At the height of the dot-com boom, predictions about the outright demise of the brick-and-mortar store were floated about in the retail industry. However, it seems that one of the lasting effects of the Internet revolution has been to make the store an even more central part of the shopping experience. Whether it’s the place where customers go to actually touch an apparel item they’ve seen in a catalog or researched online, or where customers pick up the grocery order they updated via a cell phone text message, the store has become the center for the new multi-channel, multiple touch point shopping experience. If you notice many single brand retailers are now launching flagship stores as a destination to promote their brand and display their entire range to the customers in a real environment. This is also driven by the retailer’s desire to build customer intimacy. The physical store still represents an optimal environment for such efforts, because building customer intimacy involves much more than just collecting data from customer relationship management (CRM) applications.
“Customer intimacy is defined differently by each customer and retailers need to interact with them in the ways the consumer wants,” says Rob Garf, Retail Research Director at AMR Research. “Some customers want an almost purely self-service environment—they don’t want to talk to anyone, they just want to select their products and check out quickly. These people might be more apt to use technology such as kiosks or self-checkout systems. “Other customers might want a store associate to help them, especially in a
‘high-touch’ environment such as apparel,” Garf adds. “That store associate needs to be empowered with the same information that’s available to consumers online, such as product information, availability and shipping options.”
Saturday, October 13, 2007
Sunday, September 23, 2007
In store service-Nordstrom Effect
On the 21st of September 2007, I was driving home to Pune after having attended the India International Retail Convention in Mumbai. It was 9.15 by the time I pulled into the Furniture Bazaar parking strip and we were relieved to see a large sign indicating that store hours were 11.30 to 9.30.
For the last few weeks, my mother-in-law had been looking around for bedroom furniture for the spare bedroom of the house she had recently rented. These days a wide range of imported furniture is available at very attractive prices. She had finally decided on the range from Furniture Bazaar. The store being really far from where we live, we had been delaying the purchase, and this was a good opportunity to stop and buy on the way home.
As we entered, we saw a barrier displaying the sign “Store Closed”. We rushed around it, but the sales person was talking on his cell phone with a faraway look in his eye. “Is the store closed?” I asked loudly. He nodded absentmindedly, waving us away, and moved off.
“It’s not 9.30 yet!” I called out, but he was gone.
Rather than driving all the way on another day to this place an hour from home just to sign a credit slip for reasonably high-value goods, we would probably go and buy something similar from a nearby store of another chain. The extra thousand or so rupees we might have to pay would be compensated by the time and effort saved.
“It’s not 9.30 yet!” I pleaded to the two young men engaged in day-end activities at the till. One of them, who later told me that his name was Raju, stepped out and said “Yes, sir, we are open sir, what can I do for you?” Phew.
Then the security guard Yogesh who had been watching us, dismayed that the store might lose a customer, came up and offered a seat, and involved himself in clarifying price and availability.
As the processes of ordering from warehouse and invoice preparation were started, I smiled to myself.
A few hours before I had heard a story at the IIRC about a woman who entered a Nordstrom store at closing time. Even worse, the size of the garment she wanted was not available. Instead of shooing her away as had nearly happened to us, an employee of the store had warmly escorted her to a comfortable seat, and plied her with coffee while she waited, having arranged to have the item she wanted brought across from a competitor’s store across the street.
Nordstrom is a high-end fashion specialty retailer in the U.S. known for their carefully and impeccably presented merchandise. Quite apart from that, Nordstrom has achieved near-legend status with the coining of the phrase “Nordstrom Effect” which retailers enviously associate with their unparalleled, even obsessive, customer service.
Another Nordstrom anecdote concerns a woman who phoned a store as soon as she returned from a shopping trip there. Apparently one of the hubcaps of her (very expensive) car was missing. The attendant went out and scoured the parking lot, located the hubcap, and phoned her back to ask whether she would like to have it home-delivered.
I spent some time chatting with Raju and Yogesh. The other young man who had been on the phone and eager to get rid of the nuisance we presented him by arriving so close to closing time had retired to a far corner of the store and was relaxing on one of the comfortable sofa displays, still chatting away. He was obviously senior to Raju because he had to be called to enter the authorization code required. He refused to make eye-contact but I called him and inquired in a friendly tone who he’d been talking to. His category manager, he said. He confided that he had been under a great deal of stress and was very tired. I controlled myself from laughing, wondering what kind of training he’d been given.
