Customer Experience and Service Management

Customer Experience and Service ManagementNIFT April 2007

Table of ContentsCustomer ExperienceRelevance of Customer Experience in Retailing.Customer Experience parametersTypes of CustomerMapping Experience Parameters to Customer Types.Customer Service Strategy Customisation & Standardisation Approach3 Step & 5 step ProcessCustomer Service IssuesWays of Achieving Customer Delight Global Experience.Superior Customer Experience: Three es of Experience. Great Leap Inspirational retail.

Customer Experience Customer Experience encompasses the Experience felt by the customer from the time of entering the store to completing the Transaction and Leaving the Store.

Relevance of Customer ExperienceIt is much more expensive to get a new customer as compared to an Existing Customer.Every happy customer gets atleast 3 new customers to a store thereby saving the Cost of Advertising for New Customers.

Relevance of Customer ExperienceImproves the Conversion RatioIncreases the Average Ticket Size and Number of Items per Transaction.Thereby increasing the profitability of the store.

Relevance of Customer ExperienceEncourages Repeat Shopping & Builds a Loyal Base of customers.Creates Word-of-Mouth & thereby attracts new customers.Creates a Loyal Customer Base who do not defect to competition.Reduces need for high advertising spend.

Components of Customer ExperienceProduct Related : Selection , Quality and PricingPhysical Store Related: Location, Ambience & Ease of ShoppingExperience Related : Store Design & Display, Knowledge of the sales staff & Returns Policy.

Customer Segmentation

Value Oriented Customers ; Families, Middle & Older Aged , Middle Class & Lower Middle Class.Fashion Conscious Customers:Youth, Young couples, Middle, Upper Middle and Affluent.

Customer Experience MatrixValue OrientedFashion Conscious

ProductPriceProduct SelectionStoreEase of Shopping Cash Tills/ Parking,Convenien-ce of Location . AmbienceExperience Product Knowledge, Warmth in TreatmentPleasing Display of Merchandise,Flexibility in Returns, Special Treatment.

Customer ExperienceA customer is delighted only when a store exceeds the customers expectations in terms of the Product , Store or Experience Related Parameters.

Who provide Customer Experience?Project Team : Identifying a convenient location, Customer Flow Design which is convenient & Comfortable to customers.Merchandisers: Select Right Products, Refreshing the product mix to bring newness to the store.DC Staff: Products are replenished in time, Barcoding & Price Stickers are proper.Sales Staff: Customer ServiceCashiers: Make Checkout Quick and Simple.Security: Security unintimidating.

Global ExamplesWalmart : Exceeds customers Expectations in Price, Guarantees Satisfaction on Product Selection, Customer Service.Nordstrom: Exceeds Customer Expectation in Service, Returns Policy, Meets Expectations on Range.Seven-Eleven stores: Appropriateness in Location (27900 stores) & Product Selection

Customer Service StrategyCustomization Approach: Tailor the service to meet each Customers unique needs.Fashion Conscious customers.Benchmarks:Disney : Guest ServiceCustomers are guests, Store is a Stage, Employees are CastTarget : Guest Service ProgramCustomers are guest, Employees are Guest Ambassadors, Cash Till is Guest Service Counter.

Customer Service StrategyStandardisation: Establishing a set of rules and procedures to provide a consistent customer service.Value Conscious customers.Mc Donald: Timely Service at a low cost

Customer Service StrategyIkea : Standardisation in a non-standard business.Ready to Assemble Furniture.Catalogs and extensive displays.Tape Measures given to a customer. Display covering Quality of wood/ fabric and testing procedures.70 Roomlike settings to create Right Atmosphere. Child Care Center to enable customers spend enough time.

Customer Service Strategy3 Steps Process ;GreetSmileThank You.Suitable for Value-Oriented Customers.

Customer Service Strategy5 Steps Process:Greet

Understand Customer Requirement :Ask Questions : Open Ended & Closed Ended Questions

Satisfy Customer Needs : Explain Product Knowledge.Help Customer Make the Right Choice.

Customer Service Strategy5 Steps Process:Suggest Complimentary ProductsAccessories with ApparelKids Wear with Womens wear if women are accompanied by children.

Conclude Thank you Invite for coming again etc.Inform about new events in the store.

Suitable for Fashion Conscious Customers.

Customer Service IssuesHEART approachHearEmpathiseApologise : Apology doesnt mean accepting a fault.Respond to the guests needs.Taking Action and Follow up.

Customer Service : SummaryRATEReliability , ResponsivenessAssuranceTrustEmpathy

Improving Customer ServiceGAP model:Knowledge Gap : Knowledge of Customer Expectations.Standards Gap: Customer Expectations & Standards. Delivery Gap : Standards and Delivery. Communication Gap: Delivery and Communication.

Superior Customer Experience

Customer Experience Differentiators3 es of Experience:EducationEngagementEnvironment

EducationHelping Customers in purchasing the right product.Proper In-Store Information on Products, Prices & PromotionProduct Knowledge of Staff.Product DemonstrationsIn-Store TrainingsSeminarsGroup Product Demonstrations.

EngagementWarm GreetingTen Foot Rule of Wal*Mart.Pleasant Store StaffTrained Store StaffFloor Strategy on a Day-to-Day / weekly basis.Focus on Customers.

EnvironmentAmbience.Visual MerchandisingChange in Display on a Regular Basis.Aisle SpaceClear In-Store Signs to guide customers.Clean & Quick Cash Tills.

Inspirational RetailingInspire Customers to raise their Expectations to a New Level and become the only Retailer to meet these expectations.Ex: Home-Depot, Costco, Starbucks, Tesco, Amazon, E-Bay.

Home-DepotInspire more customers to use DIY concept in all Home Requirements.Provides Do It Yourself Learning Seminars. Special Order Kiosks to order products not available at Stores.

TescoOrder OnlinePickup from stores.Reduce time spent in purchasing Home-essentials.

CostCo Wholesale prices to end consumers.Inspire customers to Hunt for Bargains.

AmazonInformation as a Customer Experience Differentiator.Help Customers to take better purchase decisions by :Editorial ReviewsRecommended ListsPersonalised e-mail suggestions.

E-BaySearch for Bargains among Products available with other consumers.Motivate customers to start their own home businesses on E-Bay.

StarbucksCelebrate Coffee Drinking as a way of Life Romantic Experience.Create Mood for Drinking Coffee & Destressing themselves.Motivate Customers to try different varieties of coffee and develop a taste for them.

Food for Thought

You aren't creating an 'experience' if it's not fundamentally different from what everyone else is doing."

Food for Thought

Customers only talk about the businesses that are superlative. So there is a critical threshold which says 'be great and you build the bond. Be good and customers will shop with you until they find someone who's great'

Food for Thought

The components of the experience that drive satisfaction are not the same for each customer. Identify your customers and hence the right experience mix for them.

Your competitors may be able to match your products or prices, but the experiences you create are yours alone. This is your true competitive advantage. Push it to its limits.

Wish you all the Best