Avis: Keeping on top of  customer service complaints

A recent experience with a company with which I often do business reminded me that it is not only others' excellence that offers lessons in how to improve what we do. My encounter with the Avis car-rental company served as an object lesson in how to lose friends and influence people to go elsewhere.

It started when I approached the Avis counter at the airport in Grand Rapids, Mich., about my reservation, relevant papers in hand. Before I could present them, the agent—with a rather large wad of gum in her mouth—told me: "We ain't got no cars so you're gonna have to sit down, and I will call you when we get a car."

When I was finally called to the counter, more than a hour later, I was informed that the mid-size I had reserved was unavailable, but I could have a compact—or just wait, with no guarantees.

Having taken the smaller car, I pointed out to the agent that she had made no adjustment on the invoice. Her answer: She had no authority to make a change and I would have to write and get a credit or convince the agent when I returned the car to the agency. To cap it all off, the vehicle I did eventually receive was dirty, outside and in.

Feeling compelled to contact Avis' customer-service line, I left a voice mail and was assured I would receive a response within 36 hours. Despite leaving two further messages in the following three weeks, no one ever called me back.

Frustrated, I sent a letter to the CEO. An assistant called me three days later to apologize and correct the problem. And I received an e-mail expressing concern for my "horrible experience," an assurance that corrective measures had been taken and a $45 voucher for use on a future rental.

So what application do I see for Christian retailers?

By the time you get a complaint, the problem most likely has been festering for a while. Act quickly to learn more about the problem. It was obvious from the time between my original contact with Avis and the final resolution that the company did not have a system in place to respond swiftly.

Take an active role in observing how your staff treats customers—on the phone, by e-mail and or in person. If a supervisor had been present at the airport in Grand Rapids that day, things would have been quite different.

Take the time to actively ask your customers how you and your staff are serving them. Also consider asking some customers who have not visited your store in a while why they haven't been in. There are many low-cost ways of doing this, through e-mails, Facebook postings, online surveys and postcard mailings.

Since we are a society that uses Google instead of a phone book these days, take some time to search your bookstore online with pejorative terms like "stinks" (and worse) to learn if there's a groundswell of discontent about your store. Customers who are frustrated will often resort to the Internet to warn others about bad businesses. In fact, there are Web sites dedicated to identifying companies with poor customer service.

Customer service is too important to ignore. While it may be somewhat uncomfortable to let someone go, holding onto an employee with little regard for customer service will eventually kill your business' reputation. From a preventative standpoint, make sure your corporate values on customer care are clear, and incorporate them into the hiring process to ensure that those you bring on to take care of your customers are staff members who truly value serving others. 

This last point is the perhaps most important one. When someone prizes being of service to others, they don't need extensive training on how to help another person—it's instinctive. And great customer service helps build great companies.

One of my favorite verses is 1 John 4:19: "We love because He first loved us." We are called to be God's representatives—to reflect the love that we've been shown.

Customer service is the connective tissue between your business and your customers. Make sure that you're not the last to know that poor representatives are the cause of a customer exodus. 

Read an extended version of this article online at competuition.christianretailing.com.

Changes in the market are impacting how stores handle their inventory

Most Christian retail stores carry less inventory today than they did two years ago, and some of them are looking at what is on their shelves with more scrutiny than ever before, in light of the changing market. Online purchasing is one of the factors affecting what has long been championed as one of Christian retailers' greatest strengths, backlist, we learned in our latest Vital Signs industry survey. Here is what we found:

SUPPLY

Two out of five (40%) retailers said that they have maintained the same mix in the past two years of direct orders versus orders through distributors. The balance swings in favor of direct orders among for-profit stores and toward distributor orders at church and school stores.

On average, for-profit stores ordered about 54% of inventory direct from manufacturers and publishers, while church/school stores got 57% of their product from distributors. The trend is moving toward distributors, with 19% of all stores saying they were ordering "significantly more" product from distributors.

CATEGORIES

For-profit stores stock an average of 13,836 different SKUs, while church stores average 9,827. The highest SKU count in our survey came in at 120,000, and the median was 7,350.

