Author Archives: Jennifer Bosavage

by Jennifer Bosavage

Customer survey results can be misleading

 

 

Many retailers ask customers for ratings on the service they received during a shopping trip.

Often, these requests to complete a survey are made from the associates themselves, and reinforced through a reminder on the receipt.

But exactly how valid are the results from these surveys?

At least one team of researchers say the answers aren’t as truthful as retailers might hope.

 

Customers are biased in favor of employee security

This week, NPR’s social science correspondent Shankar Vedantam talked on-air about a conversation he had with John Horton, a business school professor at New York University.

Horton and his colleagues had studied what the consequences were when people were asked to rate their service.

It turns out, there is bias inherent in such survey questions, because people are reluctant to give others a harsh rating: Fearing their answers may jeopardize employee jobs, respondents tend to rate service higher than it deserves.

So, even if a customer feels that an associate could have been friendlier, or more knowledgeable, he or she will give a three or four-star rating, rather than a more objective one or two-star rating.

Customers know that there are companies that will fire employees that have low ratings, and many don’t want to be responsible for someone becoming unemployed simply if he or she was having “a bad day.”

 

Use feedback for training

That does not mean, however, that customer feedback can never be trusted.

To obtain meaningful results, the survey must itself be constructed without bias.

Horton and his colleagues analyzed data from a large online platform with over a billion dollars in transactions.

They learned that when a rating platform informs users that the feedback is going to be private and that it won’t be used to punish providers, users will provide more critical feedback.

The lesson is that even simple, one-question surveys can provide valuable feedback, as long as they don’t appear to threaten the livelihood of individual who is being evaluated.

 Read blog: 3 CX improvements that drive revenue growth

If the survey makes it clear that the feedback is used for training purposes, participants will be honest.

And then future experiences might truly be worthy of a five-star rating.

 

 

by Jennifer Bosavage

4 ways to use pop-ups’ popularity to boost your brick & mortar strategy

 

 

Pop-up stores are a popular way to freshen brick and mortar presence as well as to physically connect e-commerce retailers to their customers.

They have been around for a few years, but they have steadily become increasingly popular.

In fact, the recently defunct Toys R Us chain had reportedly exploring popups as a possible comeback before deciding finally to reimagine their in-store experience.

The strategy is a cost-effective way for many types of retailers to experiment in physical retail, from e-commerce giant Alibaba to brick and mortar veteran Macy’s.

Here’s how you can use pop-up shops’ popularity to boost your profits.

 

1: Collect data

Pop-up stores that are spawned from brick and mortars tend to be much smaller and more focused than their parents.

New brands or trendy items can easily be curated and then tested in a pop-up shop.

Once inside, shoppers movements can be tracked with video cameras, allowing retailers to learn what items piqued shoppers’ interests, and what didn’t.

 

2: Promote your cause

Popups are a great way to illustrate the power of cause marketing.

Retailers often have “pet” charities, and popups let retailers focus on that cause.

Specific merchandise is showcased and a portion of the profits are directed to the charity.

Press coverage is often also a welcome by-product of this strategy.

Customers expect their favor stores to align with charitable causes: 86% of consumers believe that companies should take a stand for social issues.

64% of those who said it’s ‘extremely important’ for a company to take a stand on a social issue said they were ‘very likely’ to purchase a product based on that commitment, according to the 2018 Shelton Group’s ‘Brands & Stands: Social Purpose is the New Black.‘

 

3: Connect with the neighborhood

E-commerce companies looking to form a local connection have found popups an ideal solution.

Alibaba, for example, opened 60 physical pop-up stores in 52 malls across 12 cities in China for Single’s Day last year.

More than 100 brands participated, including L’Oréal, Unilever, Procter & Gamble and Lego.

 

4: Test new technology

Due to their small size, popups are the equivalent of a test market.

New POS software, smart shelves, and virtual reality solutions such as the “magic mirror,” which lets shoppers try on items such as sunglasses, cosmetics and apparel virtually.

