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What do customers want?

This age-old question has been pondered by retailers ever since the first merchant set up shop. Over the years, some deduced that price was what they wanted. Others thought larger stores were the answer, while still others concluded that customers wanted wider selections in a pleasant shopping environment.

Interestingly, all of these notions are correct and play an integral role in what customers expect when they shop at any given retailer. In fact, all must work in conjunction to deliver the kind of service that will keep a retailer competitive into the 21st century.

"If you don't have strong customer service, it doesn't matter how effectively you operate, how attractive your products are or how good your real estate. The customers will not continue shopping your store," said Jack Bush, president and ceo of Michaels, a crafts superstore chain based in Irving, Texas.

Most forward-thinking retailers feel superior customer service goes far beyond smiling store employees.

"We use the term customer satisfaction because we view pleasing our customers as a whole package that involves merchandising, sharp prices, consistent in-stock and a clean, comfortable store environment," said Tom Hartshorn, vice president, merchandising operations of Nashville, Tenn.-based Dollar General.

Today's consumers have less time to spend in the store and, therefore, want a shopping environment that has what they want, when they want it and allows them to get in and out quickly.

Technology has played a key role through the use of point-of-sale scanners, price checkers, call boxes and electronic kiosks which can help locate products or dispense coupons at the store level.

"Customer service begins the moment the customer comes through the door and finds that the merchandise is more than they expected," said Bob Hurwitz, co-founder and chairman of HomePlace, a new home furnishings concept located in Solon, Ohio. "The experience is also intensified with easy-to-handle shopping carts, knowledgeable salespeople who can help them locate a specific item and quick checkout."

Many retailers also report that innovative signage and merchandising programs in addition to the nuts and bolts of the business like well-stocked and maintained departments, hassle-free returns, easy parking and clean restrooms are also important.

None of these are that difficult to implement at the store level but require a commitment both at the store and behind the scenes.

Retailers have invested heavily in training programs with chains like HomePlace conducting three weeks of training for new employees as well as holding soft openings for new stores (for five to six hours per day) to familiarize employees with all facets of the operation.

Customer service is a particular strength of specialty stores as these category killers often use service as a way to differentiate themselves from more price-driven retailers.

"Discount and department stores have a lot of room for improvement in customer service. However, there are a few exceptions like Wal-Mart, Home Depot and Nordstrom's who have excelled," Bush said.

Mass merchandisers have certainly learned a thing or two from these category killers about how to put their best foot forward.

Traditionally, discount stores were known as self-service environments, free of the trappings of salespeople roaming the floor.

Wal-Mart was perhaps the exception and has always prided itself on delivering a high level of customer service through greeters at its doors, helpful salespeople who live by the "10-ft. rule" (they say hello and ask to help any customer that comes within 10 ft. of them) and sharp prices.

To this end, the chain has set a benchmark, which others in the industry have followed. For instance, greeters can be found at more of the nation's discounters. Also, store uniforms have been instituted for easy identification of store personnel at Jamesway, and chains like Target, Caldor and Venture now open at 8 a.m. instead of 9 a.m. and have extended Sunday hours.

A real sign of the times is the introduction of store credit cards at discounters like Target, Caldor and most recently from Wal-Mart's Mexican establishments and Melville Corp. Clearly it is an attempt to service the many customers who prefer to charge their purchases.

Customer service has also extended outside of the store, with both Kmart and Wal-Mart testing home delivery of prescriptions and other health and beauty care items using third-party delivery services.

"Ten to 15 years ago self-service was en vogue at discount stores. In fact, if you had to have an associate around, something was wrong," said Jim Schwab, president of Grandpa's, Bridgeton, Mo. "Experience has debunked that now, and we know that our customers need someone around."

Not only do they need someone around, they also want that person to be knowledgeable about the store and its products.

At DePere, Wis.-based Prange Way, the regional chain has combined one of its checkouts with the customer service desk during non-peak hours so that a knowledgeable salesperson will be available to help solve any problems that might arise. The chain has also begun to staff its electronics and jewelry departments during the busy times of the week.

GrandPa's has recently started stocking its shelves from 5 a.m. to 10 a.m. so that merchandise is in place and ready when customers arrive first thing in the morning.

In its five new prototypes, Jamesway, too, has incorporated a serviced electronics counter in the stores.

These little touches go a long way in proving that retailers are not just talking the talk, but walking the walk.

"Retailers who don't dedicate, measure and qualify customer service, are just giving lip service to the concept and not taking it seriously," said Bush of Michaels.

"The companies that are up and coming are those companies that are very focused on what they are doing and have a real strong program to measure customer service like Boston Chicken," he continued.

Measuring customer service has become fodder for many books like "On Great Service: A Framework for Action" by Leonard Berry, a professor of marketing at Texas A&M University, and "Customer Satisfaction Measurement and Management" by Earl Naumann and Kathleen Giel.

"What's really good now in terms of customer service may not be the same a year from now. When customers are getting a 100% money-back guarantee from retailers like Wal-Mart, they begin to develop expectations that may become a minimal threshold of expectation for other retailers as well," said Naumann, a consultant specializing in quality improvement, customer satisfaction and supplier partnerships.

Measuring these expectations is an important part of tracking customer service at the store level, and retailers have used many approaches.

Some use customer comment cards as a means of spotting pitfalls and successes at the store level.

Target uses a Guest Satisfaction Report Card on which customers are asked to grade (A, B, C, D, F -- or DK for "don't know") the different components of the store.

Similarly, at Prange Way, customers send its president and ceo Larry Sommer "Dear Larry letters" in which they voice their opinions about the store.

"I read every letter personally and hand them over to our director of stores, who replies to each one. However, if I feel of the customers were hurt in any way, I will call them myself," Sommer said.

This relationship building goes a long way in securing a relationship with customers, which is so vital in today's competitive environment.

"Customers are sophisticated and have a tremendous amount of choice. Ultimately, they will gravitate toward the stores that have exceptional customer service," Bush said.

Bush, at the helm of Michaels since 1991, points to customer service as the impetus behind its success.

When asked why he's successful, he replies, "Don't ask me, ask the customer."

Bush is a true devotee to customer service and makes it important to everyone at the chain by basing bonuses of store managers and associates on the results of programs like the Mystery Shopper.

This program is conducted by an independent organization, which both phones and visits the stores five times per year (twice in the last quarter) and ranks each on a laundry list of criteria like "speed of checkout," "warm and friendly service" and "how fast they were greeted."

It must be working because other retailers bear witness to the results. "I really like Michaels because while they are not pouncing on you as soon as you come through the door. If you need something, they are very knowledgeable and well versed and are a big help," said Hartshorn of Dollar General. RELATED ARTICLE: BrandsMart card deals out collaborative savings

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