Customer Satisfaction Technical Report for Luke Althorp

This technical report analyzes the root cause of the problems responsible for waning business performance of Luke Althorps. The report includes stakeholder analysis, problem definition sheet, cause and effect diagram, Pareto analysis, run charts, and appropriate tools like scatter plots and histograms.

Running head: CUSTOMER SATISFACTION
Name of the student
Degree
Subject
Semester
To,
Ms Gemma Hanson, CEO,
M/s Luke Althorp
Dear Madam,
Please find below the technical report titled ‘Customer Satisfaction’ for your kind perusal and
further decision making. It would be a great pleasure to hear from your end.
Regards,
Name and details of the sender,
……..

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CUSTOMER SATISFACTION
Customer Satisfaction
Name of the Student
Name of the University
Author note

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CUSTOMER SATISFACTION
Table of Contents
2. Technical Report:.........................................................................................................................3
2.1. Introduction:.............................................................................................................................3
2.2.1. Stakeholder analysis:.............................................................................................................4
2.2.2. Problem definition sheet:.......................................................................................................5
2.2.3. Cause and Effect:...................................................................................................................8
2.2.4. Pareto Analysis:.....................................................................................................................9
2.2.5. Run Charts:..........................................................................................................................12
2.2.6. Use of appropriate tools:......................................................................................................12
Scatter plots analysis:................................................................................................................13
Histogram analysis:...................................................................................................................13
Force Field Analysis:.................................................................................................................15
2.3. Conclusion:.............................................................................................................................15
2.4. Appendices:............................................................................................................................17
2.4.1. Pareto chart calculations:.................................................................................................17
2.4.2. Staffing:...........................................................................................................................27
2.4.3. LA customer survey:........................................................................................................28
2.4.4. Telephone Converstaion a few days after the meeting........................................................53
Appendix 2.4.5. Email regarding agency staff:.............................................................................56
References:....................................................................................................................................60

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CUSTOMER SATISFACTION

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CUSTOMER SATISFACTION
2. Technical Report:
2.1. Introduction:
Luke Althorp was a premium retailer marketing apparel, food products and domestic
goods based in the United Kingdom. The firm operated under the leadership of Ms Gemma
Hanson as its CEO. The three departments namely, fashion, food and home ware worked under
the leadership of Paul Lenard, Serena Riley and Claire Douthwaite respectively. Each
department was further divided into operations, marketing, finance and human resource divisions
working under the stewardship of the respective departmental heads. The target customers of the
firm were middle class customers who were conscious about quality goods. The firm in spite of
its well stratified organisational structure and enjoying extension presence in the United
Kingdom suffered from losses as well as customer turnover at an unacceptable high rate. The
aim of the report would be unearthing the root cause of the problems responsible for waning
business performance of Luke Althorps.

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CUSTOMER SATISFACTION
2.2.1. Stakeholder analysis:
High power
Government
Suppliers
Media
Marketing agencies
Customers
Apex management of
Luke Anthorp
Departmental heads
Divisional heads
Lower level employees
Non-
supporter
Supporter
NGOs
Local community
Competitors
Lower power
Figure 1. Stakeholder matrix of Luke Anthorp
(Source:Author)
The stakeholder analysis of Luke Althorp would be conducted using a stakeholder matrix
as shown above. The matrix would analyse the power and support. The stakeholders like
customers, apex management of the firm, the departmental heads, the divisional heads and the
lower level employees have immense power to impact the business of Luke Anthorp by their
actions and are supporters of the business. This is because, the customers are directly affect the
revenue generation of the business by their purchase decisions. It can in fact by pointed out that

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CUSTOMER SATISFACTION
the reason for rising loss of the firm was customers deciding against buying products form Luke
Anthorp. The apex management is a stakeholder holding high power and providing high support
since it is responsible for making business decisions. The middle level management formed by
departmental heads and divisional heads breakdown the strategies of the apex management into
further divisions for the lower level employees to execute them. The lower level employees are
also capable impacting the business directly by their actions. It can be pointed out that the
business of Luke Anthorp was suffering losses because the lower level employees showed lack
of interest in serving customers. Thus it is evident that businesses need continuous support of all
the above mentioned stakeholders which actually prove their high power. The suppliers in the
figure above occupy the first quadrant since they have high powers but their support is only
required after response of customers which is demand for products. The staff members
communicate the demands by placing the orders. That is why the suppliers occupy the first
quadrant with the government. This is because like suppliers the latter is not directly involved in
the product planning of the firm. The competitors, NGOs and local communities occupy the
lower positions in the matrix.
2.2.2. Problem definition sheet:
The problem definition sheet defines the problem(s) and the outcomes of the problem.
The firm Luke Anthorp was facing several problem as shown by the analysis of the case study.
The root of the problem could be described as lack of employee engagement and poor human
resource management. The organisational structure of the firm had a separate personnel
department in each division but these personnel departments took no initiative to train the staff at
lower level on customer management. Secondly, the middle level managers along with the apex
management did not adopt modern methods of inventory management. The marketing divisions

