February 16, 2009
CSD: Divine Disruption
By Shawn Foucher
Through a special arrangement, presented here for discussion
is an excerpt of a current article from Convenience Store Decisions magazine.
Here’s an entirely plausible scenario: At around 8 a.m. on a weekday, customers
are lined six deep in front of the only open register at your suburban convenience
store. The line has screeched to a halt because a deliveryman, running late,
has flanked the clerk at the register and asked her to sign off on a load of
windshield wiper fluid he delivered.
One of two things can happen:
- The clerk’s conventional experience will
tell her she has to sign the driver’s papers so the guy can get back on the
road to finish his route. The customers in line, meanwhile, shuffle their
feet and stew.
- The clerk will tell the deliveryman to
hold his horses while she finishes tending to the customers in line. End
of story.
In the real world, the first scenario is more common than some retailers may
like to admit. In the ideal world, scenario No. 2 would prevail, but it’ll
take some behavior modification to get there.
Call it
“disruptive” modification, but disruptive in the best of ways.
Bill Bishop, chairman, Willard Bishop, explained: “You have to think
of the customers’ needs and look for ways to disrupt what you do, so you do
a more expansive job of serving those needs.”
The NACS/Coca-Cola Retailing Research Council has released a new report, Fast
Forward: Emerging Opportunities in Convenience Retail, that will be pivotal
in helping convenience store operators and employees shift their conventional
practices to more unconventional, customer-centric approaches.
“Conventional thinking lulls you into thinking you’re doing it right,” said
Mr. Bishop, who helped spearhead the study, “but customers think otherwise.”
The report recognizes that convenience retail fundamentals are built on safety,
cleanliness and hospitality, but it truly excels in its examination of shoppers’
top-level needs: simplicity/ease of shopping, and time enrichment.
Regarding simplicity and ease of shopping, for instance, retailers are encouraged
to scrutinize their product offerings not from the standpoint of the product,
but from the customer’s perspective.
Mr. Bishop explained:
“It’s about making systematic changes in the way a store is set up, organized
and staffed, so that it’s more intuitive.”
Discussion Question: What do you think of the particular challenges for
c-stores in becoming more customer-centric versus other retail channels?
What are some simple steps c-stores could take to improve customer service?
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Yes there are challenges but challenges can be overcome with proper training. My experience with c-store chains is that there is little training on customer service and more on the basics of running the register. It is usually a one-day process and minimum wage is the income. Therefore, minimum-wage attitude is delivered. C-stores need to bring process, pride and professionalism to the model.
The first, simple step is training on customer service and the importance of customer service (repeat business, customer loyalty). Affirm customer service with incentives. Much like the truck driver signs on the back of the truck; HOW AM I DOING?
Convenience stores normally have absentee management so it’s important to have real time feedback.
A while back we were asked to provide a large C-store chain with call buttons that would alert staff to customers needs in the bathrooms; toilet paper, paper towels, soap, etc, in real time. During one of our discussions I asked to see the detail of the payroll and service strategy that would support the technology. I was met with a blank stare. C-stores have a long way to go in the customer experience area. But, as it’s been stated here…does anybody really care?
As a big c-store customer, I’ve spent a lot more time over the years in line because of customers buying large quantities of lottery tickets and/or fumbling around for correct change than I have waiting for cashiers to sign off on delivery tickets. I don’t believe this is much of an issue.
As I have said for years, the convenience store format is years behind. To start with, few have an understanding of the customer and even fewer have identified a target customer. In many cases, even if they stocked the right products, consumers are unlikely to even know it. I have seen products on the shelf with months of dust. Clearly, this is not stocking what the consumer wants to buy.
DSD drivers drop off new and pick up stale products daily, without any sales. Anything with product dating is at risk. Too many convenience stores are stocked based on wholesaler movement. Sounds good in theory, but all it does is repeat the past. What needs to be done is to define a target market, identify what they buy and where. Select products that help the consumers during their shopping visit.
On the other side, the convenience store front end could not be a more costly or slower process. They need to redesign the process, as speed is important to their primary customers.
