
  • Customers are more informed (because of product recommendations via social media and blogs) and may know as much as, or possibly even more than, the staff member serving them

Customer service strategies:

  • With smaller retailers, the research confirmed that service was more part of the ethos within the business and driven by the owner’s attitudes and beliefs. In contrast, the use of formal documentation and a stated aim of how the company wants to deal with its customers was more widespread amongst larger employers
  • The research suggests, however, that many retailers are still in need of hard evidence that excellent customer service provides competitive advantage and bottom-line improvements

Customer service training:

  • Not unexpected, currently customer service training is heavily focused on the shop floor interaction. Retailers reported a variety of approaches including shop floor observations and feedback; in-store coaches and service ambassadors; short DVDs and online tools
  • An ongoing focus on customer service is encouraged by many retailers through the use of reward and recognition schemes for individuals and teams

Customer service measurement:

  • The most frequently used approach to measure service levels and standards is mystery shopping. In some cases visits are recorded on camera

Online customer service:

  • Research highlighted the key differences as being the wider availability of customer transaction data, which in turn, allows for more sophisticated measurement techniques to be applied

The Future

This report draws on the experiences and opinions of 27 retailers, both large and small. The findings have been combined with lessons learned from a review of the customer service literature and from other original research commissioned by Skillsmart Retail.

Some retailers question whether the term “customer service” is in fact too narrow? It does not start and end with in-store experience and some admitted that they were struggling to provide consistent levels of service across multiple channels, e.g. in store/online/mobile.

There was a degree of consistency when identifying the future challenges, including linking successfully to overall brand values and the corporate vision, as well as establishing the link between excellent customer service, levels of customer satisfaction and the bottom line.

Some of the retailers interviewed have proven and prize winning customer service processes. The most common recommendations were:

  • Customer service is a key competitive differentiator and should be seen as a long-term commitment. It will not succeed if it is viewed only as a short-term tactic
  • Ownership of the customer service offer and the need for continuous improvement has to be driven from the top of the organisation – whether the owner-manager or the Board
  • Customer knowledge has to be updated constantly as their views and behaviours change and that knowledge should be used to drive service levels forward
  • Communicate effectively to all colleagues what they individually need to do and what the benefits will be to all
  • Measure from a customer’s perspective

In the past, it seemed retailers had to make a trade-off between models of high-service or low-cost; convenience or high assortment/ranges¹ . In the new retail marketplace, it seems they will have to forge more integrated solutions.

So, their future offer might well have to be both high-service and value driven.

Order your copy of Delivering excellence in retail customer service today