The study reports that only four percent of U.S. online adults use location-based mobile apps such as Foursquare, Gowalla and Loopt. Only one percent update these services more than once a week. Even more, a good majority of respondents—84 percent—claimed they were unfamiliar with the apps, a number to surely make companies rethink how necessary it is to start a marketing campaign using LBSNs.

Those numbers may seem like LBSNs aren’t a great investment at this time, but the report calls for another look. Among location-based service users, almost 80 percent of them are male and about 70 percent of them have a college degree and are between the ages of 19 and 35. Even more importantly, Forrester discovered these users are highly influential. They are far more likely to research products and read customer reviews and frequently have family and friends coming to them for advice before purchasing a product. In this sense, companies in the gaming, electronics and sportswear industry that target their marketing plan to men may want to include an early adoption of LBSNs.

Still, plenty of companies have launched marketing plans with location-based apps that aren’t just for the guys, including PepsiCo and Starbucks. When deciding whether LBSNs are right for you brand, consider your demographic and marketing plan’s goals. Weigh whether you want to establish yourself early in the location-based marketing playing field or whether you’d rather sit in the bullpen and wait until the user numbers grow to give it a try. Like every other marketing plan for a retailer, whether it be holding a sweepstakes, advertising or social networking, location-based mobile apps can be just another tool in a well-stocked toolbox.

Forbes Insights published a study that surveyed leading U.S. retailers’ use of mobile applications in enhancing consumer’s shopping experiences. Researchers discovered many retailers–almost fifty percent–are hoping to capture first-mover advantage as their customers go mobile. The levels of sophistication in mobile design and application vary depending on the retailer and its goals. For many, the mobile features are a scaled-back version of their website. Others have ventured into offering transaction-based and customer-oriented applications that use powerful GPS technology to pinpoint an individual customer’s needs.

Whether you want to try to increase e-commerce sales, give out coupons or suggest products to your customer, mobile applications must be molded to fit your store’s demographic and mission in order to be effective. American Eagle Outfitters, a specialty retailer that caters to 15-25 year olds, was one of the earliest adopters of mobile technology when they launched their mobile website in August 2008. They recognized their customer base was highly engaged in mobile technology and made sure to capitalize on that activity by going to where there customers spent their time: on their mobile phones. Since the experiment began, the store has seen several hundred thousand customers opt in and contribute to sales through the mobile site. Vice President Michael Dupuis cites their success to consistency across all channels. Customers can access all the same information on their mobile phone that is on American Eagle’s website. Similarly, The North Face built applications that use GPS technology to determine the location of skiers, bikers, rock climbers, runners, and more. The mobile phone users can then access information about terrain they soon will face and read suggestions for how to tackle the trails. The possibilities for what kind of mobile application a retailer develops are endless, and it’s important to figure out what your customers want in their hands.

Retailers should know that mobile technology is not a passing fad. Soon, customers will expect stores to have mobile applications. Like a website, mobile technology will be just another part of the shopping experience.

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.

The retailer that boasted more than $400 billion in store revenues in 2009 launched a store remodeling initiative named Project Impact in an effort to boost efficiency and sales. The project started in 2008 and is on track to have reached about 32 percent of its stores by the end of 2010. Forbes reports that the remaining stores should be remodeled by 2014.

Project Impact was put in place to declutter stores and highlight popular merchandise while discontinuing unpopular items. Reduced inventory and improved inventory turnover supports Wal-Mart’s goal to be the low price leader and helps attract customers and increase sales. Many believe the remodeling strategy was a way to appeal to consumers who frequent the retail stores Target and Costco.

Project Impact is reportedly yielding positive results. New customer data shows that Wal-Mart is attracting more upscale customers with higher household incomes and has driven a sales boost of between 1.2 percent and 1.5 percent. Even after bringing back several product categories that were initially cut, Wal-Mart still decreased its inventory volume by 6 to 8 percent, improving its working capital position.

In this volatile economy and fast-paced digital age, retailers can’t afford to be static fixtures. Wal-Mart’s renewed attention to customer service, consumer experience and store management has proved to be a winning combination for the retailer, reinforcing the idea that not all change is bad.

