“The Death of Customer Service"

A sequel to "The High Street Retailing - Dead or Alive?” series   

Before we can discuss what is termed in this article as “The Death of Customer Service,” we must first determine a definition. In simple terms, customer service is the provision of service to customers before, during and after a purchase. This should be expanded to reflect that it is not only the provision of service but also the ability to always satisfy and occasionally, delight the customer. 

In bygone days, in particular prior to the advent of the digital age which, in reality, is only since about 1994, barely one generation in time. During that period dramatic changes have evolved in terms of people’s attitudes, education and aspirations. One of the major changes has been the increase in both leisure time as well as, most recently, the ability to work and study from home. The time that people spend at home, as opposed to mixing with others at school and at work, coupled with the advent of “social media” has certainly resulted in a loss of interpersonal skills.

One only has to look at the level of loneliness, even suicide rates, to fully grasp the effect of the dramatic reduction in face-to-face contact. This is mentioned as it forms the basis of much of the reason for what I term to be the “death of customer service”. I should now like to illustrate the demise of customer service with a few personal shopping examples, many of which the reader may well have encountered.

I have always considered that a successful retailer is one that is supported on three pillars; those of operational excellence, product leaderships and customer service. If any one of these is damaged then the whole edifice will collapse.

Let me take a personal short journey back in time to the early 1950’s when I lived in London with my grandparents, opposite our local Sainsbury in Finchley Road. When my grandmother went there to shop, in preparation for my return from boarding school, the fishmonger there would have already ensured that he had good stocks of smoked salmon as he knew, not only which type I liked, but when I was due home for the holidays. He would welcome my grandmother by name, as was common by most shops who knew their regular customers. Her shopping was duly delivered by the “boy on his bike” who gladly accepted the 6p (that is 2? pence now) for the delivery. I mention this example of how local traders would always offer a personal service and maximise the sale.

Consider going into a shop to buy a suit and the sales person compliments the sale with a shirt and tie; it would often be the shirt and tie which would most delight the customers. The same was always true when I worked for T Elliott & Sons in Kings Road in 1968/70. In every sale of a pair of shoes or boots, few customers left without a handbag or, at the very least, shoes trees and shoe cream or polish. The whole basis of selling in those days could best be summarised as “Purpose and Taste.” What was the purpose of the customer’s requirement and what was the customer’s taste or, in other words, what did the customer need and like? Match the first and a sale was often made; match purpose and taste and the sale was always made and usually maximised.

Moving forward one decade and I went into a shoe shop for some black, smart “business” shoes. I was surprised and rather disappointed to find racks of shoes and almost no staff to assist. I finally found a shoe that I liked but not in my size. I found an assistant and asked if they had a size 8 in stock. Her answer really summed up the demise of customer service: “If it ain’t on the rack then we ain’t got it.” Needless to say, I left never to return to that shop. 

Poor training of sales staff results in customers having no option but to look for detail online with the eventual outcome that they then buy online. Similarly, a lack of product sizes and options in store will also result in the customer having to go online to book, then finding no future need to return to the shop!

Let us now take our journey forward a further two decades. Going into the belated Woolworth looking for shoe laces, I asked a young sales girl, who was filling a shelf with stock, where I might find them. Her answer: “How do you expect me to know, I only started here this morning.” Was that answer a lack of training or what has now become the careless way that many people talk to customers?

More recently in our local Marks & Spencer, my wife found a dress that she liked but there was not one in her size. When she asked an assistant to see if there was a size 12 in stock, she was told: “If it’s not on the rack that it’s not in stock.” Reminiscent of the Woolworth experience some ten years earlier. On further questioning by my wife asking when it would be in stock, she was told: “Why don’t you just buy it online or go to that queue over there and order it. Then you can come in again a collect it or pay for delivery.”

The reader may think that this is perfectly acceptable if used to only buying items online. However, the answers given showed a total lack of customer service, not least as the assistant did not discover the customer’s “purpose and taste” or behave in a normal social manner. A digital robot could have done the same job but more efficiently and less costly!

In previous articles that I have written on customer service I have discussed Customer Relationship Management (CRM) showing the direct links between communication and customisation. Today it seems that most companies have totally abandoned this concept and just mass market to the widest market.

