Are your managers undermining the work of their subordinates? Does your company really put the customer first? Sears provides us a great example of what not to do:
This past weekend we went to Sears to buy a dishwasher. The sales associate, Brandi, was very pleasant and knowledgeable. She carefully explained all our options and helped us make a decision.
I didn’t want to pay the price they had listed. I asked Brandi what she could do for me. She reverted back to pitching Sears’ promotion-of-the-week: “buy with a Sears credit card and get a discount.” I don’t have a Sears card, nor do I want one.
Try as I may, I couldn’t get any discount out of Brandi. Unfortunately, Brandi was not empowered to do anything.
On the verge of paying for the dishwasher, I again asked what kind of discount she could give me as a loyal customer. You see, we’ve bought all our other major home appliances from Sears: washer, dryer, refrigerator, stove, and microwave. Plus our yard tools: mower and weedwacker. Not to mention clothes, tools, etc. Surely for such a loyal customer as myself, I’d get some kind of “special” treatment.
Poor Brandi said she couldn’t because her manager (she pointed to him across the way) wouldn’t go for it. I said, “Great, let’s go talk to him.”
Managers Can Completely Undo the Work of Subordinates
I introduced myself to Rod, the manager, and said, “Brandi tells me she isn’t able to offer me, a loyal customer, a discount.” I explained again about all the appliances I’ve purchased from Sears. Rod responded: “We don’t negotiate.” His response was delivered like the US Government telling a terrorist “We don’t negotiate.” Cold, stern, and with a glare in his eye.
I responded: “Well, maybe not at this location.”
Rod: “Which location are you talking about?”
I told him about the other Sears store and that they treated us very well on our last purchase.
Rod: “Hmph. That’s surprising because I was the manager at that store.”
That response set me back a bit. I thought, “What? You’re denying I had a good experience and was treated well in your store on your watch?”
His response completely defied logic and I simply had to walk away muttering, “I guess I’m going to have to reconsider my purchase.”
Customers vs. Company Policy
What went wrong in this exchange? How did I go from being happy and well-treated by Brandi to angry (with steam coming out of my ears) after talking with her manager?
Why? Because Rod, and his employer, Sears, value following company policy more than retaining a customer and closing the sale.
This sounds completely backward to me as both a customer and a small business owner. What do you think?
The Ideal Scenario
Here’s how things could have played out:
Me: “What discount can you give me, a loyal customer?”
Rod: “I really appreciate you returning to Sears for your appliance needs. It means a lot to me personally, and to our company, to have such a loyal customer as yourself. In order to be fair to all our customers, the price we have listed is the best possible price we can offer today. We do have a 30 day price guarantee. In fact, come with me, let’s go call Best Buy, Lowe’s, and Home Depot and see if they can beat our offer right now.”
Rod would then take me to an office and make the phone calls, detailing my Sears dishwasher’s specifications, and getting prices from the competition.
If anybody was lower priced, Rod would beat the price right there. If not, he would say, “Even though our competitors couldn’t beat our price today doesn’t mean they can’t have a sale next week. Our 30 day price guarantee still holds.
“Here is my card. Take it and call me if you see a lower price and I’ll personally take care of getting you a refund for the difference. In fact, by making your purchase with us today, we’ll add you to our “price watch database” where we’ll automatically send you a check if Sears sells your dishwasher for a lower price anytime during the next 30 days.”
Doesn’t that make for a more happy ending? I wish it had played out that way. Sears, are you listening?
Change Your Company Policy
What about all the other companies out there? You can beat Sears today by simply turning your attention to the customer. My “ideal scenario” was inspired by Jeffrey Gitomer’s book, Customer Satisfaction is Worthless, Customer Loyalty is Priceless. Read that book and you’ll get inspired to “wow” your customers.
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Carlos
April 20, 2007
This may just be the former retail worker inside of me, but I think you’re wrong on this issue. I mean, why should you get a better price than other customers? I’ve never understood the concept of haggling in a situation outside of home/car buying or incredibly substantial purchases. Your ideal situation sounds like having a manager spend a large portion of his time calling other people so that he can make a sale with less profit than he would have otherwise. Yes, he was less than courteous and should have handled it better, but in my experience (consumer electronics/computer and business sales), haggling only ever worked where there was room to do so as items like this aren’t money making machines. All of that is made through their on-site services like installations and warranties and any accesories. It doesn’t make a ton of sense for them to just dole out discounts when requested. I understand the need for better service, but I don’t see how you should have won.
