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.

Could the Customers Who DON’T Buy Be the Key to Success?

We’re used to asking for feedback from shoppers. Most retailers focus their data gathering on customers who’ve made a purchase. Surveys on the sales receipt, in the shopping bag or on your website and email follow up are commonly recognized and effective tools. It’s important to know what your customers think and get a critical understanding of their observations and experience of your stores, your merchandise and employees. What if you could find out why the ones who didn’t buy left your store empty-handed? Asking the right questions of those shoppers provides insight you can’t get any other way. Understanding their perceptions of your stores and learning what they see, think and feel gives you the edge you can use to improve your stores, your customer satisfaction and your bottom line by turning shoppers into buyers.

Improvement Can be Quick

Sales increase in direct proportion to customer satisfaction. Much of the measure of customer satisfaction is wrapped up in customer perception. How shoppers feel in your stores. How they feel about your sales associates, about your stores cleanliness and your displays. Knowing what people experience, think and perceive – particularly those who don’t buy gives you a fresh perspective on the key drivers of an improved experience. Often the answers are simple and the improvements quick and easy. But if you’re not asking the right questions of the right shoppers, you’ll never gather the information that will give you the edge.

How Customer Intercepts Work Best

Start by asking carefully designed questions of the shoppers who leave your stores without buying. What if you learned for example, that a large percentage of your customers in a certain region just weren’t finding what they were looking for? Perhaps you’re an apparel retailer and you overlooked the fact that your customers wanted a greater selection of seasonal sweaters in the Northeast and brighter colors in the Southwest? Maybe you’re an electronics retailer who learns that your employees don’t have enough knowledge in various departments and without answers your customers lose confidence and don’t buy. Suppose you were to learn that customers’ ‘feelings’ caused them to leave you stores? They might tell you the displays are too crowded or the stores weren’t clean enough. Maybe you’ll learn that customers couldn’t find a salesperson to answer their questions and they didn’t feel properly cared for. Maybe they just couldn’t find what they wanted.

Asking The Right Questions Translates to Critical Improvement

When a national pharmacy chain needed to understand what was happening in the aisles of their stores they relied on shopper intercepts to find a solution. Specifically, their Market Research Manager wanted to know why so many shoppers came to the pain aisle, but didn’t make a purchase there. Intercepting customers in the aisles and asking the right questions resulted in the manager getting the data needed to improve that aisle; increase sales and to improve other aisles so their customers could more easily find and purchase exactly what they were looking for. The right answers from the right shoppers increased their bottom line. They just had to ask the questions.

Using the Data to Make Actionable Changes

It’s not an uncommon for retailers to gather data but be at a loss to understand and implement actions from it. An experienced provider makes all the difference. They’ll work with you to create the questions, determine what you need to get a workable, statistically valid sample. They’ll show you how to interpret the data gathered and translate it into the actions and improvements that convert more shoppers into buyers. It can be a big ‘aha moment’ when you realize that the best information can come from the people who aren’t buying. You’ve done the work to get them into your store. Finding out why they’re not buying by running a strong Shopper Intercept program can turn things around quickly and profitably.

Shaun Ryan reports in the E-Commerce Times that U.S. mobile commerce sales hit US$1.20 billion in 2009 and will grow to $2.42 billion this year, according to Coda research consultancy. This is great news for online retailers that are prepared to meet this rapid revenue increase.

Another recent survey from Shop.org reveals that despite the growing popularity of mobile commerce, 62 percent of retailers have either not yet begun or are only in the early stages of planning a mobile strategy.

Mobile phones don’t have a lot of browsing real estate, so it’s important to carefully configure your mobile website for ease of use and to remember that mobile connections are slower, so keep sites pared down to the basics. Search features are critical, According to writes Jakob Nielsen, a Web usability expert “Today’s mobile users are highly search-dominant”.

There is tremendous benefit to be gained by retailers who embrace the technology and pay close attention to ease of use and their customer’s m-commerce behavior.

According to AdWeek, a new six-country survey from DDB reveals that Facebook users who like a brand’s page on the social networking site use its products regularly or occasionally and, after following the brand on Facebook, more than a third of the respondents “want to buy this brand’s product more”.

Turns out Facebook fans are active and involved brand advocates. Most people start following brands they are already familiar with or have been recommended to them, specifically so they so they can get promotional offers.  They graduate to becoming a brand advocate and often go a level deeper, wanting to know about new products, have access to exclusive and breaking information as well as the ability to share and express opinions on the brand.

