The retail industry is the first consumer sector to feel the effects of a recession. Retailers can take advantage to build customer loyalty. How does a retailer build it’s loyalty base? Through one customer experience at a time.
The benefits of having a strong base of loyal customers, as discussed recently in Inc.com article, is a delicate balance of solid marketing and loyalty programs. We all know the first budget cut to make during a recession is marketing. Hulburt credits the “customer experience” is what will bring customers back over and over again. The good news is, creating an positive experience for customers doesn’t require a huge marketing budget.
Retailers need to focus on why your most loyal customers keep returning instead of flocking to the competition. Do you employ superior customer service? Are your sales associates the most knowledgeable on the product? Is the environment warm and inviting? Does your inventory reflect the needs of your customers? Finding the answers to these questions is a starting point in developing an environment that fosters positive experiences.
Here are some other ideas in where your retail business might be able to grow:
1. Product Knowledge : Customers return to stores whose representative are trustworthy and knowledgeable. They will buy their electronics, home improvements, jewelry, and cookware from stores that help guide their decision making process. A great customer service training program can help with this.
2. Trust: Customers want to know they can trust the retailer. Make sure your service reps don’t employ questionable selling tactics and your polices honor customer concerns. Keeping steady inventory of your high demand items exhibit trust that your customer can rely on you.
3. Environment: What does it feel like to walk through the isles of your store? Is the product placement clean and approachable? Do you decorate for the holidays and take the extra step to be inviting? Customers will linger longer in a store they feel warm and inviting. This gives the customer more opportunity to possible purchase something they didn’t intend to buy, but noticed strolling through the isles.
Building your customer loyalty base is the key to maintain business during volatile times. The loyal customers will recommend you to their neighbors and return even when times get tough. Loyal customers are built through creating experiences they want to relive.
