{"id":2299,"date":"2018-03-28T17:38:41","date_gmt":"2018-03-28T17:38:41","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/?post_type=chapter&#038;p=2299"},"modified":"2024-04-25T03:12:09","modified_gmt":"2024-04-25T03:12:09","slug":"offered-services","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/chapter\/offered-services\/","title":{"raw":"Offered Services","rendered":"Offered Services"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\n<ul>\r\n \t<li>Categorize services offered by retailers as basic or luxury<\/li>\r\n<\/ul>\r\n<\/div>\r\nCustomer service, including complimentary services offered, is one way that retailers differentiate themselves in a crowded marketplace. According to a 2011 survey conducted by Harris Interactive, 86% consumers indicated they would pay more for a better customer experience and 89% switched to a competitor following a poor customer experience.[footnote]<a href=\"http:\/\/www.oracle.com\/us\/products\/applications\/cust-exp-impact-report-epss-1560493.pdf\" target=\"_blank\" rel=\"noopener\">http:\/\/www.oracle.com\/us\/products\/applications\/cust-exp-impact-report-epss-1560493.pdf<\/a>[\/footnote]\r\n\r\nLooking forward, customer experience consulting firm, Walker, projects that by 2020 customer experience will become the key brand differentiator, outweighing both price and product.[footnote]<a href=\"https:\/\/www.superoffice.com\/blog\/customer-experience-statistics\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.superoffice.com\/blog\/customer-experience-statistics\/<\/a>[\/footnote] And, unlike when companies compete on price - sometimes categorized as \u201ca race to the bottom\u201d - customer service can be a source of enduring brand and business value.\r\n<div class=\"textbox examples\">\r\n<h3>Example: Nordstrom<\/h3>\r\nNordstrom\u2014a brand synonymous with customer service\u2014is a case in point. Nordstrom has been cultivating customer service excellence for over 115 years and author Robert Spector has translated that experience and expertise into three, highly rated (4+\/5 on Amazon) The Nordstrom Way books. As noted in the publishers write-up on <em>The Nordstrom Way to Customer Service Excellence<\/em>\u2019s back cover: Nordstrom is \u201cone of only five companies\u201d to be ranked on Fortune's \"Best Companies to Work For\" and \"Most Admired\" list every year the surveys have been conducted. While bragging rights are great, revenue is what keeps a business in business. While 9\/11 and the Great Recession took a toll on many retailers, Nordstrom\u2019s focus on both internal and external customers paid off. According to Wiley, Nordstrom never experienced a quarterly loss during the recent economic downturn.[footnote]<a href=\"https:\/\/www.amazon.com\/Nordstrom-Way-Customer-Service-Excellence\/dp\/1118076672\/ref=pd_lpo_sbs_14_t_1?_encoding=UTF8&amp;psc=1&amp;refRID=W7JBC26B0BA74AXB6KFP\" target=\"_blank\" rel=\"noopener\">https:\/\/www.amazon.com\/Nordstrom-Way-Customer-Service-Excellence\/dp\/1118076672\/ref=pd_lpo_sbs_14_t_1?_encoding=UTF8&amp;psc=1&amp;refRID=W7JBC26B0BA74AXB6KFP<\/a>[\/footnote]\r\n\r\nIn a Shopify blog post, author Humayun Khan notes that one of the ways Nordstrom delivers exceptional service is by eliminating customer\u2019s \u201cpain points.\u201d For example, rather than pointing a customer to a particular brand, product or department, a Nordstrom salesperson will walk you there.[footnote]<a href=\"https:\/\/www.shopify.com\/retail\/119531651-how-nordstrom-made-its-brand-synonymous-with-customer-service-and-how-you-can-too\" target=\"_blank\" rel=\"noopener\">https:\/\/www.shopify.com\/retail\/119531651-how-nordstrom-made-its-brand-synonymous-with-customer-service-and-how-you-can-too<\/a>[\/footnote] That level of attention is the difference between basic and exceptional or luxury service.\r\n\r\n<\/div>\r\n<img class=\"alignright\" src=\"https:\/\/c1.staticflickr.com\/4\/3179\/2640396692_3a42aa378a_b.jpg\" alt=\"The genius bar at an apple store. Several employees sit behind a counter at Apple computers.