Joe Rawlinson
April 20, 2007
Carlos-
Thanks for challenging me on this one. In so doing, you bring up some good points. “Winning” here could have come 2 different ways. First, I could have been given a discount and been on my merry way. Second, my ideal scenario could have happened where I didn’t get a discount but Sears resolved my concern that I may not have been getting a great deal.
> why should you get a better price than other customers?
As I outlined in my ideal scenario, I don’t get a discount. However, I do get treated better and Sears gets the sale. Loyal, repeat customers are worth pampering because they are cheaper to keep than to recruit new customers.
> I’ve never understood the concept of haggling in a situation outside of home/car buying or incredibly substantial purchases.
In my mind when I’m making a $700+ purchase, there is room to negotiate. Would I want to haggle at the same Sears store on a new shirt? No. But when I’m putting down hundreds of dollars, I want to be sure I’m getting the best deal I can.
> sounds like having a manager spend a large portion of his time
The manager, Rod, was standing around doing nothing when we approached him. Obviously he had time for my issue to be escalated to him and to be handled properly.
> items like this aren’t money making machines
There is always a margin on products. A discount could have come out of that product margin, Brandi’s commission, a slush fund set aside by Sears for such situations, or even the local store’s advertising budget. Providing me with my “ideal scenario” would have done wonders for Sears’ word of mouth marketing.
Demetrius Pinder
April 20, 2007
I believe I read somewhere that Sears has/had a massive employee guidebook with tons of rules and regulations. Because of that, I wouldn’t expect anything less from Sears.
I agree, since you purchased all your major appliances and you’re a loyal customer, you should have been sent a coupon book, been given a discount or even a high-five!
As a current MBA student, I must say that schools/jobs have to stop teaching executives how to (while important) crunch numbers and read balance sheets and teach how to run your business with heart/loyalty/honesty.
Joe Rawlinson
April 20, 2007
Demetrius-
You’re right. When a business is run with “heart/loyalty/honesty,” the numbers are more likely to work out because the customers will keep coming back for more!
Glenn (Customer Service Experience) Ross
May 8, 2007
Carlos,
I have to agree with Joe on this one. Discounts for good customers are quite common, look at the perks frequent flyers get with airlines, for example.
You also know that managers are more willing to negotiate near the end of the month when they start paying close attention to their sales goals.
The manager had a chance to exceed Joe’s needs, instead he failed to meet them. Now, how much money is Sears going to lose in the future because the manager failed to meet Joe’s needs? Multiply that times the number of customers disappointed every day. THAT’s why it’s five times more expensive to acquire a customer than it is to retain one.
Regards,
Glenn
Joe Rawlinson
May 8, 2007
Glenn: Well said. Even a small concession or reward can make a big difference to a customer.
Cynthia Sarver
May 23, 2007
Ok, I used to be a loyal Sears customer. Now I am looking elsewhere for my appliances and service. Sears customer service has become “Let’s argue with the customer, get them frustrated, then hang up on them or walk away when they get testy.”
I wholeheartedly agree that some type of discount should have been offered. Previously, each time I called for a service call, the associate always thanked me for being a premiere Sears customer. However, the courtesy ends there. Even though they can tell from the computer how much money you have spent with them, premiere customers do not get ANY preferential treatment: 3-4 weeks for scheduling repair service, no discount on new purchases, and the same inept customer service reps.
They will send out invitations to Preferred Customer Sales events, but that only applies to the timeframe and products that they offer. So, you must buy things that they want you to buy in their timeframe, not yours, to get any type of discount.
Sorry, Sears, you just lost a “premiere” customer.
Joe Rawlinson
May 24, 2007
Cynthia: Thanks for sharing your experience. While I’m glad to see I’m not alone, it does underscore the sad state of customer service at Sears.
I liked your point about the “premiere” treatment. That is one area where the service must live up to the name or customers will quickly see the irony and be disappointed as you were.
