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Corporations
Could Take Lessons from SPD Corporations spend millions on what's formally called "Customer Relationship Management," the object of which is to "build customer loyalty" by discovering what customers want and improving customer service. Sounds fine, but "building loyalty" is code for "selling more." "Improving customer service" really means reducing the costs of helping you with problems. If you don't believe me, check it out on the Web. Corporations are big, but very stupid. Their obsession with profit has recently produced criminal activities of giant proportions and even compelled the President of the United States to lecture corporations about integrity. How can you make dumb corporations smart? It's not impossible. They should take lessons from SPD. SPD is a supermarket. Actually, it's a sprawling chain of two whole stores, one in Nevada City and one in Grass Valley, and was selected as best supermarket in The Union's 2000 and 2001 "Best of Nevada County" polls. Each store has a different personality. The SPD store in Nevada City is so attractive to customers that it has become a social center. On any given day, I might bump into a) my doctor, b) my general dentist, c) my periodontist, d) my therapist, e) a County supervisor, f) two former Nevada City mayors, g) the District Attorney, h) several members of my pistol league, h) The Union's political cartoonist, i) a TV host, and j) my ex-wife. This has got to be more than just coincidence. SPD Nevada City has developed the most intense customer loyalty I've ever encountered. It is outstanding in multiple ways, but mainly in the areas of superior customer service and attention to customer needs. So I asked myself what SPD does and doesn't do to make itself such a success. What SPD doesn't do: 1. SPD doesn't call you at dinner time to ask if you want to buy groceries. This tactic has made AT&T and Worldcom unwelcome at my house. 2. SPD didn't understate $3.8 billion in expenses. Unlike Worldcom, Enron, and Oracle, I'm confident that SPD won't become a headline in the Wall Street Journal. 3. SPD doesn't need a monopoly to operate, like ATT broadband, the cable company. 4. SPD doesn't change its name every week. Remember when the phone company was called Pacific Bell? This week I think it's SBC. 5. SPD didn't merge with Compaq. Unlike Hewlett-Packard, SPD isn't planning to merge with Raley's or Ralphs to "serve you better." 6. SPD doesn't sell your business to another store. My CompuServe Visa became a Web Card and then a Providian Visa. Same thing happened with my mortgage. One company sold a block of accounts to another. 7. SPD doesn't lie about coupons. There are no rebates where you should "allow 6-8 weeks" for delivery. You get your items discounted NOW. 8. SPD doesn't have a special "club" (like the big supermarkets). A "club" means there are no more coupons. It means your purchases are recorded, put into a data warehouse, and your mailbox will be flooded with useless coupons. 9. SPD doesn't shut down non performing stores. Unlike Kmart, SPD neither builds nor closes unprofitable stores. 10. SPD doesn't outsource to Indonesia or Malaya. No American jobs are lost when you shop at SPD. What SPD does do: 1. If you can't find the item you want, the staff will tell you where it is or walk with you to the right aisle. 2. If SPD doesn't have an item, they will try to get it for you. 3. SPD has just one form for rating the store, requesting items, complaints, or praise. And they call you to discuss your concern personally. 4. You write a letter to the head guy, you get an answer. When I wrote David Painter in February, 2001, I got a prompt, complete, personal answer in writing. 5. If you want something special from the meat department (like maybe octopus tongues) they try to order if for you. 6. The staff knows your name. Heck, the staff knows your kids' names. And they are sincere in providing service, even if they're having a tough day. This store isn't perfect, by any means. The owners and staff will tell
you that. But SPD Nevada City makes respect and high regard for the customer
its first priority. Corporations, local chain stores, and other local
businesses should study them as a model for success. Barry Schoenborn is a technical writer, and a 14-year resident of Nevada County. His column appears the second Saturday of the month. barry@wvswrite.com is his e-mail address. The opinions of columnists are not necessarily those of The Union. |