Nearly three in five retailers told us that they have reduced the total value of their inventory since January 2009, but while many have cut orders, the average reduction in total inventory figures was just 3.21%. Slightly more than 12% of stores reported no change in their total inventory value since January 2009, and 8% had increased the amount of stock they carry.

A handful of stores reported having completely eliminated some once-standard categories, such as music, apparel and jewelry. And in some stores, new categories are sprouting. A few said they have pumped up their gift selection, and 3% had developed what one retailer referred to as a "Social Issues" section with books on business ethics and poverty, and cause-related gifts.

RETURNS

The most common frequency for stores culling products that had not sold and returning  them for credit was once per quarter, with 34% doing this four times a year. However, 14% said that they never process returns. 

The average time a title is allowed to stay on the shelf without being marked for return is between six and nine months. Two out of five (42%) said they would  keep a book six to nine months before pulling it, but 36% of stores did not have any pre-established period of time before pulling a book for return. 

One retailer suggested Leonard Shatzkin's The Mathematics of Bookselling as a source for learning more about formulas for managing returns.

MANAGEMENT

We were told of many different strategies for managing inventory—Just In Time, Open to Buy, Core Inventory and others—and stores seemed to use a hybrid that fit their particular needs, expertise or moment in time. Dozens of stores shared their strategies, and these are available online at vitalsigns.christianretailing.com.

DRILLING DOWN

The purpose of Vital Signs is to generate dialogue about important issues in the Christian products industry. As you interact with other retailers, here are some questions you can use to start conversations about inventory:

•  Have you eliminated, or added, any categories lately?
•  Do you have a set formula for deciding which titles to return?
• How much extra discount would it take for you buy non-returnable titles on an initial order?

Suppliers and demand

Returning unsold merchandise for credit is somewhat peculiar to the book world, with publishers often pointing to the practice as a cost of doing business not found in other channels.  In our survey, the majority (58%) of retailers said they would be unfavorable to any plan that eliminated returns, even one that did so with the promise of steeper discounts. Most suppliers were not willing to speak on the record about changing or ending the process, but some shared their frank opinions confidentially:

MARKETING: "Returns benefit publishers by serving as a marketing vehicle. With the promise of returnable merchandise, retailers can lay in greater quantities of product, making the actual product function as visual merchandising."

COUNTERPRODUCTIVE: "Returns cultivate a model of behavior that is counterproductive to what everyone in the supply chain wants to do, which is reduce inefficiency."

SLOPPY BUYING: "Returns provide a safety net for retailers, but it also promotes sloppy buying and inventory misalignment. Publishers with the most generous terms can use the promise of returns to gain a disproportionate share of retail display space for product that may not be worthy of the attention."

REDUCED COSTS: "Doing away with returns would reduce publisher costs, but would probably not result in a commensurate price reduction to retailers."

INEFFICIENT: "Keep in mind that an entire industry has grown up around this inefficient supply chain. The remainders business benefits publishers and consumers."

 Jim Seybert is an author and consultant living in Arroyo Grande, Calif. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..

Trader Joe's: finding style in the grocery aisle

The mere mention of the name Trader Joe's lights up the eyes of many a consumer that has shopped one of the funky stores found in nine states. The specialty chain has captured a unique position in the grocery channel with emphasis on three essentials: great product selection, creative communication and engaging staff.

But just copying someone rarely works for three reasons. First, they are the originators, and if they're good, they've figured it out. Chances are you're not going to top them; you'll only be a ‘knock-off' or a mediocre copy that can be easily spotted. Second, they have the advantage of having made the mistakes that come with being an originator and perfecting what they do. Third, and most important, the "why" of their distinctives is as important as the "what," but is a question that is rarely asked.

However, looking at Trader Joe's can offer insights into how they are employing the principles of great retailing that
connects with consumers, turning them into shoppers and then into customers.

