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customer satisfaction

Customer service mattersHas this ever happened to you? I was standing in line at my local Rite Aid, waiting to buy a bottle of water and some Excedrin for an increasing-by-the-minute tension headache while watching four employees (two cashiers, an assistant manager and the store manager), debating the value of a coupon with one customer.

Now, I’m all for personalized service, but that’s crazy.

During the wait, I watched a few people quit standing in line, put their purchases down and leave the store.

I wonder if any of them came back.

Judging by the items on the counter, the amount of the coupon couldn’t have been more than a couple of bucks. Why didn’t the manager just credit the first customer, then shove her out the door to handle the growing line behind her? Or better yet, ask the assistant manager and one of the cashiers to open additional registers to deal with the growing line?!?

Now ask yourself: Do I ever do that to my customers?

  1. Is your website or e-commerce provider too slow, making your customers “wait in line” to pay?
  2. Are your product descriptions unclear, making your customers search for more information?
  3. Are your pictures or screen font too small, making your customers squint or lean in?
  4. Is your value proposition poorly stated, making your customers unsure why they should buy from you?

Amazon has killed many bookstores (and other retailers) by ensuring fast, free shipping, reasonable prices and a broad selection. So, ask yourself, why does Powell’s Books continue to do well? (Full disclosure: I am an Amazon affiliate.)

Zappos has reinvented the retail shoe business by providing unbelievable customer service (though, not at the expense of other customers), good selection and a simple return policy. But Nordstrom’s doesn’t seem to suffer. Why?

Expedia, Orbitz and Travelocity have hurt many “traditional” travel agents by offering a range of travel products, loads of travel content, and (relatively) transparent prices. And yet, many niche travel agents have excelled during this same period. Again, why?

In all these cases, and many more, the long-time industry players have adapted to the needs of their customers and differentiated themselves from the larger, online-only players. Powell’s focuses on rare and used books, along with hiring committed, book-loving readers. And sells plenty of new books, too, because people who love to read recognize that Powell’s shares their concerns. Nordstrom’s continues its legendary return policy and, again, excels at customer service. Those niche travel agents? Same thing. Relentless customer service, typically building truly extraordinary trips for their well-heeled clients and fulfilling the most unusual requests with grace and style.

Your business is under siege. New entrants, online and offline (though, really, who’s only “offline” these days) seek to help your customers with their problems. And if their problem is you, you’ve now got a bigger problem.

Mobile only makes it worse. For you, that is. For the customer it’s great. Not happy with the service you’re getting? Take a look on Foursquare or Google Mobile or Facebook and find a better option.

Those with deep pockets have one advantage: their deep pockets may buy them a little time while they work out the kinks in their operation. But, too many better options exist for your customers if you’re not paying attention. And too many customers will get out of line, put their purchases down and leave the store.


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I hate to kick a company when they’re down, but I can see at least one reason why Border’s is in so much trouble. There’s no question that customers shifting from brick-and-mortar and hardbacks to clicks and e-books hurt them. But the bigger question is, why didn’t Borders, one of the “…original big box superstores that rewarded shoppers by offering thousands of book and music titles in a single location” not see this coming?

Give me a second and I’ll let you know why. But first, a story…

A couple of weeks ago, I learned on a Saturday that I needed a specific DVD on Sunday (I’ll spare you the gory details, but, suffice to say… teenagers). Clearly, there was no way to order it online and have it delivered before Sunday. Neither Netflix nor OnDemand offered the movie for viewing. And, we could find no one from whom to borrow the blasted thing. (Again… teenagers!)

Happily, I found a “click and mortar” solution that let me reserve the DVD online then pick it up in-store the next day. While there, I fell for a terrific in-store promotion targeted at loyalty club members (of which I am one) and picked up a second DVD at a discount. I cheerfully handed over both my credit card to buy and my loyalty club card to complete the purchase.

As it happens, the second DVD (the impulse buy) was defective, featuring two disks of special features within the package, instead of one disk of special features. No fault of the retailer, mind you. And, whoops, I’d tossed out the receipt after getting the disk home (apparently, I can’t blame teenagers for everything).

But, no biggie, thinks I, I’ll just go to the store and have them look up the purchase using my quote-unquote “loyalty” membership. Oh, if only life was that easy. When I got to the store and explained my lack-of-receipt, I was told, effectively, “bummer, dude, can’t help you.” Admittedly, not a direct quote, but, believe me, the intent was clear.

“But,” I say, “I’m a loyal guy. I gave you my membership ID when I purchased. Surely you can use that to verify my purchase?”

