Sears has always stood for customer service.  I remember as a kid growing up in the 80s and early 90s that Sears was “the” place for my parents to shop.  Everything from my school clothes to the washing machine came from Sears – and when something went wrong, Sears was always there to take care of things.  Didn’t have the right size?  They’d get it.  Needed advice on what to buy?  They knew their stuff.  Something broke?  They’d knock themselves over to fix it.  They were the hallmark of customer service and if you ask many folks, especially older folks, they will tell you that Sears stood 110% behind the motto, “Satisfaction Guaranteed or Your Money Back.”

Today, a quick search around the ‘net and you’ll see that the  biggest gripe with many folks about Sears is their lack of customer service.  Phone calls that never get returned; orders that disappear into the ether; items that break that take month to get fixed; folks in the stores who just don’t understand what they are selling.  It’s frustrating for them, and as anyone in marketing can tell you, once you get a customer unhappy with you it’s almost impossible to turn them back into a loyal, satisfied customer.

I myself have recently went through this with two orders I placed on the Sears.com website.  Both orders ran into problems – and while I understand that issues come up, what really got me was that nobody really knew (or seemed to care) how to resolve the problem.  Endless phone calls that never produced a successful resolution.  Even when the person at the other end of the phone wanted to help, tried in desperation to help, they often hit a roadblock.  One lady I was talking to tried in vain for over 15 minutes to get the store to answer the phone.

No amount of money can fix bad customer service.  Sure, some of the stores could use some TLC, but you can have the fanciest, most modern store in the world and it doesn’t matter if your customer experience is lacking.  Customers will leave in droves never to return again no matter how shiny the tile is or how fresh the paint smells.

Of course there are stores that try, and some that succeed, in still delivering the customer service that Sears was once known for.  One store that does this amazingly well is the Sears mall store located in Columbia, Missouri.  In my travels throughout the US I have visited Sears stores in over 12 different states.  I can say that hands down, this store far surpasses any other store I’ve been to in the customer relationship department.  It’s not the fanciest or biggest store Sears has (it’s classified as a “B” store), but the people there are truly amazing.

Take for instance a gentleman named Miles.  Miles has been with this store since – well, as long as I can remember.  He’s an appliance salesman, but he’s more than just someone who wants to sell you something.  He listens to the customers, he asks them about what their needs are – and then he recommends a product to fit their needs.  I would drive halfway across the state to buy something from Miles.  I remember a time when I was having a tough time tracking down a light bulb for the water dispenser in our refrigerator.  It used a non-standard design and I went in the store looking to see if they could possibly order one.  Miles listened, then he went into the backroom and came out with one – no charge.  I wasn’t looking for a freebie that day, but he wanted me to leave a happy customer and so he performed a small gesture that meant a lot to me.  That’s what customer service is all about.

Sears corporate would do well to send some of their top brass to this store to find out how to do things right.  They could learn a lot from spending just a few days on the floor with not only Miles, but many of the other employees there.  Even the manager of this store is amazing – I happened to be in the hardware department one day when she overheard me talking with an employee giving my name so he could send me some information to my email.  She came up to me and engaged me in conversation and thanked me for the positive comments I had put in for the store.  Again, here was a gesture that cost the company absolutely nothing but meant a lot to me, the customer.  To this day when I’m in the store if she sees me she will say hello and ask how I am doing – you can’t buy customer satisfaction like that.

My partner Keith worked for Sears for most of his early adult life.  He was a former employee of the Sears in Columbia, leaving 6 years ago to finally get his college degree.  To this day he looks for any opportunity to return to Sears because he, like me, believes in Sears.  He really misses the customers and the interaction he had; and though sometimes I think that perhaps he is seeing Sears with rose colored glasses, I think in the end he really understands what it will take to make Sears great again. 

If anyone from Sears is reading this, believe me when I say there are those of us out here who still believe in the company.  We want to see you survive, to thrive, and to be the American icon you once were.  Money alone won’t make that happen – because in my opinion what can really help turn Sears around is something that costs very little, yet has enormous returns on investment – customer service.

Kmart, unfortunately, has been through some very rough times.  At one time they were the largest retailer in America, far surpassing Wal-Mart, and boasted over 2,300 stores.  Today, that number has fallen to 1,300 stores and as many folks know the company itself went bankrupt in 2002 and was eventually merged together with Sears, another iconic retailer that has fallen on hard times.

Yet, Kmart has continued to survive to despite it all.  In fact, they have not only survived – but they have also started to turn things around.  Same store sales have increased and their famous layaway program has proven to be a big hit during these troubled economic times.  Just when it looked like Kmart was done for, they managed to pull themselves up by their bootstraps and regain some of their lost ground.