In 1994 I wrote an article for Logistics Information Management, (Vol. 7 No. 4, 1994) entitled: “Shaping up for the Information Revolution.” At that time there were no such labels as online shopping or social media and email was almost non-existent. Interestingly, I had a number of disparaging comments that alluded to such a “revolution” would not take place for a generation as hardly anyone had access to a home computer and only the very largest businesses, such as banks, could afford mainframe computers. In this article I wrote that there will be major changes in the way businesses operate. Telephone, cable, hardware and software companies are revamping the computing and communications infrastructure to create an information highway – a new popular network that will link the providers and consumers of information, entertainment, goods and services. The information highway will carry vast amounts of text, video, graphics and audio into our homes, schools and businesses, enabling a new information age based on the increased availability and flexibility of access to information, which promises to revolutionise our way of life just as railways did at the turn of the century.”

Of course, this “information highway” was then termed “the web” and the rest, as they say, is history. Also, in this article, I wrote that “few, if any, retailers have yet to make full use of this information and, while there have been many retail casualties over the last few years, there is little doubt that more will follow. Sophisticated methods of operation that incorporate full use of this information will not only provide a competitive advantage, but will become an essential long-term goal for all retailers hoping to survive beyond the end of the decade. If this were not enough, retailers will also face competition from an entirely new dimension, the information highway.”

We have all seen the large number of retailers that failed to take advantage or react to this new “information highway” and even today have not taken maximum opportunity of this digital age.

Unfortunately, an equivalent number of retailers have not only taken advantage of digital technology i.e. online shopping, but have totally embraced it to the expense of their “bricks and mortar” estate. Certainly it is really important for all commercial companies to use technology to improve profitability and efficiency, but equally important is not to lose sight of why they are in business.

As someone who has worked in the retail industry throughout my career I will confine my remarks to the retail sector. This article is focused on the demise of customer service and the background to the advent of the web, this information highway, is both the angel and the devil of customer service as it is, indeed, of the “bricks and mortar” of our high street. I sometimes wonder where this lack of customer service began, perhaps as early as the end of bartering and use of money. I try to think of more recent, specific examples in my lifetime and the advent of the self-service industry is, I believe the catalyst that kicked-off this customer service demise. We were told that “now you don’t have to give a list to the grocer to pick your goods; you can now go round the aisles and pick goods yourself, load them up, take them to the till and pack them yourself before taking them home.” Is this really customer service or just a way for shops to reduce staff with the parallel reduction in service, in order to increase profits? The automatic telephone answering systems are certainly an excellent example of the demise of customer service. Gone are the days of calling a company to be greeted with “Good morning, how may I help you?” Then being able to get through the correct department without having to wait, sometimes for more than an hour, listening to some dreadful music; then being told that “Due to COVID……your call is important…”. I don’t think so!

One can also identify a company with inherent poor customer service by looking at the telephone number for customer service. If it is 0844 then beware and expect poor service. A typical example is the company YouGarden which shows an item in stock then puts in small print “up to 14 days delivery” and finally, after 17 days the item is not received nor is it in stock. Misinformation on products detail and delivery times is one of the most common causes of customer complaint. Add to this the cost of calling an 0844 number and then being “on hold” for up to an hour or longer, is a disgrace for any company. Although I have singled out YouGarden, it is just one example and others would certainly include WeRChristmas whose reviews would put anyone off even considering buying from this company. 

The investment in online shopping is essential for today’s retailer. However, using online shopping in such a manner as to drive shoppers out of the shops is actually reducing the retailer’s opportunity for sales. I would cite John Lewis Partnership (JLP) as a fairly typical example. JLP believe that their future is primarily in online sales. In 2020 alone JLP cut 1,500 head office jobs while an additional 1,300 were lost due to the eight store closures over summer. JLP’s results reflected this state of affairs with a pre-tax loss of ￡517 million as well as having scrapped its annual bonus for “partners” the first time it has done so since 1953. As well as closing many of their department stores, they are also denigrating some of their Waitrose shops by moving into “mini John Lewis” within Waitrose shops. How much of this strategy has been designed by a Chair person with no retail experience I have no idea? What I would say is that I can foresee the end of this long-standing retail company within the next decade. After all, why buy something from JLP online when the item being purchased is generic and can be bought from the Amazon’s of this world for less and have it delivered the same or next day?

The reduction in store staff not only reduces face-to-face contact with customers, but also reduces other basic tasks in the store including cleaning and stock rotation. How often do you receive items on or near “best before” dates or even those out of life? All of these reductions have the effect of diminishing customer service. Rather than being able to talk to knowledgeable staff who like their products and enjoy the customer inter-action, the customer is now faced with having to research detail online before shopping for major purchases whilst, at the same time, looking for the “best deal.” This, of course, further pushes customers who visit stores onto the inevitable route to online shopping. This becomes a downward spiral of lack of investment in stores and staff to loss of customer service. Store staff often just fulfil the role of a robot; following strict head office instructions of where to place goods, at what price and how to operate with minimum customer contact. One even has to queue for service if one is lucky enough to find a customer “service” desk.

