Where are the gaps in your brand promise to your customers? Do you know?

Mystery shopping lets you know and gives you the tools to help correct the gaps.

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Using social media for this purpose can have both pros and cons.

Pros of Using Social Media for Customer Experience Feedback

• Social media encourages individuals to be open and voice their opinions
• When one consumer voices an opinion in a public forum, others are apt to jump in
• Word of mouth created by consumers may cause businesses to share best practices
• Consumers can ask questions and reach out to consumers and get an assessment from real shoppers
• When negative experiences are shared, retailers have the opportunity to publicly resolve the issue

Cons of Using Social Media for Customer Experience Feedback

• There’s the risk that dirty laundry will be aired, and social media users may only see one side of the story
• Competitors might be aware of weaknesses

As a retailer, it’s up to you to determine where you draw that line. You may choose to air it all online to benefit from social media, or you may encourage customers to provide extensive feedback in a private venue.

What’s your opinion on this?

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A women goes into Nordstrom to return snow tires and they take them back without a receipt. Right now, you are probably not questioning the “without a receipt” part. But you are probably scratching your head over the snow tire part.

I didn’t think Nordstrom sold snow tires

You are right, they don’t. But they took them back anyway.

Now, I’m not sure if the story is true or when it began, but this is pretty extraordinary. The snow tires and woman may be fictitious, but the return policy at Nordstrom is true. Stories like this make me feel comfortable that if anything goes wrong with anything I buy at Nordstrom, it will be taken care of without a hassle.

That is what I call service without boundaries. No doubt, it is good for business. But more often than not, these scenarios backfire because most store associates are not empowered to provide service without boundaries.

A different approach
I recently took a trip to Switzerland. The weather was beautiful one day and we decided to sit outside at a local restaurant. The only problem was the tables available were directly in the sun. I didn’t feel like squinting the whole time I was eating, so we asked the hostess if we could sit on the other side of the deck.

The only empty tables needed to be dried a bit since they were not in the sun and some ice melted on them. Her response was: You can sit here (sunny table #1), here (sunny table #2) or leave.

Was I insulted? No. And if I was, I was quickly won over by the wonderful food.

Part of this conversation could have gotten lost in translation. English was not her first language. But as days passed on my trip, I noticed it more and more in other situations. The Swiss have a reputation for quality, order and timeliness. They have a system and that system works; partly because they set boundaries. Even in service.

One more story…
When we were in Zurich, we went into a restaurant. They said they could seat us, but we only had one hour. To underscore this rule, they gave us a card to remind us when we had to leave. We understood the rules. The service was super-fast; the server understood the rules as well.

The food was delicious and we finished in thirty minutes. What did we do then? We had an hour and only spent half of it. So, we ordered another entree, which we split, and another round of beers. That food also came quickly. After we finished that round, we saw we still had another fifteen minutes. So, we ordered two desserts and two cappuccinos and we paid our bill with three minutes to spare! Oh, what fun. And the restaurant increased our tab by 40% because they set boundaries. We left feeling like we won a prize. Next time, we’ll beat that three minutes.

How this differs from American service
One of the cultural expectation that is hamstringing US companies is this: Companies say “do whatever it takes to satisfy the customer.” The problem is that people — both the company and their customers — don’t know what that means.

Service with boundaries not only helps associates understand what they can and cannot do to help customers, but also the companies themselves. When they know the rules, customers will never be disappointed. The problem comes when everyone has different expectations of what the experience should or shouldn’t be.

Creating alignment in your organization begins and ends with the customer. But you and your associates are the bond, the glue that very specifically defines the perfect customer experience for everyone to see.

And then measure the heck out of it. And be willing to change if needed.

SERVICE WITH BOUNDARIES is a service mark of ICC/Decision Services

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There is some truth there, but only when you link up with the right mystery shopping company. You hear the bad press on businesses getting taken by the less than reputable mystery shopping firms; but it can happen to those that work for them as well. Before signing on the dotted line to become a mystery shopper, ask the company the following questions:

1. Do I have to pay to join? Some mystery shopping companies require candidates to pay in order to get added to their roster. You should never have to pay anyone anything when you take a job. Particularly not when work is not guaranteed.
2. Do I have to pay for my purchases? Many mystery shopping companies will have you shop at the stores that you’re already familiar with. As a regular customer, they believe you’re in a better position to make a judgement. Just because you’re on a mystery shopping assignment at a store you’d purchase from already doesn’t mean the purchases should be entirely on your dime. Purchase guidelines should be set before you start shopping.
3. What am I responsible for? The workload requirements vary with regards to your deliverables as a mystery shopper. Get your responsibilities in writing, plain and simple.

Even if you aren’t a prospective mystery shopper reading this and happen to be a business looking to hire one, recognize the importance of the above.

Happy, satisfied mystery shoppers will be a much greater asset to the integrity of your shops.

1. Mention exciting promotions using social media – particularly during tough economic times, consumers are more focused than ever on finding a bargain. Social media takes coupon clipping to all new levels! If you’ve got a promotion coming up in store or online, post it on Facebook or Twitter. You can even create exclusive coupon codes for individuals that follow you or like your business page. This will keep existing customers in the loop and help draw in all new ones.
2. Share resources that appeal to your consumers - don’t just focus on direct brand promotion with social media, share other resources and information that are relevant and interesting to your target audience. This helps to establish your customer-focused values, and enhances your online presence in other ways. It’s likely that other social media accounts will pick up and share those resources around, putting more focus upon your brand.
3. Interact with customers - it is important to draw the line on how much customer service you’ll offer online, because some face-to-face interaction can still be beneficial. But, social media is a great way to address questions or concerns customers may have. It’s also value feedback that can help you determine which areas of your business require more focus as you strategize for your next mystery shopping mission.