Yogesh in particular impressed me a lot. We’ve all got used to sluggish and indifferent security people, telling ourselves that if Shah Rukh Khan and even the Prime Minister of India can have incompetent security staff, who are we to complain? But here was a young man who instead of spending his idle hours yawning, was adding totally unexpected value to his post.
In India we certainly do not expect service of the Nordstrom level. In fact, many of our retailers believe that Indian customers are mere yokels looking for nothing but bargains and product range, and are not the least interested in good quality service. They patronisingly imagine that the Indian customer with a crafty bargaining mindset, would not even RECOGNIZE good quality service, or would be embarrassed by it or take advantage of it. With this attitude, one can’t imagine how many customers are turning away to go and shop at other stores, as we nearly did.
On the other hand, with the right type of training, the security guard Yogesh (a true asset to the Furniture Bazaar store in Pune) and the sales assistant Raju, and the hundreds of others like them at your stores, could surely evolve to the Nordstrom level.
For the last few weeks, my mother-in-law had been looking around for bedroom furniture for the spare bedroom of the house she had recently rented. These days a wide range of imported furniture is available at very attractive prices. She had finally decided on the range from Furniture Bazaar. The store being really far from where we live, we had been delaying the purchase, and this was a good opportunity to stop and buy on the way home.
As we entered, we saw a barrier displaying the sign “Store Closed”. We rushed around it, but the sales person was talking on his cell phone with a faraway look in his eye. “Is the store closed?” I asked loudly. He nodded absentmindedly, waving us away, and moved off.
“It’s not 9.30 yet!” I called out, but he was gone.
Rather than driving all the way on another day to this place an hour from home just to sign a credit slip for reasonably high-value goods, we would probably go and buy something similar from a nearby store of another chain. The extra thousand or so rupees we might have to pay would be compensated by the time and effort saved.
“It’s not 9.30 yet!” I pleaded to the two young men engaged in day-end activities at the till. One of them, who later told me that his name was Raju, stepped out and said “Yes, sir, we are open sir, what can I do for you?” Phew.
Then the security guard Yogesh who had been watching us, dismayed that the store might lose a customer, came up and offered a seat, and involved himself in clarifying price and availability.
As the processes of ordering from warehouse and invoice preparation were started, I smiled to myself.
A few hours before I had heard a story at the IIRC about a woman who entered a Nordstrom store at closing time. Even worse, the size of the garment she wanted was not available. Instead of shooing her away as had nearly happened to us, an employee of the store had warmly escorted her to a comfortable seat, and plied her with coffee while she waited, having arranged to have the item she wanted brought across from a competitor’s store across the street.
Nordstrom is a high-end fashion specialty retailer in the U.S. known for their carefully and impeccably presented merchandise. Quite apart from that, Nordstrom has achieved near-legend status with the coining of the phrase “Nordstrom Effect” which retailers enviously associate with their unparalleled, even obsessive, customer service.
Another Nordstrom anecdote concerns a woman who phoned a store as soon as she returned from a shopping trip there. Apparently one of the hubcaps of her (very expensive) car was missing. The attendant went out and scoured the parking lot, located the hubcap, and phoned her back to ask whether she would like to have it home-delivered.
I spent some time chatting with Raju and Yogesh. The other young man who had been on the phone and eager to get rid of the nuisance we presented him by arriving so close to closing time had retired to a far corner of the store and was relaxing on one of the comfortable sofa displays, still chatting away. He was obviously senior to Raju because he had to be called to enter the authorization code required. He refused to make eye-contact but I called him and inquired in a friendly tone who he’d been talking to. His category manager, he said. He confided that he had been under a great deal of stress and was very tired. I controlled myself from laughing, wondering what kind of training he’d been given.
Yogesh in particular impressed me a lot. We’ve all got used to sluggish and indifferent security people, telling ourselves that if Shah Rukh Khan and even the Prime Minister of India can have incompetent security staff, who are we to complain? But here was a young man who instead of spending his idle hours yawning, was adding totally unexpected value to his post.
