Thursday, March 13, 2008

Customer Service: The Good and the Bad

We had a discussion a couple weeks ago in class talking about how customer service is just as important to many people as low prices. WalMart is a classic example of low prices; they have the lowest prices and the leading sales in the industry but their customer service is suffering. They have pallats in the aisle way and no one is ever around to ask questions compared to a company like Target who also has fairly low prices but care about the way their store looks; they have aisles free of product and many people willing to help you. The article I came across discusses the customer service and how it affects customer perception and spending. Based off of the 100 point scale for customer satisfaction ratings, WalMart is the worst rated among discount and retailer stores, falling 6% to 68 when the average is 77. According to the head of the American Customer Satisfaction Index, Claes Fornell, "Competing on price is no longer enough to offset lagging quality" (Customer Service, 2008). Prices are important but if customers aren't happy, they aren't going to spend the money they would have. If you want to check out more retailers, grocery, online, financial services, and health care then check out the site!

Click here to view the article