\" width=\"438\" height=\"328\" \/>\r\n\r\nApple\u2019s Genius Bar, the free in-store technical services team available to troubleshoot Apple devices, is another example of exceptional customer service that serves as a market differentiator and builds brand loyalty. Luxury product - $1,000 for the current iPhone X, before factoring in cases and other accessories - luxury service.\r\n\r\nOf course, not every consumer is a Nordstrom or Apple customer. Some customers just want\u2014and they just want to pay for\u2014the basics. McFIT, the largest fitness center chain in Europe,[footnote]<a href=\"https:\/\/www.welltodoglobal.com\/germanys-largest-fitness-operator-mcfit-launches-new-european-concept\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.welltodoglobal.com\/germanys-largest-fitness-operator-mcfit-launches-new-european-concept\/<\/a>[\/footnote] serves that market with a just-the-essentials gym with a \u201cSimply look good\u201d tagline.[footnote]<a href=\"https:\/\/en.wikipedia.org\/wiki\/McFit\" target=\"_blank\" rel=\"noopener\">https:\/\/en.wikipedia.org\/wiki\/McFit<\/a>[\/footnote] In order to keep membership fees low, there are no premium services such as fitness classes, saunas and swimming pools.[footnote]<a href=\"https:\/\/www.whataventure.com\/business-model-inspiration\/basic-or-luxury\" target=\"_blank\" rel=\"noopener\">https:\/\/www.whataventure.com\/business-model-inspiration\/basic-or-luxury<\/a>[\/footnote] McFIT has also launched fitness studios at very low budget and premium price points, offering a range of fitness experiences.\r\n\r\nWhile customer service level expertise and service offerings vary, it is important to understand that customers have expectations of a basic level of service. For example, accurate pricing and labeling are basic expectations. Having products in stock\u2014in particular when a retailer\u2019s website indicates stock on hand\u2014is a basic service expectation. Grocery stores with self-check options are outliers; in general, accurate billing\/checking\u2014including removal of any security devices\u2014is a minimum customer expectation.\r\n\r\nUnderstanding your customer's expectations, and how to meet (and exceed) them is key to understanding your customer\u2019s value proposition and deliver a relevant level of service.\r\n<div class=\"textbox tryit\">\r\n<h3>practice questions<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/e345b7e2-d3f3-42b0-905d-76ab9b87efcc\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<ul>\n<li>Categorize services offered by retailers as basic or luxury<\/li>\n<\/ul>\n<\/div>\n<p>Customer service, including complimentary services offered, is one way that retailers differentiate themselves in a crowded marketplace. According to a 2011 survey conducted by Harris Interactive, 86% consumers indicated they would pay more for a better customer experience and 89% switched to a competitor following a poor customer experience.<a class=\"footnote\" title=\"http:\/\/www.oracle.com\/us\/products\/applications\/cust-exp-impact-report-epss-1560493.pdf\" id=\"return-footnote-2299-1\" href=\"#footnote-2299-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p>Looking forward, customer experience consulting firm, Walker, projects that by 2020 customer experience will become the key brand differentiator, outweighing both price and product.<a class=\"footnote\" title=\"https:\/\/www.superoffice.com\/blog\/customer-experience-statistics\/\" id=\"return-footnote-2299-2\" href=\"#footnote-2299-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a> And, unlike when companies compete on price &#8211; sometimes categorized as \u201ca race to the bottom\u201d &#8211; customer service can be a source of enduring brand and business value.