In India we certainly do not expect service of the Nordstrom level. In fact, many of our retailers believe that Indian customers are mere yokels looking for nothing but bargains and product range, and are not the least interested in good quality service. They patronisingly imagine that the Indian customer with a crafty bargaining mindset, would not even RECOGNIZE good quality service, or would be embarrassed by it or take advantage of it. With this attitude, one can’t imagine how many customers are turning away to go and shop at other stores, as we nearly did.
On the other hand, with the right type of training, the security guard Yogesh (a true asset to the Furniture Bazaar store in Pune) and the sales assistant Raju, and the hundreds of others like them at your stores, could surely evolve to the Nordstrom level.
Tuesday, August 28, 2007
In store service-2
I just came across a very powerful insight on retailing Fresh Vegetables by Prasenjit Ray in Economic Times, Pune today.
http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Selling_vegetables_is_a_different_ball_game/articleshow/msid-2316273,curpg-2.cms
I am glad that Mr.Ray has been able to bring about a different perspective since retailing fresh vegetables is now becoming the lead for every Food & Grocery retailer in India and this is becoming a key footfall driver for all such retailers after the launch of Reliance Fresh across the country. Mr.Ray has given very useful hints on customer expectations while buying Fresh Vegetables and if some of these are taken seriously it can lead to a new era of shopping experience for Indian Consumers.
Now since enough of retailing models are operational some consumer oriented thinking on part of retailers and researchers will be help us to bring about required changes to suite Indian consumer needs and expectations. At this moment all retailers are more focused towards rolling out new stores since consumers are welcoming new outlets for their own convinience. Once the same consumer starts facing multiple choices, this factor of shopping experience will becomme critical for stickiness.
I have spoken to many regular shoppers in a particular catchment in Pune, Reliance, Spencer's, True Mart & More within 500 mts of each other, and they have been switching between these brands looking for better offers and more convinience. It is generally experienced that though these stores are very conviniently located but a composite package of price, freshness and experience is still lacking.
http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Selling_vegetables_is_a_different_ball_game/articleshow/msid-2316273,curpg-2.cms
I am glad that Mr.Ray has been able to bring about a different perspective since retailing fresh vegetables is now becoming the lead for every Food & Grocery retailer in India and this is becoming a key footfall driver for all such retailers after the launch of Reliance Fresh across the country. Mr.Ray has given very useful hints on customer expectations while buying Fresh Vegetables and if some of these are taken seriously it can lead to a new era of shopping experience for Indian Consumers.
Now since enough of retailing models are operational some consumer oriented thinking on part of retailers and researchers will be help us to bring about required changes to suite Indian consumer needs and expectations. At this moment all retailers are more focused towards rolling out new stores since consumers are welcoming new outlets for their own convinience. Once the same consumer starts facing multiple choices, this factor of shopping experience will becomme critical for stickiness.
I have spoken to many regular shoppers in a particular catchment in Pune, Reliance, Spencer's, True Mart & More within 500 mts of each other, and they have been switching between these brands looking for better offers and more convinience. It is generally experienced that though these stores are very conviniently located but a composite package of price, freshness and experience is still lacking.
Friday, August 17, 2007
IN-STORE ADVERTISING
I came across a feature called Off the Shelf by Ashley Coutinho in the Brand Equity issue of 8 August 2007. It indicated that in-store advertising is now becoming an important component of the Indian Modern Retail industry. Though I know this to be true, unfortunately this article only speaks of how retailers can use the media of in-store advertising to create additional revenue opportunities. What is missing is the important message that this media can and should be used by retailers to improve their in-store sales revenues.
Keep your customer’s shopping time and attention focused on your products and services:
Shoppers visit stores with a list of products or brands to be bought. If you set up an effective media of communication inside your store, you will be showing them attractive options and also helping them to add more items to the list.
Shoppers also allocate limited time to the process of shopping and naturally would like to get the best value of time and money spent.
When retailers rent advertising space in Gandolas and in-store TV displays, they are creating advertising hoardings in their stores, but these hoardings usually would advertise merchandise not sold in their stores. By doing this, you may add a fractional amount to your top line, but you are losing much more by diverting your in-store consumer’s attention towards some third party merchandise and services and taking away their shopping time. This directly affects the shopping basket of the consumer since you have interrupted the consumer from shopping focus to other products and services offered in your store.
