Insights

Why Customer Experience Matters

Retail sales environments will turn on a dime. In a market environment where margins are becoming tighter and customer service demands are increasing, retailers of all types are constantly looking for ways to boost revenue.

There are many ways to expand. Inc. Magazine recently highlighted some secrets to retail profitability and one thing is for sure: some expansion efforts are capital intensive and time consuming, like adding new locations or developing new product lines, while others methods create short term expansion like discounting or coupon offers.

But there are ways to boost revenue that provide the best of both worlds, low cost and lasting effects. Understanding customer experience is one way to do just that.

Understand the customer experience will drive revenue from a strategic perspective.

All day, prospective customers are walking through your door. What do they think as they brows your merchandise? Are they frustrated? Happy? Enthusiastic? Is there status behind their shopping? Do they feel like they are getting high value?

These questions speak directly to the emotional response to a shopping experience. If you understand what drives your customers, you’ll be able to provide and experience that will increase the number of and average value of each sale. Use a mystery shopper agency for developing a customer intercept program or mystery shopping program to capture this information, and then synthesize it into a plan to improve customer experience.

Developing customers in terms of purchasing frequency and amounts is one of the quickest ways to increase revenue. As we’ve covered many times, selling to an existing customer is much easier than acquiring a new one.

It’s about providing an experience that leaves the shopper with a mindset that satisfies all of their immediate desires. Even if it they are just purchasing a loaf of bread, there is an entire emotional cycle that the shopper goes through, from deciding the kids don’t have bread for their school lunches to the cleanliness of the store to the value at the checkout line. All this plays into the emotional experience that the shopper is going through. When this is understood, you’ll be able to play on those experiences to make them as positive as possible.

Do that, and you’ll get more customers and they will spend more each time.