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CUSTOMER SATISFACTION
under each department did not acquire information about changing customer preferences and as a
result, the supply of products at the outlets could satisfy customers’ needs. This disparity
between demand from consumers and supply of products from the side of the firm led to lower
profits. In fact, it can be pointed out that immense amount liquid cash was locked in the stock of
finished goods, thus disrupting the liquidity of the firm. The repulsion of customers led to
waning revenue generation which only added to the high amount losses the firm suffered due to
wastage of products. The above definition statement would be presented in form of a flow chart
below:

Lack of employee engagement and
training by personnel management
divisional heads
Lack of modern operations like software
based inventory management by apex
and middle management
Marketing teams did not gain knowledge
about changing market trends
Lower level employees did not
provide appropriate customers
service
Inappropriate products
Lower revenue High inventory cost
Lower net profits
Lower cash
liquiity
Lack of management leadership
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CUSTOMER SATISFACTION
Figure 2. Problem definition flowchart of Luke Althorp
(Source: Author)

Declining
profits
Lack of staff training
and retention
Lack of customer
service by employees
Lack of inventory
management
Lack of customer
knowledge
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2.2.3. Cause and Effect:
The cause and effect diagram or the fish bone diagram is a tool which shows that product
design to identify the defects in the product. The aim of the fishbone diagram is to enable the
management take steps to rectify them.
Figure 3. Cause and effect diagram of Luke Anthorp
(Source: Author)
As shown above the cause and effect diagram of Luke Anthorp points out the outcome
which is dwindling profits. The four issues recognised are lack of staff training and retention,
lack of customer services, lack of inventory management and lack of customer knowledge. The
acquisition personnel owing to poor customer knowledge regarding changing preferences of
customers regarding apparel, food and household articles failed to provide appropriate products.
This led to lack of satisfaction among customers which resulted in the declining profits.

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2.2.4. Pareto Analysis:
The Pareto Analysis is a graphical diagram which takes into account all the possible
causes responsible for the issue recognised. As far as Luke Anthorp is concerned, the ultimate
issue is dwindling profits. The four factors recognised responsible for the issue are lack of staff
training and retention, lack on inventory management, lack of customer services and lack of
customer knowledge. The four factors would be presented on an excel against the complaints of
the customers (Apprendix 2.4.4).
lack of staff training
and retention lack on inventory
management lack of customer
services lack of customer
knowledge
0
10
20
30
40
35 33 37 40
Pareto chart showing four issues of Luke
Althorp
Figure 4 Pareto chart showing four issues of Luke Althorp
(Source: Author)
The Pareto chart shown above shows the number of occurrences of the four issues based
on the customer feedback. For each feedback, the issue which was covered was marked 1 and the
issue not covered was marked 0. Then total score was added and plotted on a graph as shown. As
per the Pareto chart above, Luke Anthorp would require to lack with lack of customer
knowledge, followed by with lack of customer services and lack of staff training. The last issue
that should be managed by the firm as per the figure would be lack of inventory management.

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Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2017 2018
0
5
10
15
20
25
Homeware turnover
Figure 5. Pareto chart showing home ware turnover
(Source: Author)
The Pareto chart above shows the turnover in home ware at Luke Althorp in three years
2016, 2017 and 2018. The chart clearly shows that in general the turnover in the departments
remains low.
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
2016 2017 2018
0
10
20
30
40
50
60
Pareto chart showing turnover in fashion
department

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Figure 6. Pareto chart showing turnover in the fashion department
(Source: Author)
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2016 2017 2018
0
2
4
6
8
10
12
14
16
18
20
Turnover in food
Figure 7. Food department turnover
(Source: Author)
The above Pareto chart shows that the trend of dwindling turnover continues in cases of
fashion and food as shown by figures 6 and 7 respectively. However, it can be pointed out that
the fashion has performed the worst among the three department.

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2.2.5. Run Charts:
The run chart shows the sequences the activities taken to achieve an aim. The table below
shows that steps long with the time period which the management of Luke Althorp has to
achieve the aim of regaining its profits. The same has been plotted in the graph below.
Investigative study 25-Nov-18 1
Recommendation
s Presentation 12-Dec-18 2
Recommendation
s report 6-Jan-19 3
Implementation of
Recommendation 30-May-19 4
0.5 1 1.5 2 2.5 3 3.5 4 4.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Run chart
Figure 8. Run chart
(Source: Author)
2.2.6. Use of appropriate tools:
The issue of lowering revenue at Luke Althorps can be also be viewed as the outcome of
low retention of employees in the organisation. This is because lack of staff retention resulted in

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CUSTOMER SATISFACTION
lack of consistent customer services at the outlets of Luke Althrops. These two facts, namely
lowering staff retention and lowering turnover would be shown using two technical tools namely,
Scatter plot and histogram respectively.
Scatter plots analysis:
0 2 4 6 8 10 12 14
0
100
200
300
400
500
600
Scatter plot
2016 2017 2018
Months
Turnover of employees
Figure 9. Scatter plot analysis
(Source:Author)
The scatter plot above shows that number of employee turnover in 2016 to 2048. The
chart clearly shows that the employee turnover at the outlets has increased in 2018 which
evidently prevented the retailer from serving customers efficiently. The outcome of this failure to
serve customers satisfactorily would be dwindling sales turnover which would be shown in the
histogram.
Histogram analysis:

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2016 2017 2018
0
10
20
30
40
50
60
Homeware
Histogram
Homeware Fashion Food
Figure 10. Histogram showing sales turnover the three departments
(Source: Author)
The histogram shows that turnover in the three departments of Luke Althorps. The
turnover in 2018 shows a fall in fashion and food segments. This finding can aligned with the
high turnover of employees in 2018. Thus, this analysis clearly shows that high turnover is
directly lowering business turnover at Luke Althorps.

