Wal-Mart has had a tough go over the last few years. Sure, they are still a huge force in retailing but they have run into a variety of operational problems largely related to in-store execution. (See. for example, this post.) Now the Wall Street Journal reports that Wal-Mart is gearing up for the holidays by trying to address some customer service pain points (Returning to Wal-Mart: Human Cashiers, Aug 15).
In an attempt to lure more customers this holiday season, Wal-Mart Stores Inc. is promising to staff each of its cash register from the day after Thanksgiving through the days just before Christmas during peak shopping times.
The move, called the “checkout promise,” is aimed at addressing one of the retailer’s biggest customer complaints: long waits in checkout lines, which can cause even more frustration when positions aren’t fully staffed. The pledge will cover hours typically on weekend afternoons but which can vary by store.
“We feel good about price and having the top gifts of the season, so the next priority is about getting customers in and out of the stores quickly,” Duncan Mac Naughton, Wal-Mart’s chief merchandising officer, said in an interview. “Taking the possibility of waiting in long lines off the table will attract more people into stores.” …
On Thursday the retail giant said it allocated more hours to the front end of the store, to overnight stocking, and to deli and bakery to improve customer service during the most recent quarter.
Here are two questions that are worth thinking about. (more…)
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Posted in Demand management, Pricing, Priority queues, Services, Telecommunications, Waiting, tagged Demand management, Pricing, Priorities, Queues on August 18, 2014 |
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If you live here in the States, you may never have heard of the telecommunications company EE. But they are a major player in the United Kingdom with brands like Orange and T-Mobile. According to their Wikipedia page, they have around 28 million customers. EE has a new service offering that I must admit is kind of intriguing. Here is how it is described on their web page.
Priority answer service
From 6 August 2014 we’re also introducing a priority answer service. It’s available to all customers on pay monthly and SIM only plans.
Our priority answer service gives you the choice to get support even faster for just 50p per call when you call 150 and want to speak to customer services. It’s always available so if there’s a queue, you can be moved towards the front – ideal if you’re in a hurry.
How much it costs
The charge for this is 50p. If you’re on a plan that includes standard charging for customer services at 25p, you’ll only be charged an extra 25p for priority answer – so the total for the call with priority is 50p.
The 50p charge applies regardless of how long the call lasts.
To save the Americans the trouble of Googling this, 50p works out to about 84¢. So what do you think happens when customers are given the chance to jump the queue for less than a buck?
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Would you be more likely to go to fast food restaurant if it guaranteed how long you wait at the drive thru? Some McDonald’s in South Florida are doing just that (McDonald’s offers a 60-second lunch guarantee on weekdays, Aug 4).
McDonald’s guests at participating South Florida restaurants will receive timers when paying for their order in the drive-thru. The timers are then returned to the McDonald’s crew member when their food is presented. This guarantee promises that customers will receive their meal within 60 seconds of paying for it, or receive a complimentary lunch item on a future visit.
The guarantee doesn’t apply all day. Indeed, it is only in effect for an hour — but it is the hour that matters, noon to one.
Let me acknowledge upfront that this is clearly a gimmick. McDonald’s has been in a funk and their drive thru times have been climbing (along with the time of many in the industry). So this offers customers some assurance and maybe puts a little competitive pressure on some of the other players in the industry.
But as gimmicks go, I kind of like this one. (more…)
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Why do you stand in line? In many Western countries, that is a silly question. You stand in line because that is what you do. Whether waiting to check out at the supermarket or get into a ballgame, standing in line is the norm. You stand in line because everyone else is standing in line. However, as a National Post article points out, standing in line is very much a cultural phenomenon and not just some inherent human trait (Everyone line up: Canada’s tradition of orderly queuing ‘foreign and strange’ to many newcomers, Jul 25).
“Lining up is seen as a universal sort of truth,” said J.J. McCullough, the Vancouver-based author of J.J.’s Complete Guide to Canada, an online primer for newcomers. “And if someone doesn’t adhere to the protocol then it must be because they’re uncouth or uncivilized, rather that this is a sort of idiosyncratic tradition that we’ve internalized.” …
At the Canadian School of Protocol and Etiquette, located in London, Ont., lineup training comes on the same day students are taught about North American-style introductions. Students are taught where to line up, how to maintain one’s proper place in the lineup and — most importantly — how close to stand.