Pop-up stores provide a bit of spark to brick and mortar retailers that may be unable or unwilling to shake things up inside their existing stores.

Popups’ focus on trends or charitable causes is an effective method to encourage brand loyalty as well as bring in new clientele.

 

by Jennifer Bosavage

VIP experiences that build loyalty in luxury retail

 

 

Luxury shopping is an experience all its own.

Included in the unique ecosystem of retailers catering to the very wealthy are loyalty programs.

Many recent program launches come from companies realizing that they need assistance building loyalty among affluent millennials, a subset that spends north of $2 trillion annually.

While stores are focused on rewarding their VIPs, the benefits are more high-flying than discount coupons and special events.

 

High personalization

First, these top-shelf programs are highly personalized.

Customers spending thousands of dollars expect to feel valued.

These programs go the extra mile for clients who are not only big spenders but often also influencers.

One highlight of such programs include concierge services.

Concierge services are the epitome of personalization — they are dedicated to helping regular customers optimize their shopping experiences.

For a fee, customers are treated to a variety of special services, including events, personal shoppers and exclusive experiences.

These retailers are betting that this extraordinary treatment will tighten the loyalty bond between customers and stores.

For example, jewelry companies might offer concierge services to customers who have made a large purchase such as an engagement ring to help them plan the engagement party.

Luxury car dealers such as Infiniti offer the free use of a personal assistant 24/7 for four years.

Companies can easily generate brand engagement and loyalty by providing assistance with important life moments as well as more mundane daily tasks.

Brands that reach out to customers, provide enhanced delivery and after-care services create deeper relationships and long-term loyalty.

Those companies may have rarified customers, but the retailers are down to earth when it comes to understanding their market, customers and goals.

Strategy is customized in a way that might include personal concierge services or a custom loyalty program — but both make customers feel valued.
 

Cutting-edge digital experience

Technology can help make a good experience great.

Traditional concierge and loyalty services are being enhanced with cutting-edge digital services.

By integrating the latest technologies into a traditionally low-tech segment, customers receive a truly unique experience.

Creating a deep emotional connection between brand and customer drives long-term loyalty.

The stakes are higher with the luxury segment, because expectations are much greater.

Loyal customers are the holy grail and the ultimate goal of any successful business, but retailers must commit to a long-term strategy with continual updates to ultimately be successful.

 

by Jennifer Bosavage

3 realities about your Baby Boomer shoppers that will help you win them over

 

 

Baby boomers — those customers between the ages of 54 and 72 — are predicted to increase their spending by 58% to $4.74 trillion over the next 20 years.

That’s far more sales growth than millennials, whose spending will grow by only 24%.

With an estimated 75.4 million baby boomers in the United States, retailers can’t afford to ignore this segment of the population.

Here are 3 realities retailers often fail to recognize about their baby boomer customers.

 

1: Boomers see technology as a tool.

Technology is a clear winner when used as the means to an end: Tablets for line-busting or to check inventory are welcome.

Technology that is seen as distracting or as taking away from the customer experience is a no-no. The demographic is not digital-native, so the sales experience should be personal, with eye contact, helpful associates and relationship building, i.e., conversation.

Only 12 percent of boomers said in a Colloquy survey that they rely on family and friends to help them decide on a purchase, so social sharing before buying is fairly uncommon.

 

2: Boomers enjoy shopping in-store.

The Colloquy report found that a whopping 84% of respondents said they preferred to shop in-store.

That figure is likely tied to Boomers high expectations of personal service.

There’s a tremendous opportunity for retailers that choose to invest in understanding this demographic’s characteristics.

 

3: Boomers do shop online.

And in significant numbers: 66% of the segment reportedly make regular purchases using web devices, according to Immersion Active.

In the United States, 70% of disposable income is attributed to Baby Boomers.

As Boomers become more comfortable with ecommerce as well as social media-savvy, it’s likely they’ll be discovering and purchasing trending products online.

As they become more “omnishoppers,” they may become the key to the success for many brands.

 

Retailers need to realize the importance of differentiating their demographics when implementing a sales strategy.

