Stuart's learns the importance of nurturing a service culture

Discount Store News, May 3, 1993 by Mary Ellen Kelly

'Stuarts is not only on its way to providing 'customer service' as part of our everyday transactions, but is way ahead of anybody who has to implement a 'program' to achieve it," suggested David Ferguson, senior vice president, stores, for the New England regional discount chain.

At Franklin, Mass.-based Stuarts, the corporate culture not only supports customer service, the culture insists that all decisions hinge on how the customer will be-affected, said Ferguson.

He asserted, "It is typical, however, for a company to think it can implement some training programs or develop a customer 'program' to address what ultimately has to be part of its culture."

How well is the corporate culture encouraging and rewarding customer service? Nearly four years ago, 80% of the chain's customer comment cards were negative in nature, Ferguson said. Today 80% are positive.

One of the most common complaints in all retail stores is long lines, he noted. "We all want to be next in line, not on a line. Those retailers with signs that say, 'If there are three people in line we'll open another register,' are telling shoppers that it's basically okay to have those three people wait."

Stuarts' solution to long checkout lines is to make sure each employee is cash register trained. "Associates know they cannot go anywhere else in the store until they have worked a cash register. But in the long run, it makes each of them a better associate by bringing them quickly up the learning curve," Ferguson said.

Most problems in the store are apparent to the cashier. If pricing is wrong, products are not merchandised correctly or the store is out of stock, the cashier will likely hear about it. As a result of cashier experience, "The associates remember from the time spent as a cashier the problems that are created at the front end from something like improper signing, for instance," he said.

The most recent developments at store level in terms of customer service at Stuarts include the formation of a new position at each of the chain's 20 stores and the creation of a separate customer service station for layaway.

The new position is that of office manager. Thus far 15 of the 20 stores have this position filled. This individual oversees hiring and training. "We really needed somebody focusing on the people and training aspect of the stores," Ferguson said. "Prior to the development of this position the store manager or assistant store manager would do the screening for new applicants."

The chain initially took three people from each of its three districts to discuss whether there was a need for someone to oversee training and hiring. "We listened to them. They helped us write the job description," he said.

The office managers also oversee the cash office function, which means it is to their advantage to carefully train associates on the use of cash registers.

"I think there are a couple things that we do that set us apart from other retailers in our market. For one thing, it is part of our company's goals and objectives to always ask, 'How is the customer going to be affected by what we plan to do?' "Ferguson explained.

The message concerning customer service is delivered directly during a half-day seminar led by Ferguson. "The advantage is that they are hearing it from my lips. They don't have to read it or interpret it. And the same message is delivered at every level."

Associates who are specifically mentioned in customer response cards are formally acknowledged in the chain's in-house newsletter and by a personal letter from company chairman Joseph Ettore. A recent example was a letter from a customer who shopped the Malden, Mass., store. She wrote about an associate who is "always very pleasant and so helpful," one who is willing to help carry six large trash barrels outside, and then watch the merchandise until the consumer can drive her car up to the curb.

Department managers are the backbone of the store and yet because they were paid more than some other employees, they were often the first ones to have their hours cut in difficult financial times. This led to high turnover in one of the most crucial positions in the store. Now Stuarts guarantees that department managers will have a work week that ranges from 35 hours to 38 hours. Any hours that rise above or fall below this level require district manager approval, Ferguson explained.

"We told them that this means, however, that there will be times when they might be asked to do a lot of different things, tasks that they usually would not do. But we are willing to pay the additional dollars for them to operate a cash register, for instance, so they can maintain 35 to 38 hours of work each week."

In the case of Stuarts--and other New England retailers--the high unemployment rate has also "inspired" employees of all companies to work a little harder. "There is no question that outside influences play a part in the mood of the store," Ferguson said.

The list of some of the most essential customer services according to Ferguson, includes quality, value, quick service, adequate sales staff, ease Of parking, loyalty and courtesy.