Listening to our customers
Listening to our customers
Our approach
Argos and Homebase conduct regular research to understand customers views – carrying out mystery shopper visits, exist surveys and customer listening groups.
‘Trustworthiness’ (based on choice, value and convenience) is a key customer satisfaction measure for Argos and this year 70% of customers surveyed associated Argos with this description. Argos’ research methodology changed in April 2009 and the comparative figure for last year was also 70%.
Homebase uses a monthly online survey, covering 10 product categories, to measure customer satisfaction. Its average score for the year was 85% compared with 82% last year.
What we’ve done
‘Tell Argos'
Argos has introduced direct customer feedback opportunities to strengthen its research capability – including tellargos.co.uk – a website where customers can provide feedback on their shopping experience, which is also accessible via 360 key pads in Argos stores. These pads will be installed in all stores during 2011/12. Argos received over 2.5 million customer comments through Tell Argos this year and made a number of changes as a result. Consequently it achieved record mystery shopper results this year, with an average score of 89% compared with 85% last year.
Customer reviews
Customer reviews provide valuable information to online shoppers, help our buying teams to improve ranges and allow us to keep product information in catalogues and online as accurate as possible.
Argos first introduced customer reviews in September 2008. Since then, it has received just under 1 million reviews, covering close to 41,000 products, with the average reviewer rating currently 4.2 out of 5. With over 37% of all products providing reviews, customers are now invited to link reviews with their own personal Facebook pages and assess the usefulness of any review they read.
Homebase also launched customer reviews in 2010/11.
Check and Reserve
This year 25.6% of all Argos sales were made using the Argos’ Check and Reserve service, an increase of 22% on last year. As a result, we’ve cut out even more unnecessary customer journeys and helped them reduce their carbon footprint. We’ve now introduced the same service at Homebase, branded ‘Reserve and Collect’, with sales already reaching £16 million.
Customer research
We’ve participated in the ‘Concerned Consumer Index’ for three years now. This helps understand how important social and environmental issues are to consumers in our sector over time. The most recent research shows that in the current economic climate consumers are looking for value – but that they prefer to buy from retailers who have values and live up to them.
We’re pleased to report that feedback suggests we’re offering the right choices – for example the recycling of delivery packaging and old appliances free or charge, or the use of sustainably sourced wood products. We’re also aware that consumers expect more from us and from our sector as a whole.
Accessibility
We want our stores and services to be accessible to everyone and provide information about access facilities at all Argos and Homebase stores at www.directenquiries.com. We provide facilities for hearing-impaired customers who contact our customer service call centres. We’ve worked with Soundtalking (part of the RNIB) to create an audio-version Argos catalogue – available as both a CD and online.
Responsible choices
Responsible choices
Our approach
We want to make our responsible appoach another good reason to shop with us by offering products, information and services to help our customers save money, save resources and live more sustainable lives.
What we have done
Products
This year we’ve offered customers a choice of products that:
- are more energy efficient – all our TVs now meet the latest energy efficiency standards. Find out more.
- conserve energy – for example loft and cavity wall insulation. Find out more.
- help customers ‘grow their own’ fruit and vegetables. Find out more.
- make recycling easier – for example recycling bins and composters.
- are sustainably sourced – our peat free compost is just an example. Find out more.
In addition to our sustainably sourced product options, we also want to reassure our customers that all our products are sourced responsibly.
Find out more about sustainable sourcing in our Sourcing with care section.
Find out more about ethical sourcing in our Sourcing with care section.
Product quality and safety
As a responsible business we aim to provide customers with absolute assurance about our products’ quality and safety. We require our suppliers to demonstrate their compliance with all relevant standards before we do business with them and have an in-house team that monitors product safety and quality. We commission accredited organisations to carry out factory audits and only accept product safety certification from laboratories with recognised UK accreditation or the equivalent.
We use a product safety hazard monitoring system to supplement initial checks. This has been upgraded during 2010/11 to provide ‘real time’ information about product safety issues. We also analyse customer feedback and returns data to identify and resolve any possible issues. Just over half of our product safety recalls are instigated at our suppliers request.
Information
We provide a wealth of information to help customers make informed choices.
