Is the customer always right? It may be a time-honored maxim, but ask any retailer, and the response may be a smirk or a shrug of the shoulders. Yet in this day of Google and Yelp reviews, independent jewelers need to deal effectively with both day-to-day operations and more challenging situations so that the result is a happy customer who will spread the word.
“The customer may not always be right — but the most important notion is their perception of that reality. And if the customer believes she or he is right, that reality is all that matters,” explains Kate Peterson, president and CEO of retail consultancy Performance Concepts. She advocates that every retailer, regardless of size, develop an organizational training program that begins with new-hire onboarding and extends through professional development for more experienced associates.
Empowering staff
“We have a basic-operating-procedure manual that is a living document that we adjust as needed,” says Julie Thom, owner of Von Bargen’s, which has five stores in Vermont and New Hampshire. “Sales team members who are stronger in certain aspects of the business visit our stores to train new hires or provide additional training to more seasoned staff. In addition to learning, they are developing a relationship with other people who then become sounding boards when they have a question about anything.”
Furthermore, it builds a team-oriented culture, which is especially critical since Von Bargen’s does not have a commission structure. “Mentorship is part of driving the overall experience for the customer,” Thom points out, adding that it helps empower sales staff to make the right decisions.
“The client and our relationship with that client are what drive us,” she continues. “There are situations in which the client is not right. We have to listen to the client without assuming fault. We want the interaction to be as seamless as possible to ensure the relationship with the client remains strong.”
Peterson insists that “it’s always best to tell people what you can do.” She compares saying “no” to the “stick you use to poke a bear.” But certain customer interactions require skill, tact and training — especially those that could become contentious.
‘I can return this’
The reality is that not everything can be returned. “You always go for a win-win situation,” counsels Thom, even when the return may not be appropriate, such as a special order or something that was clearly communicated as non-returnable. “You really want to get out of it unscathed, especially now with online reviews. Sometimes you have to cut your losses and emerge with the least damage possible.”
‘I want a discount’
The only time customers argue for a discount is when the salesperson sets up that dynamic, according to Peterson. “The problem is usually that the salesperson has failed to build value in the eyes of the customer,” she observes. If the store offers discounts, she suggests talking in terms of dollars rather than percentages, saying, for example, “I can give you this ring for $695 [if it was originally $750].”
Thom says her store is “a no-discount environment. Our team has the tools to respond. They will cite our loyalty program, where clients accrue dollars for every dollar they spend, our competitive pricing — sometimes under MSRP [manufacturer’s suggested retail price] — and price-matching.”
‘I can’t wait’
“Time is luxury,” asserts Thom, citing the “deadening time” for the customer while the salesperson is typing away on a computer. “Receipts can be emailed after the purchase, but I want my team to use their time in the store on jewelry. If the client needs the documentation, that’s where an assistant comes in who can listen as a second person while administrative work is being done.”
‘I don’t like anything’
A disruptive or argumentative customer can be uncomfortable for the salesperson and other customers. Defusing the situation is best.
“Stay calm and rational,” says Peterson. “Don’t meet emotion with emotion. Reassure them that you’re there to help, and move them to a quiet area of the store if possible. When they are done talking, offer some solutions.”
When a customer continually buys and returns, it might be time to fire the customer. A suggested dialog, says Peterson, could be: “I can’t help but notice that you’ve been unhappy each time you’ve purchased something here. This is not working out well for either of us. Maybe you would like to find another jeweler who better serves your needs.”
Article from the Rapaport Magazine - April 2019. To subscribe click here.