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Art of Retail Management

By Sam Allman

I have previously described how two flooring dealers achieved a level of customer service that can best be described as "abnormally good." One gave great service, and then asked customers for very specific feedback. He would use their assessment to further improve his service. The other dealer inspired his staff to recognize the importance of great service. Through training, internal communications, and regular staff meetings, the employees knew the bar was set high-but they also became great at customer service. Thus, each owner, in his own way, created an individual corporate culture and established his company's character and reputation. Both prospered.

From these dealers we learn: (1) there's more than one way to provide great customer service; and (2) an exceptional service can be a sustainable competitive advantage. "Competitive advantage" simply means that customers generally favor one dealer over another. A sustainable advantage is when customers prefer a dealer for the long-term-and almost always it is for reasons other than price. The loyal customers resist the lure of a competitor's low price. The only offense that beats great customer service is even greater service.

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