In his opinion column in the Times of London, Accenture executive Neil Miller say there is no one model that will fit all and that approaches must be targeted to fit individual channels and markets. His company reports that nearly all UK businesses have invested in improving the customer relationship, but either they are missing the mark or the target is moving faster than the aim. Miller says, “Almost two thirds of British respondents in the study reported switching between businesses in the past year as a result of experiencing poor service. Only about a third believed that customer service experiences had improved.”

Less loyal and more demanding customers are setting the pace. It becomes more important to understand differences in customer service needs and channel preferences as they align with your brand proposition and the balance between price and value. Miller explains, “Different sectors have different agendas and demand different services and models, which must be tailored using appropriate digital platforms, processes, data, analytics and skills.”

In the end it comes down to differentiate and deliver. The upturn offers an opportunity to reach out and engage your customers. But one blanket approach will not work for all markets as it has in the past.

The survey, reported on by the Chicago Sun-Times, by the SALT & Pepper Group measured 1,027 interactions between customers and salespeople in 73 retail stores over a four month time frame. The study said that electronic and hardware/home improvement stores were slightly better than other channels. Luxury retailers, who you would assume would be at the top of the ranking, fell somewhere in the middle.

The SALT & Pepper Group identified, “the sin of omission,” as a big problem that they encountered when entering a store. In a nutshell, the associates working the registers or aisles simply would not recognize or acknowledge the customer. It seems like a simple thing, but when it comes to training and educating store personnel on customer service, we must not commit, “the sin of omission,” in including this basic concept.

According to CMS Wire, the pattern that many have followed has resulted in a web presence that does not measure up with today’s consumers, “They not usable enough. They are not accessible enough. And they are not persuasive enough. There are also too many bits and pieces stapled together to create the feedback loops.”

The article quotes consultants who say the problem lies in a growing gap between those who see the need for a heightened customer experience and the technical realities that such an approach requires. Improving the customer experience on the web is said to be at that top of many organizations’ Christmas lists. Because of the size of this gap, there is really no one solution that can provide all the elements of rich media, social media and analytics. The solution may be your ability to convince your organization to take steps and then to organize the movement yourself.

Christina Veiders, Managing Editor of Supermarket News, writes how retailers, realizing that the old idea still has some life, are using gift cards as not only a sensible gift idea, but also as a means of sales promotion. The technology behind gift cards takes an old idea, the gift certificate, and gives it new life because they are cheaper to produce, easier to track and provide a long lasting branding opportunity. Consumers love the convenience.

After taking a dip last year because of retail bankruptcies, gift cards are again experiencing growth. After market stabilization and some needed legislation, retailers are taking advantage of the trend for promotional purposes. Some grocery chains are offering savings on the grocery bill for the purchase of a certain value card. This makes a good tie-in to their loyalty card programs. Others are offering fuel discounts or tying using the cards as an incentive to buy certain items.

There are very few ideas in the business world that are truly win-win. For enhancing the customer experience and proving effective and efficient for retailers, the gift card seems to hit this lofty goal.

New York, NY — ICC/Decison Services’ latest in iPhone applications shows retailers the dollar value resulting from increasing their conversion rates. ConversionCalc™ is the second of its iPhone applications available for free download on iTunes. ICC’s existing application, the UpSellCall™, was the first of its kind in the industry when it was launched this past summer. ICC/Decison Services is an international customer experience management company based in New York City.

Field management loves our calculators because they are portable and easily show store management the power of associate behavior. “We received great feedback on the UpSell Calc, our first application,” says David Rich, President/CEO of ICC/Decision Services. “Field management loves our calculators because they are portable and easily show store management the power of associate behavior. Corporate loves them because they point to increased revenue. It takes so much to get customers in the door in today’s marketplace,” continues Rich, “but many retailers don’t realize that increasing your conversion rates by only 2% can increase revenue by 10%. The ConversionCalc™ will quantify that lost opportunity for retailers and can produce calculations for a single store, district or the entire retail chain.”

Other features of the ConversionCalc™ include: easy one-screen operation; allows calculations over multiple time periods (days, months, quarters, etc); reveals the true dollar amount for increased associate performance.

Click here for more “ConversionCalc” conversion rates information, iPhone applications and download links.

