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.

“¢ One in four shoppers walked out because of poor customer service (America’s Research Group).
“¢ 58% avoided stores they believed were understaffed. (America’s Research Group).

“¢ 48% of shoppers refused to shop in stores where others claimed a bad experience (2005 study conducted by the Jay H. Baker Retailing Initiative at the Wharton School of the University of Pennsylvania).

But what constitutes good customer service? That’s not so easy to define, because customer service means different things to different people. For example, grocery shoppers don’t expect a high level of customer service. Grocery shopping is a fairly self-service experience. Generally, if you have a question, there are store personnel available to answer. But send that same person to buy a mattress, or an automobile”¦and the scenario changes completely.
Thom Blischok, president of the Retail Solutions group for Information Resources Inc., a Chicago-based business-consulting firm, applauds any retailer that makes the extra effort.

“Customer service is not static,” said Phoenix-based Blischok. “It’s highly dynamic and constantly evolving. Customer-service excellence is achieved only after company’s truly listens to what their customers are asking for.”

What’s one way to get there? The U.K.’s Somerfield grocery store chain is using advanced work force management technology across 920 stores to achieve improved customer service, lower labor costs and increased product availability.

Somerfield focuses on smaller supermarkets that offer a neighborhood feel, averaging less that 9,000 square feet per store, and offers a more upscale, fresh food appeal, while sister store KwikSave serves the discount grocery market.

Somerfield began in Bristol, England in 1875. After many manifestations, including several name changes, the first Somerfield store opened in 1990, positioned as an upscale market, with a bright and cheery atmosphere that emphasized fresh foods. Somerfield merged with discount grocer KwikSave in 1998, acquiring 900 stores. Today, Somerfield is one of the biggest U.K. retail employers, with 60,000 employees and more than 1,300 stores that attract over 13 million customers weekly.

Work force management technology has helped fuel this growth and overall customer satisfaction with the Somerfield experience. This customized technology makes use of integrated budgeting, forecasting, scheduling and attendance management functions, allowing Somerfield to more accurately match staff schedules to customer traffic.

Adrian Peace, Somerfield’s head of simplification, claims this focused technology increases productivity, while at the same time improving customer and employee satisfaction. He stated, “Somerfield required a fully automated workforce management solution to support our mission of providing the best possible customer service in the most cost effective way possible.” Peace believe managers need “simple, easy-to-use tools to improve productivity and focus activities on delivering excellent customer service.”

Work force management technology software positions Somerfield to create optimal employee schedules based on store-specific data that includes business trends and customer demand, ensuring the “˜right employee is always in the right place at the right time.’

One retail company with this “˜out-of-the-box’ concept is Sleep Squad. Rather than reinvent the wheel, owner Michael Cote applied the old-school models of pizza delivery and mattress sales, combined them with modern Internet salesmanship, and developed an innovative way of running his business.

Cote’s fresh approach typifies new thinking in retail. Having worked successfully in sales, he chose to focus in on mattresses and set out to uncover what people hated most about the process. He discovered:
“¢ People disliked laying on mattresses in public
“¢ They were turned off by walking into a store and confronting 30 or more all-white mattresses
“¢ They wished they could buy mattresses effectively online
“¢ They detested spending a whole day mattress shopping, then waiting for delivery

Cote realized he could address each of these concerns by bringing the store to the customers. Call them at 8 a.m., and they can deliver a mattress to your specifications by noon, along with two or three other comparable selections to choose from. With over 150 different skus and more than 45 different models,
inventory is no problem. In fact, their selection is greater than most physical stores.

So far, it’s working. Using only the power of the Internet — no traditional marketing– Cote’s company can set specific delivery times, give the customer exactly the product they want, make the awkward experience of shopping for a mattress comfortable and personal, and grow his business. And all of this simply from careful researching and thinking about what the customer wants most. Following in the footsteps of other highly customer oriented companies (think Best Buy, Starbucks and Apple) Cote is on the success track because he offers an excellent customer experience. In today’s atmosphere of beleaguered retailers, getting the customer experience right is the key to long-term success.

What’s the secret? To begin with, shopping in an Apple store is a complete “˜experience’. Bright lights and great acoustics fill the room with energy and help customers feel like they’re attending an important event, rather than simply shopping at a store. The overall design of the space also contributes to the experience and ties in closely to the products themselves.

But nothing makes the Apple store more appealing than its customer service. From smiling employees carrying handheld terminals for faster credit card swiping and experienced and knowledgeable technicians servicing customers’ problems from behind the “˜genius bar’ to “˜personal trainers’ offering customized workshops and training, Apple seems to have thought of everything when it comes to serving the needs of its customers. You can even make an appointment with a personal shopper, and recently, Apple began stationing concierge teams in each store.

Apple also encourages shoppers to linger, and to use the products for as long as they like, giving the stores a community feel that promotes spending.

As Michael Gartenberg, vice president and research director at Jupiter Research, said, “They’ve become the Nordstrom of technology.” He goes on to say that, while many people first visit Apple stores out of curiosity, they come back over and over because of the products and the way shopping at Apple””from the futuristic architecture and sweeping glass staircases to the skill of their salespeople– makes them feel.

