Compare to a Set of Standards

Compared to what? That’s the question to ask when you’re wondering how well you’re doing.
      Take service quality. A useful measurement instrument called SERVQUAL is far from perfect, but does illustrate “compared to what?” features. You measure consumers’ expectations of service quality from retailers like you, measure consumers’ perceptions of service quality provided by you, measure your own expectations and perceptions from your perspective as a retailer, and compare the different measures.
     Another good feature of instruments like SERVQUAL is dividing complex considerations into subtopics. SERVQUAL began with ten dimensions. This was later refined down to five. Here are those five with an example of an Expectations and a Perceptions degree-of-agreement rating item for each:

• Reliability. Excellent stores of this type perform the service right the first time. This store performs the service right the first time. 
• Assurance. The behavior of employees at excellent stores of this type instills confidence in customers. The behavior of employees at this store instills confidence in customers. 
• Tangibles. The physical facilities at excellent stores of this type are visually appealing. The physical facilities at this store are visually appealing. 
• Empathy. Excellent stores of this type have their customers’ best interests at heart. This store has customers’ best interests at heart. 
• Responsiveness. Excellent stores of this type are always willing to help customers. Employees at this store are always willing to help customers. 

     A third desirable feature of SERVQUAL is asking for an importance rating for each dimension. When you discover more than one wide discrepancy between where you are and where you want to be, which discrepancy will you address first? The averages of importance ratings allow you to prioritize.
     One last tip: Attend to the “Don’t Know” answer frequency. When you ask your shoppers for their attitudes and they answer they don’t know or have no real opinion, that’s not an agree or a disagree.
     A while back, an American Express survey found that 58% of U.S. consumers said they’ll spend more with companies they believe provide excellent service, and those 58% are willing to spend 9% more.
     I overheard an experienced retailer say, “So 58% tell us they’ll spend more when there’s excellent service. That means 42% won’t.” This retailer hadn’t acknowledged the 17% in the chart. That’s the percentage answering, “Don’t know.” The percentage saying they wouldn’t pay more for excellent customer service was closer to 25% than to 42%.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more: 
Give Shoppers a Comparison Point 
Know the “Don’t Know” Answer Frequency