Groups such as millennials, Gen X and baby boomers respond to sales techniques differently.

And, while millennials might be grabbing attention with their brand awareness and focus on social media, retailers need to be aware of and cater to baby boomers‘ particular traits.

 

by Jennifer Bosavage

Want loyal customers? Gartner says: Improve their experience.

 

A recent report from Gartner found that a large majority — 81% — of customer experience (CX) leaders predict they will compete mostly or entirely on CX.

However, less than half of those responding have established the rationale for why CX drives business outcomes.

In addition, although companies believe they are improving CX, it’s unclear whether they are actually doing so.

By their own metrics, 48% of respondents said their CX efforts exceed management’s expectations, but only just 22% reported those efforts exceeded customers’ expectations, according to the Gartner report.

Retailers’ CX strategies are clearly falling short, but improvements can be made. Here are some suggestions from the Gartner study.

 

1: Assess capabilities

Retailers should take a deep dive and determine whether the data they capture provides a clear picture of customer wants, needs and expectations, rather than their perceptions of existing initiatives.

Once the customer data is gathered, touch points identified, and measurement systems implemented, consider demographics.

Millennial customers, for example, enjoy complicating CX matters.

Research shows that millennials don’t take loyalty programs as seriously as older customers, because they bristle at the idea that a brand would take their business for granted.

While they may be regular customers at a particular retailer for a while, millennials need fresh, compelling reasons to be loyal.

 

2: Tailor customer journey maps

Provide relevant experiences at key touch points to drive customers deeper into the buy, own and advocate journey.

Brands hoping to secure loyalty need to start by putting themselves in their customers’ shoes: How can a brand show loyalty to its best customers?

Understanding guests and customers across all channels and touch points is critical, no matter where they are on the customer journey.

 

3: Measure more innovative CX efforts differently

CX leaders must make sure to measure their more innovative customer experiences against adoption, perception and financial objectives.

Customer experience must evolve, but it must do so bearing in mind the successes of the past.

Understanding the differences between customer segments is critical.
If customers are primarily millennials, engage in a way that aims to satisfy their desire for recognition and status.

Provide them with a platform for standing out as trendsetters.

But if baby boomers are a majority of clientele, understand they prefer high touch over high tech: Service with a smile is paramount for those customers.

Gartner boils it down to this: understanding customer experience is paramount to success, one size does not fit all, and it’s the customer’s perception that matters most.

No matter how successful a retailer thinks it is in providing top notch service, the customer’s opinion is still always right.

by Jennifer Bosavage

3 Ways to win back your ex-customer

 

One school of thought among customer service managers today is that it doesn’t pay to wow your customer.

Instead, it is more desirable — and more cost effective — to “meet expectations.”

Regardless of whether you agree or disagree with that strategy for retaining customers, it is not a solution for winning back customers.

Why would you want to win back customers?

So you don’t have to start from scratch.

The cost of attaining new customers is far greater than retaining them.

“Lost customers” may have replaced your company — but they were once regulars, and did at one point have fond memories of your business.

You need to rekindle the flame, and often, it’s not that different.

It’s definitely less expensive than cultivating a customer.

Clearly, the optimal state is to always operate in a way that naturally retains customers, so your business isn’t faced with losing customers.

Such a retailer would have a solid loyalty program, innovative programming, special events and a personalized approach overall.

But miscommunication happens and mistakes are made. All is not necessarily lost, but you must be authentic in your approach.

Here are 3 ways to win the customer back.

 

1: Apologize sincerely

Saying, “I’m sorry” is anathema to some retailers.

However, some situations simply do require a direct apology: Shipments that routinely missed delivery dates, a chronic shortage of salespeople, unreasonable check out lines, for instance.

Those circumstances can and should be addressed at the moment of impact.

Some of those can slip under the radar and aren’t noticed until they’ve created a pattern.

If a specific problem has come to your attention that has caused a significant drop in regular shoppers, you can address the situation with a positive promise in a customer communication after the fact: “We’re happy to let you know about our new personal shopper program,” or “We have increased our associate staffing to get you in and out of our store faster.”