This dedication to complete and undivided personal attention is the key to Apple’s gigantic success. While other retailers are investigating ways to cut back on customer services to beef up a flagging bottom line, Apple continues to pour money into serving the customer. It’s a strategy that has worked beautifully, and has left competitors Sony, Nokia and Samsung to cope with beautiful, but virtually empty, stores.

So what’s Apple got that other retailers don’t? Beautiful design. Incredible customer service. A cool, casual atmosphere where spending your hard-earned cash seems like fun. Knowledgeable, approachable staff who have the answers to your questions. The techie products you most want to own. What a novel concept.

How does this apply to customer satisfaction? When a customer comes calling, how quickly do you answer? How responsive are you to the benefits of that customer’s attention? Are you turning prospects away by simply ignoring them into silence?
Responding to customer inquiries is crucial to your success. That may sound obvious, but as we grow busier each day with increasing demands, we have less and less time to respond. Conversely, customers have less and less time to wait for us to respond. Before you know it, that customer has moved on to your competitor.

The company who can be quick, accurate, and helpful will likely be the one to win the customer’s dollars and loyalty. In a world filled with employees who simply don’t care, your company can really stand out by creating and implementing a superior customer response policy. People are impatient, stressed and expecting to be disappointed. Don’t miss the opportunity to shine and build your brand by surpassing the customer’s expectations with a speedy, honest response that simplifies customers’ lives and leads to your success.

The blog is a phenomenon that has truly changed the way people communicate on the Internet. Some blogs, like this one, simply disseminate useful information. Some blogs are personal and include pictures from the last family picnic. But some blogs foster public opinion and can spread information about your company faster than the speed of light. And it’s quite difficult to change perceptions once the information is out there for the world to see.

Monitoring blogs and blog forums, therefore, is an essential marketing task. As well, participating in the right blogs can go a long way in creating the best customer experience.

Here are several steps you can take:
1) Determine your monitoring goals: Get started by staying focused on one area. When you become more adept, you can grow your monitoring objectives.
2) Pick two or three keywords from your web site: Determine the keywords and tags used on your web site. Ask your tech person if you don’t know, or go to www.iwebtool.com/metatags_extractor to find out what keywords your web site uses to position itself. Nothing there? That’s another problem you’ll need to fix.
3) Set up a daily Google Alert: This useful little tool will send you an email every time your product or brand name is mentioned.
4) Visit www.BlogPulse.com, offering a free conversation tracker and other cool components that lets you learn more about a particular blogger if that person is indexed.
5) Visit www.BoardTracker.com for a tool that allows you to search through discussion boards and forums for free.

Blog monitoring is only the first step in a series of moves designed to help you engage with your customers. By paying attention to what is being said about your company and participating in community discussions, you have the opportunity to create a positive atmosphere, and provide the kind of holistic customer experience today’s savvy customers seek.

Here are some questions to consider:

“¢ Is it possible to gather research that aligns with the realities of the front line and with financial objectives?
“¢ Can retailers provide managers with research they can accept wholly, instead of picking and choosing the numbers they’ll accept and the ones they’ll disregard?
“¢ Why do companies continue to order large-scale surveys in an effort to measure their success and guide decision making?
“¢ Is it wise to let go of graphs and charts to focus on the customer’s voice?

All customer research relies on customer goodwill. But if the majority of customers refuse to participate in research, what important opinions could be missing from the study, and what does their silence say about their opinions?

The most useful research tells district and store managers what they most want to know, but often never get the chance to find out. It’s not only about gathering information. It’s about providing momentum. In order to create the kind of research that can truly be used, the research process itself must be viewed as just one of the many tools for change at the disposal of senior management.

These are just a few of the reasons why most companies shy away from the idea of a customer advisory as a way to develop a more customer focused organization. But what more important audience is there than your own customers?

While planning and implement a customer advisory program can seem like an overwhelming project, carefully charting your objectives and approaching the task under the direction of an experienced project leader can ease the pain of getting started.

Some of the questions companies fear when implementing a program include:
1) What happens when a customer-led discussion becomes a negative free-for-all, with customers simply using the time to complain?
2) How do we keep the program fresh year after year?
3) What if we can’t pursue the ideas our customers suggest?

There is not enough space here to fully answer these questions. Suffice to say there are some excellent ways to diffuse an atmosphere of negativity and keep your program on track. This is where the help of an experienced moderator comes in. And this is why it is so important to commit to the success of the program over the long haul to truly measure its success and reach your customer advisory program goals.

1) Empower your Employees.
Often employees do not know what they are allowed to do to help the customer. They may feel obligated to pass the complaint on to their supervisor. But what if the supervisor is not available? This leaves the employee with no recourse to assist when the customer is most angry or unhappy. It means that customer may walk away from your store, perhaps forever, and worse yet might tell everyone they know about their experience. When planning your customer satisfaction policies, leave some wiggle room for frontline employees to soothe ruffled feathers before having to call in the higher-ups.

