| 02 November 2010 | |
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Editor Andrew Davies on what the KBB industry can learn from John Lewis...
At last month's annual Bathroom Conference the theme of customer service was picked over by several experts and consultants in ways that were often genuinely thought-provoking and sometimes easily dismissible as 'management-speak waffle'.
But while the qualifications and experience of the customer service consultants is not in question, the most practically interesting session of the day was a simple case study from Matt Thomas and Will Stuart of John Lewis. They explained the department store's approach to customer service in practice, not the theory that can easily be written in management textbooks.
John Lewis dedicates itself to the training of all staff in the practical aspects of customer service, but it also ingrains each employee - a word they don't use, preferring 'partner' - to genuinely believe that they are all responsible for the reputation of the company. They are all, in effect, brand guardians, and they really mean it.
One thing in particular stood out for me as Thomas discussed the topic of sales. Basically, they don't do them. "We don't have gimmicks," he said. "We give nothing away for free. The first price is the best price."
Clearly they do have 'sales' in the sense that they have clearances and price promotions at key times in the year, but the principle that 'the first price is the best price' is one that much of the kitchen, bedroom and bathroom retail industry should heed and repeat like a mantra.
John Lewis has built its reputation on service, quality and availability - in other words perfecting the retail experience. Its customers have a relationship with the brand that doesn't need reward cards or loyalty points to maintain, people just like shopping there so keep coming back. It doesn't need to get itself embroiled in heavy discounting, and never-ending sales to keep punters coming through the door.
Which brings us to Bathstore. It's not difficult to see why Wolseley might be looking at ditching it, it simply doesn't fit in a business made up of trade brands, but that fact aside it simply doesn't make enough money either. It has pursued a strategy of commoditising the bathroom, treating the product like units to be shifted, and as a result has found itself in the ever decreasing circle of the permanent sale, and once you're in there how do you ever get out?
At the Bathroom Conference, keynote speaker Larry Hochman said that thanks to the internet and social networking we now live in a word-of-mouth economy. "Customers are in control forever," he said. "Information and choice give power and control." In other words, transparency, honesty and trustworthiness are not just ethical requirements but key parts of a business strategy. Put bluntly, customers aren't idiots so don't treat them as if they are. It's clear to everyone that a permanent 50% off sale is mathematically impossible, it's a joke that customers don't find funny, they find it sneaky and untrustworthy.
Unfortunately, independent retailers are as guilty of discounting and price cutting to close a sale as much as multiples like Bathstore, they just don't plaster it over the windows in six foot high letters. While it may get you that deal in the short term, it can't do much for reputation in the long term. You want your customers to go away and tell their friends what a great job you did on their kitchen, bedroom or bathroom, you don't want them saying "if you umm and err enough, they'll knock the price right down."
Bathstore is a strong brand in terms of consumer recognition and in that sense it has intrinsic value that will make it attractive to potential buyers, we had a similar situation with MFI a couple of months ago. It is cheaper to turn around reputations than it is to establish brands from scratch, but to do that it will have to reverse the policy of promoting through discounts and move back to quality products and good service - I don't envy them that task. A good place to start though might be to write in six foot high letters across the windows: "The first price is the right price..."




