Comments on: We Want to Hear From You: Are Retailers' Stimulus Measures Persuading You to Spend? http://moneymorning.com/2010/07/06/stimulus-measures/ Global Investment News Mon, 13 Feb 2012 18:41:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Teri L http://moneymorning.com/2010/07/06/stimulus-measures/comment-page-1/#comment-23277 Teri L Fri, 09 Jul 2010 20:51:52 +0000 http://moneymorning.com/?p=25072#comment-23277 During the housing, and internet boom, many retailers failed to treat customers as if they were a necessary part of the success equation, by burning them with abusive policies. For instance, restocking (some call them convenience) fees on returns of faulty products. Or automatically signing customers up for "programs" of insurance, warranties, etc. without customer agreement that just magically appears on the credit card every month. Or, sending customers bills years later because "internal audits" revealed some unpaid amounts for which there is no documentation; abusive contract terms, rebates that never arrive, unsubstantiated threats to destroy credit scores, etc. Customer fees, account fees, customer service fees, billing fees, cancellation fees, etc. Large shipping charges for items that are back-ordered for undetermined periods of time. The list of consumer abuse out there goes on and on. Add that to the inability to talk to a customer service representative that has an understanding of the English language, or one at all, and the disappearing consumer should not really be a surprise. Retailers that engaged in gouging have seen the biggest drops in their customer base. Now they are rolling out "membership discounts" and club cards and easy credit, and many other programs to lure buyers back, without success. These retailers have not only lost the trust of the customer, but they have treated them like idiots, and that results in very negative "word of mouth advertising." You can sheer a sheep every year, but only eat it once. As an example, I bought a set of $40 wheel covers at Auto Zone, and tried to do an even exchange for a different size 2 hours later and was told that it would cost me a $10 "convenience fee," a policy that is undisclosed prior to purchase. I returned their preferred buyer card, got my $30 refund, and went to the local auto parts store 2 blocks away to buy the right size wheel covers for the same price. There is nothing they can offer that will ever bring me through their doors again....except a bankruptcy liquidation sale. Here's another. I moved and took the new customer offer from a phone, internet provider. I called for three months to complain that I didn't have internet, for which I was billed. The customer service department never took action or offered to help, but simply said, "you should." I cancelled and went to somebody else. This provider called be with a nasty attitude to tell me how they were going to really screw me with early cancellation fees. My response was it was a lot better than going forever without internet for which I was being billed. Ever since, they send offers monthly to try to get me back. So, I'm not surprised to see them on the list of corporate bankruptcies. The (very) few retailers that have chosen to focus more energy toward making customers feel appreciated will not only survive, but expand their customer base, during this protracted recession. My favorite is JC Penney. This business has created a culture of customer respect that is unmatched in the retail world. For my retail dollars, and investing dollars, there is no comparison. During the housing, and internet boom, many retailers failed to treat customers as if they were a necessary part of the success equation, by burning them with abusive policies. For instance, restocking (some call them convenience) fees on returns of faulty products. Or automatically signing customers up for "programs" of insurance, warranties, etc. without customer agreement that just magically appears on the credit card every month. Or, sending customers bills years later because "internal audits" revealed some unpaid amounts for which there is no documentation; abusive contract terms, rebates that never arrive, unsubstantiated threats to destroy credit scores, etc. Customer fees, account fees, customer service fees, billing fees, cancellation fees, etc. Large shipping charges for items that are back-ordered for undetermined periods of time. The list of consumer abuse out there goes on and on. Add that to the inability to talk to a customer service representative that has an understanding of the English language, or one at all, and the disappearing consumer should not really be a surprise.

Retailers that engaged in gouging have seen the biggest drops in their customer base. Now they are rolling out "membership discounts" and club cards and easy credit, and many other programs to lure buyers back, without success.

These retailers have not only lost the trust of the customer, but they have treated them like idiots, and that results in very negative "word of mouth advertising." You can sheer a sheep every year, but only eat it once.

As an example, I bought a set of $40 wheel covers at Auto Zone, and tried to do an even exchange for a different size 2 hours later and was told that it would cost me a $10 "convenience fee," a policy that is undisclosed prior to purchase. I returned their preferred buyer card, got my $30 refund, and went to the local auto parts store 2 blocks away to buy the right size wheel covers for the same price. There is nothing they can offer that will ever bring me through their doors again….except a bankruptcy liquidation sale.

Here's another. I moved and took the new customer offer from a phone, internet provider. I called for three months to complain that I didn't have internet, for which I was billed. The customer service department never took action or offered to help, but simply said, "you should." I cancelled and went to somebody else. This provider called be with a nasty attitude to tell me how they were going to really screw me with early cancellation fees. My response was it was a lot better than going forever without internet for which I was being billed. Ever since, they send offers monthly to try to get me back. So, I'm not surprised to see them on the list of corporate bankruptcies.

The (very) few retailers that have chosen to focus more energy toward making customers feel appreciated will not only survive, but expand their customer base, during this protracted recession. My favorite is JC Penney. This business has created a culture of customer respect that is unmatched in the retail world. For my retail dollars, and investing dollars, there is no comparison.

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