In the past, Samsung had a reputation for neglecting customer service…
More recently, a reevaluation of sorts has taken place at the company. The electronics brand (like many other companies) has to come to realize just how important delivering fantastic customer service is for the bottom line…
So, what have they done to fix the problem?
The Ultimate Competitive Advantage
In today’s uber-competitive, globally focused business environment, customer experience is often the ultimate competitive edge. Companies like Apple and Nordstrom are able to charge higher than average prices – simply because they offer a better experience for the customer.
For a long time, South Korean brand Samsung had a reputation for producing good products – but the customer experience was a far cry from what people enjoyed at Apple.
That’s a real problem in the personal electronics market, where two major customer concerns are:
- Will I be able to use this item properly?
- Will I be able to get help if something goes wrong?
Apple does a great job of answering both of those questions, Samsung less so…
Last year though, Samsung started to take customer experience seriously. A new series of initiatives is putting the customer experience at the forefront of their business model.
Here’s what they’re doing:
#1. Investing More In Retail
One of the clearest indications of how seriously Samsung is taking retail is their investment in a series of new “Experience Shops.”
Heck, they even hired a former Apple Store designer to push their retail efforts!
Bloomberg puts the cost of introducing these Experience Shops at hundreds of millions of dollars, and Samsung has plans to roll out 1,400 of similar shops inside Best Buy stores.
#2. The “Smart Academy” Bar
A key ingredient in Apple’s customer service success has been the Genius Bar. These “bars” provide a place for customers to get one-on-one help from certified Apple product “Geniuses.”
Samsung has now taken a page out of Apple’s playbook with their “Smart Academy” bar. The “Smart Academy” bar provides not only a more personalized service, but also allows customers to solve their problems much faster…
As one Samsung store manager said: when customers use the bar, their problems will usually “be fixed in minutes rather than hours or days.”
#3. Going Beyond Retail
Samsung is going beyond simply providing products to customers…
At the Samsung Experience Shops, customers can partake in one-on-one or group tutorials to help them get them the most from their purchases.
Samsung also offers a set up service to help people get started with their product. Ensuring that customers understand how to enjoy the full benefits of their products is smart marketing – especially when digital word of mouth is so important for brand success.
#4. Technology Requires Better Customer Service
As technology has become increasingly sophisticated, so too has the need for better customer service…
The more complex this stuff becomes, the more help people will need to learn how to use it! If nothing else, more features lead to more questions…
The new Galaxy phones are a perfect example. Showing customers how to use these features requires well-trained technicians, not just part-time sales people.
The big lesson to take from Samsung is how important customer service is for long-term success.
Exceptional customer service by itself is not enough – it still has to be backed up by a fantastic product (an area where, arguably, Apple still retains the lead) – but for companies like Samsung, whose products are already extremely popular, picking up the slack in customer experience could be just the push they need to rise to the top.
By delivering the best possible experience for your customers, you can lift prices and enhance retention…
That’s a formula for success every business should emulate
In your corner,
Charlie
