A report on the nine stores with the worst customer service caught my attention the other day. Many on the list surprised me, especially number one. Here is the list:
1. Walmart
2. Netflix
3. Safeway
4. CVS Caremark
5. Sears
6. Super Valu
7. The Gap
8. TJX Companies (TJ Maxx, Marshalls, HomeGoods)
9. Walgreens
Are you surprised?
The report mentioned that Walmart had held the worst spot since 2007. That amazed me even more. I know that Walmart doesn’t do everything right, but the worst store for customer service for the last five years was a surprising position. I wanted to know more about this survey, so I went online and found the original article. I discovered that Walmart was rated 71 on a scale of 100 when it was graded as a department and discount store. As a supermarket, the company also received the worst supermarket score at 72. Walmart’s e-commerce performance was at 78. That seemed better until compared to Amazon with a score of 88.
In fact all online companies, with the exception of Netflix, had much higher satisfaction ratings than brick-and-mortar stores. Netflix received a score of 75 in 2012 and 74 in 2011. Compared with the average for online companies of 82, that was not good.
Looking back, in 2009 Netflix was the top-rated online company. Then Netflix suddenly announced in late 2011 that not only was the company raising prices, it was also separating its DVD rental and streaming platforms into individual billings. Customers had been receiving both under one price. Customers were furious. Some left. Many complained. Eventually, Netflix reverted back to the original one-price offer.
Evidently, the damage had been done, and it still exists. Customers continue to be upset with Netflix. The company may never regain its stellar customer service rating. When customers develop an irritation toward a company, they keep the irritation. Undoing a mistake such as the one Netflix made is close to impossible.
Much of this customer survey has to do with expectations. Since customers feel that generally their experience at brick-and-mortar stores is less satisfying, they have decreased their expectations from these stores. On the other hand, customers are happy with their online experiences as is shown in an average rating of 82 for online companies. From those experiences, customers are setting their online expectations even higher.
Right now, brick-and-mortar stores still handle the majority of the retail business in the United States. However, these retailers are concerned about a trend. In February, the U. S. Census Bureau reported that online sales increased from 4.8% of sales in 2011 to 5.4% in 2012. If customers continue their satisfaction with online purchasing, that figure may increase and may happen at a faster rate that brick-and-mortar retailers anticipate.
The bottom line of this survey is that the customer is of utmost importance. Knowing your customers’ expectations and experiences with your company is paramount. Assuming that your customers are happy is a dangerous practice. Talking to your customers is the only way to understand what they think.
That talk cannot be off the cuff. It must be prepared, honed, and focused. It must respect your customers’ time and use your time wisely. It must yield information which will help your business serve your customers well.
Make time to talk to your customers and gather information critical to your business’s profitability. Do it soon.
1. Walmart
2. Netflix
3. Safeway
4. CVS Caremark
5. Sears
6. Super Valu
7. The Gap
8. TJX Companies (TJ Maxx, Marshalls, HomeGoods)
9. Walgreens
Are you surprised?
The report mentioned that Walmart had held the worst spot since 2007. That amazed me even more. I know that Walmart doesn’t do everything right, but the worst store for customer service for the last five years was a surprising position. I wanted to know more about this survey, so I went online and found the original article. I discovered that Walmart was rated 71 on a scale of 100 when it was graded as a department and discount store. As a supermarket, the company also received the worst supermarket score at 72. Walmart’s e-commerce performance was at 78. That seemed better until compared to Amazon with a score of 88.
In fact all online companies, with the exception of Netflix, had much higher satisfaction ratings than brick-and-mortar stores. Netflix received a score of 75 in 2012 and 74 in 2011. Compared with the average for online companies of 82, that was not good.
Looking back, in 2009 Netflix was the top-rated online company. Then Netflix suddenly announced in late 2011 that not only was the company raising prices, it was also separating its DVD rental and streaming platforms into individual billings. Customers had been receiving both under one price. Customers were furious. Some left. Many complained. Eventually, Netflix reverted back to the original one-price offer.
Evidently, the damage had been done, and it still exists. Customers continue to be upset with Netflix. The company may never regain its stellar customer service rating. When customers develop an irritation toward a company, they keep the irritation. Undoing a mistake such as the one Netflix made is close to impossible.
Much of this customer survey has to do with expectations. Since customers feel that generally their experience at brick-and-mortar stores is less satisfying, they have decreased their expectations from these stores. On the other hand, customers are happy with their online experiences as is shown in an average rating of 82 for online companies. From those experiences, customers are setting their online expectations even higher.
Right now, brick-and-mortar stores still handle the majority of the retail business in the United States. However, these retailers are concerned about a trend. In February, the U. S. Census Bureau reported that online sales increased from 4.8% of sales in 2011 to 5.4% in 2012. If customers continue their satisfaction with online purchasing, that figure may increase and may happen at a faster rate that brick-and-mortar retailers anticipate.
The bottom line of this survey is that the customer is of utmost importance. Knowing your customers’ expectations and experiences with your company is paramount. Assuming that your customers are happy is a dangerous practice. Talking to your customers is the only way to understand what they think.
That talk cannot be off the cuff. It must be prepared, honed, and focused. It must respect your customers’ time and use your time wisely. It must yield information which will help your business serve your customers well.
Make time to talk to your customers and gather information critical to your business’s profitability. Do it soon.
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