In recent weeks, ICC/Decision Services conducted 1621 mystery shops measuring 9 categories at 50 retailers in 30 locations per retailer. That resulted in over 10,000 data points gathered by our Mystery Shopping and Secret Shopping efforts. The specialty category is where our Mystery Shoppers found the overall best retailer, most prepared for the holiday season: Yankee Candles is number one. They are followed in this order by: Bath and Body Works, Build-A-Bear and Sephora. Why does Yankee Candle stand out in their category? The ranked high on service and selling, our secret shopper’s results revealed this to be an all too rare combination. Gracious and friendly customer service is a critical part of the customer experience and it absolutely factors in to the overall impression and whether or not the customer will return to the store. When you can combine excellent and friendly service with selling skills that assist customers in buying the things they want or desire but may not be aware of – that’s when you hit the sweet spot of increasing profits. Most customers make buying decisions at the store. Using strategic selling techniques to help them make those buying decisions can result in millions of dollars more in profits, especially during the holiday season when so many more customers are visiting retail stores.
Retail Benchmarks Holiday Season 2010 – Office Supply Category
Our recent survey of 54 brick-and-mortar stores included visits to 30 locations at each chain across the country. Over 1,600 store visits were conducted over the last two months and 10,000 data points collected.
In the office supply category, these three placed one, two and three respectively: Staples, Office Depot and Office Max. While all the stores scored well on welcoming and thanking customers, their friendliness didn’t translate into the aisles, making suggestions and increasing sales.
While our Mystery Shoppers rated them fairly high on service, they rated them low on making sales. Employees are friendly and helpful, but they don’t do well when it comes to suggesting what else customers might buy or pointing out items on sale or potential discounts.
A bit more emphasis on selling could go a long way toward a more profitable holiday season – exceeding expectations of what is expected to a better year over all. The customer experience is positive and we believe that means they’re open to hearing what the people who know most about the products think would make most sense for them to buy. It’s simple and it enhances the customer experience.
Retail Benchmarks Holiday Season 2010 – Off Price Category
Off Price retailers are not expected to have an amazing service and selling experience…right? Their low prices and “great finds” speak for themselves. While this may be true, there still exists the opportunity to improve. In recent weeks, ICC/Decision Services conducted 1621 mystery shops measuring 9 categories at over 50 retailers in 30 locations per retailer. That resulted in over 10,000 data points gathered by our Mystery Shopping and Secret Shopping efforts. In the off-price category, the top three retailers are Ross Stores, Burlington Coat Factory and TJ Maxx in that order. Data gathered by our secret shoppers reveal that this category really suffers in selling. While customer expectations for service might be a bit different in the off-price retailers, we were very surprised to see how low the selling scores were. If just one of these retailers were to invest in have well trained sales associates on the floor, they could not only increase revenues dramatically, but they could easily set themselves apart in their category, increasing traffic resulting in an even greater bottom line increase, as employees could sell more to customers when they visited their stores. Sales don’t need to be aggressive, but helping customers find other items and making suggestions appropriate to customer choices could differentiate the retailer and considering that even a few percentage points more in sales could translate into millions of dollars, this just might represent a huge opportunity for improvement.
Retail Benchmarks Holiday Season 2010 – Home Improvement Category
ICC/DS Mystery Shoppers conducted 1621 mystery shops in recent weeks measuring across 9 categories at 50 plus retail chains in 30 locations across the country and gathering over 1600 data points. In the home improvement category, Home Depot came out just ahead of Lowe’s. Interestingly, both stores ranked extremely low on selling. Employees are very helpful and pointed our secret shoppers in the direction of what they were already looking for, but rarely did anyone suggest an item in the store that would be perfect with what the customer was buying or point out specials or promotions. When done in the right way – that is, not pushy or overbearing, customers perceive buying suggestions as helpful and the employees offering them as concerned and considerate. Is it possible that management has overlooked that point? In a season when purchasing is expected to be up several percentage points, our retail benchmark study indicates that more focus on getting customers to buy more when they are in the stores would punch up the sales percentage points and profits for the retailer – a missed opportunity that could be easily corrected.
Retail Benchmarks Holiday Season 2010 – Electronics Category
ICC/Decision Services conducted 1621 mystery shops in recent weeks measuring 9 categories at 50 retailers in 30 locations per retailer. That resulted in over 10,000 data points gathered by our Mystery Shopping and Secret Shopping efforts.
In the electronics category the top three stores are: Game Stop, Radio Shack and Best Buy. Here’s the shocker – the number three retailer, Best Buy ranked 23.3 (out of 100) points in the suggestion category. Employees are helpful, they greet visitors to the store, they thank them when they leave and the wait to buy was minimal or none.
When it came to selling to our secret shoppers, it more or less didn’t happen. Electronics are hot. It’s a sector where people are spending money, yet our Best Buy Mystery Shopping indicates the retailer is missing major opportunities for increased revenue.
Most of the time, employees are NOT suggesting other purchases to customers. Encouraging purchases and selling to customers would benefit the electronics retailers and making more sales is an key opportunity to increase revenue in this busiest retail season.
Retail Benchmarks Holiday Season 2010 – Department Stores
Our recent survey of 54 brick-and-mortar stores included visits to 30 locations at each chain across the country. Over 1,600 store visits were conducted over the last two months and 10,000 data points collected. In the department store category, Nordstrom ranked first, followed by Macy’s, J.C. Penney, Sears and Kohls. Being first is great and it’s no secret that Nordstrom has a ‘number one reputation’. Surprisingly, our secret shoppers found that Nordstrom ranked 60 in the suggestion category. If you think in terms of grades in school, 60 out of 100 is more or less a failing mark. Expectations are that holiday sales will be up about 2.3% this year. What would happen if employees were actually selling customers who were in the stores? What would it look like if sales were up 10% instead of 2.3%? Most customers purchasing decisions are made in the stores. It makes sense then that retail management would be well served to put effort into sales training for the employees who interact with their most valuable asset: retail customers.