Boy, am I dumb.

Turns out, the store doesn’t use the loyalty program for anything other than to send me coupons and partner offers. They don’t know anything about my individual purchases. My loyalty to the store helped me not at all.

Only after I pulled up my credit card statement online (via my iPad), and showed it to the store’s manager was he willing to go find the original purchase record and let me swap out the defective DVD for one with a disk I could actually, y’know, watch.

Give you one guess as to the store name.

Yep… Borders.

As I see it, Borders’ financial woes and my recent in-store disappointment were due to the same thing: a failure to adapt to their customers’ needs. As the ACSI study I mentioned earlier this week shows, customer service matters. Borders, despite great locations and good ideas (as the “reserve online/pickup in-store” story demonstrated), seems to have missed their customers’ changing needs. Sometimes, customers want to get their merchandise in-store, sometimes online. Borders gave away the second one to Amazon. Sometimes customers want paperbacks, sometimes e-books. Amazon won that second battle, too. And sometimes, customers want to be treated as a loyal customer, not just someone to market to.

It’s no secret that I believe the most important things you can do are to listen to your customer and learn from what they tell you. The evidence suggests that Borders didn’t do that. The more important question is, do you?



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Customer satisfactionThe American Customer Satisfaction Index’s E-Commerce Report, produced in partnership with ForeSee Results, came out today and shows that customer satisfaction with e-commerce websites fell 2.6% to 79.3 on the ACSI’s 100-point scale. That’s the lowest score since 2004. That’s not good.

According to ACSI,

“…falling satisfaction with online retail pulls down aggregate satisfaction with the e-commerce sector overall, which also includes online brokerage and online travel.”

But the news isn’t all bad. Claes Fornell, ACSI’s founder and a University of Michigan Ross School of Business professor says,

“Satisfaction with e-commerce and retail is off from a year ago overall, but the individual company results are mixed, and some organizations manage to find ways and resources to improve the customer experience. Still, any downward pressure on satisfaction does not bode well for sustained spending growth at a time when the economy could use it.” [Emphasis mine]

When I saw the data, I wondered first whether this decline represented, at least in part, customers’ increased expectations for their e-commerce experience.

And, yet, the movement within the individual categories suggests otherwise.

Companies as diverse as Overstock, Amazon, Netflix, Expedia, Exchange, Sears and Whole Foods did very well year-on-year. These companies don’t seem to be suffering due to anyone’s increased expectations—or are managing to meet/exceed those expectations in any case. Professor Fornell’s comment above is spot on: The drop in overall satisfaction hurts everybody online to some degree, but it’s clear that you can satisfy your customers if you work on it.

Here are some of the other “highlights” from the report:

  • Satisfaction with e-commerce is down 3% since last year to 79.3 on ACSI’s 100-point scale, its lowest level since 2004.
  • The drop in the overall e-commerce sector score is driven by a big decline in e-retail.
  • The e-retail industry, always the strongest within the e-commerce sector, falls 3.6% to 80, a drop that is largely driven by the “all others” category, which dives 6% to 78. Amazon passes Netflix for the top spot.
  • The online travel industry reaches a new all-time high aggregate score of 78. Increases by Travelocity and the “all others” category more than offset declines by Orbitz and Priceline. Expedia maintains the number one spot with a score of 79.
  • The online brokerage industry remains flat at 78, but Charles Schwab overtakes Fidelity for the top spot for the first time since 2006. E*TRADE has climbed an impressive 10 points since 2000.
  • Satisfaction with mobile commerce (use of mobile apps and websites accessed via mobile phone) for e-retail, online brokerage, and online travel is included for the first time in this report. At 81, online brokerage leads satisfaction with mobile commerce. Retail and travel tie the industry aggregate at 75.

Take a look at the numbers in more detail and then look at your own online efforts. What are they doing that would work for your customers—and you can offer? As I mentioned yesterday, “you can choose to offer limited service, fewer features, tiered pricing—and still succeed.”

As the data above shows, customer satisfaction depends on a number of factors. You can pay attention to the leaders to learn some of those factors. Or you can pay attention to your customers to learn them all.



Are you getting enough value out of your small business website? Want to make sure your business makes the most of the local, mobile, social web? thinks helps you understand how to grow your business via the web, every day. Get more than just news. Get understanding. Add thinks to your feed reader today.

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Measuring customer satisfaction: the Avinash Kaushik interview

March 12, 2008 E-commerce

Web analytics don’t measure customer satisfaction. Until now. Avinash Kaushik on 4Q and measuring customer satisfaction.

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