Great customer service that builds consumer loyalty is much more valuable than heavy discounting, says Tim Ogle
David Cameron's decision to appoint Mary Portas as an advisor on the challenges facing the high street is a welcome sign of the government's commitment to local retail.
Portas has called for supermarkets to work with their local competition to protect the high street an interesting suggestion that may pay dividends. However, high street retailers can also take simple steps to ensure their own survival.
Over the last year, we have seen tough competition and retailers continue to use discounting and offer strategies to drive footfall. High streets have been so full of promotions that it has been hard to get special offers to stand out.
The good news for retailers is that consumers are no longer just looking for the lowest possible price. Retail Eyes conducted a survey following the VAT rise which found that "value for money" is what matters to consumers. This should give hope to retailers who thought they had to rely on heavy discounting.
Shoppers will continue to be cautious in their spending decisions, so retailers must prove that their products and services provide the best value for money. Retailers will need to find new ways of competing the most cost effective being to focus on the customer's experience and give great service.
Retailers will need to demonstrate to customers that they are listening to them and should proactively seek feedback. Methods such as structured mystery visits and ongoing customer satisfaction surveys can provide significant returns for retailers, not just by improving average transaction values but by building consumer loyalty and confidence to recommend. These types of programmes are helping the businesses we work with along the bumpy road to recovery and will position them as the preferred choice when the economic recovery has finished.
It is, as always, frontline staff who remain the vital cog in the wheel. Retailers should share customer feedback with staff, who must also be encouraged to interact with customers in a way that demonstrates that their custom is valued.
Only then can retailers guarantee an experience that customers will remember and will want to come back for.
Tim Ogle is CEO of Retail Eyes.
David Cameron's decision to appoint Mary Portas as an advisor on the challenges facing the high street is a welcome sign of the government's commitment to local retail.
Portas has called for supermarkets to work with their local competition to protect the high street an interesting suggestion that may pay dividends. However, high street retailers can also take simple steps to ensure their own survival.
Over the last year, we have seen tough competition and retailers continue to use discounting and offer strategies to drive footfall. High streets have been so full of promotions that it has been hard to get special offers to stand out.
The good news for retailers is that consumers are no longer just looking for the lowest possible price. Retail Eyes conducted a survey following the VAT rise which found that "value for money" is what matters to consumers. This should give hope to retailers who thought they had to rely on heavy discounting.
Shoppers will continue to be cautious in their spending decisions, so retailers must prove that their products and services provide the best value for money. Retailers will need to find new ways of competing the most cost effective being to focus on the customer's experience and give great service.
Retailers will need to demonstrate to customers that they are listening to them and should proactively seek feedback. Methods such as structured mystery visits and ongoing customer satisfaction surveys can provide significant returns for retailers, not just by improving average transaction values but by building consumer loyalty and confidence to recommend. These types of programmes are helping the businesses we work with along the bumpy road to recovery and will position them as the preferred choice when the economic recovery has finished.
It is, as always, frontline staff who remain the vital cog in the wheel. Retailers should share customer feedback with staff, who must also be encouraged to interact with customers in a way that demonstrates that their custom is valued.
Only then can retailers guarantee an experience that customers will remember and will want to come back for.
Tim Ogle is CEO of Retail Eyes.
No comments yet