I mention the lack of investment in stores which is typified by the acquisition of retail companies by the asset strippers of hedge funds and other financial institutions. There are many examples going back to such companies as Debenhams, which traced its history back to 1778 and became the UK’s largest department store group. Purely through bad financial management, it’s fate was sealed by the private equity-style of swapping assets for large amounts of debt and eventual administration and closure. Arcadia is yet another example where a lack of investment in BhS saw this company fail, even before its sale for ￡1; a very suspect deal from the outset. The rest of the trading names, including Top Shop, failed through a lack of foresight and investment in the additional market of online trading.

I mention these examples to illustrate that a combination of a lack of investment in stores and staff, together with a poor balancing of focus between “bricks and mortar” shops and online shopping, can spell disaster for a retail company. The result is very depressing for those of you, like me, who have worked in retail all their working lives. One sees one Debenhams store being converting to offices, whilst another store was bought by Gloucestershire University to use as lecture halls and for training nurses. Both John Lewis and M&S are closing off floors on major retail sites to use as offices, including the top 3 floors of the famous 160,000 sq. ft M&S Pantheon, Oxford Street store. This latter example signals the end of Marks & Spencer, as we have known it, as it makes the downward spiral into just food and online shopping almost inevitable.

Rising rents, falling profits, dwindling footfall and Covid-19 restrictions have combined have played a huge role in retailers making difficult decisions to stay afloat. However, selling off retail space for offices is not always viable as there is already too much office space due to working from home (WFH).

According to research from PwC and the Local Data Company, 17,532 chain stores closed down last year, while only 7,655 opened up. This leaves a net deficit of 9,877 permanent store closures – the highest on record – and equates to 48 stores closing every day, with just 21 opening. The turmoil saw 176,718 jobs lost across retailers during 2020, according to data from the Centre for Retail Research.

A further depressing move in retail in general and food retailers in particular, is moving downmarket by reducing their range and well as their staff. Tesco, for example, is now competing with “lowest common denominator” e.g. Aldi/Lidl which has the effect of a loss of their Unique Selling Proposition (USP) of a great and wide range and excellent customer service. Shedding over 25,000 staff in the last year alone plus dramatically reducing their range of products by some 30% has, thereby, diminished their USP of range and service. Tesco were the first UK company to fully roll out a store card, (Safeway were the first to trial at 57 stores but failed to be the “first mover’), but as soon as they had all the data they required, the “loyalty” point value dropped dramatically. This just illustrates the minimal way to treat their loyal customers. The result has been that their previously customers are no longer loyal.

No article on this subject can be complete without reference to “social media” as this forms much of the basis for online shopping, digital reviews and recommendations often targeted at that particular group of people. One might consider that “social media” is anything but social as I have already described the lack of face-to-face communication now possible in store. The advent of Amazon’s cashless stores now opening in the UK are the first step towards total domination of digital on the high street. Over the past four years I have written of my prophesy that many of today’s retailers will close their shops and move to online shopping whilst, at the same time, Amazon will open up their own shops focusing on cashless, digital transactions and also same day deliveries. Traditional grocery and independent shops will simply not be able to compete and this will have the effect of killing off choice as well as the “shopping experience” that so many still enjoy.T

This willingness to move to cashless and digital shopping is particularly true of today’s younger generation whose obsession with social media is absolute. I can most clearly illustrate this with a comment that I heard at a retail exhibition and conference with the issue of older people not accessing digital media. “It doesn’t really matter as people over 65 will soon be dead so it won’t be an issue any more!” However, welcoming this new shopping “experience” may be great for those who want a very quick, small purchase during a lunch break or on the way into work or on the way home, it is not a good sign for those shops trying to offer good customer service. 

To summarise this article; lack of investment in stores and staff inevitably results in customers moving online and away from traditional “bricks and mortar” stores. This results in store closures and the loss of a major marketing avenue for retailers who then lose their USP and just become one of many random online companies. Only those online companies that will survive will be those that can offer products that the customer wants and needs, at the best price, with fast delivery but also able to offer great customer service both during and after the sale. Good customer service is not just about the speed and convenience of buying goods but, as stated in the definition at the outset of this article “…service to customers before, during and after a purchase.”

David Sheldon 23 March 2020