Last week I gave an account of my experience with a major PC and White Goods retailer in the UK & Ireland who had serious flaws in their service delivery process. It’s interesting to note that they have announced this week that over 800 staff redundant and cite Covid and on-line sales as the reason. The reality is their service delivery is flawed and they are driving customers away from their business.
My 2nd experience was a good one and it was with Woodies, a DIY focused retailer.
When I visit their stores (there are two in my hometown of Galway) I have always observed the staff being friendly and helpful whenever customers need help. I was in there about three weeks ago, as I was repainting a bathroom in my home. I had decided on a particular paint and while in the store I couldn’t find the specific supplier I wanted so I decide to look at another supplier. A staff member noticed me browsing the paints, I explained the situation and he said he would look in the store to see if he could find my original choice. A few minutes later he came back with the tin I needed.
Two weeks ago, I decided to buy a computer desk for my home office and chose a sturdy well designed unit. I approached the check out and requested specific desk. She asked me if I could wait a couple of days which I thought was a strange question. She then went on to say they were having a sale later in the week and the desk I wanted would be reduced by 50% so I paid for a couple of other items. She didn’t have to tell me that, but the fact that she had made me realise how good the service ethic was in Woodies. A few days later I went in and got my desk with a 50% reduction which I was very pleased about.
Looking at Woodies financials their trading profits have risen close to 50 per cent over the past three years which is impressive. It’s clear that good customer service leads to increased profits. I also looked at staff comments about Woodies. It makes interesting reading: Friendly environment, productive and fun; staff are treated with respect. A great place to work.
What a difference to the other retailer where I had a series of bad experiences. Like many good companies they are not perfect but overall, the vision and values of the company stream down to the front line.
Retailers, there are lessons here that you can incorporate into your business which will help increase profitability:
- Treat your staff how you want your customers to be treated
Woodies spend a lot of time focusing on the staff. They have a ‘Colleague Committee’ for voicing their opinions. It’s important that staff have the opportunity to have a voice in the organization. They often come up with great ideas that can save the company money and improve the service experience. Don’t waste this valuable resource.
- Make the job interesting and fun
Working in retail can be challenging and yes, there are some very difficult customers out there which front line staff have to deal with on occasions. You need to allow you staff to download in a safe environment. They will learn from each other and everyone benefits as their understanding will improve on the process to defuse such situations. Get staff to share funny stories, crazy questions they have been asked, strange customer they have met. The objective is to bring a bit of fun into the work environment. Don’t forget to take the opportunity to recognize the good staff who get the best feedback from customers.
- Profits will come if you look after your staff
One of the biggest errors in retail management is not understanding ‘How you treat your staff directly impacts the service customers receive’. Good service leads to increased profits but only if you value your staff and their efforts to help your business succeed.
- You must train and develop you staff
Woodies run regular training programmes not only in customer service but in product information, communication skills, working in a multi-cultural environment and management skills. If you don’t develop your staff they won’t stay in your organization. Today most new joiners ask what development they can they expect in their careers. It’s a big benefit that retailers provide development, you will attract the best candidates and they will stay longer with your company.
If you need help in any of these areas, contact us at Https://strategicleadershipconsultancy.com