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To: H James Morris who wrote (38785)	2/8/1999 3:04:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Independent Retailers Outdo Large Chains With Customer Service By Carrie Soucy Senior Associate Editor Web Posted: February 2, 1999. Appears in the February 16, 1999 issue of National Jeweler. N ew York-Savvy independent retail jewelers might find an opportunity to capitalize on a trend: customers who are unhappy with the level of service they get at large retailers. Customers who are tired of uninformed salespeople, slow or rude service and little support at big stores find the service-oriented independent retail jeweler a welcome respite. Although the quarterly American Customer Satisfaction Index reports a small improvement during the past several quarters, it remains down from a 1994 high. The index, which reached 74.5 on a 100-point scale in 1994, fell to 70.7 in 1997. The most recent survey shows customer satisfaction at 72.3. The quarterly study is compiled by the American Society for Quality, Arthur Andersen and the University of Michigan. "The numbers certainly aren't spectacular, but they demonstrate that some companies understand that satisfaction is paramount," said Joseph O'Leary, who leads the Arthur Andersen Customer Satisfaction Practice. According to jewelers and analysts alike, satisfaction amounts mostly to service. Retailers that focus on this-and create a sales force that recognizes the importance of customer service-can capitalize on what department stores and chain stores often miss. Specializing in Service "I work very hard training my people," said Peter Indorf, owner and namesake of a retail jewelry store in New Haven, Conn. "In our business, if you don't have customer confidence, you've got nothing." When the same customers who are shunned and frustrated by department store staff encounter a knowledgeable, friendly salesperson, the results can be profitable return visits, independent retailers said. "Our clients look at us as so wonderful compared to other establishments," said Linda Abell, of Sarah Leonard Jewelers in Los Angeles. "It is really nice to see the appreciation, because service is so poor so often in the public sector." According to O'Leary, the key to improving customer satisfaction definitely lies within the sales staff. "The key is giving front-line employees-those that deal directly with customers-the authority to support customers and the means to do it," he said. Other analysts agree that it is the little details that cultivate customer loyalty and encourage sales. Perhaps considered old-fashioned by some, this is one area where many other retailers could follow the lead of jewelers. Indorf, for example, follows sales each month with personal thank you notes to anyone who made a purchase. Enclosed is a satisfaction survey that tracks how the retailer ranks in various customer service areas. With the strong economy, retail outlets have continued to flourish despite the waned customer satisfaction. The future, however, could be ominous if an economic downturn fuels a plunge in confidence. When customers rein in their spending, analysts predict they will limit purchases to those stores with which they are most satisfied. "The question now is the extent to which companies will recognize the tremendous gains in satisfaction, loyalty and revenue that can be gained by treating customers as an asset," said Professor Claes Fornell of the University of Michigan's Business School. "Some are stepping up and will be rewarded. Others are not and will pay a price, especially if consumer confidence begins to put the brakes on discretionary spending." Send e-email to Carrie Soucy