Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Owning the Retail Customer Experience: Increasing Revenue Through Customer Perception
1. retail
industry
Owning the
Retail Customer
Experience:
Increasing Revenue Through
Customer Perception
2. The most successful retailers are developing strategies to own
86% of consumers quit doing business with a company because the customer experience—which involves focusing everyone
of a bad customer experience, up from 59% 4 years ago. in the organization on the simple, yet sophisticated task of
Source: Harris Interactive, Customer Experience Impact Report. ensuring a customer’s perception of a shopping experience is
greater than their expectations. To do that, it takes more than
floor set changes or lighting. It takes the ability of:
The New Consumer Reality
In today’s tough environment, retailers need to take a long • Executives to define the experience that will enhance
hard look at their strategies for customer engagement. the brand
• Field management to direct the processes and coach their
Consumers today: employees on the successful implementation
• Ride a roller coaster of economic anxiety • Frontline associates to deliver on the plan to positively
impact the customer’s impression of the brand
• Have limited time
• Have more choices than ever—both in merchandise When done effectively, owning the customer experience is a
and in ways of getting it differentiation strategy that provides the retailer with a leg up
on the competition.
• Expect value beyond product and price
• Can shop whenever and wherever they are Owning the customer experience yields tangible results that
are music to a retailer’s ear. Case in point—see the following
Even with the changing consumer and shopping results from several of AchieveGlobal’s clients:
environment, many retailers continue doing the same old • $1.55 increase in sales per square foot
thing—often focusing heavily on process improvement— • 3% increase in conversion
with expectations of differing results. Isn’t that the definition
of insanity? Forward thinking retailers are addressing these • 4% increase in units per transaction
issues by aligning their organizations with the realities of • 17% increase in customer satisfaction scores
today. More important, they are realizing that employees • 12.5% increase in average dollar sales
are no longer just bodies to handle operational tasks,
but a strategic differentiator of both brand and These results confirm that a carefully branded customer
customer experience. experience increases sales opportunities, drives customer
loyalty, and maximizes revenue.
Owning the Shopper’s Experience
Corporate Customer Facing Organizations Target Markets
(Store, web, in-home, catalog, call centers)
Brand
MERCHANDISE
Experience INCOME
MARKETING
Expectation
RETAIL
Vs. GENDER & AGE
OPERATIONS
Perception
HR/LEARNING
Field
IT Manager Manager Associate Revenue Customer LOCATION
3. there must be active leadership at all levels to direct the
The top three drivers for investing in customer experience processes that invigorate the strategy, and develop their
management are: people on the appropriate skills and behaviors necessary
1. Improve customer retention – (42%) through constant feedback and coaching. One important
2. Improve customer satisfaction – (33%) link in the leadership chain - store managers and frontline
3. Increase cross-selling and up-selling – (32%) leaders - do the critical day to day work that brings the
customer experience to life. They must continually assess
Aberdeen Report – Customer Experience Management: Engaging the level of service their team members provide customers,
Loyal Customers to Evangelize Your Brand
give feedback, both positive and constructive when
necessary, and work to build a team that exceeds customer
The Path to Owning the Customer Experience expectations. Without this support, associates lack
Drawing from extensive worldwide research and decades of the consistent reinforcement and application to instill
experience partnering with retail clients, AchieveGlobal has the desired behaviors for successful execution. In turn,
outlined five critical components for retailers to own the customers will report inconsistent levels of satisfaction.
customer experience.
5. Effective Corporate Support At All Levels
1. Establish a Clear Definition Of The Desired
Operational focus is still critical to a retailer’s success
Customer Experience
and plays a critical component of owning the customer
All members of the organization should be able to say with experience. However, it is not the only thing. Too often
conviction, “I understand why this is important, what my corporate leadership pays attention only to productivity
role is in achieving the desired outcome, and I am committed or revenue metrics. While important, so is the need to
to being a part of the solution”. Engaging everyone to say “I align those metrics and other dashboard measures to the
know, I care, and I can” is a transformative strategy – one that appropriate skills and behaviors aligned to the customer
is best if it emanates from the Executive Suite and permeates experience. Doing so will align the tangible tasks and
every level down to the front-line. measures like revenue, inventory, marketing, with the
2. Develop a Consistent Customer Engagement Strategy proper skills and behaviors that impact those results.
Once a clearly defined experience is developed, resources,
skills, and behaviors must be identified and aligned to the Assess, Evaluate, Course Correct
critical touch points or “defining moments”. Doing so will Here’s the usual scenario: store operations say they need
support the implementation of the strategy. A consistent, training in the store. They turn to their Learning &
enterprise-wide set of focused tools should be developed Development group and ask for a training program. A
to support the acquisition and application of skills and program is developed and implemented—problem solved,
behaviors at all levels. Without this step, many retailers fail right? While the retail industry is known for gathering data
to see long-term success. Instead, they continue to see varied on everything, very few truly utilize the data in an effective
levels of implementation across all channels. way to assess the success of their strategies. A critical
component of any strategy is to continually assess, evaluate
3. Individuals Utilize The Skills & Exhibit The Behaviors that data, and make course corrections before it’s too late.
Customer expectations are based on several factors By assessing the current strategy, evaluating the outcomes,
including past experience, marketing, word of mouth, and and fine-tuning the strategy, retailers will continue to raise
experiences at other service organizations. Through the the bar and stay ahead of their customers’ expectations.
use of defined skills and behaviors that have been aligned to
your defining moments, your associates have the opportunity
to create a positive gap between what a customer expects
and their perception of the actual experience. These 81% of companies with strong capabilities and competencies for
critical components provide your stores the opportunity delivering customer experience excellence are outperforming
their competition.
to create loyalty among your customers, a higher referral
rate to potential customers, and ultimately, greater sales Peppers & Rogers Group
opportunities.
4. Leadership Support & Coaching
Too often when a customer experience strategy is
implemented, retail leadership utilizes a “fingers crossed”
implementation, hoping it will stick. To truly see the desired
outcomes that a customer experience strategy can achieve,