High revenue
Employee retention High employee turnover
Appropriate product and
pricing
Training and induction
Customer service Lack of customer services
Lack of training
Inappropriate product
and pricing
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Force Field Analysis:
The force field diagram above shows the factors driving the high revenue generation on
the left side and factors restricting high revenue generation on right. The force of factors
restricting high revenue generation is far stronger compared to the driving factors marked in grey
and blue respectively. It can be inferred from the analysis that the the retail firm should take
steps to strengthen the driving factors.
2.3. Conclusion:
It can be concluded from the array of analyses conducted that Luke Althorp should train
its employees with training on customer services. The firm should aim to enhance knowledge of
employees at all levels regarding changing preferences. the firm should restructure its marketing
mix to enhance customer satisfaction and generate more revenue.

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CUSTOMER SATISFACTION
2.4. Appendices:
2.4.1. Pareto chart calculations:
Respondent Comment lack of
staff
training
and
retention
lack on
inventory
management
lack of
customer
services
lack of
customer
knowledge
E I asked a member of staff
whether she thought the
dress I was trying on looked
okay. And she said it was
too young for me. I was a bit
offended
1 0 1 0
D I can't quite put my finger on
it - but the staff just aren't as
helpful these days
1 0 1 0
F I don't think the customer
service is very good
1 0 1 0
G I find it annoying when a
new range comes in and by
the following day, there are
no 14's left. They clearly
0 1 0 1

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CUSTOMER SATISFACTION
haven't got their ordering
correct.
B The new ranges are fab 0 0 0
E They seem to have got really
expensive
0 0 0 1
A Much better than they used
to be
0 0 0
E Whenever I go to the store at
lunchtimes there is always a
queue.
1 0 1 0
B The new ranges they have
are so 'me'
0 0 0 0
F I like someone to help me
pick out clothes. They used
to be so good at it, but they
were trying to get me to try
on clothes that were clearly
not my thing
1 0 1 1
A I really like their tops 0 0 0 0
D The prices aren't as
competitive as they used to
0 0 0 1

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CUSTOMER SATISFACTION
be. I can buy a pair of
trousers from Next to You
for almost half the price
E I don't like the new range of
trousers - the cut is all wrong
1 1
E I know we have to move
with the trends but some of
their ranges are really not
right for anyone.
1 1
A Oh, I think that is totally the
opposite. I always used to
buy my clothes from Next to
You, and now I come here
first.
0 0 0 0
A I love the new ranges - they
are so colourful
0 0 0 0
F I asked someone about the
replacement policy and she
didn't know, nor did she find
someone who did.
1 1 1
G I tried to get my money back
on a scalf that I had bought
1 0 1 1

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CUSTOMER SATISFACTION
for my aunt, and she said she
could only give me gift
vouchers. I am sure that is
not right - I had my receipt.
C Actually that's happened to
me too. But the next day I
tried again, and I got my
money back no problem.
1 0 1 1
B I left because the queue was
so large and I don't have time
at lunchtime to hang around
forever
1 1 1 1
F I used to really like this store
because they always had
plenty in my size. I can
never seem to find anything
now.
0 1 1 1
G They didn't have my size, so
I asked if they could obtain
one from one of their other
stores, and she told me the
best thing was for me to go
1 1 1 1

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CUSTOMER SATISFACTION
and get it myself.
C I was looking for the work
suits because they weren't in
the usual place and they just
told me to go to the fourth
isle in the classics section.
They used to take you there
themselves
1 1 1 1
E I don't like the way these
new ranges hang. They look
weird on me
0 1 1 1
B Bought some new trousers
and the hem came down the
next day
0 1 1
D The styles seem a bit weird
to me. I think they look like
things you would do the
housework in. What is that
raggy edges thing about?
1 1 1 1
E The staff don't seem to be as
polite nowadays.
1 0 1 1
F They never have my size - 1 1 1 1

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CUSTOMER SATISFACTION
loads of size 8's - I mean
don't they know the average
size of a woman is a size 14
D Well, they never have my
size either so I ordered in my
size When it came, it was the
wrong size. I was told that I
must have ordered the wrong
size. Couldn’t believe it -
like I don't know what my
size is.
1 1 1 1
D I had to spend ages waiting
last week, and all I wanted
was to pay for one pair of
trousers.
1 1 1 1
B I like the way the clothes
have got so much more
modern. I never used to
come here except to bring
my mum. Now it is the
oppostive way around
0 0 0 0
E I tried to talk to an assistant 1 1 1 1

