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Retail Service Quality ManagementCustomer service is the set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers. These activities increase the value that the customers are receiving from the merchandise and services that they purchase.All the employees of the retail company contribute to the customer service and it is not only the sales personnel. Employees working in the distribution centre of the retail firm contribute to service by ensuring that all merchandise that the customer wants are available in the store at the time that they want. Employees working in the house-keeping department ensure that the store is kept clean and the air conditioning is working fine.Some of the service provided at the retail sector can be in the following areasAcceptance of credit cards Alterations of merchandise ATM terminals Child-care facilities Credit Delivery to home or office Demonstrations Display of merchandise Dressing room Extended store hours Signages to locate and identify merchandise Gift wrapping Parking Special facilities for handicapped customers Play area for children Repair services Rest rooms Return privilleges Shopping carts Special orders WarrantiesThere are two approaches to develop and manage sustainable service quality. Customisation approachThis approach encourages the service providers to tailor their services to meet each customers personnel needs. For example in apparel shop or in a shoes retailing shop, the sales assistants try and help the customers to choose the right item.

The customized service approach result in many customers receiving superior service. But the service may be inconsistent because service delivery depends on the judgement and capability of service provider. Standardisation approachIt is based on establishing a set of rules and procedures and ensuring that they are followed strictly and consistently. Since everyone follows the same S.O.P(Standard Operating Procedure), the inconsistency in service is avoided or reduced.Factors in service quality managementCustomers base their evaluation of store service on their perception and not necessarily on hard facts. Five factors that customers generally use to evaluate the retailer quality are: Reliability: Accuracy of billing, availability of the wanted product/brand. Assurance (Trust) : Guarantees, Warranties, return policies etc.

Tangibility: Appearance of stores, arrangement, sales people. Empathy: Personalized service, recognition by name. Responsiveness: Returning calls and e mails, giving prompt attention and service.

How BRADMOOR, Worlds Premier Resort In USA manages the five factors- case studyReliability: Every employee attends a training program before they are put into the job of handling the guests. They are trained to give an estimated time for any service that the customer demands (room service, laundry service, arranging taxi etc). When an employee makes a promise, he has to fulfill the same. Employees are told never to guess the expected time. If they do not know they have to check with the superiors before committing.

Assurance: It conveys trust by empowering the employees. If any guest faces a problem with respect to the food not being as per his order, the employee has powers to offer him something other item like dessert free to satisfy the customer. In India Pizza Corner offers free Pizza if it is delivered beyond 40 minutes.

Tangibility: Broadmoor spent $ 200 million during 1992 to 2002 to upgrade the facilities in the resort by renovating the rooms and adding a new outdoor swimming pool.

Empathy :Employees are always told to address the guests by name. To accomplish this all employees are told to find the names of the guests through name tags, luggage ID tags etc.When every one addresses him by name he gets a feeling of being taken care of.

Responsiveness: Every employee is instructed to follow 'HEART' model - Hear what a guest has to say - Empathize with them - Apologize for the situation - Respond to the guest's needs - Take action and follow it up

THE GAPS MODEL FOR IMPROVING RETAIL SERVICE QUALITY

In order to increase the retail service quality, the retailer has to reduce the 'Service Gap' which is the gap or difference between the customer expectations and perception of the service delivered to him. Four factors affect the service gap:Knowledge Gap: The difference between customer expectations and the retailers perception of customer expectations

Standards Gap: The difference between the retailers perception of customers expectations and the customer service standards of the retailer

Delivery Gap: The difference between the retailers service standards and the actual service provided to the customerCommunication Gap: The difference between the actual service provided to the customers and service promised in the retailers communication program

These four gaps add to the service gap. Therefore the retailer must try and reduce each of these gaps. Thus the key to improving service quality is to do the following: Understand the level of service that the customers expect.Set standards for providing customer service Implement programs for delivering service that meets the standards.Undertake communication programs that will inform the customers accurately about the service that will be offered.

Ways to reduce knowledge gap:

The most critical step in providing good service is to understand what service the customer realy wants. Many retailers take wrong decisions because they are not aware of what the customer expects.

Retailer may fill his store with all varieties of merchandise thinking that this will improve his service quality but the customers may actually think that they are spending too much time at the payment counter and it should be made faster.