At Homebase:
- we have trained ‘energy masters’ in all our stores
- we provide specialist buying guides on a range of topics, including home insulation and energy efficient lighting
- we publish advice to help customers reduce their environmental impact and run their homes more efficiently at www.homebase.co.uk
At Argos:
- we provide an eco-home buying guides online
- we display the Energy Saving Trust Recommended logo on energy efficient products in our catalogues and our website
Services
We provide a range of services to help customers make responsible choices at Argos and Homebase.
Homebase is currently the only DIY retailer in the UK to offer three key energy saving installation services – loft insulation, cavity wall insulation and solar panels – in store and online. This service is backed up by expert advice and a range of energy efficient products including LED lights and energy monitors.
We offer a free recycling service for packaging on all large kitchen appliances delivered to customers, with 17% taking up the offer this year. We also offer to recycle large unwanted kitchen appliances – a service used by 55% of eligible customers in 2010/11. We’re also trialling a take-back service on old mattresses and beds on delivery of selected new products and, to date, 20% of customers have taken up the offer.
Homebase, in partnership with VP plc, now offers hire services on a range of over 2,000 products as an alternative to outright purchase and both Argos and Homebase offer an extensive range of spare parts and accessories to help customers extend product lifetimes and avoid unnecessary product waste. Find out more.
Last year Argos ran a ‘radio amnesty’, encouraging customers to return their old radios for recycling when they purchased new products. Customers can also now exchange their old video games for gift vouchers.
Responsible lending
Responsible lending
Our approach
Throughout the year we have continued with our commitment to being a responsible lender as set out in our responsible lending policy. Find out more in our Policies section.
What we have done
Credit rules
We continue to work closely with regulators and trade associations to make our views heard to ensure that the unique benefits we offer customers meet our legal requirements.
Training
A dedicated training team focuses on delivering specialised training for our colleagues in Financial Services ensuring that they have the necessary skills and knowledge. The team work hard to breakdown the technical and regulatory information into training which is relevant and engaging for colleagues. The training includes testing of key knowledge to demonstrate colleagues' understanding and competency. Core elements of the training are provided on an annual basis.
Customer facing colleagues in Financial Services are routinely monitored for both service quality and regulatory compliance. Top ‘quality’ achievers are recognised and any incentive schemes we introduce include set quality requirements to ensure that we deliver compliant and good quality levels of service.
On-line service
Our recently launched on-line services, ‘myArgosCard’ and 'myHomebase card', give customers direct access to their accounts via the Internet. Customers get ‘real-time’ account information plus a range of on-line services to make managing their store-card accounts easier.
Feedback surveys
In 2010/11, the vast majority of customers we asked said they are either satisfied or very satisfied with their Argos and Homebase Cards, how they operate and the service we provide. We continue to refine the way we conduct our regular customer feedback surveys to ensure that we get responses which really represent what our customers think.Whenever customers tell us that things aren’t right we take steps to understand and rectify the problem.
Through our annual colleague feedback survey, 85% of colleagues working in Financial Services said that ‘our commitment to customers can be seen in action as well as words’; this score has increased over the previous year. We are looking at new ways to use our colleague feedback survey to measure what colleagues think about the service we provide to our Financial Services customers.
Financial Services – Home Retail Group Insurance Services Complaints Report
Home Retail Group Financial Services provides store cards and associated financial products such as insurance products to Argos and Homebase. Home Retail Group Insurance Services are regulated by the Financial Services Authority for the sale of our insurance products under reference number 314050.
We are committed to providing our customers with choice, value and convenience. Occasionally we get things wrong, and it is important to us that we learn from our mistakes and ensure our customers are kept informed of how we take steps to remedy complaints.
We have a team of people who are dedicated to managing Financial Services complaints. The Team not only make sure we investigate issues raised and respond to our customers, they also ensure that each area understands what our customers are saying.
Our complaints are used as a valuable source of information to help us improve our processes, products and services. The data below shows the number of complaints received between 4th March and 3rd September 2011 about the insurance products we sell. These figures were reported to the Financial Services Authority as part of our statutory duties under Home Retail Group Insurance Services, and the table below shows the information we submitted.
To put our complaint numbers in context:
- There was an increase in the number of complaints received when compared to the previous six month period. The increase was primarily as a result of complaints about the sale of Payment Protection Insurance.
We will continue to update this section every 6 months.