Interview with Frank Lüttjohann, CSO Sales Trade

One of the greatest benefits of brick and mortar retailers over online retailers is the comprehensive service customers can take advantage of in store. Service is very important for customers, whilst at the same time presenting retailers with a great opportunity for making more turnover and attaining long-term customer loyalty. However, many retailers tend to undersell themselves and their services. In an interview, Frank Lüttjohann explains why this doesn’t have to be the case.

Advice & service in your local store!

Why is good service one of the essential advantages brick and mortar retailers have over the internet?

Nowadays, a lot of people order online predominantly due to the price and the wide product range offered on the internet. However, they are often left alone with their problems once the postman has left. If they have questions regarding setting up their device or if the product needs to be repaired, end customers need help from the experts. This is the opportunity for local retailers to become the customer’s “local hero” by offering good service.

Why do customers nowadays expect service to be provided at no extra charge, failing to realise what it is actually worth in financial terms?

A lot of brick and mortar retailers unfortunately tend to undersell the wide range of services they offer. This is largely due to the fact that customers today purchase the service from the retailer together with the product, paying a higher price for the product with the service basically “hidden” within the price. This is not transparent and doesn’t leave customers with a good feeling after making the purchase. In addition, it means that the services offered are taken for granted and not appreciated for what they are.

How can this problem be solved?

We have created physical service cards especially for this purpose, listing each of the services individually and stating the price for each service! As a result, end customers can see the financial value of the service straightaway. The service cards can easily be positioned where they will catch the customer’s eye, e.g. on a revolving stand directly at the counter.

The most important aspect is that services can now be sold directly and no longer need to be hidden surreptitiously in the price. On the contrary, backing up data or fitting screen protectors can now be used as a positive argument in sales consultations, with the customer realising what exactly he or she gets for his money.

Which advantages does a retail store enjoy by offering good service?

Service is a decisive factor which helps specialist retailers stand out from the competition. An online pure player simply cannot offer most of the services available from a specialist retailer. In addition, retailers can put their personality to good use and build up personal relationships in direct contact with customers. A personal connection can be made very quickly if I know that I can have my mobile phone fixed or my SIM card cut to size simply and conveniently at the store around the corner. In other words, good service is always a good tool for boosting customer loyalty and inevitably leads to increased customer traffic, and naturally more turnover.

How can end customers discover which services are offered by their local retailer?

It goes without saying that customers have to be made aware of all the services I offer as a retailer. The range of services on offer should be included again and again on advertising material such as flyers and posters, as well as being introduced into the day to day sales consultations.

We also recommend issuing circulars offering so-called service cheques for customers. These are basically coupons offering a service with a certain financial value rather than a cash voucher and are given free of charge to customers when they come into my store. One example could be offering customers the option of having all their data transferred from their old mobile to their new mobile when they extend their contract. Another way of boosting customer traffic at the PoS.

Thank you for the interview.