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BACKGROUND Introduction The purpose of this paper is to determine how customer service and return policies in the retail industry, primarily WAL-MART, can be improved. It has been thought for many years now that outstanding customer service and liberal return policies satisfy the average retail consumer. The more convenient their shopping experience is the more apt they are to return to the store. This is thought to be very much the same with return policies. The more liberal the return policy is, the more apt a customer is to shop at that store. People buying gifts want to be assured they can be refunded if their friend or companion is not satisfied. This is the same for themselves also. The customer wants to be assured they are getting their bang for their buck so to speak. If they do not, they expect to be refunded or provided an opportunity to exchange merchandise. The question that the WAL-MART, as well as other retailers need ask, is if making return policies more liberal will help improve customer service and profits, or hurt profits by increasing return rate. Personal Interview Name of Firm: WAL-MART Stores, Inc. Contact: Brendan Barrett, Store Manager in Delafield, WI (Taped Session) STORE HISTORY Opening Date: May 17, 1989 General Information: WAL-MART is a well-known retail giant that serves customers nationally and internationally. WAL-MART provides customers with just about any of their household needs including domestics, house wares, electronics and in Super centers, groceries. They are well known for their low prices, outstanding customer service and liberal return policies as an overall corporation. This has begun to decline in some stores individually. Main Competitors: Target, K-Mart, Menard’s, Osco, Walgreen’s, Shopko CUSTOMERS Do you feel that all of the store’s customers carry the same feelings about good customer service and lenient return policies? Overall, I think that everyone feels that these are needed in the store, but some people are more emotional and more apt to act on a concern than others. How do you feel the customer service is in the store? I feel that the customer service is excellent. The employees have good knowledge of store products and meet the needs of the customer every time it is possible. This is the same for the managers. WAL-MART is well known for its overall outstanding customer service. Do you feel that WAL-MART serves its customers better than any of its competitors? Of course! Every store does not always abide by the corporate rules but as a whole unit, WAL-MART has a competitive advantage in this area. Do you feel that when customers complain, they are generally upset about an experience in the store or do you feel the customer is letting out frustration or stress from other problems? I am not a psychologist but I will say that a lot of customers get upset and yell at employees/managers with no argument, rhyme or reason. Although it appears that the customer is stressed about other things, it is important to listen to them and do what you can to make them remember how pleasant you were with them and willing to fix a problem. Can you honestly say that you have satisfied every customer that has come through the store? Of course not. If that were the case, we wouldn’t do research to find out how to keep good customer service and high profits constant. RETURN POLICIES You feel that strict return policies and poor customer service are the downfall of major retail companies such as Montgomery Ward and K-Mart? I definitely think that it has a significant role. If the service is horrible and the return policies are inconvenient, than who in their right mind is going to want to shop there. I also think that store cleanliness and lack of marketing/advertising have a major role. How do you feel WAL-MART’s return policies compare with other stores? I’ll say the same thing I did with our customer service. WAL-MART is well known for its leniency when it comes to returning merchandise. Customers prefer this for couple of reasons. The first reason is for the honest customers.
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