But, despite all this, they face a problem that only has one solution.  You see, most Kmart stores haven’t been remodeled in almost 20 years.  Common complaints from people who shop there, or visit a Kmart for the first time, is the same thing:  dirty stores, dilapidated buildings, old shopping carts, confusing store layouts, etc.  Kmart has some of the oldest locations of any other retailer, and due to the 2002 bankruptcy and merger with Sears many of the stores haven’t seen much needed maintenance and remodels.

Don’t get me wrong – some Kmart locations manage to get by with what they have.  Plus, to be fair, a few locations have been remodeled.  However, out of 1,300+ locations, only a handful have been remodeled in the past few years.  Others have seen only marginal improvements such as new shopping carts, some fresh paint here and there, and other low-cost band-aids to help the stores continue to operate and look at least a little better.

Kmart could really compete if only given the chance.  The problem is, they can’t compete because of the 800lb gorilla in the room – Sears.

While Kmart has managed to win back shoppers and increase revenue, Sears has been bleeding money like crazy.  The latest quarterly results show that Sears lost over 260 million dollars.  That’s a lot of money.  Money that could be used to do remodels, refresh stores and help people rediscover the stores.

Sears is in bad shape.  Worse shape than even Kmart was in back in the day.  Their stores are also ancient and in desperate need of remodeling.  Many of their core shoppers, older and elderly folks, are no longer around.  They struggle with clothing and apparel lines that nobody wants to wear.  Their bread and butter, appliances and hardware, is suffering because of the economy and also because of the condition of the stores.  Nobody is going to buy a $1,500 refrigerator from a store that appears it will be going out of business in the next 30 minutes.  Top that with severe cost-cutting measures that have drained a lot of the talented personnel who once worked in the stores.

Honestly, as an outsider looking in, I don’t see that much hope for the Sears department stores.  It’s time they let the Titanic sink without trying to patch the hole with scotch tape anymore.  There simply isn’t enough money to keep two retail chains going that are both in need of desperate makeovers.

The only hope Kmart has of surviving is to realize that Sears is dead, it’s time to let Kmart live again.

As I walked into the hardware department I had noticed another customer being helped by an employee who appeared to be discussing a problem they had.  I really didn’t pay much attention to it, and another employee came over to help me.  When I was finished with my transaction (which took all of 2 minutes) I noticed that the discussion between the other employee and customer was getting more agitated.

Let me state that I do not know what the concern/question/issue was with the customer.  He may have been right, he may have been wrong – but that is beside the point.  Right or wrong, he obviously needed some assistance.

The employee was doing his best, but he acknowledged that he needed help.  I decided to hang back for a bit to see how this played out.  The employee went off to find a manager to help the customer.

And the customer waited; and waited; and waited.

Pretty soon the customer started moving around and getting agitated.  He approached security cameras and started making obscene gestures.  At that point in time I thought I’d go off and see if I could find another employee or manager to help him.  My efforts were futile.  The few employees I found were helping other customers – and I saw nobody in management around anywhere.

Soon things escalated even further.  The customer started banging on merchandise; taking things off shelves and displays and moving them around.  At this point I knew things were just out of control.  Where was management at? Where was security at?  I started hearing messages being broadcast over the PA system – code words and numbers being used.  Was this security trying to inform non-existent personnel of a problem on the floor?  And why was nobody coming out to help this man? 

The employee came back and said he was not having any luck finding a manager and was going to keep trying.  I followed him over to the television/appliance department where he asked another employee if he had seen a manager around.  The answer was, of course, negative.

At this point you could tell that this was not someplace you wanted to be anymore.  If there were any customers in the hardware department they had long since left (I certainly wouldn’t blame them).  The customer was now throwing more merchandise around and moving it about.  I decided at this time that before things escalated any more I was going to get the heck out of there.  I had no desire to be around should things turn any worse.

All the while this was happening I was on my phone.  I send messages via Twitter to @MySears hoping that someone would respond back or at least call the store to find out what was going on.  To my knowledge nobody did.  I looked around for a customer service number – perhaps I could call that and let them know that they needed to page/call/do something to find a manager.  Nope, none of those around either. 

The employees were doing their best – I don’t fault any of them.  They were doing what they were empowered to do, and I suspect that many of them didn’t want to be anywhere near this irate customer.  I certainly can’t blame them.  The problem is they needed management help – and there was no help to be found.

Sears has problems, and big ones.  The last few years have been disastrous for the company and the stores.  They have been stripped bare of employees, they are failing into ruin and the customer frustrations are just mounting every day.  A quick news search on Bing will show you the constant complaints and frustrations that customers are going through each and every day. It is so sad to see this once great American icon fall into disarray.

What few employees are left it seems do care – but they are powerless to change things.  Eddie Lampert does not know how to run a retail store, and it is obvious.  I would have much rather seen Sears exit from the retail landscape with its dignity and customer-focus intact rather than see what is happening to them now.  Gone are the days when Sears stood for quality and customer service.  Anything that costs money seems to be on the chopping block.  Even Wal-Mart is delivering better customer service than Sears is nowadays.