PSFK advised retailers to think of all store locations as flagship stores and treat customer visits as opportunities to tell the story of the brand. Disney stores executed this idea by remodeling their stores to become a family entertainment hub where kids can interact and play with the merchandise. The New England grocery chain Stew Leonard’s organized their stores by stocking merchandise needed for certain occasions together, such as a barbecue or birthday party. Customers then buy items for an experience and possibly pick up a few things they didn’t think they needed, like birthday hats or corn on the cob holders. Stew Leonard’s stores also have animatronic farm animals kids can play with, flat screens that show feeds of their own daily cows and bountiful offerings of free samples.

The important thing to remember is that the store is an extension of the brand and thus offers a unique opportunity to create an immersive brand experience for the consumer. Apple stores capitalize on this opportunity by keeping their design aesthetic relevant to their brand and by offering product testing stations and optional education classes for customers. Lance Armstrong’s bike shop in Austin, Tex., is meant to be a hub for the diverse biking community, whether people are beginners or almost pros. Mellow Johnny’s even has a coffee shop, showers and bike storage systems to encourage more people to join the cycling community. By creating a community and not just a software store or cycling shop, Apple and Mellow Johnny’s make a visit to their stores not just another stop on an errand run but a place to spend an afternoon browsing and talking with others.

It’s also important to note that the stories retailers tell require scene changes. In order to keep up with shopping and cultural trends, retailers need to continually reinvent the shopping experience, all the while still keeping the brand’s core message and story in mind. Product displays and merchandise need to be rearranged and transformed to give the customer a reason to return.

PSFK highlighted some great ideas of how retailers can leverage technology and drive consumers to their stores. For certain retailers, it may be helpful for the customer if they post wait times, store maps and inventory lists on their website. Google has launched an initiative to begin posting pictures of the insides of places on Google maps. Retailers can set up an appointment with Google photographers to get their interior shot and added to the Google places site. In the meantime, stores can post updated interior photos themselves and even set up a web cam so customers can watch a live stream of the store’s activity any time they want. This way, customers can time their visits based on whether they think the photos and videos show it’s a good time for them to shop.

Once a customer gets to the store, employees can use technology to create a more personalized shopping experience. Sales staff can use handheld devices and iPhone and iPad attachments to make transactions on the floor, freeing them from the desks and increasing interaction with customers. iPads stationed in store can run applications that help customers find what they’re looking for or get more information about a product when they don’t want to talk to a sales person.

Stores can also encourage its customers to share their experience on social networking sites by building a station where they can upload a picture or message in store. Diesel in Spain equipped their stores with a kiosk and camera so customers can upload photos to their social networking sties and ask for friends’ opinions as they try on outfits. This summer, JC Penney embraced user-generated content and had kids create YouTube back-to-school haul videos, showing friends what they bought when they shopped at JC Penney. The department store hopes the viral videos featuring ordinary teens will influence followers and friends to make similar purchases.

Technology will continue to be a welcome addition to the physical store environment. It’s a valuable asset in helping retailers create a destination shopping experience through storytelling and product education.

That doesn’t mean retailers shouldn’t welcome changes to their stores. Around the same time of the release of that report came another study that revealed people are happier if they spend their money on experiences and not material goods. So what’s a store that makes and sells material goods to do? Create an experience around shopping, like B. Joseph Pine II and James H. Gilmore suggested in their 1999 book The Experience Economy. In short, Pine and Gilmore state companies must create memorable events for their customers so the memory becomes the product instead of the tangible good they purchase. It’s why you see more roller coasters springing up in shopping malls and more cafés attached to bookstores and even home goods stores.

Online shopping contributes to retail sales, but offline shopping offers an opportunity to create a lasting memory that turns a consumer into a loyal customer for your brand. How do you transform your store into an experience? PSFK, a trends research and innovation company, proposes that successful stores are the ones that leverage technology and push the boundaries of storytelling, product testing and education, two ideas that will be explored in upcoming posts.

In an interview and a book excerpt posted on NPR, Underhill reveals that five years ago, young women under the age of thirty over took men in earning power for the first time in history. Underhill writes, “In the United States, the chances of being twenty-five years old and gainfully employed are higher if you’re a female than a male. These odds go up even further if we don’t consider immigrant, African-American, and Latino populations. Economic hard times favor females, too. During the recent recession, 82 percent of job losses befell men, who tend to be disproportionately represented in industries like construction and manufacturing. Historically, women are apt to work in fields such as education and health care, which are more resistant to economic swings.”

More money means more power, independence and wealth to spread. Retailers better take notice, and Underhill points out that some of them already have.

Using examples from the hospitality industry, Underhill explains how hotels have tweaked their shower curtains to appeal to a woman’s higher standards in personal hygiene and modified their check-in process to increase a woman’s feelings of security.

