Challenge July 2003 - Last updated 070703 About Challenge l Contact Us l PS21 Website  
latest issue
  Challenge > Focus On Service > Secrets to Keeping the Cash Register Ringing
 

 

Secrets to keeping the cash register ringing
 
The 4th QSC visited Cold Storage and gained many tips on service quality.
 
To the Dairy Farm Group, every customer is a $2.6-million gold mine. This is why: Assume a customer spends about $50 per trip to the supermarket. He shops there twice a week for 50 years (he starts shopping there from as young as 10 years and continues till he is 60). He conveys his positive shopping experience to about 10 family members and friends. That multiplies to approximately $2.6 million in revenue for the supermarket.

Proven business strategy
The Dairy Farm Group shared that delighting customers is central to its business strategy to improve customer counts, sales and profitability. This in turn improves team morale and gives the Group an edge over its competitors.

This philosophy percolates throughout Dairy Farm’s 360 retail outlets and 5,000 employees in Singapore. Besides Cold Storage and Giant, Dairy Farm also owns Guardian Pharmacy, Jasons, 7-Eleven and Photo Finish.

Meeting customers’ needs

The trends and lifestyles of Singaporeans are constantly changing. Dairy Farm thus has to continuously adapt to the changing profile of its customers.

For example, a customer with a South American accent regularly called up Cold Storage asking for a particular Campbell brand of black beans. Learning & Development Manager Rajes recognised that black beans are part of the mainstream Hispanic diet and the request was possibly from an expatriate. Even though Cold Storage does not normally carry the product, Rajes went out of her way to locate a supplier who could import it. She told the customer that Cold Storage was willing to import other products associated with Hispanic cuisine and she would inform him whenever they arrive. Such is an example of a staff who proactively seeks to please the customer.

Winning confidence
Dairy Farm’s Guarantee Scheme helps to win customers’ confidence. For example, if the price of an item is captured wrongly (due to a glitch in the bar-coding system) or if an item is scanned twice (due to human error), the customer will be given the item free of charge. Customers can get a full refund or replacement for purchased items that are not fresh. If customers find expired items on the shelves, they can bring the items to the Duty Manager and get a $5 voucher.

The Scheme also extends to the items on promotion at Cold Storage on Fridays. If an item a customer wants to buy has already been sold out by the time he/she reaches the supermarket after work, Cold Storage will allow him/her to buy the same item at the promotional price when it is next available.
 
 

By QSC Secretariat

 
“In this highly competitive world, we all need to remember that there is always someone willing to delight your customer if you don’t.”
Cold Storage CEO Silvestro Morabito
 
 
 
 
 
     
 
 
 
Copyright © 2003 PS21 Office, Prime Minister’s Office,
Public Service Division. All Rights Reserved.
 
Back To Top