I fear my lifelong friend – the one who filled my home with Kenmore appliances; the one who stuffed my tool chest with Craftsman tools; the one who kept my car going with Diehard batteries – is dying.  Worst part about it is that he is not even dieing a dignified death.

I originally posted this on MyKmart.com, a public forum where customers and employees can talk about Kmart and suggest ideas for improvement, and talk about their general experiences.  I’m reposting it on my blog because Kmart still continues to be my favorite place to shop, but they are a classic example of how a negative brand image can really hurt a company – even after the initial reason for the bad image has past.  You can read the original thread here.

It’s good to see so many people getting involved and telling their stories about Kmart and Sears.  I’d like to give my input using my marketing background a bit to respond to the whole Sears vs. Kmart thing.

Brand name and brand image play an important part in consumer choices.  Kenmore and Diehard are two brand names that most consumers have a positive image of and therefore they tend to be the leaders in their categories.  As a company, many people also have a positive image of Sears.  Almost everyone grew up with Sears and they have a reputation of still being customer-focused (granted, they did slip for about 3 years but I think they have gotten back on track).

On the other hand Kmart’s #1 problem is not what they are doing today.  I think that Kmart is doing everything extremely well from what I can see (I’m a customer, not an employee) and I’ve been very impressed at the turnaround I’ve seen in the stores and in the way they advertise.

Kmart’s problem is an image problem that started back in the late 1980s and continues to this day.  So many people have a negative image of Kmart because of the sad shape the stores got into during the late 80s and 90s.  People think of Kmart as dirty, unorganized and below Wal-Mart in terms of quality (I’m not making this up, numerous marketing textbooks and studies have shown this).  The bankruptcy of Kmart seriously hurt them even further, and until the merger with Sears most stores had not seen a remodel since the early 90s (if that).

Today Kmart is turning its image around, but one of the most difficult things to do in marketing is to take a brand that has a negative image and turn it into a positive one.  From the publicly available data out there, we know more people are returning to Kmart stores and we know that the quality of merchandise has been improving.  It’s now up to Kmart to get those people to become loyal shoppers, and to continue the momentum they built.

I’ve posted it before, and I’ll post it again, but I fully expect Kmart to shutter more stores in the next few years.  There are some stores that just will not be profitable no matter what they do.  They are in a bad location or they are in such bad shape the cost of trying to modernize them is just prohibitive.

I think in 3-5 years we might see the opening of new Kmart’s — but it won’t be a massive expansion.  Select locations, maybe 2-5 a year max; and that might be a generous number.

Kmart had a long rise to the top (in 1986 Kmart was the #1 shopping destination in America) and subsequently their fall to the bottom was hard and painful.  However, I still have faith in the Kmart brand, the people behind Kmart and in Sears Holdings.  I grew up with both Sears and Kmart, and to this day every appliance in our house says Kenmore and every tool in the garage says Craftsman.  I haven’t given up on them yet, and don’t intend to give up on them anytime soon.

It’s been a brutal few days for Sears Holdings (SHLD) the parent company of both Sears and Kmart.  After dismal 2nd quarter numbers that shocked analysts (and shocked me) a lot of people are starting to prepare for the end of Sears.  In short, the company not only fell on its face last quarter, but it did so in such a way that the rest of the retail world is left to wonder just what has happened to this once iconic company and brands.

Ever since the merger of Sears and Kmart in 2005 it has been a disaster, to put it nicely.  Under the new leadership the stores are falling apart, customer service is non-existent and a corporate strategy is nowhere to be found.  There was a time when Sears stood for “Satisfaction Guaranteed or Your Money Back”.  Well nowadays it should read “Nothing is Guaranteed in Life — Especially Any Hopes of Getting Customer Service Here.”.

Of course I still think that both Sears and Kmart have tons of potential.  However, it seems there is no clear direction by either brand nowadays.  They both just launched a wonderful Christmas Club program (a little late in the year, but better than never) but you wouldn’t know about it unless you went to a Sears or Kmart store – and judging by sales figures, nobody is.  The problem is they advertise to the few people (like me) who still go there instead of advertising to the masses to draw people into the store.  I have no doubt if they would spend a few dollars on advertising this Christmas Club program they would have people flocking into the stores – especially in this crappy economy.

The same goes for the bluelight specials that have returned to Kmart.  What’s that?  Haven’t heard of it?  Well don’t worry, neither have most people who haven’t set foot in Kmart in a few years.  Again, a lack of advertising outside of the stores has meant this program, which could draw a lot of shoppers back in to see what it is all about, has left Mr. Bluelight fallen flat on his face.

