I went to a store today to return a defective product they manufacture and sell. This is a chain that spends millions to get folks like me to buy from them. I like the chain, and I shop there often, so their marketing worked on me!The store manager today insisted on negotiating with me. He only wanted to give me credit for 75% of what I spent on the defective item. Even though I had a receipt! I had to verbally wrestle with him for some time to convince him that his strategy was unwise and could cost them a customer.
In the end he agreed to give me full store credit (remember that I had my receipt!), but I couldn't help wondering why so many store managers and customer service people don't get it. Their supposed heroics cost their company so much in lost sales and lost customers.
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Another great post. As someone who used to work in retail management before making the jump to IT, I can say with experience that it's really easy to be short-sighted as a retail manager. For most managers, the metrics of customer satisfaction for the retail outlet is seen in dollars and cents. It's a horrible mistake, but if it's the only tool you have--you try to use it for everything.
Ironically, very few retail managers are willing to make exceptions or take steps that may not have an immediate win (with profit) in order to make customers happy. The ones who do often get rewarded in the long run as the fruits of their heresy bloom into customer loyalty. However, they often get chastized by the next level in the organization in the here and now.
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