Ian Golding, the customer experience consultant has an enviable CV and an excellent blog (which I strongly commend). Last month, he posted a great article about the customer experience offered by Sports Direct, a UK budget sporting goods store.
The point of his post was that Sports Direct offer a poor customer experience because, in effect, their goods are so cheap the customer experience doesn’t matter.
Ian also suggests that Sports Direct are effectively playing the same role in high street retail as Ryanair play in air travel.
A conscious choice
As regular readers of this blog will know, I have written about the Ryanair customer experience here and here. I think that there may some significant differences in the ways in which they think about the customer experience when compared with Sports Direct.
I suspect that the biggest difference is that Ryanair understand the things which make the biggest difference for their customers. As a result, they manage their customer experience to be good along a very few dimensions (on time, seen to be low-cost) and explicitly limited in others (no refunds) in order to to support its business model.
Sports Direct, however, appear not to manage the customer experience, but instead to allow it to be an unconscious side-effect of their low-cost operation.
Is simply cheap sustainable?
Because they seem to compete solely on cost, Sports Direct may be vulnerable to another company offering a similar cost proposition with a better customer experience. Ian muses if Sports Direct’s low-customer-experience is sustainable in the face of new competition such as that offered by French sports shed operator Decathlon.
Ryanair, on the other hand, I don’t think are so vulnerable to attack on this front. Two factors argue for this.
The first is that Ryanair actively manage their customer experience and know which aspects of the experience make the biggest difference to their customers. As a result, if they needed to dial elements of the key parts of the customer experience up or down, I am sure they could.
The second factor is more pragmatic. As I mentioned in my post, Ryanair: Kings of the Customer Experience, Ryanair compete as a low-cost airline because their business model is ruthlessly designed round the limited customer experience they choose to offer. Other operators do not seem to have the single-minded strategic will to make similar choices – and so they live with business models which are intrinsically more expensive to run.
What you pay attention to, you get
The takeaway, I think, is this: every business, whether it thinks about it or not, offers their customers an experience which reflects the things to which the company pays attention. If a company focuses solely on least cost supply and appears to pay little attention to the customer experience, then customers get an experience akin to the ‘dark cave’ which Ian describes as being offered by Sports Direct.
Such companies are vulnerable to competition from others which do pay attention to the customer experience and design their low-cost operation around the experience they actively choose to offer.
In short, if we don’t pay attention to customer experience in the boardroom, we shouldn’t surprised if, in return, customers stop paying attention to us.