Even smart discounters understand the necessity of providing a quality service component in the retail transaction. Six out of 10 American households buy from a direct-mail catalog at least once a year. Because of convenience. And yet the catalog purchaser is paying markups of anywhere from 25 percent to 100 percent above the suggested retail price. As service quality disappears, it's inevitable that customers will pay more to the diminishing suppliers who provide it.
Success depends on the front-line people.
In many cases, this is a minimum wage worker who receives limited compensation and little or no training. And yet the statistics demand that we pay attention to the front ranks. Don't underestimate the relevance of the personal touch. Most companies have intentionally or unintentionally shielded themselves from the client or customer, who nowadays is in a constant state of urgency. Downsizing is a culprit as fewer remaining employees are left with heavier workloads and less time to spend with clients and customers.