This article originally appeared in the Retail Bulletin.
In an economy where retailers struggle to differentiate themselves on price and product, the onus is on the quality of the customer ‘experience’ to maintain loyalty, keep customers engaged and ensure they keep putting money through the tills. Considering the importance of delivering an experience worthy of customer retention, it is interesting to examine the lengths that businesses are going to, to understand customers.
CEOs, Heads of Customer Experience and most managers are too far removed from the shop floor so how do they communicate with customers? To report a negative experience, a customer might fill out a comment card and shove it angrily in to the hands of the nearest sales assistant or they might take the opportunity to feedback face to face. Neither forms of feedback are likely to get past staffroom chatter. Feedback on positive experiences is even less likely to reach senior management; consisting as it usually does of a verbal “Thank you” to the staff member concerned. Analysis across a number of business sectors including retail shows that the majority of feedback actually seen by senior management comes after the event (via letter, email or a call to a centralised customer service centre) and only when the customer feels particularly passionate. Most intended feedback will be forgotten soon after the experience and the desire to engage will fade.
The problems with current methods of giving feedback back are that they are antiquated, time consuming and often exclusive to those that have the front to confront. Businesses need to make it easier, to allow customers to communicate the way they want to, when they want to. It should be remembered that customers who provide feedback represent only the tip of the iceberg. Only a small proportion of customers who have cause to complain actually do so. The remainder may choose a number of options including defecting or reducing their use of your service. This emphasises the value of feedback and makes the case for making it as easy as possible for your customers to provide it.
Customer research can offer some insight but by the time the research project is delivered, the 2000 customers surveyed and found to have had a negative experience may already have defected.
The Web 2.0 era and the prevalence and success of mobile businesses show that consumers love text, they love email and they are increasingly ready to use social media to share their opinions with the rest of the world.. Businesses need to harness this enthusiasm and implement these communication channels between themselves and the crowd. Allowing customer to feedback by text or mobile email in situ will allow them to leapfrog the potentially disengaged frontline and express their sentiment immediately and directly. Current technology allows for tailored responses and action can be taken before the customer has even left the store – a true display of exceeding customer expectations which in the most part are pretty low.
So, to conclude, businesses cannot expect to understand the customer unless they implement easy and relevant communications channels. The data collected is of no value if it is analysed and noted months after the experience has taken place. Technology allows us to be innovative and instant – businesses need to take advantage, especially in a sector where customer experience is the new battleground.