Your core business is retailing, not advertising!
Remember you are in the retailing business and not advertising. A consumer visiting your store is a big opportunity for you and you must make the best of it by selling more. Don’t waste their in-store time in showing them advertisements of third-party products. Your long-term relationship with this consumer will depend on how you can keep giving them higher value of their time and money spent with you.
Advertise your own promotions, schemes, and special production information:
I have a range of reports from global researchers which show the importance of using every possible in-store media to communicate with in-store consumers to enhance their shopping lists.
Very often, even regular customers are not aware of the on-going promotions and schemes in their favorite store and they often miss the opportunity to make the best of them. You can use in-store digital kiosks very effectively to remind your consumers of various promotions, schemes and offers to make some supplementary shopping decisions and this will lead to an enhanced shopping basket and higher retailing revenues from the same number of shoppers. This practice has been implemented very successfully by all customer-friendly retailers globally.
Motivate your own staff with in-store displays:
You can also make use of this media for a daily update and training inputs to your store staff for new items on the shelves, new prices, new promotions and schemes, and new processes and systems. This will keep your store staff on their toes and updated while serving their consumers.
Thoughts endorsed in the Brand Equity feature by various leading retailers are not in line with global practices. What is represented in the feature is a mini-phenomenon which has arisen from a need to feel that one is earning without investing. However, this approach will only lead to short-term gains.
Retailers who invest in their own in-store digital media infrastructure rather than renting their store space to advertisers will always have an upper hand. They can use this infrastructure to communicate effectively with their customers and store staff, and bring them the long-term multiple benefits of a more focused shopping environment, higher basket value, customer loyalty and lower attrition.
Keep your customer’s shopping time and attention focused on your products and services:
Shoppers visit stores with a list of products or brands to be bought. If you set up an effective media of communication inside your store, you will be showing them attractive options and also helping them to add more items to the list.
Shoppers also allocate limited time to the process of shopping and naturally would like to get the best value of time and money spent.
When retailers rent advertising space in Gandolas and in-store TV displays, they are creating advertising hoardings in their stores, but these hoardings usually would advertise merchandise not sold in their stores. By doing this, you may add a fractional amount to your top line, but you are losing much more by diverting your in-store consumer’s attention towards some third party merchandise and services and taking away their shopping time. This directly affects the shopping basket of the consumer since you have interrupted the consumer from shopping focus to other products and services offered in your store.
Your core business is retailing, not advertising!
Remember you are in the retailing business and not advertising. A consumer visiting your store is a big opportunity for you and you must make the best of it by selling more. Don’t waste their in-store time in showing them advertisements of third-party products. Your long-term relationship with this consumer will depend on how you can keep giving them higher value of their time and money spent with you.
Advertise your own promotions, schemes, and special production information:
I have a range of reports from global researchers which show the importance of using every possible in-store media to communicate with in-store consumers to enhance their shopping lists.
Very often, even regular customers are not aware of the on-going promotions and schemes in their favorite store and they often miss the opportunity to make the best of them. You can use in-store digital kiosks very effectively to remind your consumers of various promotions, schemes and offers to make some supplementary shopping decisions and this will lead to an enhanced shopping basket and higher retailing revenues from the same number of shoppers. This practice has been implemented very successfully by all customer-friendly retailers globally.
Motivate your own staff with in-store displays:
You can also make use of this media for a daily update and training inputs to your store staff for new items on the shelves, new prices, new promotions and schemes, and new processes and systems. This will keep your store staff on their toes and updated while serving their consumers.
Thoughts endorsed in the Brand Equity feature by various leading retailers are not in line with global practices. What is represented in the feature is a mini-phenomenon which has arisen from a need to feel that one is earning without investing. However, this approach will only lead to short-term gains.
Retailers who invest in their own in-store digital media infrastructure rather than renting their store space to advertisers will always have an upper hand. They can use this infrastructure to communicate effectively with their customers and store staff, and bring them the long-term multiple benefits of a more focused shopping environment, higher basket value, customer loyalty and lower attrition.
