Customer service keeps the doors open

Nordstrom department store built its legendary customer service reputation on the story of a man who returned a set of tires to a store and received a refund, even though Nordstrom doesn't actually sell tires.

True or not? According to Nordstrom's own podcast, "The Nordy Pod," it is not just a myth. Podcast host Pete Nordstrom did some research and found that 40 years ago, a customer in Fairbanks, Alaska, did come in and return a set of tires. An associate checked and found that Nordstrom had recently purchased three stores from a local company that did sell tires.

Although Nordstrom had revamped the stores and eliminated tire sales, the associate decided to honor the stores' terms. After all, the customer had driven 50 miles for his refund. So the associate called some local tire stores to come up with an estimate of the tires' value and gave the customer his refund.

You can't put a price on such a good customer service reputation.

Now, compare that to the salesclerk who was giving change to a customer one day and mumbled something.

The customer said, "I'm sorry, I didn't hear what you said."

The clerk snapped back, "I said, 'Have a great day.' What are you, deaf or something?"

Ouch! That customer may never return, and the clerk should never work in a service position without a lot of further training. A whole lot.

Good customer service is absolutely critical. It is the lifeblood of any business. I have always emphasized that without customers, a business simply cannot survive.

Walmart founder Sam Walton said: "There is only one boss — the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."

Let me share with you some insights that highlight the importance of good customer service:

• Preference for personal touch. Research shows that a whopping 80% of consumers prefer customer service from a human being rather than an automated system. Whether on the phone or in a store, 83% of consumers say that interacting with a customer service rep is important. It's easy enough to shop online, but when issues arise, dealing with an automated system is woefully lacking the personal touch.

• Negotiation and deals. Nearly 70% of consumers believe they are more likely to get a better deal when negotiating in person rather than online.

• Customer loyalty. Almost 20% of consumers indicated they would renew products or services because of good personal customer service, even if they were more expensive. Customers have long memories. They will remember how you made them feel long after the price is forgotten.

These statistics underscore that while we may be moving toward a more automated world, the human element in customer service remains invaluable. People crave the personal connection and the assurance that their needs are being understood and addressed by another human being.

By providing stellar customer service, you are not just solving a customer's issue; you are building a relationship that can withstand the pressures of competition and price wars. In essence, good customer service is not just about the immediate transaction; it is about creating a lasting impression that turns customers into loyal advocates for your brand. In short, customer service is not a department; it is an attitude.

We all have horror stories about being treated poorly for no apparent reason. We also have stories about never returning to that business as a result. Online complaints are all over social media, and sharp businesses take notice. Enough bad reporting can outweigh the finest products if customers believe those negative reviews.

James Cash Penney, the department store founder, said, "Every great business is built on friendship."

Losing sight of this important fact can cost a business dearly, as this drowsy executive discovered.

A lady phoned the president of a large furniture store at 2 a.m. After several rings, a sleepy, gruff voice answered. "This is Miss Gruntled," said the lady in sugary tones. "I just had to call you personally to tell you that the couch I bought at your store last week is simply stunning."

"I'm delighted to hear that," yawned the president. "But may I ask why you called me in the middle of the night about a couch you bought last week?"

"Because," she replied sweetly, "your truck just delivered it."

Mackay's Moral: Make your customers No. 1 and they will make you No. 1.

• • •

Harvey Mackay is the author of the New York Times bestseller "Swim With the Sharks Without Being Eaten Alive." He can be reached through his website, www.harveymackay.com, by emailing harvey@mackay.com or by writing him at MackayMitchell Envelope Co., 2100 Elm St. SE, Minneapolis, MN 55414.