Convenience store operators need to define convenience from the customer’s perspective. Ease of ordering (in-person, electronic, Internet, etc.) needs to be addressed as well as ease of payment and check-out, not to mention that most C-stores still lack drive-thru capabilities.
C-stores need to approach their operations by viewing it from the customer’s perspective. If a sandwich is being made, if something is being purchased from the fresh selections display or if a customer is standing in the check-out line, what does the customer see and experience? The challenge and opportunity is to manage that customer interaction in such a way as to create a desire for the customer to return quickly and frequently. This requires that all operations be reviewed, from the most efficient way to check in DSD products (perhaps restricting times or serving via the warehouse) to the process of ordering and paying for a product at the pump while refueling your vehicle.
In essence, we need to put the C back in C-stores–not just convenience–but the customer.
There are no easy answers here. If a store is understaffed, it will result in delays for both customers and delivery people. If a convenience store isn’t convenient to shop at, it won’t last very long. People don’t go there to save money, only time.
My suggestions start with having clerks that speak understandable English. It’s so very frustrating to ask a clerk for something and not be able to understand a thing that they are saying. Another annoyance is waiting for people buying multiple lottery tickets that seem to take forever. Larger-volume and better-operated c-stores have a special counter for the lottery sales and enough staff to handle high traffic times.
Al McClain nailed it.
Just like everything else, the great C-store groups are winning and the poor C-Store groups are losing.
The old saying goes, all things being equal, people like to do business with people they like and all things being unequal, people like to do business with people they like. The smart C-store chains, just like smart retailers in all other segments of the market, recognize the need for great customer service, and that starts with great employees and adequately staffed stores.
The short-sighted companies cut hours and reduce training and hire bodies–just about anybody. Today’s economic climate is giving the industry a chance to upgrade staff and win customer loyalty.
Take a look at the leaders and you will see great companies doing great things.
One last point about people behind the counter who cannot speak or understand English. I think you will find that this is not the case with the major chains but maybe the case with the small independent.
If C-stores truly want to change, they will need to re-focus their training and prioritize the customer. Of course, this will have an impact on other aspects of the store dynamics and nothing will ever quite be in balance.
So there are a few choices. Add selective staff during certain hours to handle specific tasks. Or, automate and give customers the ability to handle their own sales (and steal but that’s going on anyway).
The other choice is to simply stay the same and allow those of us who are not impatient to be OK with the C-store culture. I expect hassles when I go into a C-store. It’s not really convenient. It’s just there.
Considering the wide variety of activities, it’s surprising how good the convenience store folks generally perform. For minimum wage, working around the clock, they make sandwiches, clean up, ring the register, check alcohol and cigaret IDs, stock the shelves, give directions, talk to drunks, count and sign for deliveries, and run lottery ticket machines. They’re often threatened, assaulted and robbed. Not the job of your dreams.
As Mr. Kleiman pointed all c-stores are not equal. There are chains that are great with customer service and those that are down-right terrible.
Those that are terrible may continue to exist until someone who has customer focus as part of their culture moves into their market. They are then “positioned” out of the consumer’s frame of reference. Ultimately they go out of business. As the former retailers who had a Sheetz, Wawa, or QuikTrip come to town.
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Yes there are challenges but challenges can be overcome with proper training. My experience with c-store chains is that there is little training on customer service and more on the basics of running the register. It is usually a one-day process and minimum wage is the income. Therefore, minimum-wage attitude is delivered. C-stores need to bring process, pride and professionalism to the model.
The first, simple step is training on customer service and the importance of customer service (repeat business, customer loyalty). Affirm customer service with incentives. Much like the truck driver signs on the back of the truck; HOW AM I DOING?
Convenience stores normally have absentee management so it’s important to have real time feedback.
A while back we were asked to provide a large C-store chain with call buttons that would alert staff to customers needs in the bathrooms; toilet paper, paper towels, soap, etc, in real time. During one of our discussions I asked to see the detail of the payroll and service strategy that would support the technology. I was met with a blank stare. C-stores have a long way to go in the customer experience area. But, as it’s been stated here…does anybody really care?