About ICC/Decision Services
ICC/Decision Services was founded in 1979 to design and execute Customer Experience Management programs. ICC/Decision Services offers a wide range of qualitative and quantitative business tools, including mystery shopping, shopper intercepts, iPhone applications, conversion rates tools, customer satisfaction and employee engagement. Clients include Coach, L.L. Bean, Rite Aid, 7-11, Foot Locker, CVS, Walmart and others. The company is headquartered at 122 West 27th Street, New York, NY 10001, U.S.A. Phone: (800) 444-1717. More information is available at www.iccds.com.

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A story in the Boston Globe documented some unique approaches. Best Buy offered a limousine ride, special seating outside the store prior to opening, a private shopping tour before opening and a $1,000 gift card. All of this was for winning an essay contest.

The early results of Black Friday show that deep discounting isn’t enough to coax consumers. It also takes an equal amount of clever promotions and some good old-fashioned customer service to close the deal. According to one retail analyst, “The combination of value and service will be the great differentiator,’’ According to the National Retail Federation, sales for November and December are expected to decline 1 percent.

Some other examples of VIP treatment are free cookies, holiday tote bags, gift cards, subscriptions, limousine rides, wardrobe consultations, shopping butlers, gift-wrapping assistants, video cameras and celebrity wake-up calls. Most of these special offers and VIP contest were advertised via social networking outlets like Facebook and Twitter.

In this Retail Customer Experience article, the author discusses how consumers are starting to take power over the event by attacking it like a military exercise. Teams of consumers enjoy plotting a strategy and executing their game plan as not only a bargain hunting trip, but also as a fun social event.

The trend is not going unnoticed by retailers who are ramping up their efforts to cater to this type of social consumer. In many cases they are reshaping the, “Waiting in line experience,” by offering coffee and treats to those in line, making every effort to make the lines faster, and in general just trying to keep the tone friendly. This concierge level of customer care plays in perfectly with the mindset of the “Black Friday as a Social Event” shopper.

Not unlike others, Target will expand its store hours and feature price promotions. For example, the stores will open at 5 a.m. and the first 500 guests will receive a gift. Those who spend $100 or more (not hard to do at Target) between 5:00 and Noon will get a $10 gift card.

As far as price, the retailer will offer its Low Price Promise. In other words, if a guest finds a lower price at a competitor, Target will match the price during the competitor’s valid ad date.

Perhaps more eye opening is the improvement being made to the return policy. As a standard, Target has a 90 day policy for returns or exchanges accompanied by a receipt. However, a recent expansion allows you to return or exchange up to $70 in merchandise without a receipt on a rolling 12-month cycle and new and unused items over the $70 can be exchanged for items in the same department.

The on-line function is also getting into the act with free shipping on most items when you spend $50 or more.

Other retailers are also offering similar programs. This is just one example of how a company is using their customer satisfaction data to directly enhance the customer experience for the holidays and beyond.

An article in Progressive Grocer reported on a consumer study of digitally connected consumers and found that, “43 percent of those following brands on Twitter do so because of exclusive deals or offers.” By comparison, that soundly beats interesting content, current customers or service support as a reason to follow the brand. The same can be said of Facebook where 37 percent said they follow because of the deals.

The article is not suggesting that building strong relationships with consumers via social networking is not important. Quite the contrary, the message is that building brands will include using the medium to create a great customer experience rather than a one-way ad message communication. The survey concludes that, “Social media tools are pushing greater customer information access, putting more pressure on brands to live up their words with actions.”

Using a good deal or promotion just seems to be the most effective current way to hook the consumer into the complete product experience. Once hooked, consumers can be exposed to content, information and conversations about products that can build and sustain your brand in the “new mainstream.”

Some experts disagree with the strategy saying the smaller selection will chase the customer away. One statistic in the story says that 40 percent of chief financial officers at leading retailers say insufficient inventory is the biggest risk to holiday sales.

Retailers are turning to their websites to soften the blow to consumers. They are not carrying any more inventory, but they are hoping that their websites will allow them to better manage and distribute inventory.

This strategy is risky for the retailers. The consumer, not being able to find what he or she is looking for, is almost always turned off and won’t reward the retailer by following up on the web. Those that do follow up on the web may prefer on-line shopping and stop visiting the store altogether.

Those who are going to attempt to manage a tighter inventory should consider the cost of brand loyalty and proactively take steps to be ready for the customer service challenge. Making it harder to find an item is almost never a good tactic to attract and retain good customers.

