The Future of Retail is Still the Store

According to a recent study by the U.S. Census Bureau, the majority of sales still come from in-store purchases. Certain categories, such as books, clothing and electronics, see high percentages of e-commerce sales, but the overall message for retailers remains the same before the rise of the Internet: attention to the physical store should be a top priority in an effort to attract and keep customers.
 
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. 

It Pays to Have Good Customer Service

The American Express Global Customer Service Barometer reveals 61 percent of 1,000 American consumers surveyed value quality customer service amid economic instability and will spend 9 percent more at a retailer that offers it.

TheStreet points out that the survey echoes a 2006 Journal of Marketing study regarding the American Customer Satisfaction Index (ACSI). That study revealed the top 20 percent of companies in the ACSI combined outperformed the Dow by 93 percent, doubled the S&P 500 and nearly tripled the Nasdaq.

This year, Nordstrom saw increases in its ACSI as well as its net earnings, and it currently leads all department store retailers. It boasts an ACSI score of 83 out of 100, up 6 points from 2009, and saw a 44 percent boost in net earnings, a 17 percent jump in net sales and a 12 percent increase in same-store sales in the first quarter that ended May 1.

Jim Bush, American Express Executive Vice President for World Service, thinks some companies should rethink how they view customer service. “It’s important to see [it] as an investment, not a cost.”

It’s an investment with an infinite payoff. According to the survey, 75 percent of consumers claim good customer service will make them spread the word about a company that treated them well. Today’s digital age makes that easy for them to do. Reward your customers, and they will reward your company.

Customer Loyalty: Verizon’s ‘Business Link Rewards’ Program Launches Online Mall

Verizon’s small- and medium-sized business customers participating in the Business Link Rewards program are now eligible for discounts and special promotions every time they shop at the Verizon Business Links Online Mall.

Small- and medium-sized business customers who use the Online Mall can get discounts from more than 350 retailers, including Best Buy, Dell Computers, Office Depot, Expedia, eBay and Target

For More Information Click Here

Pollo Campero expands to Wal-Mart

Pollo Campero teams up with retail giant Wal-Mart to expand its reach to the nation’s growing Hispanic population. Wal-Mart already customizes some aisles to sell culturally attuned products to its large Hispanic customer base. The retail giant hopes that the addition of Pollo Campero will please their customers even more.

Pollo Campero hopes to have more than 20 Wal-Mart locations across the country by the end of 2009.

What Leading Retailers Have That Others Don’t

There are specific things leading retailers do that keep them at the top. Leading retailers make sure to deliver on what they’ve promised the customer. Sounds simple? It’s not. Delivering on that promise is a delicate mix of understanding customer needs and expectations, and using that understanding to create a store environment completely focused on those needs and wants. The right products, available at the right price, must also be offered. And the retailer must have a crystal ball to see into customers’ future needs and wants, providing those products before customers even ask for them. And, finally, the right technology and a skilled, happy sales force are crucial.

That’s a tall order. But top retailers manage to consistently offer this mix, despite climbing operational costs, price deflation, customer defection, and staff turnover.

The retailers who are winning this race know that convenience and a satisfying experience fuel customer decisions to shop in their stores. The right price, the right environment and the right service model are what keep customers coming back for more, and keep revenues high.

And the payoff is well worth it. Some research suggests that if service enhancement initiatives are used properly to boost loyalty and customer retention by just five%, companies can expect profit increases by as much as 95%.