2) Be Aware of All Customers Affected by the Problem.
If your best customers are distraught, they are likely waiting for you to acknowledge the problem and explain what you’ll be doing to remedy it. They’ll also want some evidence from you that you’ve taken steps to ensure they remain loyal to your brand. Whether this is an in-store incident, an online problem or something even bigger, be sure to acknowledge all customers who have been affected.

3) Communicate Often and Sincerely.
Get the word out””anyway necessary- to let your customers know what has happened, what steps you’re taking to correct it, where they can go for help, and who they can contact for additional information. Hiding your head in the sand is simply not an option.

4) Start From the Top Down
Any corporate policy created will never be successful unless it begins at the top. When executives, managers and employees see that top brass believe in their policies and personally deal with people in the same way in which they are asking employees to do, this instills confidence in corporate leadership and has a positive effect on the morale of the entire organization. Customers can feel it. And they will want to do business with you, even if you goof.

Be serious about taking care of your customers- the happy ones and the not-so-happy ones. Studies show that unhappy customers who are treated fairly and see a speedy and sincere resolution to their problem often become more loyal customers in the end. A sincere apology can be the start of a beautiful customer relationship.

First, you should know that the customer will be measuring your level of sincerity in settling their complaint. And don’t think they won’t be able to tell right away if your efforts are half-hearted. They can.

Fortunately, there are several excellent steps you can take. We’ll talk about a few here, but be sure to follow along to Part 2 for the finale.

1) Plan your customer experience recovery the way you would plan for an IT disaster.
What does this mean? Well, no doubt your company has an elaborate safety plan in the event of a system-wide computer crash, security breach, or other IT disaster. This took forethought, planning, perhaps consultation with experts. No less effort should go into your policies for dealing with dissatisfied customers.

2) Immediately apologize.
If you’ve ever been on the complaining end of the stick, you know how infuriating it can be to encounter an employee who makes the problem seem like your fault, or who claims it isn’t her area of responsibility. At the very moment when your ire is most aroused, this is the last thing you want to hear. So train every employee from top to bottom to say those two little words before they say anything else: “I’m sorry.” And teach them how to sound like they actually mean it.

3) Be a human.
Many companies are so wrapped up in procedure, they forget to simply be a human when dealing with human customers. Empathy is crucial. Put yourself in your customer’s shoes. Listen. Try to understand what has made them angry or unhappy. If customers perceive they are being maneuvered in some way, you’ve already lost out.

So far, we’ve looked at three important ways to begin the process of gaining back customer loyalty. We’ve learned the importance of sincerely apologizing to customers and doing what you can to get back on track. Remember, your customers do keep score of your actions, and they do tell their friends and, in some cases, the world via the Internet.

What other steps can you take to solve the dilemma of the disappointed customer?

To better understand the scope of this study, think about the last time you shopped for groceries. Were you in a rush? Did you have other things on your mind? If so, you likely found yourself in what Neilson calls the “˜grab and go’ or auto-pilot state of mind, where you simply purchased the brands you’ve used in the past without forethought, price comparison, or other considerations.

As a marketer, your job is to disrupt this auto pilot mindset by forcing shoppers to reevaluate the decisions that lead them to purchasing the same brand repeatedly for no reason other than familiar packaging. Neilsen calls these well-planned interruptions “˜Delta Moments’. These can be applied differently to various categories of products. For example, grocery store shoppers purchasing coffee or butter will often grab-and-go, and are not likely to change brands readily, but those purchasing energy drinks might be open to advertising that engages and affects the buying decision. This would then be a good category in which to spend advertising dollars. At a retail clothing store, the same principles could be applied. Staple clothing items are likely purchased by brand familiarity, (“I love these bras. I would never switch to another brand.”), whereas customers investigating a new fragrance would be highly accepting of and even expect exciting advertisements, purchase inducements, and packaging.

When it comes to the customer experience, Neilsen’s study makes it apparent that even shopper body language must be taken into account when designing the ultimate customer experience.

“We’re always looking for new ways to serve our clients, and this will increase their respective bottom lines and improve the experiences of their customers,” said David Rich, president of ICC/Decision Services. “We’re excited to keep pushing the envelope of what’s expected, and anticipate great things for our clients from this program.”

ICC/Decision Services offers the program exclusively to its well-known clients. The Client Exchange is a forum for sharing best practices related to customer experience management and learning from others. It features:
“¢ Regular Webinars for sharing best practices.
“¢ Conference calls in which clients can reach out to others to find solutions to their toughest challenges or just listen in on new ideas.
“¢ The Mystery Shopping Matters blog, currently available at mysteryshoppingmatters.com, in which clients can read and comment on new ideas from ICC/Decision Services.
“¢ An annual one-day user conference in New York City allowing clients to come together and spend time perfecting their customer experience by learning from other clients.

With retailers finding it increasingly demanding to compete globally and nationally, the client Exchange is just one more avenue through which companies who are usually competitors can learn about each other’s best practices, implement innovative strategies, and contribute to the retail community in a brand new way.