 

2: A coupon helps

Discounts and coupons are a common customer retention tactic, but can also work for those who have drifted off.

The best way to regain these customers and begin to build loyalty is by saving them money.

Note, you’re not rebuilding loyalty, because chances are, you never had it.

You’ll have to start over with the disadvantage of having to make up for a negative past.

Own up to what went wrong and offer a gesture in compensation.

 

3: Find out why they left

Data analysis can help.

Look at your customer data and evaluate past purchases.

Determine what the sweet spot is for this customer.

And, importantly, see if you can note a trend that would allow you to predict what other customers might also follow suit, so you can form an intervention plan.

If you can have a dialogue with those customers — in person, via email or chat session — try to learn what would make them return.

Not every customer is a keeper.

For example, the customer who is a bully with employees or the customer who abused return policies are not worth the time and effort to keep them.

But most customers are worth retaining, because they fit your target customer persona, spend regularly and some are vocally loyal.

Marketing Metrics says you have a 20-40% chance of winning back an ex-customer.

Simply meeting their minimum expectations means they might return another day.

Exceeding expectations means you won’t have to chase after them when a “better deal”— whether for price or service — comes along.

by Jennifer Bosavage

3 qualities of authentic retail shoppers value most

 

 

Authentic.

It’s a term that retailers are using increasingly to describe how they aim to be and communicate with customers.

It’s also a word that customers use to describe their ideal retailer.

Shoppers’ expectations have changed. It’s no longer enough to just sell quality products to your core customers; the retail personality is important and extends to how shoppers relate to and interact with brands.

But what makes a brand authentic in shoppers’ minds?

 

1: Honest communication

An “authentic brand” refers to one using less marketing-speak and more honesty.

Today’s customers are less impressed with fancy slogans than with accurate, interesting, and socially aware mission statements.

They want product features detailed in plain English with no “fluff.” They view traditional advertising with skepticism and, often, disdain.

Millennials in particular don’t want to be “sold to.” Authentic retailers have integrity and demonstrate honesty as well as a certain level of transparency.

Customers are interested in learning what a brand stands for, what causes it supports and how its offerings help achieve its stated goals.

 

2: Quality & fairness

“Brandless” is a retailer that believes in “Life, liberty and the pursuit of fairly priced everything.”

It appeals to customers who are price conscious but who are also interested in value.

Products are high quality, featuring low prices and no brand names.

Brandless is targeted to the savvy, budget minded shopper who wants quality but not necessarily a brand.

Brandless does not have to contend with adding markups for distribution, in-store advertising and shelf stocking.

It also provides organic, non-toxic, hypoallergenic products that aren’t tested on animals. Those globe-conscious characteristics resonate with their customers.

 

3: Standing for more than just the bottom line

Now more than ever people want to know the history of retailers, what their mission is and how they conduct business.

To a degree, customers view retailers and brands as an extension of their own beliefs. Retailers are expected to have values that reflect their customers’.

For example, family-oriented shoppers may not shop on Thanksgiving, because they believe sales associates should be able to spend the day with their families. They might then shop on Black Friday at retailers who were closed the day before, thereby rewarding the stores that align with their value systems.

They want to do business with an “authentic” brand, one which has a core business strategy that evokes the virtues they themselves consider important.

A retailer must walk the walk as well as talk the talk, or customers will find one who does.

by Jennifer Bosavage

Brick & mortar borrowed this from online retail and increased revenue by 5.1%

 

 

Brick and mortar has learned a thing or two from online retail, and last December shoppers took a meaningful notice.

By focusing on and improving their buying online and picking up in-store (BOPIS, also called “click and collect”) offerings, retailers experienced a never-before-seen surge in shoppers using the service.

Retailers saw the strongest holiday sales growth in six years, with revenue increasing 5.1% to more than $850 billion this year, according to Mastercard Spending Pulse.

