Retail Observer

December 2017

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

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RETAILOBSERVER.COM DECEMBER 2017 42 W e often interchange the terms customer service and custom- er experience, but they are really two different things that need to be managed and measured separately. Customer experience is the sum of a client's entire interactions with your store. According to Forrester, customer experience is defined as "how customers perceive their interactions with your company". It's a proactive process developed to make raving fans out of your targeted prospects. It may start with how easy it is to navigate your website to get the exact information they are seeking. For some prospects, that might only be your locations, address and store hours. Others, though, might want detailed product descriptions and pricing. The in-store experience includes how warmly the customer is greeted, how well associates work to understand the customer's needs and wants, and how much product knowledge they have. Merchandising, lighting, and cleanliness are also part of the mix. Is the ambiance hip and up-to-date or old and worn? The experience includes the transactional piece of the purchase— was the pricing fair and market-based, or did the customer need to haggle to get their best deal? Was the paperwork done quickly and efficiently? Were credit options clearly explained and completed? Delivery, installation, and post-sale follow-up are also important to the whole experience. According to McKinsey, companies focused on providing a superior experience across customer journeys realized a 10-15% increase in revenue and a 20% increase in customer satisfaction. Customer service is a piece of the total experience. Customer service is the advice and assistance given by the company to customers before, during, and after buying or using its products / services. Customer service strives to increase customer satisfaction and loyalty by creating everlasting relationships with customers, but it is more reactive than proactive. To compete with online retailing, brick and mortar stores are raising the bar on the customer experience to lure prospects in. In Columbus, Ohio, for instance, Eddie Bauer has built the EB Ice Box—a meat locker inspired room cooled to 13°F. In the Ice Box, customers can gauge the warmth of a down jacket or a pair of boots sitting on a bench made from a block of ice. Jordan's Furniture has Sunbrella ® -sponsored IMAX 3D theaters in their Natick and Reading, Massacusetts stores complete with Tempur- Pedic ® seating. They sell tickets to first run movies and host group events and theater rentals for schools and non-profits. To complete the entertainment experience, both stores have dining available at Kelly's Roast Beef, Seafood, and Sandwiches and Fuddruckers. Most major malls have invested in some form of a family entertainment center. Since it opened in 1992, the Mall of America boasts the largest indoor amusement park at nearly 300,000 sq. ft. Other malls include movie theaters and a host of restaurant options to keep customers coming in. They're trying to up the ante on the mall experience. The opportunities for you to raise the bar on your store experiences are endless. Create events and displays that target your prospects. • Lure in families with a series of Saturday afternoon kids' cooking classes. • Partner with a kitchen or interior designer. Refer your customers with an offer to pay half of the initial design meeting fee if they purchase appliances or furniture from your store. • Build out a warm, dark, "nap room" and encourage bedding prospects to schedule an appointment to spend 20 – 30 minutes sleeping on your best mattresses. • Engage the best chefs in your area to a celebrity cook-off. Sell tickets to the event and donate the proceeds to a favorite local charity. • Host a series of 'Girls' Nights Out' in your store. Serve wine and a light dinner created in your demonstration kitchen and bring in a speaker to talk about parenting, health and wellness, stress, or home decorating. • Invite your customers to your store to have their kids' pictures taken with Santa. Promise cookies and cider and special in-store holiday pricing. • Create a Casino Night event for your designers, architects and builders. Winners get prizes donated by your vendors and discount coupons for their clients. Online shoppers get lots of benefits including convenience, selection, good product descriptions, fast, easy delivery and reasonable pricing. To lure those customers into your stores, you must offer all that and more— events and entertainment, a personal shopper, knowledgeable staff, and after-sale support. You must offer a great customer experience. Best wishes for a Merry Christmas, Happy Han- ukkah, Joyous Kwanzaa and a very Happy New Year. May the spirit of the holiday season—however you celebrate—bring joy to all. Elly Valas is an author, speaker and retail consultant. She can be reached at elly@ellyvalas.com or 303-316-7568. Elly Valas Retail Views RO GREAT SERVICE OR GREAT EXPERIENCE

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