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CUSTOMER SATISFACTION
and I had to wait until she
had finished talking to her
mate.
F Yes, I had that. I remember
the days when if you even
looked at an assitant they
would come over to ask if
you needed any help
1 1 1 1
E I noticed there were loads of
size 16's, but no 12's
0 1 0 1
G I tried to find someone in the
designer section the other
day. When I finally found
someone, there were three of
them chatting together in the
classics section
1 1 1 1
A I ordered something ages
ago, and now they say they
have run out
1 1 1 1
C I was beginning to wonder if
I had put loads of weight on
because the new ranges just
1 1 1 1

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CUSTOMER SATISFACTION
seem smaller.
G I bought a new blouse, and it
said it was colourfast. But it
wasn't. My husband now has
a pale pink shirt
1 1 1 1
D I came in yesterday, and
there was no one to help me
find the right size, they were
all in a huddle gossiping
about their boyfriends.
1 1 1 1
C I ordered a pair of trousers
and I got a skirt
1 1 1 1
D perhaps we could swap - I
ordered a skirt and got
trousers
1 1 1 1
H I was trying to buy my wife a
birthday present and I
couldn't see anything that
looked like her usual style
and am sure she used to get
her stuff from here.
1 1 1 1
G The prices seem to have 1 1 1 1

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CUSTOMER SATISFACTION
gone up a lot in the last six
months
B much more fashionable than
they used to be
0 0 0 0
F I bought a shirt and the
button fell off after one wash
1 1 1 1
F I asked someone to help me
find an outfit and they
brought the most awful
thing. It was something my
daughter would wear.
1 1 1 1
A I had to wait ages at the
customer service desk and
when I finally did get to talk
to someone, they told me to
go to the till
1 1 1 1
C Well that's funny. I waited
ages at the till the other day,
and they told me to go to the
customer services desk. I
always used to exchange
1 1 1 1

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CUSTOMER SATISFACTION
items at the till.
F I don't mind paying for
quality but that seems to
have gone as well.
1 1 1 1
C I know all the young people
have mobile phones now, but
I do think it is a bit rude to
text when you are serving
1 1 1 1
C The white blouse I bought
went a dirty cream within
one month
1 1 1 1
A The new ranges come in
these lovely new colours -
they are fantastic
0 0 0 0
H There was a huge queue and
only one person serving. I
am sure they used to have
the sense to call for more
staff.
1 1 1 1
35 33 37 40

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CUSTOMER SATISFACTION
2.4.2. Staffing:
Staff in Store: 7000
No of Stores: 200
Wastage Rate: (ie No of staff Leaving)
2016 2017 2018
Jan 192 170 145
Feb 171 172 165
Mar 176 182 251
Apr 161 164 326
May 171 177 496
Jun 185 189 519
Jul 162 191 530
Aug 175 195 435
Sep 191 174 420
Oct 195 187
Nov 186 161
Dec 154 156

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CUSTOMER SATISFACTION
2.4.3. LA customer survey:
Focus Group Comments
Respondent Sex Age Dress Size
A F 18 8
B F 22 10
C F 30 16
D F 42 14
E F 45 12
F F 50 18
G F 55 14
H M 35 N/A
Respondent Comment
E I asked a member of staff whether she thought the dress I was trying
on looked okay. And she said it was too young for me. I was a bit
offended
D I can't quite put my finger on it - but the staff just aren't as helpful

30
CUSTOMER SATISFACTION
these days
F I don't think the customer service is very good
G I find it annoying when a new range comes in and by the following
day, there are no 14's left. They clearly haven't got their ordering
correct.
B The new ranges are fab
E They seem to have got really expensive
A Much better than they used to be
E Whenever I go to the store at lunchtimes there is always a queue.
B The new ranges they have are so 'me'
F I like someone to help me pick out clothes. They used to be so
good at it, but they were trying to get me to try on clothes that were
clearly not my thing
A I really like their tops
D The prices aren't as competitive as they used to be. I can buy a pair
of trousers from Next to You for almost half the price
E I don't like the new range of trousers - the cut is all wrong
E I know we have to move with the trends but some of their ranges
are really not right for anyone.

31
CUSTOMER SATISFACTION
A Oh, I think that is totally the opposite. I always used to buy my
clothes from Next to You, and now I come here first.
A I love the new ranges - they are so colourful
F I asked someone about the replacement policy and she didn't know,
nor did she find someone who did.
G I tried to get my money back on a scalf that I had bought for my
aunt, and she said she could only give me gift vouchers. I am sure
that is not right - I had my receipt.
C Actually that's happened to me too. But the next day I tried again,
and I got my money back no problem.
B I left because the queue was so large and I don't have time at
lunchtime to hang around forever
F I used to really like this store because they always had plenty in my
size. I can never seem to find anything now.
G They didn't have my size, so I asked if they could obtain one from
one of their other stores, and she told me the best thing was for me
to go and get it myself.
C I was looking for the work suits because they weren't in the usual
place and they just told me to go to the fourth isle in the classics
section. They used to take you there themselves
E I don't like the way these new ranges hang. They look weird on me