Online shopping also saw large gains of 19.1% compared to 2017. And established brands were a significant part of that good news: Walmart, Kohl’s and Macy’s reported healthy sales and saw stock gains.

 

Giving shoppers anytime access to goods pays off

By offering true 24/7 access to goods, retailers were able to provide what customers wanted at a time that was convenient for them to shop.

For those who wanted to do some thoughtful shopping but were short on time during regular business hours, being able to browse selections from the comfort of a sofa or bed, pay and pick them up when convenient added some much-appreciated stress relief during what can be a very busy season.

“By combining the right inventory with the right mix of online versus in-store, many retailers were able to give consumers what they wanted via the right shopping channels,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Inc., in a release.

And Frank Layo, managing director at Kurt Salmon, part of Accenture Strategy, told CNBC in an interview that the top five “click and collect” or BOPIS retailers were Bed Bath & Beyond, Best Buy, Kohl’s, Target and the Home Depot.

BOPIS was up 47% this holiday season compared with last year, according to analyst reports.

For example, Target reported that it expected order pickup volume would triple this holiday season compared with last year’s.

 

Incremental sales increase from wider product offerings

During the past few seasons, brick-and-mortar retailers have worried about being bested by their e-commerce competitors and for good reason.

Online stores are conveniently open around the clock, offer a level of personalization and can provide an inventory with variety that couldn’t be accommodated with the footprint of any department store.

Click and collect changes the game, however.

Many stores now let shoppers view inventory in stock, allowing them to place an order that is ready for pick up within a couple of hours.

But they also feature the ability to shop from a wider variety and have that item shipped to the store for pickup. The shopper saves on delivery charges, can see the product before accepting it and is able to take advantage of a wider selection than is offered on the retail floor.

And the stores benefit from incremental sales at pickup too. For example, Kohl’s reports an average attachment rate of 20% to 25% for additional in-store purchases.

Retailers this past holiday season seem to have taken the adage, “Nothing ever changes if nothing ever changes” to heart.

 

by Jennifer Bosavage

Is it really discovery shopping if Amazon found it for you?

Effects of data-driven curation on discovery experiences

 

 

Remember when a trip to the store could yield a new discovery — an unplanned purchase but one that delighted the customer?

Ecommerce handles specific shopping needs seamlessly and efficiently: Search for “motorized pedal exerciser” and buy it in less than three minutes.

But so-called “discovery” shopping — such as figuring out what to get your hard-to-shop-for great aunt for her 90th birthday — is much easier to do through brick and mortar browsing.

 

Selling discovery experiences

The world of in-store commerce offers shoppers an experience, an interaction with others that can’t be replicated online.

In the best-case scenario, the experience is enjoyable and memorable, one that a shopper wants to repeat with that retailer and emulate at others.

No matter how good a recommendation engine or a chatbot is, the feeling a shopper gets from finding a perfect product can only come from shopping in a physical store.

That is, until an online retailer aggregates its collected data and presents it in a physical store as a curated collection to reach a specific audience.

If an online behemoth parlayed all the knowledge it has gleaned from the data it has gathered about its ecommerce shoppers, that retailer could be very well positioned against its competitors, online as well as brick and mortar.

 

Peer-based discoveries

Amazon has recently opened a handful of Amazon 4-Star physical locations, which are designed with discovery in mind. All the items are top-rated, and the selection will change frequently, depending on their customers’ ratings.

The first, in the SoHo section of New York City, offers at-a-glance products that are “popular in SoHo,” “frequently bought together” and “most wished for,” among other categories.

Amazon can easily put these displays together due to the data it collects on its online shoppers. And that data collection continues to grow offline.

Amazon-exclusive products are also available, and Prime members get the Amazon price, while non-members pay MSRP. Signing up for Prime in the store not only provides customers lower pricing, but also adds to Amazon’s information database.

Shoppers can see how many ratings a product has received and what the average rating is. Others have reviews displayed nearby.

The combination of a physical location and all that aggregated data is a fierce combination.

 

Personal discoveries

However, “discovery shopping” is more than simply sorting through trends and selecting from the most popular items.