As a big c-store customer, I’ve spent a lot more time over the years in line because of customers buying large quantities of lottery tickets and/or fumbling around for correct change than I have waiting for cashiers to sign off on delivery tickets. I don’t believe this is much of an issue.
As I have said for years, the convenience store format is years behind. To start with, few have an understanding of the customer and even fewer have identified a target customer. In many cases, even if they stocked the right products, consumers are unlikely to even know it. I have seen products on the shelf with months of dust. Clearly, this is not stocking what the consumer wants to buy.
DSD drivers drop off new and pick up stale products daily, without any sales. Anything with product dating is at risk. Too many convenience stores are stocked based on wholesaler movement. Sounds good in theory, but all it does is repeat the past. What needs to be done is to define a target market, identify what they buy and where. Select products that help the consumers during their shopping visit.
On the other side, the convenience store front end could not be a more costly or slower process. They need to redesign the process, as speed is important to their primary customers.
Convenience store operators need to define convenience from the customer’s perspective. Ease of ordering (in-person, electronic, Internet, etc.) needs to be addressed as well as ease of payment and check-out, not to mention that most C-stores still lack drive-thru capabilities.
C-stores need to approach their operations by viewing it from the customer’s perspective. If a sandwich is being made, if something is being purchased from the fresh selections display or if a customer is standing in the check-out line, what does the customer see and experience? The challenge and opportunity is to manage that customer interaction in such a way as to create a desire for the customer to return quickly and frequently. This requires that all operations be reviewed, from the most efficient way to check in DSD products (perhaps restricting times or serving via the warehouse) to the process of ordering and paying for a product at the pump while refueling your vehicle.
In essence, we need to put the C back in C-stores–not just convenience–but the customer.
There are no easy answers here. If a store is understaffed, it will result in delays for both customers and delivery people. If a convenience store isn’t convenient to shop at, it won’t last very long. People don’t go there to save money, only time.
My suggestions start with having clerks that speak understandable English. It’s so very frustrating to ask a clerk for something and not be able to understand a thing that they are saying. Another annoyance is waiting for people buying multiple lottery tickets that seem to take forever. Larger-volume and better-operated c-stores have a special counter for the lottery sales and enough staff to handle high traffic times.
Al McClain nailed it.
Just like everything else, the great C-store groups are winning and the poor C-Store groups are losing.
The old saying goes, all things being equal, people like to do business with people they like and all things being unequal, people like to do business with people they like. The smart C-store chains, just like smart retailers in all other segments of the market, recognize the need for great customer service, and that starts with great employees and adequately staffed stores.
The short-sighted companies cut hours and reduce training and hire bodies–just about anybody. Today’s economic climate is giving the industry a chance to upgrade staff and win customer loyalty.
Take a look at the leaders and you will see great companies doing great things.
One last point about people behind the counter who cannot speak or understand English. I think you will find that this is not the case with the major chains but maybe the case with the small independent.
If C-stores truly want to change, they will need to re-focus their training and prioritize the customer. Of course, this will have an impact on other aspects of the store dynamics and nothing will ever quite be in balance.
So there are a few choices. Add selective staff during certain hours to handle specific tasks. Or, automate and give customers the ability to handle their own sales (and steal but that’s going on anyway).
The other choice is to simply stay the same and allow those of us who are not impatient to be OK with the C-store culture. I expect hassles when I go into a C-store. It’s not really convenient. It’s just there.
Considering the wide variety of activities, it’s surprising how good the convenience store folks generally perform. For minimum wage, working around the clock, they make sandwiches, clean up, ring the register, check alcohol and cigaret IDs, stock the shelves, give directions, talk to drunks, count and sign for deliveries, and run lottery ticket machines. They’re often threatened, assaulted and robbed. Not the job of your dreams.
As Mr. Kleiman pointed all c-stores are not equal. There are chains that are great with customer service and those that are down-right terrible.
Those that are terrible may continue to exist until someone who has customer focus as part of their culture moves into their market. They are then “positioned” out of the consumer’s frame of reference. Ultimately they go out of business. As the former retailers who had a Sheetz, Wawa, or QuikTrip come to town.