ICC/Decision Services » customer research

Customer Experience tied to retailer’s stock value

gerard — Thu, 05 Mar 2009 17:19:32 +0000

As the world watches the stock market’s up and downs, new research from the University of Michigan concludes customer satisfaction levels affect retailer’s market value.

Michigan’s Ross School of Business and American Customer Satisfaction Index conducted research on customer experience and stock prices. The research indicated the higher level of positive customer experience, the better stock prices.

A Twice article discusses the findings of the report. Retailers with improving customer satisfaction scores from ACSI witnessed a smaller market value decline in 2008. Retailers will a smaller ACSI score had market value decline up to double the improving ACSI retailers had. The article highlight more of the research findings to include how well online retailer did.

The research emphasis how important customer experience program is to a retailer’s business. higher levels of customer satisfaction can only be reached through a well designed customer experience program. Of course, measurement of success will lead brands and retailers to know where the improvement areas are. Customer experience programs are a shot in the dark without proper measurement initiatives. Certainly, retailer’s who dedicate resources to measuring and implementing effective customer experience programs are seeing a boost of confidence from inventors.

Leading Super Stores Witness New Consumer Trends

gerard — Mon, 15 Dec 2008 09:25:52 +0000

Major retailers, Wal-Mart and Krogers, are making note of changing consumer spending habits. Both retailers have announced consumers are shifting their buying focus as the country settles into a long term recession. Kroger consumers are paying more attention to store-brand items versus name brand.

In response to the increasing sales of “Kroger” label items, the store is expanding it’s line of store-brand food items. Top of the list is the increasing demand for frozen entrees and quick prep meals. Both Krogers and Wal-Mart have witnessed an increasing shift in the consumer demand for long-term storage food items. Consumers are dinning out less and cooking at home more.

Wal-Mart executives have also witnessed a jump in sales for self-medication items. Pharmaceutical sales have not increased dramatically, instead over the counter and basic first aid medicine are a way consumers can “self-medicate” to save a buck on health care.

Increase in demand for frozen and canned items allows retailers like Wal-mart and Krogers to safely expand their store-brand items to take advantage of changing consumer demands. If consumers are buying the basic items to fill their kitchen, how are fashion retailer’s noticing a change in product demand. Will consumers extend their “safety buys to spend less on trendy items, and more on classic items in basic colors to get more bang for the buck?

Restaurants Should Avoid the $ Sign

David Rich — Fri, 15 Aug 2008 18:16:04 +0000

Studies show that menus using a numerical price format without the “$” symbol yielded, an average, $5.55 more in spending than menus with prices printed with either a dollar sign or written script.

If I owned a restaurant, I would consider taking out the $ sign on my menu. Let’s face it, restaurants are having a tough time making money with current economic conditions. With more customers saving money by opting to eat at home, restaurants need to maximize revenue opportunity with existing customers. If you told me all it took to make an extra $5.55 per table was to take out a $ sign on a menu, I would go for it.

What do you think?

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