The first glimpse comes at the company Web site—www.traderjoes.com—which traces the business' history from the 1950s. "We ... decked the walls with cedar planks and donned our crew in cool Hawaiian shirts. ... we started putting innovative, hard-to-find, great-tasting foods in the Trader Joe's name. That cut our costs and saved you money. Still does. And that's important, because ‘Value' is a concept we take very seriously."

That positions the business as whimsical and may draw you in to check it out, but if the stores didn't have the foods people wanted to buy, it would fall flat.

But in-store, you find distinct product selection. Trader Joe's stocks lots of foods and brands the typical grocer doesn't focus on. While the selection is broad, it is perhaps only a quarter of a full-line national grocery chain store. There are pizzas and frozen entrees, but not the national brands. In fact, forget about trying to find a national brand in the store. Many are its own brands with twists on typical items such as potato chips to offer the uniqueness that people want.

How does that translate, considering that, without question, you're going to carry many of the same book titles as all Christian retailers? Well, does your competition ignore the charismatic market? Do you have a growing Hispanic market that the competition is under-serving?

When you visit the gift marts, start looking for products that are different from what is available in every other store. Consumers want to "discover" unique merchandise. It is your job to make that happen.

Great, eye-catching communication is the specialty retailer's next strength. There is not a single "printed" sign. They all look handwritten in a whimsical style. The main signs are on chalkboards. The copy is usually delightful to read and always tells you what you need to know about the product.

Sadly, in my years visiting Christian retail stores, I cannot begin to tell how many times I see signs printed on white paper with black lettering or signs printed on neon paper that clash with everything in the store. Then there are poorly handwritten signs. Consumers have so many choices today for purchasing merchandise—poor signage is just one more roadblock to shopping in a store.

But, communication is more than just signage; it is the display of the merchandise itself. Retailers must become visual merchandisers if they are going to be successful at creating eye-catching displays.

Finally, Trader Joe's excels with knowledgeable and friendly staff. The chain is famous for its Answer Person roaming the aisles with a tall question-mark sign. He or she gives answers quick and not just on, "Where do I find this?" It's about relationships, and staff always convey genuine friendliness and a desire to help.

Case in point: When the checkout is really busy and a line opens up, the checker will come over to you to tell you instead of announcing it loudly. This eliminates a rush of people. 

Very few Christian retail frontliners are "walking computer databases" with answers at the tips of their tongues, but they can have the resources handy to find answers. Learn how to get answers to shoppers' inquiries online, and always communicate that you are eager to help. 

David Amster is chief innovation officer for Integra Interactive and a former member of Christian Retailing's industry advisory board.

Books-A-Million:  Letting the covers do the selling

Like 78% of online American shoppers, my store visit began at the Books-A-Million (BAM) Web site, and as a tech klutz, I was delighted that the entire site was easy to navigate. A direct link from the home page led to a section called “Faithpoint favorites,” offering a variety of titles, including books by Francine Rivers, Drew Brees, Max Lucado, Stephen Mansfield and Ted Dekker.

Elsewhere I found an extensive selection of Bibles, Christian Living, Christian fiction and general titles. Four inspirational gifts were featured on the “Toys and gifts” home page, while Joel Osteen’s Become a Better You was highlighted as a “bargain audio” on the audio home page. 

Taking stock of stocking: Changes in the market are impacting how stores handle inventory

We asked: Has your approach to product selection changed in the past two years? If so, what has changed?

“Eliminated items that we wish would sell, but simply don't.”

“Buying needs. Not buying what the vendor wants to sell.”

“Yes, buying way less.”

“ Depth—we only keep one of a title instead of six.”

“We have become very picky in our selections. Those things that do not meet spiritual requirements are not brought in, unless we can justify the draw of the product.”

“More gifts and less titles on the shelves.”

“No, we (think we) are very wide. We are a destination store.”

“Purchasing less expensive items.”

“Stocking fewer slow-turning items.”

“More gift items than before.”

“Yes, I am more aware of what customers can obtain at the big box stores.”

“Cut counter line cards by 25%, cut framed art by 90%.”

“Stocking deeper on less. Sell More Of What Sells.”

“Yes. Items must be expected to turn over in 90-120 days.”