32
CUSTOMER SATISFACTION
B Bought some new trousers and the hem came down the next day
D The styles seem a bit weird to me. I think they look like things you
would do the housework in. What is that raggy edges thing about?
E The staff don't seem to be as polite nowadays.
F They never have my size - loads of size 8's - I mean don't they know
the average size of a woman is a size 14
D Well, they never have my size either so I ordered in my size When
it came, it was the wrong size. I was told that I must have ordered
the wrong size. Couldn’t believe it - like I don't know what my size
is.
D I had to spend ages waiting last week, and all I wanted was to pay
for one pair of trousers.
B I like the way the clothes have got so much more modern. I never
used to come here except to bring my mum. Now it is the oppostive
way around
E I tried to talk to an assistant and I had to wait until she had finished
talking to her mate.
F Yes, I had that. I remember the days when if you even looked at an
assitant they would come over to ask if you needed any help

33
CUSTOMER SATISFACTION
E I noticed there were loads of size 16's, but no 12's
G I tried to find someone in the designer section the other day. When
I finally found someone, there were three of them chatting together
in the classics section
A I ordered something ages ago, and now they say they have run out
C I was beginning to wonder if I had put loads of weight on because
the new ranges just seem smaller.
G I bought a new blouse, and it said it was colourfast. But it wasn't.
My husband now has a pale pink shirt
D I came in yesterday, and there was no one to help me find the right
size, they were all in a huddle gossiping about their boyfriends.
C I ordered a pair of trousers and I got a skirt
D perhaps we could swap - I ordered a skirt and got trousers
H I was trying to buy my wife a birthday present and I couldn't see
anything that looked like her usual style and am sure she used to get
her stuff from here.
G The prices seem to have gone up a lot in the last six months
B much more fashionable than they used to be
F I bought a shirt and the button fell off after one wash
F I asked someone to help me find an outfit and they brought the most

34
CUSTOMER SATISFACTION
awful thing. It was something my daughter would wear.
A I had to wait ages at the customer service desk and when I finally
did get to talk to someone, they told me to go to the till
C Well that's funny. I waited ages at the till the other day, and they
told me to go to the customer services desk. I always used to
exchange items at the till.
F I don't mind paying for quality but that seems to have gone as well.
C I know all the young people have mobile phones now, but I do think
it is a bit rude to text when you are serving
C The white blouse I bought went a dirty cream within one month
A The new ranges come in these lovely new colours - they are
fantastic
H There was a huge queue and only one person serving. I am sure
they used to have the sense to call for more staff.
2.4.4. Working party meetings:
Transcript of meeting with key Staff
Present:

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CUSTOMER SATISFACTION
Director(Fashion) : Paul Lennard
Operations : Karen Smith
Marketing: Kerry Jones
Finance: Lazlo Keryiadis
Personnel: Smita Patel
You
Paul: Well I hope you enjoyed your lunch. Shall we finish our wine and get started?
You: Yes, indeed. It’s not often that our clients put on such a magnificent spread for our first
working meeting. I’d really like to compliment you on the quality of your smoked salmon.
Paul: I’m glad you liked it. It comes from our own specialised smokehouse in Scotland.
You: Fascinating, yes the quality speaks for itself.
Paul: Quite so – shall we sit down here. You know most of the staff present by now…
You: Yes I have had a quick chat with everyone over lunch.

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CUSTOMER SATISFACTION
Paul: Well, where would you like to start?
You: Right – before we begin, I would like to formally thank you for awarding us this contract to
investigate the apparent drop in sales. As you know, our consultancy prides itself in working in
partnership with their clients. We see our way of working as a joint journey to a successful
conclusion. What I would like to do, if I may, is check my understanding of your overall strategy
and then just go round the table and discuss your views as to this problem and the best way
forward.
Paul: Yes that sounds like a good idea.
You: Traditionally “Luke Althorps” has always stood for quality traditional values, but recently
you have moved towards a younger brighter image. Correct?
Paul: Yes indeed. It will take time of course, but I am convinced that this is the right direction for
us. Younger shoppers may not spend as much, but they shop more frequently and generally the
profit margins on what they buy are higher. Introducing our new brand “Monique” was one of
my first key decisions on starting with the company.
You: How do you know that you are focussing on the right customer base?
Paul: Well, our customer survey shows that we are attracting the younger market

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You: In what way?
Pau: Well offer a free barista coffee to randomly selected customers if they provide us with a
few key details, like age, how much they have spent etc
You: Hmm, do you have any ways of assessing those who are not persuaded by free coffee to
give their information? do you have any other way of assessing your customer base?
Paul, Well I never thought about it before but Customer Feedback Terminals were introduced
fairly recently. They might give an insight.
You: Customer Feedback Terminals?
Paul: Yes –We provide electronic terminals around the stores so customers can leave
comments about the store.
You: Would I be able to see the results?
Paul: Yes I’ll get Margot to send everything we have over to you.