When trying to increase a female customer base, retailers should not only concentrate on what products and services they sell, they should also place importance on how they’re doing the selling.

To make a long story short, a band was traveling on United Airlines when one of the members noticed baggage handlers throwing their musical instruments as they unloaded the aircraft. After trying to get immediate help followed by nine months of trying to get some satisfaction from airline customer service representatives, the band pledged to write a protest song and put the video on YouTube. They did just that and within five days, “United Breaks Guitars” became a smash viral video. Over one million people downloaded the video in its first five days.

It’s another cautionary tale. Disgruntled consumers now have powerful recourse. In this case, the airline had nine months to address a seemingly reasonable request, and couldn’t come up with an answer. In the end, the band was offered compensation, but chose to have it donated instead. Had United demonstrated even an inkling of the band’s public relations know how, they could have avoided the incident altogether.

Perhaps it’s time to apply the, “˜United Guitar,” test to all interactions with consumers who are seeking help with a customer service or quality issue. Ask yourself a very simple question: Could my action or inaction end up making my organization a poster boy for all that’s bad in the world of large companies who allow policies and procedures dictate the customer experience. If the answer is yes, it should set of an immediate alarm.

Better yet, use the example of the band and how they used social media to become consumer advocates. Getting involved in the conversation rather than fighting it seems to be an easier way to strike the correct chord.

Today, consumers are more conscious on price and promotions. Krogers and Wal-mart are just two of the trending grocers that are seizing the opportunity to expand their private labels. Private labels attract the wallet-strapped consumer away from choosing the leading brand. The competition is rising and consumers are taking second thoughts on traditional buying habits. The only place left for brands to sustain and regain customers is through service.

Brands need to aware of how the retail storefront represents their image. Quality and service is first felt through sales associates and then the product display. Customer’s may question and analyze their purchasing decisions. Friendly and warm customer service associates have the ability to sooth customer concerns. Messy and ill-stocked shelves or racks bruise the brand’s image. Overall poor service can ruin the SATISFACTION customers receive from choosing your brand.

Customer’s want reassurance their purchases are backed by brand quality and honesty. Living up to your promotional promises, quality guarantees, and first-rate follow up service is essential.

Customers won’t return to a brand that is not receptive to their needs. Receptive attitude starts with listening. Listening to the customer voice, employee satisfaction, and market trends. Impeccable service begins with a questionnaire, a storefront quality audit, and continues until service is measured with positive results.

In today’s market, what is your brand waiting for? Measuring your success with customer experience takes initiative and commitment. A commitment to the brand’s integrity and quality.

What does it mean to be a great brand?
Great brands consistently deliver and foster deep relationships with their consumers. They conduct business with quality across the board. Great brands know why customer’s are loyal and how to leverage customer satisfaction to attract new customers. Great brands are managed by members who take pride and believe in the product. Great brands are consistently looking for areas to improve and stay in step with consumer trends.

Is your brand great?
In order for you brand to be great, you don’t have to have the largest market share, biggest advertising campaign, or most elite product. You just need consumers to have a strong brand experience. It’s creating a deep connection with the consumer through service, promotions, and product development. Measuring the success of the brand with consumers and always looking for ways to improve.

Great brands are successful with having great presentation, creative promotions, and top notch customer experience. It’s working full circle to consistently bring amazing products and services to your customer.

Note: The “Brand Experience” category has been added to this years Effie Awards. Read more here.

Earlier this year, Starbucks introduced a cheaper instant version of their gourmet coffee to appeal to cost conscious consumers. The chain has also initiated several in store campaigns with Pikes Peak and emphasizing the “coffee house” feel of the interior. Starbucks has valiantly worked to maintain the top level position as coffee king while consumer shopping habits and attitudes have jumped all over. This week’s campaign is geared to remind consumers that Starbucks brand is the premier choice.

McDonald’s has slowly rolled out the McCafe starting this earlier this year. This week starts the major marketing campaign that has even AdAge impressed. McDonald’s is using demographic and shopper behavior science behind their campaigns. Some of the ads where developed with Hispanic and African-American preferences as the focus. Overall, the campaign will be using radio, TV, print, and internet to saturate the market just before summer kicks off and icy drinks are popular. McDonald’s understands it will have to prove the quality of their coffee to win over leery customers.

What’s the customer say?
The marketing campaigns may get consumer’s attention, but the deciding factor will be the customer’s experience. Both McDonald’s and Starbucks will need ensure customer satisfaction is extended beyond the flavor of their coffee.

McDonald’s will need to focus customer experience on the entire ordering process. As the fast food king, there is plenty of room for errors to occur when a minivan full of soccer kids order and the mom decides to try a McCafe coffee. One mishap, can ruin the entire customer experience and negate the efforts of their marketing campaign.