<\/p>\n<div class=\"textbox examples\">\n<h3>Example: Nordstrom<\/h3>\n<p>Nordstrom\u2014a brand synonymous with customer service\u2014is a case in point. Nordstrom has been cultivating customer service excellence for over 115 years and author Robert Spector has translated that experience and expertise into three, highly rated (4+\/5 on Amazon) The Nordstrom Way books. As noted in the publishers write-up on <em>The Nordstrom Way to Customer Service Excellence<\/em>\u2019s back cover: Nordstrom is \u201cone of only five companies\u201d to be ranked on Fortune&#8217;s &#8220;Best Companies to Work For&#8221; and &#8220;Most Admired&#8221; list every year the surveys have been conducted. While bragging rights are great, revenue is what keeps a business in business. While 9\/11 and the Great Recession took a toll on many retailers, Nordstrom\u2019s focus on both internal and external customers paid off. According to Wiley, Nordstrom never experienced a quarterly loss during the recent economic downturn.<a class=\"footnote\" title=\"https:\/\/www.amazon.com\/Nordstrom-Way-Customer-Service-Excellence\/dp\/1118076672\/ref=pd_lpo_sbs_14_t_1?_encoding=UTF8&amp;psc=1&amp;refRID=W7JBC26B0BA74AXB6KFP\" id=\"return-footnote-2299-3\" href=\"#footnote-2299-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/p>\n<p>In a Shopify blog post, author Humayun Khan notes that one of the ways Nordstrom delivers exceptional service is by eliminating customer\u2019s \u201cpain points.\u201d For example, rather than pointing a customer to a particular brand, product or department, a Nordstrom salesperson will walk you there.<a class=\"footnote\" title=\"https:\/\/www.shopify.com\/retail\/119531651-how-nordstrom-made-its-brand-synonymous-with-customer-service-and-how-you-can-too\" id=\"return-footnote-2299-4\" href=\"#footnote-2299-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a> That level of attention is the difference between basic and exceptional or luxury service.<\/p>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"https:\/\/c1.staticflickr.com\/4\/3179\/2640396692_3a42aa378a_b.jpg\" alt=\"The genius bar at an apple store. Several employees sit behind a counter at Apple computers.\" width=\"438\" height=\"328\" \/><\/p>\n<p>Apple\u2019s Genius Bar, the free in-store technical services team available to troubleshoot Apple devices, is another example of exceptional customer service that serves as a market differentiator and builds brand loyalty. Luxury product &#8211; $1,000 for the current iPhone X, before factoring in cases and other accessories &#8211; luxury service.<\/p>\n<p>Of course, not every consumer is a Nordstrom or Apple customer. Some customers just want\u2014and they just want to pay for\u2014the basics. McFIT, the largest fitness center chain in Europe,<a class=\"footnote\" title=\"https:\/\/www.welltodoglobal.com\/germanys-largest-fitness-operator-mcfit-launches-new-european-concept\/\" id=\"return-footnote-2299-5\" href=\"#footnote-2299-5\" aria-label=\"Footnote 5\"><sup class=\"footnote\">[5]<\/sup><\/a> serves that market with a just-the-essentials gym with a \u201cSimply look good\u201d tagline.<a class=\"footnote\" title=\"https:\/\/en.wikipedia.org\/wiki\/McFit\" id=\"return-footnote-2299-6\" href=\"#footnote-2299-6\" aria-label=\"Footnote 6\"><sup class=\"footnote\">[6]<\/sup><\/a> In order to keep membership fees low, there are no premium services such as fitness classes, saunas and swimming pools.<a class=\"footnote\" title=\"https:\/\/www.whataventure.com\/business-model-inspiration\/basic-or-luxury\" id=\"return-footnote-2299-7\" href=\"#footnote-2299-7\" aria-label=\"Footnote 7\"><sup class=\"footnote\">[7]<\/sup><\/a> McFIT has also launched fitness studios at very low budget and premium price points, offering a range of fitness experiences.<\/p>\n<p>While customer service level expertise and service offerings vary, it is important to understand that customers have expectations of a basic level of service. For example, accurate pricing and labeling are basic expectations. Having products in stock\u2014in particular when a retailer\u2019s website indicates stock on hand\u2014is a basic service expectation. Grocery stores with self-check options are outliers; in general, accurate billing\/checking\u2014including removal of any security devices\u2014is a minimum customer expectation.