Retail Benchmarks Holiday Season 2010 – Apparel Category
Who will benefit most from what promises to be a better year for consumer holiday spending? We decided to find out. We conducted 1621 mystery shops in recent weeks measuring across 9 categories at 54 retailers in 30 locations per store.
Our mystery shoppers found the top five in the apparel category to be: Delia’s, Charlotte Russe, Coldwater Creek, Burberry’s and Victoria’s Secret. These five, in this order, met the most retail benchmarks in our study.
Let’s look a bit deeper than who ranked first, second and third and ask what opportunities the numbers reveal.
While Delia’s employees greeted and thanked customers nearly 100% of the time, the wait to pay was virtually non-existent and the fitting rooms were impeccable, they scored only 73.3 on suggestions. Suggestions to customers drive sales.
Selling is the missing part of the equation here. Making suggestions, in effect up-selling can be done graciously and easily – there’s no need to be in-your-face or pushy.
Suggesting a blouse that would make a stunning outfit when combined with the pants the customers is about to buy is really helpful and more often than not, the customer spends more when being helped.
Sales, when done well, is simply helping other people get what they want. Just a little more of that kind of sales can make a huge impact on a retailer’s bottom line and may be the biggest take away from our retail benchmark study.
Inspect What You Expect – In Store Audits Tell You What You Need to Know
How do you know what’s actually happening at your store locations day-to-day? It’s not realistic to get objective information from employees. They’re your ‘frontline’ in customer service and experience – do you know whether they’re performing up to corporate standards?
In-Store Audits can tell you what’s happening ‘on the ground’, give you fresh insight and provide internal and external accountability. Do you have marketing agreements in place and the need to be accountable to brands? Do you contract out or run in-store demos? How do you know they’re being properly executed? Do you spend money for displays? How can you be certain they’re being properly set up and stocked? How do you know they’re being set up at every location? In-store audits put metrics in place so you can measure productivity, hold partners accountable and gather the information that can improve your business and your bottom line.
When productivity is measured, performance increases. Imagine a baseball game where whether or not you touched second base on your way around the field was no big deal and no one kept track of the score. It turns into a big ‘who cares’ with no standards, no edge, zero excitement and eventually no interest. Living up to expectations, having a score card and expecting constant improvement is what makes the game exciting, keeps teams winning and the fans buying tickets. That goes in business too.
Audits Give You Answers
When a national food brand contracted for in-store sampling of their product, their Director of Shopper Insights needed to be sure that every employee engaged in the process was properly trained and was sampling all of the products, rather than just some of them. They wanted to know if employees were encouraging shopper interaction with their product samples. Once they gathered that information, they wanted to know what factors generated sales post-sample. Working with an experienced audit provider helped them understand what information would lead to understanding their shoppers, employees and purchasing patterns. The provider told them how much data was needed for statistical relevance. Knowing exactly what was happening ‘on the ground’ resulted in better trained personnel, more accountability to brands and a deeper understanding of exactly what motivated purchases.
Experts Make Your Job Easier
A national book retailer contracted with brands to place in-store displays and add give-aways to shopping bags with every purchase. Their Director of Learning and Development knew it wasn’t happening 100% of the time. The retailer needed internal accountability to be certain training and implementation were being carried out properly and needed external accountability to report actions and results to the brands. In-store audits told them quickly where their problems were and they found simple solutions that enabled them to increase productivity a full 30% in just three months. Using an experienced provider meant they had expert advice on exactly how to create an effective in-store audit program including how many stores and how often. They had help analyzing the data and learning how to use it to implement changes.
Audits Help You Sleep Better at Night
Measuring results ensures that what needs to be done is; regularly, consistently and effectively. When people are held accountable, they perform better. When they clearly understand what is expected them, they’re more likely to meet expectations more consistently. The best way to know exactly what’s occurring every day in your stores is to have someone there observing exactly what’s happening and why. Without direct observation it’s impossible to know which piece of the equation might be weak. Having an expert provider means you’re assured 100% objectivity – you get the unvarnished truth. You’ll be able to keep your marketing agreements on track and provide accountability. You’ll know exactly what’s happening with promotional displays and you’ll learn how policies and procedures are being carried out. Having standards in place but not measuring their effectiveness is like buying all the ingredients for a great meal and not following a recipe, just hoping putting them all in the pot will result in something delicious. It could happen, but it’s highly unlikely.
Get Results You Can Act on Quickly
Once your provider helps you determine exactly what you need to know, their carefully trained representatives will get information you can use right away. Good data conveyed correctly is easy to understand and experienced providers deliver your data immediately in a way that’s meaningful and useable to you. You should be able to see results broken down by store, geographic location and/or by issue or concern. Creating metrics and implementing audits will give you the peace of mind that comes from knowing what’s required and expected is being carried out, regularly and efficiently.
Customer Intercepts – Ask the Right Questions and Thrive
Gaining the Edge
Business people always look for ways to gain an advantage for their company. It’s often the small (and sometime not so obvious) edge that makes all the difference in results. In the current economy, the typical apparel retail store has a conversion rate of 18%. That means 100 people walk through the doors and 82 walk out without having made a purchase. Just a small uptick in percentage can have a huge financial impact. An increase of just 5% – from 18% to 23% could result in $8,176,000 in sales per 100 stores. 5% = over $8 million dollars. Continue reading

