Owning the Retail Customer Experience:Increasing Revenue Through Customer Perception

retailindustry

The New Consumer RealityIn today’s tough environment, retailers need to take a long hard look at their strategies for customer engagement. Consumers today:

Ride a roller coaster of economic anxiety•Have limited time•Have more choices than ever—both in merchandise •and in ways of getting it

Expect value beyond product and price•Can shop whenever and wherever they are•

Even with the changing consumer and shopping environment, many retailers continue doing the same old thing—often focusing heavily on process improvement—with expectations of differing results. Isn’t that the definition of insanity? Forward thinking retailers are addressing these issues by aligning their organizations with the realities of today. More important, they are realizing that employees are no longer just bodies to handle operational tasks, but a strategic differentiator of both brand and customer experience.

The most successful retailers are developing strategies to own the customer experience—which involves focusing everyone in the organization on the simple, yet sophisticated task of 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:

Executives to define the experience that will enhance •the brand

Field management to direct the processes and coach their •employees on the successful implementation

Frontline associates to deliver on the plan to positively •impact the customer’s impression of the brand

When done effectively, owning the customer experience is a differentiation strategy that provides the retailer with a leg up on the competition.

Owning the customer experience yields tangible results that are music to a retailer’s ear. Case in point—see the following results from several of AchieveGlobal’s clients:

$• 1.55 increase in sales per square foot

3• % increase in conversion

4• % increase in units per transaction

17• % increase in customer satisfaction scores

12.5• % increase in average dollar sales These results confirm that a carefully branded customer experience increases sales opportunities, drives customer loyalty, and maximizes revenue.

86% of consumers quit doing business with a company because of a bad customer experience, up from 59% 4 years ago.

Source: Harris Interactive, Customer Experience Impact Report.

MERCHANDISE

MARKETING

RETAIL OPERATIONS

HR/LEARNING

IT

INCOME

GENDER & AGE

LOCATION

BrandExperience

Revenue CustomerField

Manager Manager Associate

ExpectationVs.

Perception

Corporate Target MarketsCustomer Facing Organizations(Store, web, in-home, catalog, call centers)

Owning the shopper’s experience

The Path to Owning the Customer ExperienceDrawing from extensive worldwide research and decades of experience partnering with retail clients, AchieveGlobal has outlined five critical components for retailers to own the customer experience.

1. Establish a Clear Definition Of The Desired Customer ExperienceAll members of the organization should be able to say with conviction, “I understand why this is important, what my role is in achieving the desired outcome, and I am committed to being a part of the solution”. Engaging everyone to say “I know, I care, and I can” is a transformative strategy – one that is best if it emanates from the Executive Suite and permeates every level down to the front-line.

2. Develop a Consistent Customer Engagement StrategyOnce a clearly defined experience is developed, resources, skills, and behaviors must be identified and aligned to the critical touch points or “defining moments”. Doing so will support the implementation of the strategy. A consistent, enterprise-wide set of focused tools should be developed to support the acquisition and application of skills and behaviors at all levels. Without this step, many retailers fail to see long-term success. Instead, they continue to see varied levels of implementation across all channels.

3. Individuals Utilize The Skills & Exhibit The BehaviorsCustomer expectations are based on several factors including past experience, marketing, word of mouth, and experiences at other service organizations. Through the 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 critical components provide your stores the opportunity to create loyalty among your customers, a higher referral rate to potential customers, and ultimately, greater sales opportunities.

4. Leadership Support & CoachingToo 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,

there must be active leadership at all levels to direct the processes that invigorate the strategy, and develop their people on the appropriate skills and behaviors necessary through constant feedback and coaching. One important link in the leadership chain - store managers and frontline leaders - do the critical day to day work that brings the customer experience to life. They must continually assess the level of service their team members provide customers, give feedback, both positive and constructive when necessary, and work to build a team that exceeds customer expectations. Without this support, associates lack the consistent reinforcement and application to instill the desired behaviors for successful execution. In turn, customers will report inconsistent levels of satisfaction.

5. Effective Corporate Support At All LevelsOperational focus is still critical to a retailer’s success and plays a critical component of owning the customer experience. However, it is not the only thing. Too often corporate leadership pays attention only to productivity or revenue metrics. While important, so is the need to align those metrics and other dashboard measures to the appropriate skills and behaviors aligned to the customer experience. Doing so will align the tangible tasks and measures like revenue, inventory, marketing, with the proper skills and behaviors that impact those results.

Assess, Evaluate, Course CorrectHere’s the usual scenario: store operations say they need training in the store. They turn to their Learning & Development group and ask for a training program. A program is developed and implemented—problem solved, right? While the retail industry is known for gathering data on everything, very few truly utilize the data in an effective way to assess the success of their strategies. A critical component of any strategy is to continually assess, evaluate that data, and make course corrections before it’s too late. By assessing the current strategy, evaluating the outcomes, and fine-tuning the strategy, retailers will continue to raise the bar and stay ahead of their customers’ expectations.

The top three drivers for investing in customer experience management are:

Improve customer retention – (1. 42%)Improve customer satisfaction – (2. 33%)Increase cross-selling and up-selling – (3. 32%)

Aberdeen Report – Customer Experience Management: Engaging Loyal Customers to Evangelize Your Brand

81% of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competition.

Peppers & Rogers Group

World Headquarters8875 Hidden River Parkway, Suite 400Tampa, Florida 33637 USAToll Free: 800.456.9390

www.achieveglobal.com

© 2012 AchieveGlobal, Inc. M01241 v. 5.0 (02/2012)

How We Can HelpTo begin on the road of developing a customer experience strategy, ask yourself the following questions:

What is the essence of our brand promise?•What will it take to create a consistent experience across •all channels?

What is the precise customer experience that realizes •the promise?

What skills, attitudes, and behaviors are needed to enable •a successful implementation?

What are the responsibilities of leadership to ensure •successful support and reinforcement?

What metrics will be aligned to support the ongoing •measurement of the customer experience impact?

AchieveGlobal is prepared to work with you to address those questions, and help design and implement a customer experience strategy. The difference between consumer loyalty and indifference lies in what the customer feels—their emotional connection to your brand and people. A detailed focus on the role human interaction plays is critical to owning the customer experience. Without it, it’s the definition of insanity.

About AchieveGlobalIn the 21st century, the level of human skills will determine organization success. AchieveGlobal provides exceptional development in interpersonal business skills, giving companies the workforce they need for business results. Located in over 40 countries, we offer multi-language, learning-based solutions—globally, regionally, and locally.

We understand the competition you face. Your success depends on people who have the skills to handle the challenges beyond the reach of technology. We’re experts in developing these skills, and it’s these skills that turn your strategies into business success in the 21st century.

These are things technology can’t do. Think. Learn. Solve problems. Listen. Motivate. Explain. People with these skills have a bright future in the 21st century. AchieveGlobal prepares you for that world.