All-Out Company of the Week: Lowe's

The Wall Street Journal (www.online.wsj.com) includes an article summarizing Lowe's latest earnings forecast reduction. Although sales are up 2%, the article says, the home-improvement retailer advises that earnings per share will be down 6% because of store closings.

From The Wall Street Journal: "The volume of negative news and the unsettling impact from equity markets" are having a "significant effect on an already fragile consumer mindset," said Chief Executive Robert Niblock on a conference call. "More specifically, with regard to home-improvement spending, consumers continue to focus on small-ticket, less-than-$500 repair and maintenance items and projects," Mr. Niblock said.

News of Lowe's forecasted earnings reduction coincides with horrible service I've had there this month. The CEO knows consumers have a "fragile mindset," and they've closed stores, but apparently store employees do not know. I won't bore you with details of the treacherous ordering process, lazy employee who lied rather than work, or delivery nightmare--you've had those too and can relate.

Let's focus instead on how to avoid becoming your industry's killer of quality service and how to avoid making the All-Out List:

1. When a customer requests something reasonable of you, view the request as an opportunity. People who feel like they've inconvenienced you are not likely to return. Jump at the chance to provide service if you want to enhance the bond your customers feel with your business.
2. When your company makes a mistake, be honest and efficient. Customers want to hear about the solution, not about how it wasn't your fault. They want to know when the dryer will be delivered, or when the account correction will post, or when the report will be sent rather than about poor internal procedures. A mistake usually won't cause customers to leave but poor handling of a mistake will.
3. Get the work done right. Doing the work, whatever your field, is the bare minimum expected. Being nice, taking customers to lunch, gifting event tickets do not make up for unfinished, or poorly done, work. Kenny Chesney is great, but free tickets and backstage passes do not make up for poor quality. Taking 10% off the price is great, but it does not make up for missed delivery times. Do what you promise and promise only what you can do.

Keep those three strategies in mind, in addition to the usual recommendations for quality service, to avoid becoming known as the place good service goes to die in your industry. As for Lowe's, the experience is not over yet, but today's news was somewhat consoling: at least I'm not alone.


What do you think companies need to do to avoid the All-Out List?