Archive for March, 2008

Why Retail Stores Benefit From Third Party Auditors

Friday, March 28th, 2008

The retail department store, Sears, plans to open more dealer stores in rural and urban areas this year. Currently, the retail department store giant has 857 dealer stores, which sell appliances, electronics, lawn and garden equipment, hardware and car batteries.

Third Party Auditors for Retail Department Stores

With thousands of associates working in different stores, it can be an impossible task for retail department stores to ensure correct information is being communicated to the consumer and that Federal regulations and guidelines are being followed at each retail department store.

Most retailers do have an internal team of auditors that visit each store. However, erratic audit visits to each retail department store based on internal staff travel schedules will result in inaccurate data which would be impossible to measure. By partnering with a third party auditor, a consistent set of objectives with a solid sampling plan will provide accurate data. The accurate data collected by third party auditors can then be used to identify problems and areas of improvement.

What Happens When Your Customer has 4 Legs?

Wednesday, March 26th, 2008

PetSmart, the #1 US specialty retailer of pet food and supplies, is focusing on more specialty services this year such as “doggy day camp” as well as overnight boarding which includes dessert and a belly rub. These news services are an effort to further differentiate PetSmart from competitors during tough economic times.

A retailer such as PetSmart should be measuring how effective their new services are through a customized survey.

Customer Surveys

What are PetSmart’s customers really thinking? Now, it would be difficult to ask Sparky, the Golden Retriever, whether or not he enjoyed dessert and a belly rub during his overnight stay since he cannot talk. Perhaps five consecutive barks for a five star rating? Well, maybe it would be best to stick to asking his pet owner for feedback. It’s important for retailers such as PetSmart to know what services are most beneficial to pet owners and which are not. Although Sparky would love to have a belly rub, if his owner thinks otherwise, Sparky will not get a belly rub. It’s important for any retailer to know what the essential services are and what the “extras” are.

Customer Experience and the “Wow” Factor

Tuesday, March 25th, 2008

Safeway, one of North America’s largest food retailers, plans to remodel approximately 1,7000 stores by 2010. They have just completed the 1,000th remodel in Novemember.

Safeway is calling this remodel “The LifeStyle Concept.” The retail chain is looking to expand their product line and offer more variety. For instance, they have a floral kiosk that can provide arrangements for weddings, dinners, and other special occasions. The olive bar will offer a variety olives from a walk-around self serve bar. Some stores will have a Starbuck’s with in-store seating.

A store that relflects an individual’s attitudes, values, and lifestyle enhances the customer experience. Safeway is truly going for the “wow” factor.

A customer experience program can benefit retail chains that have recently gone through or are going through a remodeling period. Mystery shopping programs can help identify what changes have made the most improvement and the least. Also, it is important to make sure that all 1,700 stores provide the same customer experience.

Major Retailers Feel Consumer Squeeze

Tuesday, March 4th, 2008

The 2007 Christmas season was disappointing to say the least. And so far, 2008 seems to forecast a possible recession that may come more quickly than anyone anticipated. No one will argue with the statement that times are tough.

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That’s why now, more than ever, it is vitally important for retailers to invest in the Customer Experience. Consider taking a page out of Apple’s book. They are spending more money to invest in a better, more highly customized experience for each customer, despite that fact that the economy is bleak. And they’re reaping amazing rewards. Is it a risk? Sure. But even though people may be spending less, they’re still spending. It’s your job to make sure they spend in your store. Doing everything you can to ensure a great customer experience is what will differentiate you from your competition…and help you focus on the selling behaviors that matter most.

This NY Times article highlights the issues faced by all retailers: Major Retailers Feel the Squeeze From Consumers. Some are faring better than others. The retailers willing to take a calculated risk and keep pace with consumer needs and their desire for excellent customer service are the ones most likely to survive.