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You: Great. Perhaps I could now ask each member of your team to give me a brief description
of their area of responsibility and their view on the problem.
Paul: Yes, would you like to start Lazlo?
Lazlo: Oh, er, yes Paul. Well I am the Finance Manager. I manage a team of clerks and
accountants and we manage the finances and prepare financial statements for the board on a
monthly basis.
You: Right, I was meaning to ask whether it would be possible to break down the turnover
figures that Gemma gave me.
Lazlo: Yes all our financial data is on our transaction database, whatever you need I can get for
you.
You: Well perhaps it would be useful to look at the turnover figures on a monthly basis.
Lazlo: Yes fine, I’ll send them over.
Paul: Fine, good idea Lazlo. Shall we move on? I really think this problem could be addressed
by some heavier marketing of our “Monique” brand. What do you think Kerry?

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Kerry: Well I agree, Paul. As you know we have seen a strong growth in our “Monique” sales
which are specifically targeted at the younger end of the fashion market. The launch last
December/January of “Monique - A New Look for a New Year” won lots of industry awards
and had a lot of favourable comment in the press. Our sales over the last nine months have
seen a huge rise. In fact it’s overtaking some of our other lines
You: Do we have separate sales figures for “Monique”?
Lazlo: Of course, we have separate figures for all our main lines. I’ll forward them to you as well.
Karen: Yes that would coincide with your “Christmas with Monique” campaign, one of the most
expensive campaigns we have ever run.
Kerry: But well worth the return, don’t you agree Paul?
Paul: Yes very satisfying.
You: But you must be experiencing some problems with such a huge re-branding exercise?

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Paul: Not really. It’s not a re-branding – we are just expanding our offering in that section of the
market. There’s very little disruption really. We are just allocating around 25% of our floor space
to “Monique” and our people have done wonders in minimising the space requirement for our
older lines.
Kerry: In time, we might well expand the “Monique” range, and I’m drawing up plans for a
substantial refurbishment of our stores to create the correct young, slick, sophisticated city-girl
ambience we are looking for.
Karen: I agree with Paul, naturally. There has been relatively little disruption, so far. Our core
market, which is still the “older woman” seems to have been relatively unaffected by the
changes Kerry has introduced. I’m sure Kerry’s latest focus-group report will confirm that.
You: Focus group?
Karen: Yes, Kerry has been running a set of focus-group workshops with our customers - one
set for our core market, and one for “Monique” customers. I know the exercise has finished. Any
analysis on the responses yet Kerry?
Kerry: Well, as you know, Karen, they’ve only just finished. I’ll copy you in on the final report if
you feel you would be interested.

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Karen: Thank you, Kerry. Yes I’m sure the results will be very interesting.
You: You are the Operations Manager, aren’t you Karen? I suppose that means you control the
day-to-day running of the stores. What would you say are the main causes of the decline in
sales?
Karen: Well I’m not sure. I’ve looked at all the individual sales figures for all our stores and the
decline seems to affect all of them.
You: So it must be a nation-wide problem then.
Karen: Yes it would seem so. But there’s relatively little we control from the centre, apart maybe
from purchasing, marketing and lately the employment policy.
You: Marketing, ah yes that must be Kerry’s department?
Kerry: Oh yes, marketing is much more than just advertising. You need to have your finger on
what your core market wants, and then deliver it. So of course, my department controls the
purchasing policy. In December we recruited a number of very talented buyers, especially from
Monique. I am very happy with their performance. The Christmas figures speak for
themselves.

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Karen: I am not sure that it suits all our customers though Kerry? I have my reservations.
You: Have there been other changes in purchasing policy apart from Monique?
Kerry: We are currently undergoing a review of some of two of our leading brands… Country
Classics and ‘Designer Wear’.
You: Is there a particular reason for this review?
Kerry: Well its’ been years since we had a major review, and our new buyers may have a lot to
contribute in these two markets.
Karen: We’ve only seen their performance over the last four months and I not sure they are
totally familiar with our customer base.
<awkward silence>
You: Can you think of any other changes over the last year or so?

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Paul: Well, I think you are probably aware of the new UK fashion company ‘SMART’. They
applied some very heavy marking to their launch in July this year.
Smita: and don’t forget, there have been some car park layout changes. The number of parent
and child space have increase in response to feedback in 2017. The layout had to be changed
to do this. I think it especially reduces the parking near clothing section.
Paul: Qashqui drivers with 2.4 kids. Why can’t they just park their car far away from the store
where there’s loads of space
Karen: Well they need to be near the store Paul – young children are a nightmare with traffic.
Mums don’t want to walk their kids miles to the store where they could run out in front of cars
leaving the store.
Ph young kids aren’t going to spend a lot of money here. I really feel we should be focussing on
those who spend the most.
You: When was the parking charge brought in Paul?
Paul: It was introduced in March 2018. I

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CUSTOMER SATISFACTION
You: This is all really good information …. Perhaps we could move on to talk about the
staffing…no employment policy. You said it is controlled centrally?
Smita: Well that’s my department. We set the national recruitment policy, standardise
procedures, arrange training for local managers and floor supervisors. We don’t have a lot of
contact with local branches – they do their own recruitment and training, under our guidance of
course. Paul and I have just about finalised a new set of guidelines and procedures that we will
be circulating to local managers shortly.
Karen: Yes, I’m sure another set of written procedures will be very helpful.
Smita: Then of course, there’s a couple of new areas which the centre have got involved in over
the last few years. We used to use agency staff to cover our busy times but the Gemma
believes that this is a very expensive option and training is always a problem, so we
discontinued that policy in …em…..August 2017.
You: anything else?
Lazlo: They changed the café into a ‘baristo and brunch’ and put it at the front of the store so
they could attract local workers in for lunch.
You: Sounds nice