MultiChannel Merchant published a great article on customer loyalty differences between online and in store shopping. The most important point author Michael Greenberg makes is for retailers to differentiate in store loyalty programs from their online retail space. Tackling both retail fronts simultaneously while respecting the dynamic differences in your consumer shopping behavior is key to loyalty program success.

Greenberg discusses how online shopping experience is drastically different then in store. Think about it. In store your customer service representative actively take part in creating a warming atmosphere for consumers. Loyalty programs in store can offer physical promotions at the point of sale. Online, customer experience changes as the customer expectations change. One of the biggest benefits to online shopping is the consumer review section. Amazon and Overstock draw their consumers in by sharing honest product reviews. This is one experience the consumer won’t get from shopping in store.

In order for you to have a successful loyalty program, your customer experience program has to be on target. Being on target means measuring success and taking action to continually improve processes. If you run an online storefront and a brick and mortar shop, you have to juggle two different customer experience programs. It’s two training tracks that need to be maintained separately with both joining in the end stop.

Greenberg’s article offers great steps on how to manage your online customer experience and loyalty programs. In additional here are some further thoughts:

1) Cross promotions online and offline: Shoppers who enjoy your online site could be drive to your physical store by promotions or offers. Vice versa.

2) Measure different metrics: Online customer experience and expectations are going to be difference then you’re in store shoppers. Create separate and unique survey, which specifically target the environment in which the shoppers are.

3) Customer Service: Simply because your online store does not require physical customer service reps at every counter, doesn’t negate the need for great customer service via email or web chat. You can create a physical presence to your customer online by being receptive and quick turn around to their needs or questions. Treat them just as if they where in store.

Retailers, restaurants, financial institutions and brands deal too often in numbers and percentages when dollars are what really matter. In just a few simple steps, the “UpSellCalc ™” takes current suggestive selling numbers for a corporation and calculates the dollar value of the upsell on the sales floor, in the fitting rooms and at the register. Taking it one step further, UpSellCalc ™ will also calculate the dollar value should the frequency of suggestive selling increase by 5, 10 or even 20 percent. Other features of the UpSellCalc ™ include: easy one-screen operation, ability to calculate ROI for a specific store, district, region or across an entire retail chain, and key indicators of the true dollar amount for increased associate performance.

“Mobile technology is playing an increasing role in the retail and brand experience every day,” says David Rich, President/CEO of ICC/Decision Services. “At ICC, we believe first and foremost in showing our customers a return on investment, and with the UpSellCalc ™ we have developed yet another tool for delivering this information to them–in this case right into the palm of their hands. We look forward to introducing several other new tools in the mobile technology and social media arenas in the coming months.”

Click here for more “UpSellCalc” information and download links.

ABOUT ICC/DECISION SERVICES
ICC/Decision Services was founded in 1979 to design and execute Customer Experience Management programs. ICC/Decision Services offers a wide range of qualitative and quantitative business tools, including mystery shopping, shopper intercepts, customer satisfaction and employee engagement. Clients include Coach, L.L. Bean, Rite Aid, 7-11, Foot Locker, Walmart and others. The company is headquartered at 122 West 27th Street, New York, NY 10001, U.S.A. Phone: (800) 444-1717. More information is available at www.iccds.com.

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“Today the concept of selling experiences is spreading beyond theaters and theme parks.”

“Companies should think about what they would do differently if they charged admission.”

“Recall that once there were more than 100 automakers in Eastern Michigan. Now only the Big Three automakers remain. The growth of the industrial economy and the service economy came with proliferation of offerings-goods and services that didn’t exist before imaginative designers and marketers invented and developed them. That’s also how the experience economy will grow: through the “gales of creative destruction,” as Joseph Schumpeter termed it-that is, business innovation, which threatens to render irrelevant those who relegate themselves to the diminishing world of goods and services. As goods and services become commoditized, the customer experiences that companies create will matter most…Welcome to the Experience Economy.”

Today of course we are all wondering if the Big Three they refer to will even be One. Do you think they did a good job of creating a great experience for those who bought cars? The “gales of creative destruction” rest in our hands. THE CUSTOMER EXPERIENCE IS EVERYTHING. Are you doing enough to improve your customer’s experience? Is your organization galvanized behind doing this? Measuring the customer experience is just the start. Are you managing it?