“Less music, less books, more gifts, more church supplies.”

“We do not reorder an item if it has not sold in the last six months. We return anything that has not sold in the last six months. We only order one of each item instead of two and just reorder more often.”

“Yes, we are carrying many more ESV Bibles that previously.”

“More conservative buying; being asked to special order art work; will discontinue apparel and jewelry for a time.”

“Not really, broader selection with less depth.”

“I don't purchase everything new that comes out. I do more special order requests instead of having the merchandise sit on the shelf.”

“Try to keep the price of gifts under $20 ... look for higher discount on books and Bibles so that we can sell at a discount price.”

“Less focus on gifts and apparel.”

“Buying less high priced gift items and more lower priced items.”

“Significantly more giftware/novelties.”

“Yes. Not ordering backstock now.”

“Paying more attention to what has sold in the past, bringing in less new product. Our customers come looking for what has been recommended, not the newest title available.”

“There has been a huge change in what our customers have been buying in the last two to three years. As a result I have changed my inventory buying drastically. We are a small independent book store. I buy less product and only product that I have calls for. Many items I carried that now I have no calls for I have discontinued.”

“We probably take less risk. We experiment less. Customers are shopping with purpose more than just for fun.”

“I've cut back on most of the backlist book and music inventory and we use the distributors for customer special orders to get the items quickly. I have used those book dollars to increase the gift inventory where I get better margins and faster turns. My ultimate goal would be to have new release books and music, the Top 25 in each category for backlist, and any ‘deals’ that are available to offer customers.”

“We buy a lot less music. In gifts, we don't buy junk, only quality items.”

“We take fewer risks on unknown authors/publishers and do more special orders.”

We asked: How has the process of managing inventory changed in the past couple of years? How has your attitude changed toward Core Inventories, Just-in-Time (JIT), Open to Buy (OTB), Min/Max and other strategies? 

“You have to have a mix of items but not keep a lot of old stuff around.”

“We keep a much tighter reign on inventory than ever before. This year we will only keep items on the shelf for nine months or less. I plan to order smaller quantities or new release and use JIT more. I will adjust my ordering by the % our sales were down last year. We will incorporate more digital influence into sales areas this year.”

“We try to keep breadth over depth.”

“Items not there are a lost opportunity in a 'get it online' world. Still, with less customers the mix and amount carried must change. Print on demand is okay if two weeks or less but not if longer, and there should not be a penalty in discount. Texts must be returnable even if print on demand. A 10% penalty here might be a solution to remind us to be careful. Non-returnable POD text titles is biggest trend of this year and a bad one for campus stores already struggling with Internet competition.”

“We are very aware of the length of time product has been on the shelf. We look at sales history of core inventory and see if there is a need. We know that it is easy to order and get product in quickly through distributors when necessary. Many of our min/max numbers have been brought down so we do not have as much tied up in inventory. Using digital media in our music area through Integra, we have limited some of our music area to the burn bar.”

“Open to buy is more important than ever.”

“Having to special order for customers more ... just because I can't afford to keep a large inventory.”

“Moving toward just-in-time.”

“Just In Time is unwise...you lose sales because customer expects product in stock. Just In Time attitude leaves gaps in your product availability. Over time the customer will become frustrated. Core inventory is very unique to each store. To follow a publisher's idea of core inventory will not necessarily give you the critical products you need.”

“I try to keep an eye on overstocks every month and return what I can and remainder the really old stuff.”

“Managing inventory more tightly and returning more frequently.”

“Abandoned core as it appeared to only be to the benefit of publishers. Continue to focus on Min/Max and less on OTB. Biggest area of concern is new releases. Have enrolled in Spring Arbor new release music program with marginal results.”

“We were doing Just In Time before the industry gave it a name. We determine our own core inventory. The publisher's list just doesn't fit us.”

“Core lists can't be adhered to if the overall inventory is too fat. Just-In-Time buying reduces the need for large upfront inventory levels. Open-to-buy systems can be too rigid; if something extra pops up and we think the customer will respond to it; we should have the freedom to respond also.  The 'landscape' of inventory is always changing. Intuitive systems work best.”