<\/p>\n<p>Understanding your customer&#8217;s expectations, and how to meet (and exceed) them is key to understanding your customer\u2019s value proposition and deliver a relevant level of service.<\/p>\n<div class=\"textbox tryit\">\n<h3>practice questions<\/h3>\n<p>\t<iframe id=\"assessment_practice_e345b7e2-d3f3-42b0-905d-76ab9b87efcc\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/e345b7e2-d3f3-42b0-905d-76ab9b87efcc?iframe_resize_id=assessment_practice_id_e345b7e2-d3f3-42b0-905d-76ab9b87efcc\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-2299\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Offered Services. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">Public domain content<\/div><ul class=\"citation-list\"><li>Genius Bar Image. <strong>Authored by<\/strong>: mastermaq. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/mastermaq\/2640396692\">https:\/\/www.flickr.com\/photos\/mastermaq\/2640396692<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-2299-1\"><a href=\"http:\/\/www.oracle.com\/us\/products\/applications\/cust-exp-impact-report-epss-1560493.pdf\" target=\"_blank\" rel=\"noopener\">http:\/\/www.oracle.com\/us\/products\/applications\/cust-exp-impact-report-epss-1560493.pdf<\/a> <a href=\"#return-footnote-2299-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-2299-2\"><a href=\"https:\/\/www.superoffice.com\/blog\/customer-experience-statistics\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.superoffice.com\/blog\/customer-experience-statistics\/<\/a> <a href=\"#return-footnote-2299-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-2299-3\"><a href=\"https:\/\/www.amazon.com\/Nordstrom-Way-Customer-Service-Excellence\/dp\/1118076672\/ref=pd_lpo_sbs_14_t_1?_encoding=UTF8&amp;psc=1&amp;refRID=W7JBC26B0BA74AXB6KFP\" target=\"_blank\" rel=\"noopener\">https:\/\/www.amazon.com\/Nordstrom-Way-Customer-Service-Excellence\/dp\/1118076672\/ref=pd_lpo_sbs_14_t_1?_encoding=UTF8&amp;psc=1&amp;refRID=W7JBC26B0BA74AXB6KFP<\/a> <a href=\"#return-footnote-2299-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-2299-4\"><a href=\"https:\/\/www.shopify.com\/retail\/119531651-how-nordstrom-made-its-brand-synonymous-with-customer-service-and-how-you-can-too\" target=\"_blank\" rel=\"noopener\">https:\/\/www.shopify.com\/retail\/119531651-how-nordstrom-made-its-brand-synonymous-with-customer-service-and-how-you-can-too<\/a> <a href=\"#return-footnote-2299-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><li id=\"footnote-2299-5\"><a href=\"https:\/\/www.welltodoglobal.com\/germanys-largest-fitness-operator-mcfit-launches-new-european-concept\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.welltodoglobal.com\/germanys-largest-fitness-operator-mcfit-launches-new-european-concept\/<\/a> <a href=\"#return-footnote-2299-5\" class=\"return-footnote\" aria-label=\"Return to footnote 5\">&crarr;<\/a><\/li><li id=\"footnote-2299-6\"><a href=\"https:\/\/en.wikipedia.org\/wiki\/McFit\" target=\"_blank\" rel=\"noopener\">https:\/\/en.wikipedia.org\/wiki\/McFit<\/a> <a href=\"#return-footnote-2299-6\" class=\"return-footnote\" aria-label=\"Return to footnote 6\">&crarr;<\/a><\/li><li id=\"footnote-2299-7\"><a href=\"https:\/\/www.whataventure.com\/business-model-inspiration\/basic-or-luxury\" target=\"_blank\" rel=\"noopener\">https:\/\/www.whataventure.com\/business-model-inspiration\/basic-or-luxury<\/a> <a href=\"#return-footnote-2299-7\" class=\"return-footnote\" aria-label=\"Return to footnote 7\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":62559,"menu_order":5,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Offered Services\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"pd\",\"description\":\"Genius Bar Image\",\"author\":\"mastermaq\",\"organization\":\"\",\"url\":\"https:\/\/www.flickr.com\/photos\/mastermaq\/2640396692\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"e4302932-92f9-47af-be62-7c90dfe18038, 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