In today's self-service economy, shopping for computers and related technologies has become almost effortless. With the click of a mouse, consumers can visit one of the many comparison shopping sites and find one heck of a deal on a new computer. However, do they really get what they bargained for?
The computer retail market is more competitive than it has ever been, with profit margins routinely dipping into single digits. So where do retailers make up the difference? Sadly for many, they are cutting corners on the one business area that matters the most, customer service. Recent trends show more and more computer retailers outsourcing customer service to offshore countries or even eliminating telephone support altogether. This leaves vulnerable consumers in a real lurch when they need post sales support. The money they thought they saved on that great computer deal is quickly devoured by hours spent on the telephone trying to resolve issues with botched orders and/or defective products. It doesn't take a whole lot of web surfing to read countless horror stories from consumers needing support. They seem to share a common theme of being misinformed, mistreated and generally forgotten about. Another alarming practice among the more dishonest retailers is to advertise a very low price, only to inflate the shipping charges to 3-4 times their actual amount. Of course, potential customers don't see the padded shipping charges until checkout time.
There are far better ways for retailers to increase their profit margins, without cutting back customer service. Computer retailers should focus on using the very technology they sell, to automate their business and reduce transaction costs. Maximizing the efficiency of internal business processes is routinely overlooked. Simply reducing the number of steps between order inception and order fulfillment can offer a significant reduction in internal cost for retailers. It amazes me to see the number of companies that don't get this. Instead, they seem to focus on mass marketing campaigns and creative ways of pulling in new customers. Don't get me wrong, it is very important to continuously attract new business. However, without the proper focus on customer service, retailers are simply burning their bridges behind them.
If you are a retailer who is reading this article, here is a tip. If the only thing that distinguishes you from your competitors is price, you may want to rethink your business plan. Low pricing is not a business niche. Keep in mind, your competitors will often sell items below their cost, just to drive business to their doorstep. Do you really want to try and compete with that mentality? Consumers are becoming more educated and at the same time growing weary of lousy customer support. It's ok to not have the lowest price in town on any given day. Instead, offer an attractive balance of products, competitive pricing and customer service. Do this and you will have loyal customers who will come back time and time again.