“Carry much leaner inventory and order more frequently.”

“Because of the economy and changes to our industry we have had to put a lot more time and effort in managing our inventory. We use reports from Bookstore Manager on a daily basis to help us determine how much to get in and how often. We definitely saw that work this past Christmas as we had significantly less inventory than 2008, but had almost similar sales volume. We were just a lot smarter about what to carry and placed smaller orders more often. This is the first Christmas we were actually able to pay all of our vendors on time after Christmas.”

“I no longer worry about running out of titles and realize that with Internet availability it is foolish to 'carry enough stock' in textbooks and end up with overstock. I go to distributor sites and if the title is available, I decrease my initial quantity I order.”

“We have reduced in some areas such as counter cards, jewelry and apparel. We have maintained selections of Bibles, Christian Living and fiction. We have increased in art work and special ordered several pieces.”

“Our strategy has moved to depend on Just In Time inventory management. We stock all of our books, even new releases at low levels, maybe 1-3 copies, with the idea that we can resupply quickly through the distributors.”

“Suppliers' core inventories don’t mean its part of my core inventory. Bookstore Manager has a program that I use to watch my top sellers, making sure I'm never out of stock...watch sales every day from daily printout at end of day.”

“I am less forgiving on new titles since money is so tight. I expect a new book or CD to sell within its first 90 days or else it goes back to the publisher.”

“Primarily, I don't replace things that haven't sold in the last two months—I used to do three months. I am setting Min/Max quantities lower. Trying to return autoship product more efficiently. Having a Burn Bar for media is definitely a must.”

“I'm learning most of this analysis is a waste of time, and experienced intuition is the most efficient, at least for a small bookstore. I haven't blown open-to-buy or missed key books that customers demand since using this approach. Min/max is painful and useless.”

“Inventory programs are much more efficient and reliable.”

“More emphasis on efficiency, trusting special orders and quicker turnarounds with distributors, and more time analyzing what is taking place on our sales floor from a category level all the way down to a SKU level.”

“Core Inventory is essential, but I am the best judge of 'core' for my store, not the publisher. Just-In-Time is very important, but distributors can't ship because they are having the same trouble keeping adequate inventory. I find myself scrambling from distributor to distributor looking for the products my customers expect.”

“We are mostly a special-order and good bargains/high-margin product store.”

“With faster replenishment (misnamed 'Just In Time'), lowered inventory. Using 'core inventories' is a fast way to become overstocked.

“Owning a custom inventory system has kept me from being able to take advantage of these inventory helps.”

“This answer is totally dependent upon what our sales do. I made up my mind that I do not buy anything unless I have funds to pay for it up front. I used to keep an open account and when the bottom dropped out of sight, I had several accounts that I could not handle and it has taken me two to three years to pay off those accounts. I do not want that to happen again. “

“We are a small store so usually we order one copy at a time. I try to offer a variety and to have a relatively large selection, but I no longer order every new title. I am very grateful to STL for allowing open returns as it allows me to offer more of a selection. If I could not return, I would order very little new product.”

“We don't purchase as many copies of new releases as before (we wait and see how it sells and replenish as needed). If a new release doesn't sell in first four months, we consider returning. We don't keep as wide of a selection of backlist titles as before.”

“I like 'core inventory' lists from publishers. I use them to keep bestsellers in stock. I have ordered less of titles and do more "Just In Time" as I get next day orders from Spring Arbor and Anchor.”

“We buy new lists from publishers, then replenish using min/max through distributors. Returns are essential to our bottom line. Don't have time to study each publisher core list so use the Bookstore Manager 'Eye on Inventory' list. STL has worst return policy. Publishers & Ingram are pretty good.”

“I've always maintained a tight inventory mix. The primary change in the last two years has been that I am ordering smaller frontlist quantities and am not carrying quite as much backlist. This has been achieved primarily by more aggressively culling dead wood that might have not been returned in the past.”

“Most decisions are made intuitively, having used various methods for years, but we estimate fairly well.”