Starbucks will need to look beyond being the established coffee specialty house. In-store promotions to highlight other menu items such as pastries or teas could help extend the brand beyond the coffee. Starbucks strong point will be consumers searching for the “coffee house” experience not just caffeine. This is one niche Starbucks should make the effort to ensure experiences exceed expectations.

There’s no better time to rev up employees to provide the best service, ensure quality control, and maintain a positive attitude then during a mass marketing campaign. What the customer’s experience will be the deciding factor.

Here are some of key items to look for in an event marketing company:

1. What controls are in place to ensure that the product remains 100% safe and free from any potential risks?

2. Does the event marketing company have experience executing the specific type of event you desire to run?

3. Does management take a hands-on approach to events and will they be in the field each day the program is running?

4. Is the company familiar with social media and blogs? Do they have a strategy to monitor positive or negative comments on a high-traffic blog or social networking site?

The critical issue in all of this is to know how to monitor and verify a program. This is where the issue moves to another level. Monitoring and verifying performance is prudent. In the long run, knowing where your success and area of improvements are will dramatically increase the program’s return on investment.

Investing in event marketing can have a positive return on investment as long as it is successful. This is why having measurement tools in place to ensure that both performances occur at the desired level and the entire program remains safe is important.

You can read ICC/Decision Services’ white paper on Event Marketing here.

It’s a battle of who can provide the best customer experience with the lowest price. Name brands can use coupon and in-store promotions to reach consumers. Simultaneously, store and generic brands can offer competitive lower prices to attract consumers away from name brands.

In a downturn economy, shoppers are less likely to splurge on trying the newest line of products. Name brands will continue to stick with their established brands, who can compete against generics. Name brands have a potential to tap into consumer brand loyalty through coupon saving programs and advertising. Brands need to have a customer experience program in place to measure their campaign effectiveness. Keeping consumers highly satisfied will the be key to pull consumer’s attention away from the competitor.

Across the board, store brands and private labels have an advantage with their lower prices. A consumer may be willing to try the off-brand if the savings are significant. Store and generic brands may get consumers to try to products, but they won’t keep the consumer unless the experience was significantly better than the name brand product. This is the time for store brands to increase consumer research to know how to improve their products.

The visible shopping behaviors benefit competing labels: Name brand vs. store brand. The final test will be with the customer experience.

Moving past the holiday season, Netflix is charging on to adding it’s at home movies to include direct service to TV sets. Opting out of creating their own custom box-top systems, which would mean added competition, the company is going for partnerships with current successful brands. As reported, Netflix is working with companies such TiVo and Microsoft gaming systems, to embedded their custom software so consumers can get service direct to their TV.

Netlix is staying just ahead of their competitors with earlier expansions to the service of downloading to PC’s. Companies such as Netlix has figured out keeping in touch with customer experiences, demands, and riding the trend wave, will keep you competitive. If it wasn’t for the brand listening to research and market trends, they wouldn’t be moving forward, ahead of the competition. For 2009, it looks like Netflix will have another positive brand experience.

As reported in the NY Times, FreshDirect started a community outreach program “Smart Eating at the Office” intended to spread healthy eating through the cubicles. Over the past decade, fast food chains and restaurants have reaped the rewards of employee lunch hours, but FreshDirect is about to change that.

Through their community outreach program, FreshDirect will sent it’s chefs and nutritionists to your office for a lunchtime briefing on healthy eating. Of course, the company expects a healthy investment of purchased grocery items for the office first.

FreshDirect is also partnering with Eating Well magazine to introduce a line of healthy vending machines for the office. Employees can save time and get healthy by getting a ‘Four Min Meal” from the vending machine.

What do you think about the online grocer expanding it’s brand appeal to office personal?

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The screen and download port will sit atop a rack stocked with four-packs of Sparks. The 16-oz. can is usually sold as a single serve purchase from the cooler since drinkers consume one or two cans at a time. Introduction of the four-pack with the music download display could prompt shoppers to pick up Sparks to share with others.

Thoughts?

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The site/campaign aims to build engagement and loyalty among the broader customer base which tends to be older as well as to gain new customers among the younger crowd.

Ben & Jerry’s will evaluate the success of the campaign based on registrations/postings on the peace site compared with metrics for its main brand site.

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What does this mean for brands?

Companies need to focus on creating environmentally friendly products/services to align with how consumers work and live. For instance, Toys R’ US introduced their new line of wooden toys a few months back. If a company has no way of “greening” their products or services, then they can focus on perhaps making their stores more energy efficient by changing the light bulbs or reducing waste by not using plastic bags.

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