The Face of Retail: Customer Centric

Technology and our current economy is changing the retail industry. While most are struggling to attract customers, online marketing and shopping have exploded. These two events are shifting consumer shopping behavior and changing how retailers will need respond.

Though the beginning of the recession, the retail industry witnessed online shopping growth, weakened in store spending, and discounters gaining headway against specialty shops. All of this will forever change the consumer and the way they buy. Retailers who look towards doing business in the next 10 years will have to refocus their efforts to match what attracts customers.

Now more then ever, customer service and experience will take precedence over any other single deciding factor. Amazingly, this is not a new concept. Right now, consumers are making their experience the most important aspect of their purchasing decisions.

Growth Of Online Shopping

Good by of the old days when stores could market their location to customers. The growth of online retailing makes location almost a non factor. Consumers can research the best bargains, find out customer satisfaction reviews, take advantage of online promotions, and discuss the hottest trends all from their laptop. What allows a company to stand out from the crowd, is the online customer experience. Retailers need to look at the ease of checkout, return policies, questions, and develop user friendly websites. The online space can make a retailer more competitive or loose it’s footing to the store a million miles away.

Smart retailers are looking at their online space as an extension of the overall customer experience. Gap, Inc. finally consolidated their online shopping carts to include Old Navy, Gap, Banana Republic, Piperlime, or Athleta. It allows customers more seamless shopping experience when visiting a single website with the ability to purchase from all the stores. The combination website promotes all the brands with a variety of customers. An loyal customer to Old Navy may be more compelled to visit Piperlime since the shopping carts are integrated.

The explosion of social media and brand visibility is another consideration. Retailers and brands will need to monitor word of mouth marketing online more then ever. Online viral marketing is more contagious then the flu. Reputation management is a dual front war: online and in store. Responding to customer suggestions or complaints means adjusting services in store along with following up online.

Beating the bargains with customer service

Since the beginning of 2009, consumer shopping behavior has been focused on finding the best value. Retailers such as Wal-Mart attracted consumers simply because it’s known for low-priced deals. As a retailer, you can offer more value without necessarily turning into a discount store. Your value can be passed to consumers through utilizing cross promotions, reward programs, and having an outstanding customer experience program.

In the long run, customer experience is going to weigh more in consumers minds then bargains. Customer’s want to have a balance of value and quality. Regardless if you offer the cheapest bagged salad, if it spoils too quickly, the value is lost. The customer experience is ruined. You’ve lost a customer.

It’s important for retailers and brands to emphasis their commitment to the customer’s experience in every step. Brands will need to reach out to consumers for feedback and respond adequately. Promotions and deals will be most effective if they are tailored to a consumer’s interest. This requires measuring promotion results and investing in consumer shopping metrics.

Retailers of the future will need to be more customer centric then ever. Consumers are looking for retailers and brands who connect with their market. Ensuring the connection leads to quality, value, and a positive experience.