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CUSTOMER SATISFACTION
Paul: Yes, but I think we might have lost some business because you used to pass the fashion
area before you got to café.
You: I see, and this was introduced in ?
Paul: Just before Christmas
Smita: Yes..there’s also a new policy on recruitment ….. When staff leave they are replaced by
someone who would fit well into the “Monique” type operation – young and with a good sense of
current fashions.
You: And relatively cheap as well.
Karen: Yes they do have that advantage, given our current need to cut costs.
Kerry: Well hopefully we won’t be in that position for long. And I’m so that you will eventually
see the benefits of my policy Karen. I believe that our younger members of staff are the future of
this organisation.

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CUSTOMER SATISFACTION
Karen: Yes, of course, but they need a lot of training, although I can see that they tend to be
more flexible. At that stage of life they change jobs quite quickly, so they don’t seem to stay with
us long.
You: Do you have any figures on staff wastage Karen?
Karen: No, but I’m sure Smita does.
Smita:Yes I’ll email the figures on how many staff leave each month to you after the meeting.
You: Any other problems Karen?
Karen: No, operationally the stores seem to be running smoothly. Mind you, the store managers
are still complaining about the new Stock Ordering System.
Lazlo: Well, as far as financial information goes the system is excellent. The tills forward details
to our central store so we know exactly how much of each line is selling.
Karen: Yes, Lazlo, I know this is your baby but it’s the automatic order replacement system that
the managers complain about. They say it orders the wrong things in the wrong sizes.

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Paul: That’s just typical of our store managers. This is one of the few actions my predecessor
took which was in the right direction. A lot of our store managers have never accepted the need
for a centralised system; they just want to control their own little empires. Well, we will drag
them into the 20th century. And then into the 21st!
Kerry: Yes the future is young and bright, just like Monique!
You: Well thank you all, I think that’s maybe a good place to stop, on such a positive note.
Paul: Just a question - I’m wondering why you are focussing only on my area and not food or
homeware. I heard customers moaning that they don’t like the new range of food. One customer
said If they wanted Sushi, they’d go to a Japanese restaurant.
You: Don’t worry Paul, we will leave no stone unturned. We are examining all areas of the
business
Paul: So what’s the next stage?
You: Well I’ve got several ideas from our conversations today and I’d like to work on them over
the next fortnight or so. Can I rely on being able to call you all to obtain clarification, and maybe
discuss some details further?

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CUSTOMER SATISFACTION
Paul: Yes of course. My staff will be only too happy to help. Look forward to hearing from you
later then
You: Thank you, Paul, for arranging this most interesting meeting. Bye.

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Appendix 2.4.5: Transcript of a Conversation in the Staff Restaurant of HBS Consultancy
Conversation over lunch pre meeting with Karen.
You: Hi, I’m from the consultancy firm and you must be Karen.
Karen: Yes, I’m the Operations Manager.
You: Delicious pate, quite a spread.
Karen: Yes, Paul believes strongly in team building. His MBA tutor at Harvard was apparently
very keen on getting people to bond.
You: A Harvard MBA, impressive.
Karen: Yes
A slightly awkward pause.
You: Yes, it can make a lot of difference to an organisation when you get an influx of new ideas,
but they do have to be tempered by practical experience. Have you been with the organisation
long?

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Karen: Yes, I’ve been here for about 10 years.
You: Right, you must have a terrific wealth of experience in this business. I am glad that we will
be working together on this – it is so useful to have a member of the team who really knows the
business inside out.
Karen: Nice of you to say so, yes I do know this business rather well. What about you?
You: Well I don’t know very much at all about the Fashion business, I’m going to have to rely on
you and your people there - but I’ve been working on retail consultancy projects for our firm for
five years now. We generally find that successful projects really are a mix of our ideas,
techniques and know-how blended with the practical experience of people, such as yourself,
who know what will work and what won’t.
Karen: Yes I can see that. Would you like some more salmon?

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Conversation in canteen with George Smith – a fellow consultant at your firm.
You: Hi George.
George: Hi, how’s tricks?
You: Ok, doing a job in the fashion retail sector.
George: Yeah, I did some work there a few months back.
You: How’s that business doing?
George: Well the fashion retail sector is doing fairly well recently. They have had a very good
Christmas, and as you know that is the key time - the Christmas period and the January Sales.
You: I thought their peak time would have been Spring when the new fashion lines come out.
George: Yes, well there is a peak then too, but it’s nowhere near as important as Christmas.
Anyway, who are you working for?

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You: “Luke Althorps”
George: Oh yeah, they still in business?
You: Well seem to be, they can afford us anyway! Why the pessimism?
George: Well it’s such an old fashioned store, and rumour has it that the new chap, Lennard,
hasn’t a clue.
You: That can’t be right. Granted he doesn’t have much practical experience, but he has a
Harvard MBA so he should know his stuff.
George: Oh, you didn’t know that he’s Oakley’s nephew?
You: No, really?
George: Yes there was a bit of a fuss about it when the appointment was made around a year
ago, but old Oakley has been there so long he has most of the shareholders eating out of his
hands!

