Customer Service in Retail Marketing

CUSTOMER SERVICE.

Chapter 11.

EFFECTIVE DIFFERENTIATION.

• Increasingly difficult with merchandise

(inventory turnover, merchandise, private brands)

• Nearly impossible with prices.

• What remains is…

excellent customer service.

CUSTOMER SERVICE.

• Cannot be as easily copied or

matched.

• Creates positive word of mouth

• Creates referrals.

• Keeping existing customer is cheaper

than sourcing new ones.

LOSING SUCKS.

And so is losing customers.

LOSING CUSTOMERS.

• Negative word of mouth.

• Losing out on customer life time

value.

SOCIAL MEDIA.

HOW NOT TO LOSE YOUR

CUSTOMER?

ADAPT TO THEIR

CHANGING NEEDS.

CUSTOMERS

ARE CHANGING.

CHANGING CUSTOMER NEEDS.

• Understand who your customers are.

• Know what they want.

CHANGING CUSTOMER NEEDS.

• Understand who your customers are.

• Know what they want.

CHANGING CUSTOMER NEEDS.

Get to know your customer:

• Scanner data

• Loyalty programs

• Insights from Facebook

CHANGING CUSTOMER NEEDS.

Get to know your customer:

• Scanner data

• Loyalty programs

• Insights from Facebook

“We always value your feedback, ladies.

Do you have any suggestions for how we

can improve HomeChoice?”

CASE IN POINT:

SHOPPING MALLS

“Malls have to adopt to

what people want”

Hyprop CEO, Pieter Prinsloo.

PROFIT / SQUARE METER.

Shuffling of stores - some will close &

replaced by stores that better suit the

market.

PROFIT / SQUARE METER.

Shuffling of stores - some will close &

replaced by stores that better suit the

market.

• CNAs are getting smaller.

• Music stores: People rather download

music than buy cd’s.

• Cinemas: Occupy a lot of space. Pay

less rent.

INNOVATION IS NEEDED.

Cinemas, music stores, book shops:

• Be a while before they disappear.

• Have to find new ways of enticing

consumers.

• Try new things to become more

profitable.

• Can you think of any?

• Redefine CEO Marc Wainer says South

African shoppers are: “clothes crazy”

• Even lower LSMs love to shop designer

brands.

• Increasing number of South Africans

are seeking branded goods which are

popular in EU and US.

SOUTH AFRICANS LOVE CLOTHES.

Trend opens door for more

clothing brands to enter SA.

EUROPEAN RETAILERS.

• South Africa is a foothold for growth in

Africa.

• They have marketed themselves

through TV & movies: head start before

they even get here. Already pop culture.

• Hyprop: long list of international

retailers awaiting space in malls.

FACILITIES & VACINITY.

Sandton City.

• Developments in precinct.

• Gautrain Station and OR Tambo.

• Vein pumping tourists with fat purses

straight into Sandton.

• Particularly popular with African tourists

– Angola, Nigeria, Ghana.

Ever increasing need for WiFi.

Strategy to pull consumers.

Online shopping is competing

with land based shopping.

ONLINE vs OFFLINE SHOPPING.

• Visible trend that consumers much

rather shop for clothes in store – feel

try on and experience it.

• More likely to shop/buy gadgets online.

• High tech brands still have a place in

malls – repairs and advice. But they

need less space.

ONLINE vs OFFLINE SHOPPING.

• Hyprop is rolling out wifi across all malls

• Experience product in store, then go sit

at coffee shop (in mall), visit website via

wifi.

• Apps to find good deals in mall, then go

that that store.

SHOWROOMING.

• Examining merchandise in a traditional

brick & mortar retail store without

purchasing it.

• Then shopping online to find a lower

price for the same item.

• Online stores often offer lower prices:

different & lower overhead costs.

SHOWROOMING.

• Online retail prices for consumer

electronics are up to 11% lower than in-

store prices.

• Half of all online shoppers check

products out in traditional stores first.

SHOWROOMING: DOWNSIDE.

• Costly to offline retailers:

–Loss of sale.

–Damage to store’s floor samples of a

product through constant examination

by customers.

• Particularly popular for electronic items

(iStore).

• Target discontinued Amazon Kindle.

SHOWROOMING: COMBAT IT.

• Certain items exclusive to brick&mortar.

• Avoid shipping costs by picking up online

purchase in store on the same day (Wal-

Mart).

• Fitting Fee refunded when customer

makes a purchase.

• Customer service experience!

SHOWROOMING: COMBAT IT.

• Online competition waits in the space

between aisle and checkout.

• Special coupons to mobile phones & ePOS

• Use of splash pages to get in front of show

roomer and promote special offers.

• Other location based promotions – GEO

targeting, NFC loyalty.

CUSTOMER SERVICE.

Chapter 11.

Customer service experience to

differentiate your store.

SERVICE APPROACH:

CUSTOMISED vs STANDARDISED.

• Inconsistent

• Expensive

• Relies on

performance

of staff.

• Consistency.

• Relies on

policy,

procedures

design layout.

TYPES OF SERVICES OFFERED BY

RETAILERS.

• Assortment.

• Convenience.

• Financial Services.

• Delivery.

• Returns & Repairs.

• Complimentary Services.

EVALUATE YOUR SERVICE

• Mystery Shoppers.

• Surveys.

• Social Media.

RECOVERING FROM

SERVICE FAIL.

• Listen to complaints.

• Provide reasonable solution.

• Resolve the problem quickly.

a

• a.

EXTRAORDINARY

SERVICE

EXPERIENCES.

It is not just about being nice

to the customer.

Shopping vs Buying.

‘We are living in the moment of

great change…it’s important to

create an experience that’s

magical and memorable.’

WARBY PARKER.

• Shopping environment.

• Assortment.

• Staff.

• Repairs.

• Complimentary services (photo booth).

• Stakeholders.

WARBY PARKER.

EXCELLENT CUSTOMER SERIVCE

IS NON NEGIOTIABLE.

ANY QUESTIONS?