Do comprehensive study to understand what the customer expectations are .. The leading J C Penny in USA collects answers to their questionnaire every year from 50,000 customers and get their feedback on the service provided. As the questions are same, they are able to assess whether the service perception is improving or declining.

Measure the satisfaction of individual transaction: Kingfisher Airlines gives a feedback form during the flight to the passengers and ask them to fill up the same so that the customer can give his opinion of the service provided to him as he is experiencing the service.

Customer panels and interviews / discussions: Many financial service providers like Bajaj Finance arrange a meeting of their select customers once every quarter to understand the customer perceptions on the service provided.

Car servicing companies call their customers over phone after a few days of service and ask them for feedback on how the service was provided.Interacting with customers: Owners of small retail outlets interact with customers every day for every purchase and get first hand feedback immediately.

Customer complaints: Customer complaints are recorded and analysed periodically so that the problem areas are identified. Feedback from employees: Another good source from which we can understand customer expectations are the stores employees who handle customers every day, every hour.

After the retailer gain knowledge of what customer expectations are, the next step is to use this information to set standards and develop systems for delivering high quality service. Service standards should be closer to customer expectations than internal operating constraints.Top management should be commited to high quality: Top management must be willing to incur additional expenditure in order to improve the service. Any additional service efforts would mean increased cost. Top management should also appreciate efforts taken by employees to improve service.Top management should define the role of service providers & set service goals: Many successful retail dealerships like that of Toyota have given clear instructions to employees like every phone call should be answered within three rings, each customer to the showroom should be greeted within 30 seconds,etc. Goals should measurable, specific and achievable.Assess the service quality continuously: Many retailers use Mystery shoppers to assess the service quality. Mystery shoppers are actually people whom the retail management sends to the store to see how they are treated by the employees. The mystery shoppers typically find out how the customers are received, how long it takes for someone to attend the customer, how knowledgeable the salesmen are.etc.Ways to reduce delivery gapTo reduce the delivery gap and provide that exceeds standards, retailers must give their employees instrument and emotional support, give necessary skill and knowledge, improve internal communication, reduce conflicts and employees to handle situations .Provide instrumental and emotional support: A bank employee may be able to offer better service with a computer terminals on his table. A billing counter operator will bill faster if he has a bar code reader. Hence appropriate instruments are to be provided. Service providers will have to tackle difficult situations when the customer may not be right. Under these conditions, he will need emotional understanding of the fellow employees and also the employer.Improve internal communication: While providing customer service, the store employees have to often manage the conflict between the interest of the customer and that of the firm. J.C. Penny has policy of accepting the returned goods without asking questions. Sometimes the customer may not have used the item properly but would demand his cash back. The loyal employees of J C Penny will not like their company to lose. Retailers can reduce such conflict by having clearly mentioned policy guidelines in their sales manuals so that it is clear to the customer as well as to the employee.

Empower the store employees: Allow the employees at the lowest level to take decisions concerning the customer service issues. But you have to train and coach the staff so that they do not go beyond limits.Provide incentives: Incentives are paid to employees who solve a service related problem with the customer.Ways to reduce the communication gapIf we overstate the service levels in the advertisements and other communication channels, the customers expectation is raised. When the expectation is not realized, then there is a gap. Realistic commitments: Advertising program is developed by the marketing department whereas the stores personnel are the ones to deliver service. Poor communication between these areas may result in a mismatch between the promise made in the ad and the actual service provided.Manage customer expectations: Many times when a customer takes his car for service, they do not mind the delivery time as long as it is communicated properly at the time of their giving the car for service. Customers only want the car to be given back as per the promise made. Hence being honest and transparent helps. Listen to the customers: Customers can become very emotional about their real or imaginary problems with the retailer. Often this emotional problem can be managed by giving a very patient listening to the customer to get the complaints off their chests. Store employees must allow the customer to air their grievances without interruption. It is hard to replace a defective product with a new one. He may want an apology also.Provide a fair solution: Customers typically prefer tangible resolution of their complaints. Extra discounts or additional benefit coupons will be better than a verbal apology.Resolve the problem quickly: Customers are more satisfied if the first person whom they take their complaints to, solves it. The more persons he has to meet, the more irritated he becomes.