So advertising is one area where they fall flat, but store maintenance is another area they are failing at as well.  Kmart stores are old – many of them haven’t seen a remodel since the 90s – and they show it badly.  Tile that is falling part, carts that are rusting to pieces and a decor that screams 1976.  Sears Holdings management has not invested the money to revamp these stores and in many cases just lets them fail.  Another retailer will move in right after them, revamp the building and do stellar sales.  It just makes absolutely no sense.  A little bit of money now could see dramatic sales increases at the stores – but it seems nobody wants to invest a few dollars to take that risk.  They would just rather sit around while Rome burns.

When it comes to the Sears experience I’d stop blaming the housing market and start bringing back the customer service people came to expect from Sears.  Staff the stores, and stop this outsourcing of call centers and people who can help.  Make people proud to have a kitchen full of Kenmore appliances and a garage full of Craftsman tools.

In fact, customer service has fallen so badly at Sears and Kmart it has become a joke.  This past weekend I ordered a blender from Sears.com and the hassle I had to go through to get it was unbelievable.  First, the advertised e-Buster prices they had on the website would not show up correctly in the cart.  I placed the order and thought “no problem, I’ll call them up and they will adjust it” like every other merchant does.  Nope – the lady, although sympathetic, said all she could do was put in a request for a price adjustment.  Talk about a dismal fail.  Why in the world can’t the CSR’s do price adjustments?  When I went to pick the item up at the store the price in the store was $20 lower than what it was online.  At least the lady in the store was able to do a return of the item and repurchase at the lower price.  Still, this was just ridiculous.  CSR’s who aren’t empowered to do anything but say “I’m sorry” and a website that does not reflect the right pricing (I’ve had incorrect pricing show up in my cart many times on Sears and Kmart.com).  Epic fail.

The time for fooling around is over.  Way too many analysts are writing the obituary for Sears and Kmart.  It’s time they did something, and did it now, instead of sitting around and wait.  Find a clear corporate strategy and stick with it.  Their biggest strength right now in this economy is layaway and the Christmas Club.  If I was Sears Holdings management I’d push this strategy non-stop this holiday season starting right now.  Then for 2010 I’d start the Christmas Club program on January 1st.  I’d make Sears and Kmart synonymous with shopping smart.

This loyal shopper predicts unless they do something, and do it soon, Sears Holdings has probably two more years before it collapses.  So Sears, it’s up to you – are you going to sit around and go into retail history, or are you going to at least try and save yourself?  The customers (the few of us that are left) can’t do it for you.

How many other companies do you know (especially ones that are as big as Sears) that would engage with you 1-to-1? 

If you aren’t on Twitter, the only question I have for you is, “Why?”  Get on there and then start following Sears to see how Twitter can be used as a customer service tool.

Never heard of Delver?  Don’t feel bad – I haven’t either.  So wondering what the heck Sears is doing getting into the search engine business I took it for a spin.  What I discovered was interesting to say the least.  I think I see where Sears might be going with this purchase.

Delver is a search engine with a twist – it puts emphasis on your social networks recommendations and connections to deliver search results.  According to their about page, they are harnessing the indexing power of  your social network and what they are referencing to deliver search content that is, in theory, more trusted because it comes from your inner circle.

Ok, so they are a search engine that is hopping on to the social networking bandwagon.  That’s great, but the question comes back to why is Sears buying them?

It’s my opinion they are being bought by Sears for three reasons:

• Sears “gets it” when it comes to social media.
• Sears understand the marketing landscape is changing because of social media.
• Sears has to be relevant.  Times have not been good for them, and they can’t afford to be a follower anymore – they need to be a leader.

It all boils down to basically one statement … it’s all about the social media.

Sears Holdings has been one of the best retailers out there (aside from Amazon) to embrace social media.  They are on Facebook, Twitter and MySpace.  They interact with their customers (both the good and the bad, positive and negative reactions) through an online community they setup last year called SK-You (which stands for Sears, Kmart and You).  Click-to-Brick shopping?  They do it better than any company out there.

Sears and Kmart both have suffered badly in the past few years because of negative perceptions and their inability to execute in a changing marketplace.  They have run afoul of the blogosphere a number of times, and the complaint jar is running over for both companies.  They are on the brink of becoming irrelevant – jus like Circuit City.  That is why I believe this purchase is an attempt to be a leader again, to be innovative and stay relevant in a challenging retail atmosphere.  Why take Sears word for it that the Kenmore refrigerator is the best value when your social network can tell you?

Some people may not see the newsworthiness of this announcement, and some may question the move altogether.  However I think this is another clear indication that Sears “get it”.

As I’ve written before, I’m a Kmart kid – it was where I grew up shopping at.  I still love the store, and love the memories even more.

It’s good to see Web 2.0 technologies being used by what were considered old and outmoded companies – and it’s even better to see companies actually trying to improve their products and services by interacting with the consumers directly.

Turn on the bluelight, I’m heading over to my savings place!