Customer Service? Circuit City Sees the Light
On December 3rd, 2007, I wrote a post called "Disturbing Information" My post talked about how Circuit City fired all of its educated, well paid, employees. Then, they offered them their jobs back for less money. Circuit City decided that they were dispensable and didn't really impact the bottom line.
Well, a few weeks ago-July 23rd to be exact, because I was in a hotel, I was reading USA Today. The front page of the Money section had an article titled "Electronic retailers find service sells--Layoffs of tech-savvy staff hurt Circuit City business".
DUH.
Have you ever tried to decipher the differences between the 50 36" flat-screened televisions at a big box store? My mind goes numb every time I have to go into one of those stores and deal with the idea of plunking down $1,500.00. Oh, and the extra $300.00 "just in case your brand spankin' new TV breaks down". Hold it. I won't go into how I feel about extended warranties and the pressure to buy them. That is another post for another day.
The competition today is fierce...even more so with the slow economy. Every single retail sale is important--or it should be. How could any organization ever think that getting rid of the educated employee was a good idea? It is completely contrary to what good employment is all about. When you get an employee who fits the culture, likes the job, and is good at it, you need to do everything in your power to retain and grow that employee.
Take my friend Brian who works at The Gap. He's been there for over 15 years. I'm guessing he is well paid. How much knowledge do you think Brian has locked up in his brain? How many customer's know him by name, trust his judgment, and stop in just to see him--I'm guessing a lot. How many employees go to him for guidance, knowledge, and a reality check--all of them. Why would you want to dispose of a valuable resource like Brian? The answer: YOU DON'T. Trust me, you don't.
Hang on to your skilled workers. Pay them what they are worth. The rewards will be tenfold.
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