Tuesday, July 31, 2007
In store service-1
Store Manager is the leader of the staff working in the store across all shifts and it is important that store manager lead this pack by being on the floor of the store. Most of the staff working in modern Indian retail store has not gone through extensive training on customer service and familiarisation with the merchandise. Often they find themselves in a tight spot in case any customer ask them some questions about the merchandise, price or promotional schemes. This is time wherein store manager or section supervisor needs to be available and deal with the customer querry. A positive interaction with the customer at any such instatce can really create a strong impression in customer's mind.
An effective store manager is always visible on the store floor and commands his/her troops with some good practices to deliver excellent shopping experience to its consumers.
An effective store manager is always visible on the store floor and commands his/her troops with some good practices to deliver excellent shopping experience to its consumers.
Monday, July 30, 2007
Wednesday, July 18, 2007
CUSTOMER ADVOCACY: RETAIL
Modern Indian retailers are suddenly rushing to implement Customer Loyalty cards for catching customer loyalty in liu of some promised guddies. On the other hand their in-store customer service has lot to achieve since there is no Customer Service Management policy in place. It is important that they must first focus on Customer Service Management (CSM) rather than Customer Relationship Management (CRM). Customers are in the process of identifying a long term retail partner destination and they have increasing choices to make this selection. In fact to start with customers will make multiple choices and then slowly, based on the ongoing experience and value, their spend will start diverting towards a perticular choice based on their emotional bend and trust.
It goes without saying that customer satisfaction through initial experience is the starting point for journey towards advocacy. Creating a very strong customer service culture across your business is foremost and this needs to be reflected by a customer centric attitude across the organization. Every business practice, staff training, store layout and choice of merchandise has to have a flavour of customer service. It is very important to have a very clear customer advocacy policy in place. While writing the policy you need to answer following questions:
- What are you retailing?
- What is the profile of customers you cater to?
- Why are they shopping in your store?
- What makes them feel cared for?
- Why should they visit you again and again?
The answers to these questions will largely draw the outline of your CA policy. This policy should have very clearly mentioned your expectations from the standards of customer service you set. These should be measurable objectives and set the benchmarks very clearly in this policy so that you can keep measuring your progress. It is now important for every employee in your business to understand this policy and goes about job keeping this in mind. The policy must reflect in your work culture and the overall environment of the store, back office and head office. If required you may need to modify your key business practices to suit this.
AN APPEAL TO INDIAN RETAILERS:
I strongly advocate that a retailer keen to grow through customer loyalty shall focus on Customer Advocacy model and work towards it by fist outlining a CSM policy and implement it through a strong culture and descipline across the outlets. It does not cost any additional budgets but a corporate attitude only.
I am taking up the initative to bring together the consumers and modern retailers through this platform to create a better understanding of each others expectations and limitations and how we can work together to deliver better shopping experience.
It goes without saying that customer satisfaction through initial experience is the starting point for journey towards advocacy. Creating a very strong customer service culture across your business is foremost and this needs to be reflected by a customer centric attitude across the organization. Every business practice, staff training, store layout and choice of merchandise has to have a flavour of customer service. It is very important to have a very clear customer advocacy policy in place. While writing the policy you need to answer following questions:
- What are you retailing?
- What is the profile of customers you cater to?
- Why are they shopping in your store?
- What makes them feel cared for?
- Why should they visit you again and again?
The answers to these questions will largely draw the outline of your CA policy. This policy should have very clearly mentioned your expectations from the standards of customer service you set. These should be measurable objectives and set the benchmarks very clearly in this policy so that you can keep measuring your progress. It is now important for every employee in your business to understand this policy and goes about job keeping this in mind. The policy must reflect in your work culture and the overall environment of the store, back office and head office. If required you may need to modify your key business practices to suit this.
AN APPEAL TO INDIAN RETAILERS:
I strongly advocate that a retailer keen to grow through customer loyalty shall focus on Customer Advocacy model and work towards it by fist outlining a CSM policy and implement it through a strong culture and descipline across the outlets. It does not cost any additional budgets but a corporate attitude only.
I am taking up the initative to bring together the consumers and modern retailers through this platform to create a better understanding of each others expectations and limitations and how we can work together to deliver better shopping experience.
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