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You: Mmm, pass the salt will you?
George: Here you are. This steak and kidney pie is very good, almost as good as the wife’s.
You: How is she? That really was a wonderful dinner party last week.
George: Glad you enjoyed it. Got most of the stuff from “Luke Althorps” actually. Their food
section is still quite good, but my wife hardly goes in there for anything else now.
You: Really? Why?
George: Well she says that the quality of their Casual Classics or whatever its called, has really
gone down, but it’s still as expensive as ever. So she goes to “Mathews” now.
You: Now they are really old fashioned!
George: Yes, but that’s what she likes. Quality first and price second. You wouldn’t believe she
studied economics at university!
You: Gosh is that the time, must rush. See you George and thanks for the info.

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2.4.4. Telephone Converstaion a few days after the meeting.
You: Hi , is that Kerry?
Sima: No this is Sima, Kerry’s PA. Can I help?
You: Well yes. I’m …………..from the consultancy company. I’m working with Kerry on a project
for Paul. Can you spare some time to talk about the focus-group exercise?
Sima: Yes sure, Kerry told me that you might
be calling just before she and Paul went off to lunch.
You: Right, first can you tell me how the exercise was conducted?
Sima: Well over a period of ten days we went to ten of our stores and arranged for a sample of
that day’s customers to come back to a session the next day at a local hotel where we
discussed various issues related to our products.
You: Any results yet?

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Sima: No, I am still going through them. I’ve finished transcribing and sorting comments for the
first day though.
You: Great, could you email me over a copy? Just to give me an idea?
Sima: Yes fine, I’ll do that straight away.
You: That’s very efficient of you. Thanks. There was just one other thing – perhaps you could
quickly describe the main market lines apart from Monique.
Sima: Yes fine –well there’s the Traditional line, basically suits and blouses, aimed at the more
mature woman. The sort of thing your mother would wear at a wedding. And then there are
Country Classics – slacks and cardigans etc. And finally there is ‘Designer Wear’.
You: I see, so what type of customer is ‘Designer Wear’ aimed at?
Sima: Well it’s aimed at customers who would like to think they are buying exclusive designs,
but don’t have the income to match. Typically our customers are the wives of middle managers
who want to impress at dinner parties and other social gatherings.

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You: OK, I see. That’s very helpful. Any chance of a word with Kerry in the next hour or so?
Sima: Oh no they won’t be back now for ages.
You: Ok fine then Thanks. Bye.

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Appendix 2.4.5. Email regarding agency staff:
Email correspondence
From: [e-mail]
To: [e-mail]
To answer your query the new recruitment policy was introduced in February 2017 Figures on
the number of leavers (Staff wastage) you asked for are attached.
Smita
Staff in Store: 7000
No of Stores: 200
Wastage Rate: (ie No of staff Leaving)
2016 2017 2018
Jan 192 170 145
Feb 171 172 165
Mar 176 182 251

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Apr 161 164 326
May 171 177 496
Jun 185 189 519
Jul 162 191 530
Aug 175 195 435
Sep 191 174 420
Oct 195 187
Nov 186 161
Dec 154 156

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Memo:
From Margot Price
Re: Customer Survey
Please find attached details of Customer Survey as requested .
Appendix 2.4.6. Customer feedback at Wickson
Customer Survey Report
Male 22%
Female 78%
Age Range
15-20 15.00%
20-25 21.50%
25-30 6.00%

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30-35 5.00%
35-40 6.00%
40-45 8.00%
45-50 7.50%
50-55 9.00%
55-60 10.00%
60plus 12.00%
100.00%
Age Range
Average time since last
visit(days) Average Purchase Value
below 30 7.3 £17.50
above 30
14.
1 £37.67

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Chheda, S., Duncan, E. and Roggenhofer, S., 2017. Putting customer experience at the heart of
next-generation operating models. Digital McKinsey", March.
Erdil, T.S., 2015. Effects of customer brand perceptions on store image and purchase intention:
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Kumar, V. and Pansari, A., 2016. Competitive advantage through engagement. Journal of
Marketing Research, 53(4), pp.497-514.
Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the
customer journey. Journal of Marketing, 80(6), pp.69-96.
Lin, Z. and Bennett, D., 2014. Examining retail customer experience and the moderation effect
of loyalty programmes. International Journal of Retail & Distribution Management, 42(10),
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Martino, G., Fera, M., Iannone, R. and Miranda, S., 2017. Supply chain risk assessment in the
fashion retail industry: An analytic network process approach. International Journal of Applied
Engineering Research, 12(2), pp.140-154.
Sarulatha, M.N. and Sasirekha, V., 2017. A Study on the Role of Social Media Networks for
Online Retailers with Special Reference to Fashion Industry in India. MIM international Journal
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Tang, C., Liu, Y., Oh, H. and Weitz, B., 2014. Socialization tactics of new retail employees: A
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