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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.


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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Tim Peter & Associates helps companies from startups to the Fortune 500 use the web to reach more customers, more effectively every day. Take a look and see how we can help you.

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Just a quick update to yesterday’s question on the value of deals sites. As I suggested, you can use deals sites as a customer acquisition tool, so long as you plan ahead on how to convert “deal shoppers” to real customers. How can you do that? Well, for one thing, pay attention to the customers who come in with your deal vouchers. Let them know that you also provide special offers to repeat customers through your own marketing and ask them to join your email list. Then market targeted offers directly to these folks, focusing in particular on the value they receive.

Make sure you define the deal site customers as a separate segment in your marketing database. Over time, you want to understand whether these deals sites provide a good source of new customers or if, as I suggested yesterday, you attract only bargain shoppers unwilling to ever trade up to full price.

You can do the same with your web traffic, too. Justin Cutroni offers a handy look at using Google Analytics custom variables for e-commerce that you should check out/forward to your analysts.

It’s clear that everyone wants to get a great deal. But it’s a losing proposition if you’re constantly lowering your prices, particularly for a group that may never buy from you otherwise. Save the bargains for your best customers as a thank you. And look at the deal site segment separately to see if they’re worth it to your business.



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.

Or subscribe via email.

And while you’re at it, don’t forget to follow Tim on Twitter.

Tim Peter & Associates helps companies from startups to the Fortune 500 use the web to reach more customers, more effectively every day. Take a look and see how we can help you.

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Are you using any deals sites? If so, Forbes magazine offers Interesting data suggesting those are Groupon’s customers, not yours. In assessing the data, the author, Chunka Mui, asks:

“Are merchants in sectors where Groupon develops critical mass essentially yielding their customer relationships to Groupon?”

I’d expand that to include all the deals sites. In my experience, deal seekers rarely exhibit brand loyalty. Instead, their loyalty is solely to their bottom line. Kevin Hillstrom covered this topic some time ago, noting, “Remember… they sell access to a list.”

Their list. Not yours.

Customers join these deals sites, whether it’s Groupon, Gilt Groupe, Google, etc., solely for the advertised benefit: to find great deals. If your brand offers the best deal that day, you’re in. If not, then they’ll keep looking.

A few years ago, a brand I knew offered a a huge discount through multiple channels as a promotion. It was incredibly successful at driving sales. At least, it was in the short term. Longer term, they found that almost none of the first-time customers who bought at the discounted price came back and bought at regular prices. Really. Almost none. After that, they began offering their best deals only to their best customers, increasing repeat sales. Not only that, but the brand succeeded in getting those customers to talk about the brand with their friends, driving new customer acquisition.

Now, that’s not to suggest that the lists these deals sites sell may not have value to your business. But don’t assume deals sites make for a great customer acquisition strategy—unless you make them one.



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.

Or subscribe via email.

And while you’re at it, don’t forget to follow Tim on Twitter.

Tim Peter & Associates helps companies from startups to the Fortune 500 use the web to reach more customers, more effectively every day. Take a look and see how we can help you.

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Ask for help? Are you crazy?

May 3, 2011 Marketing

Asking for help, for sales, for anything really, doesn’t come easily to many people. Here’s why you should work asking for help.

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Nordstrom’s multi-channel e-commerce solution rocks. Here’s why.

September 8, 2010 E-commerce

Nordstrom launched an innovative approach to improving their sales. Here’s what’s good about it and how it can work for you, too.

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What’s the single most important step in your online marketing?

April 6, 2010 E-commerce

If you could do just one thing today, what should it be? thinks is on the case…

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