“In certain cultures, queue etiquette is just not on the radar,” said school director Wendy Mencel.
So where does this tradition come from?
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Have you ever heard of VidCon? Turns out it is, in the words of Wikipedia, “a multi-genre online video convention, held annually in Southern California since 2010. Originally conceived by Hank and John Green of the “Vlogbrothers” YouTube channel, the convention is the largest of its kind in the world, gathering thousands of online video viewers, creators, and industry representatives worldwide.”
My wife and I had never heard of it either until our teenage daughter (who for the sake of this post we’ll call Magenta) put on the full-court press to attend. For better or worse, we caved and today Magenta is Anaheim for the start of the conference with her mom in tow. They have in hand tickets that were purchased months ago. However, they also need to get their IDs for the conference. That was the first order of business today and led to a text I received a little before 9:00AM central time (which, allow me to point out, is not quite 7:00AM in Anaheim):
Just what does the longest line that Magenta’s Mom has ever seen look like? Take a gander (and see if you can spot Magenta).
So why bring this up? Beyond being able to publicly thank Magenta’s Mom for falling on this particular parenting grenade, it serves as a nice lead in to a recent Business Insider article on “Why People Wait In Hours-Long Lines For Shake Shack, Cronuts, And iPhones” (Jun 25). (more…)
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Systems with randomness are inherently subject to delay. But how does that delay vary over the day? That is, if we think of a service setting with “peak” hours that in some sense resets every day, when are delays worst? Note that this would be relevant for, say, a restaurant that closes every evening or for a hospital emergency room that doesn’t officially close but typically does see a dramatic drop in volume in the overnight hours. Intuitively, one would expect that delays build over the day. Now Nate Silver at FiveThirtyEight has provided a graphical illustration of how delay builds for a stochastic system — specifically for US domestic flights (Fly Early, Arrive On-Time, Apr 19).
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Much has been written Angela Ahrendts leaving Burberry to take over Apple’s retail operations but the Guardian has something of a unique take. They argue that a pressing concern is simply managing the queue for tech support (Apple stores await Ahrendts touch as outlets struggle with growing demand, Oct 18).
It’s only a two-hour wait. An ordinary Thursday afternoon at Apple’s flagship UK store in Regent Street, London and a long line of customers snakes across the first floor. The hip technology brand is used to queues for the launch of its latest must-have product, but these people have come carrying faulty iPhones and malfunctioning laptops, desperate for help from one of Apple’s increasingly hard to reach “Genius” experts.
When it opened in Virginia in 2001, the first Apple store was hailed as a retail revolution, allowing shoppers to play with expensive technology without any sales pressure. The emphasis on service, with blue-shirted Geniuses on hand to answer queries and fix broken products, has become almost as important to the Apple brand as the aesthetic appeal of its products. But the whole experience is under pressure as a relatively small number of shops struggle to cope with rapidly growing customer numbers. …
The Regent Street outlet, for example, employs at least 120 Geniuses. Each sees up to 30 customers a day but it is impossible to book an appointment less than a week in advance. If the problem is urgent you can turn up and queue, but it could be a very long wait. This week, a gaggle of well-trained, polite and friendly staff worked their way along the line trying to answer simple queries and advise people on alternatives to queueing. But it is hard to redirect people when every nearby shop has its Geniuses fully booked for days on end.
The article goes on to note that this is not just an issue in London. It certainly can be an issue here in Chicagoland. While a quick check of my nearest Apple store shows that they currently have a number of appointments open for tomorrow, Friday morning already has no availability. There are even reports of scalpers hawking Genius Bar reservations in China.
So is there an easy fix to this problem? It seems like there are two issues here. First, to what extent should Apple accommodate walk-in customers? Second, is there any easy fix to expanding Genius capacity? These are related. If capacity is expanded then the ease of getting a reservation should take care of the walk-in issue. On the other hand, if capacity cannot be easily expanded, then there is a question of how to allocate it between walk-ins and appointments.
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