There are a whole host of ways that you can use mystery shopping to your advantage in this business – and improve the overall experience that customers receive when they choose to shop with you. But the above are among the simplest, and most effective ways to establish your presence online fast!

Ultimately, social media is about relevance and respect. Brands want it as well and social media allows them to grab their fair share in a voice that speaks to their customers the way they want to be heard.

That is power.

That is power for the generic cereal that gets relegated to the bottom shelf. That is power to traditionally seasonal products like @BrucesYams that people may forget about except during Thanksgiving and the winter holidays. That is power for almost any other brand that struggles to get noticed with one facing in a crowded category.

Social media allows small brands to muscle into the arena with the big boys. They do this by creating a small but very loyal following. Those fans tell their friends and those friends tell others and so on and so on.

Mostly using social media like Facebook, Twitter and Yelp.

Take Nutella for example. For years, it was a quiet, unassuming chocolate spread, sitting on the shelf between peanut butter and jelly. Maybe it gets a couple facing in the categoy. A couple years ago, grocers starting noticing it turned at about twice its normal rate, then triple and pretty soon, the spread was flying off the shelves. It turns out that hipsters “discovered” the chocolate spread that was mainly served in Europe and it become the next cool thing to eat. The word spread (pardon the pun) mostly through Facebook.

The one question that gets asked a lot by brands is; “It social media the chicken or the egg?” Gerard McLean of Rivershark Inc answered this succinctly with his recent blog post here, but to put it bluntly — it is both.

I look forward to seeing you at the confernce. If you can’t make it, I will also be live-tweeting so be sure to follow me at @davidjrich and on this blog as we explore more about using social media at retail.

Who would have thought you could patent slower, more expensive shipping? The patent covers many consumer options including the option to have products shipped in smaller boxes, have items packaged together and using a shipping company that has a deliberately smaller carbon footprint.

Some of these shipping options may take longer and/or cost more, but Amazon apparently sees a market niche it can fill. It might just be the answer for people who don’t like all that Styrofoam floating around. We’ll keep an eye on how these new options are implemented and how the public responds.

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.

It has been widely reported that retailers and manufacturers have been effectively using sweet deals to attract consumers to follow their company presence on various social media outlets. The hope is that shoppers will continue to follow and build brand loyalty. Black Friday, the biggest shopping day of the year, presents itself as a great jumping off point to disseminate information and gain followers. Hundreds of special offers are being leaked to vigilant consumers.

Brand marketers get additional penetration from special deal sites such as dealnews.com who also track and list Black Friday offers. Many e-commerce deals extend to the Monday after Thanksgiving, now known as Cyber Monday, because of consumers’ propensity to shop from their computers that day.

EZ-PIC technology has enabled brands to target consumer with coupon promotions at the point-of-sale based on shopping behavior. The technology has been a huge win for brands over the years. Unlike mass coupon distribution via mail, coupons are specifically designed from shoppers who are purchasing items within the brands market.

The new partnership will help streamline the redemption process since EZ-PIC is expecting millions of dollars in redemptions this year. Of course, with the recession, the increase in coupon promotions is expected as consumers look for bargains. Point-of-sale promotions may be one the best marketing tools for brands in 2009.

In MSNBC article, John Thompson, Executive Vice President for Unicous Marketing, Inc., stated “Teaming up with Inmar on Conexions, the digital promotions settlement platform, gives our application the credibility that’s expected for managing promotional dollars.

Brand’s want to positioned above the competition. You want to build loyal customers and have them pick your brand every time. To do so, a brand implements a strategic marketing plan. A successful marketing strategy encompasses understanding why consumers pick the other brand over yours.

Taken from the book “Loyalty Myths: Hyped Tactics That Will Put You Out of Business – and Proven Tactics That Really Work”, co-authored by Terry Varva, here are three reason why consumers switch brands:

1. The preferred brand is out of stock.

2. A competing brand offers better value because of a special promotion.

3. Different occasions dictate the need for products of differing levels of quality.

4. Variety or novelty is desired.

As a brand, you don’t want your consumer’s to pick the competitor. For a strategy you may focus on working with retailers to ensure your brand is never out of stock, have your retailers carry all variety’s of your brand (if applicable), and start in-store promotions.

You’ve implemented them, but how effective are they working? As a brand you might implement a nation wide in-store promotion but the follow through may be less than par. The in-store promotion could be jammed behind extra cases of soda stacked by a merchandiser where consumers would never see it. Or in my case, where the promotion lacked the person.

In-store promotions, stocking, and brand placement should be measured by a third party. Promotions and marketing costs a brand too much to be wasted on lack of at retail follow through.

What ways do you see brand’s promotions not effectively being followed through?

The poll reveals more insight into the customer’s mind then just what are the top brands. It proves the theory of customers buying with loyalty to long-standing brands.

For instance, a twenty-something may purchase Clorox because she or he grew up in a household that was brand loyal. Building loyalty with consumer’s is something all brands and retailers seek out. It also requires understanding of what your customer is looking for.

Customer’s tend to build loyalty to a brand and retailer when experiences are positive. Not just one experience, but consistent satisfaction with the product or retailer. Measuring your customer experience with survey’s, demos, and product promotion can help in understanding where your brand is lacking in image, value, and experience.

Brands and retailers that have successfully built a loyal customer base understand the importance of research. It’s the indicators of where your being successful with your customer’s experience and where there is room for improvement.