Karen
May 28, 2007
Too funny b/c I just posted a Sears related post today (also how I was less than satisfied with their service)
http://www.pediascribe.com/20070528/look-what-i-got/
I didn’t go in looking for a discount b/c I was already buying a fairly cheap dishwasher that was already on a pretty good sale (I’ve been watching them for months) but I expected to be helped by knowledgable Sears employees and I didn’t get that.
We, also, have bought stoves, refridgerators, washers, dryers, etc through Sears but may have to reconsider for our next appliance. I’ve noticed Sears quality and service has gone downhill in the last several years. (and don’t even get me started on the whole Lands’ End section in their stores—that only carries a few of their styles and not even in all of the sizes!)
Joe Rawlinson
May 31, 2007
Karen: Fortunately, our sales representative knew what she was talking about. Looks like we didn’t get the “Not the Sharpest Tool” associate you got! Our problem was with her lack of authority to close the sale and, of course, her rude manager.
Your statement about “quality and service” going downhill should be a red flag to any business that closely monitors customer loyalty. Thanks for sharing your experience.
James
July 6, 2007
There is a price on items sold for a reason. If that is too much for you, don’t buy it. Very simple. The fact that you believe you deserve special treatment says it all. I’m more important. Me, me, me. If that was all it would be one thing. But you expected him to call his competitors? That is just crazy. I don’t want to do the work myself, i’ll let him do it. You believe because it’s a big company that they have money to give. You simpily don’t have a clue, and don’t care. Unless it’s for your benefit.
Joe Rawlinson
July 6, 2007
James,
You’re right, it is all about “me, me, me.” Me, the customer. Businesses will fail if they don’t serve the customer. I believe every customer should be treated special. Especially those that are loyal, long-term customers.
I mentioned in my first comment on how, from a business stand point, my Sears dishwasher could have been discounted.
My ideal scenario of the manager calling the competition was one way he could have made a great impression on me. He chose a different path and decided to confront me in an aggressive, and condescending stance.
Cindy
October 26, 2007
In my opinon, pulling you into an office to make calls isn’t even worth the effort. You are wasting the associates time and the manager’s time by trying to be a cheap sleezeball. Just because you’ve purchased some appliances (like every other american) does not mean you deserve anything. I guess your mentality is that if you shop at one store all the time, pretty soon you should just be able to walk into a store and pick up new items for your home without even paying a cent. If that was the case, Target and Walmart should be filling my fridge every week with groceries and household products. Stop being so cheap.
Joe Rawlinson
October 27, 2007
Cindy,
I don’t expect to get everything for free. I do expect to be treated with respect. Sears didn’t want to do that so I offered an ideal scenario of what could have been.
I take it from your comment that you don’t feel frequent buyer or loyalty programs are worth the effort. That is unfortunate since those can help build long-term relationships with customers that will keep their shopping dollars returning for more purchases.
john timson
November 19, 2007
You are ludicrous. I shop at Sears as well as other large chains. I go to them for selection and price. If you are a small business owner, why aren’t you shopping at your locally-owned appliance store? There are obviously reasons you went to Sears. Go to the local shop, and maybe get a smaller selection with higher prices.
Asking a manager to do all that leg-work for your price protection guarantee is, again, ludicrous. To think he would have the free time you described amazes me. He is most likely stretched thin and underpaid.
Any customer who feels entitled is a problem waiting to happen.
You asked for a better deal, and were offered a solution: a credit card. Short of meeting them on that compromise, go elsewhere!
Joe Rawlinson
November 20, 2007
John,
The manager may very well have been stretched thin and been underpaid. Nevertheless, my example is a great one of how large stores have essentially eliminated personal and caring service in the name of “cost savings.”
If the manager had gone the extra mile and created a “wow” experience, I would have sang his praises from this very blog and recruited all my friends to shop there. Nevertheless, the story played out differently. This just underscores the impact that front line employees can have on customer loyalty and long term revenues from customers.
I appreciate your point about shopping at locally owned stores. Thanks for bringing that up as a great alternative to the large box syndrome. A great book to read on the subject of shopping and the customer experience is Shopportunity.