DVD Rental Improving Customer Service at Vista Case Study

DVD Rental

Improving Customer Service at Vista DVD Rentals

The Vista DVD Rentals store is at a crossroads. After a number of years in operation, the store is facing a critical turning point that could dictate future survival or the suspension of any further business. The transformation must revolve on vastly improved customer service. As is the case for most businesses in New Zealand, customer service has come to play an increasingly important role in Vista's relevance. Consumers have come to expect a certain level of accommodation on the part of a retail or rental operation and this imposes a high level of importance on the decisions that companies make with respect to the customer experience. Essentially, customer service can be defined as the set of standards, practices and procedures that shape the customer's experience through the course of a business transaction. This denotes two primary aspects of customer service: that which relates to the experience within the context of a single transaction and that which relates to the long-term experience of the customer in the context of an ongoing business relationship. As the discussion hereafter will demonstrate, these two aspects are directly entwined. Provided that the former is characterized by convenience, flexibility and consistency, the latter is likely to become a long and fruitful relationship for both sides.

Convenience:

First and foremost for Vista is the need to improve the convenience of its operation. As more and more customers determine to make their rentals through online measures, Vista must take efforts to ensure that its service model achieves a higher level of accommodation. Among the reasons that Vista has struggled in the past is its inconsistency of hours, the fact that the store is neither open particularly late or particularly early and the fact that it continues to charge exorbitant late fees even for rentals returned minutes passed their due date. These impediments to customer convenience are likely to turn many customers toward the more convenient online modes of DVD rental.

Still, there is evidence that many customers still prefer a personal and social interactiveness during this process. As Doolin (2005) notes in its research online retail models, one such "model was tested using a survey of some 700 New Zealand Internet users. Both the perceived risk and perceived benefits of Internet shopping were found to be significantly associated with the amount and frequency of online purchases made. Loss of social interaction in Internet shopping was associated with reduced online spending." (Doolin et al., p. 66) This denotes an opportunity for personalized businesses such as Vista. By taking such efforts at improved convenience as extending the store's hours to midnight, ensuring that the store is no longer subject to unplanned closings and removing late fees for DVDs that are returned before sunrise of the next day, Vista might help to keep some of its customers that might otherwise move to the web for their rental services.

Flexibility:

Establishing flexibility is also tremendously important for Vista. At present, the company suffers from the many of the limitations of a small, family owned business. This includes a shortage of personnel and limitations of payment methodology. It is time for Vista to begin viewing its family orientation as a benefit…