If that were the case, small, specialized shops and boutiques would not be frequented, shunned for larger, on-trend department stores.

But the opposite is largely the case.

Discoverers aim to find the one-of-a-kind for a more personal gift or to satisfy their own personal taste. That’s more likely to be found in a shop on Main Street than online, because it is not mass produced, so it therefore can’t have hundreds of reviews.

 

In the end, Amazon’s strategy for its physical stores, and any others like it, will mirror that of large department stores that have built a decent ecommerce channel.

Those stores, such as Macy’s, Target and Kohl’s, can also look at their data, slice it up regionally and offer only those products based on that data.

While not quite as personal as the local shop on the corner, there’s a huge opportunity for larger companies to meet their customer needs more precisely.

 

by Jennifer Bosavage

How retailers are actually spending their customer service dollars

 

 

When companies describe themselves as having “excellent” customer service, the claim sounds user-centered but too often it’s actually just a company-centered focus trying to position themselves as user-centered.

Those companies are generally concerned with efficiency and reducing costs first and foremost, and are just hoping to improve customer relations by osmosis, without actually doing the work to get there.

 

Questioning ROI on CX investments

Some retailers resist customer experience investments, believing they do not provide a significant return on investment.

However, Gartner reports that when it comes to making a purchase, 64% of people find customer experience more important than price.

Constantly trying to be the lowest-price provider of goods is futile: Competition is steep and low price is not an effective means of cultivating loyal customers, who are the foundation of success.

According to a Walker study, by 2020, customer experience will overtake price and product as the key brand differentiator.

Customers are loyal to a retailer because they believe they are getting a better experience, higher value and benefits than they would get from other brands.

In addition, a recent study from RetailNext found 57% of respondents said customer service is the only reason they go to a retail store.

Not selection, not price, but service.

Here are 4 pairs of categories in which retailers invest their customer service dollars. You decide which ones will actually create better customer experiences.

 

1: Self-service tools vs well-trained sales associates

Shoppers like that expect to find associates equipped with the information and training necessary to assist shoppers and close sales.

Too many retailers do not have that staff, so customers are frustrated and disappointed.

Today’s shoppers want knowledgeable associates in the stores they frequent, as well as convenience. They also want to build a relationship with the retailer.

Retail management misreads customers’ disdain for associates as a desire for self-service.

But customers are happy to be served by well-trained, engaged salespeople. The frustration comes when the associate knows little about the product or has no enthusiasm.

Training goes a long way to fix that problem and helps build a sales team that is a contributing factor to customer loyalty.

 

2: Market saturation with new locations vs pop-up stores

While some brands focus investment toward market saturation via geographical expansion, others use pop-ups to build excitement about their brand.

Event-and experience-driven retail is becoming more popular, as department stores create pop-up locations or marketplaces in their stores and in hip shopping meccas.

Such temporary installations are smaller and more focused with their offerings and are replenished much more frequently, creating the impression of a “fresh” experience at every visit.

 

3: Promos to attract new shoppers vs rewarding repeat customers

Newvoicemedia.com reports that the top reason customers switch away from products and services is that they feel unappreciated.

Once customers have demonstrated their loyalty, it’s important to reward them.

Too many retailers use incentives only to attract new customers. That, in effect, “ignores” loyal customers, leaving them frustrated and unappreciated.

 

4: Advertising costs vs experiences that drive WOM marketing

Nurturing existing customers and improving customer service can cost considerably less than launching advertising and marketing campaigns, but can have just as powerful an impact.

As Tony Hsieh, Founder and CEO of Zappos has said, “We take most of the money that we could have spent on paid advertising and instead put it back into the customer experience. Then we let the customers be our marketing.”

75% of Zappos’ sales come from returning customers, and the company earns more than $2 billion in sales annually.

The Zappos’s commitment to having happy customers and employees ends up being good for business.

 

Walking the customer service walk means more than just talking the talk.

Strong training, with an emphasis on earning customer loyalty, will result in a truly user-oriented business.