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           Owning the
           Retail Customer
           Experience:
           Increasing Revenue Through
           Customer Perception
The most successful retailers are developing strategies to own
 86% of consumers quit doing business with a company because                         the customer experience—which involves focusing everyone
 of a bad customer experience, up from 59% 4 years ago.                              in the organization on the simple, yet sophisticated task of
 Source: Harris Interactive, Customer Experience Impact Report.                      ensuring a customer’s perception of a shopping experience is
                                                                                     greater than their expectations. To do that, it takes more than
                                                                                     floor set changes or lighting. It takes the ability of:
The New Consumer Reality
In today’s tough environment, retailers need to take a long                          •	 Executives to define the experience that will enhance
hard look at their strategies for customer engagement.                                    the brand
                                                                                     •	 Field management to direct the processes and coach their
Consumers today:                                                                          employees on the successful implementation
•	 Ride a roller coaster of economic anxiety                                         •	 Frontline associates to deliver on the plan to positively
                                                                                          impact the customer’s impression of the brand
•	 Have limited time
•	 Have more choices than ever—both in merchandise                                   When done effectively, owning the customer experience is a
  and in ways of getting it                                                          differentiation strategy that provides the retailer with a leg up
                                                                                     on the competition.
•	 Expect value beyond product and price
•	 Can shop whenever and wherever they are                                           Owning the customer experience yields tangible results that
                                                                                     are music to a retailer’s ear. Case in point—see the following
Even with the changing consumer and shopping                                         results from several of AchieveGlobal’s clients:
environment, many retailers continue doing the same old                              •	   $1.55 increase in sales per square foot
thing—often focusing heavily on process improvement—                                 •	   3% increase in conversion
with expectations of differing results. Isn’t that the definition
of insanity? Forward thinking retailers are addressing these                         •	   4% increase in units per transaction
issues by aligning their organizations with the realities of                         •	   17% increase in customer satisfaction scores
today. More important, they are realizing that employees                             •	   12.5% increase in average dollar sales
are no longer just bodies to handle operational tasks,
but a strategic differentiator of both brand and                                     These results confirm that a carefully branded customer
customer experience.                                                                 experience increases sales opportunities, drives customer
                                                                                     loyalty, and maximizes revenue.

Owning the Shopper’s Experience

      Corporate                                       Customer Facing Organizations                                                 Target Markets
                                                          (Store, web, in-home, catalog, call centers)


                                                                        Brand
  MERCHANDISE
                                                                      Experience                                                         INCOME


    MARKETING
                                                                        Expectation
        RETAIL
                                                                            Vs.                                                          GENDER & AGE
    OPERATIONS
                                                                        Perception
   HR/LEARNING

                                    Field
              IT                   Manager Manager Associate            Revenue                          Customer                        LOCATION
there must be active leadership at all levels to direct the
  The top three drivers for investing in customer experience       processes that invigorate the strategy, and develop their
  management are:                                                  people on the appropriate skills and behaviors necessary
  1.	 Improve customer retention – (42%)                           through constant feedback and coaching. One important
  2.	 Improve customer satisfaction – (33%)                        link in the leadership chain - store managers and frontline
  3.	 Increase cross-selling and up-selling – (32%)                leaders - do the critical day to day work that brings the
                                                                   customer experience to life. They must continually assess
  Aberdeen Report – Customer Experience Management: Engaging       the level of service their team members provide customers,
  Loyal Customers to Evangelize Your Brand
                                                                   give feedback, both positive and constructive when
                                                                   necessary, and work to build a team that exceeds customer
The Path to Owning the Customer Experience                         expectations. Without this support, associates lack
Drawing from extensive worldwide research and decades of           the consistent reinforcement and application to instill
experience partnering with retail clients, AchieveGlobal has       the desired behaviors for successful execution. In turn,
outlined five critical components for retailers to own the         customers will report inconsistent levels of satisfaction.
customer experience.
                                                                   5. Effective Corporate Support At All Levels
1. Establish a Clear Definition Of The Desired
                                                                   Operational focus is still critical to a retailer’s success
   Customer Experience
                                                                   and plays a critical component of owning the customer
All members of the organization should be able to say with         experience. However, it is not the only thing. Too often
conviction, “I understand why this is important, what my           corporate leadership pays attention only to productivity
role is in achieving the desired outcome, and I am committed       or revenue metrics. While important, so is the need to
to being a part of the solution”. Engaging everyone to say “I      align those metrics and other dashboard measures to the
know, I care, and I can” is a transformative strategy – one that   appropriate skills and behaviors aligned to the customer
is best if it emanates from the Executive Suite and permeates      experience. Doing so will align the tangible tasks and
every level down to the front-line.                                measures like revenue, inventory, marketing, with the
2. Develop a Consistent Customer Engagement Strategy               proper skills and behaviors that impact those results.
Once a clearly defined experience is developed, resources,
skills, and behaviors must be identified and aligned to the        Assess, Evaluate, Course Correct
critical touch points or “defining moments”. Doing so will         Here’s the usual scenario: store operations say they need
support the implementation of the strategy. A consistent,          training in the store. They turn to their Learning &
enterprise-wide set of focused tools should be developed           Development group and ask for a training program. A
to support the acquisition and application of skills and           program is developed and implemented—problem solved,
behaviors at all levels. Without this step, many retailers fail    right? While the retail industry is known for gathering data
to see long-term success. Instead, they continue to see varied     on everything, very few truly utilize the data in an effective
levels of implementation across all channels.                      way to assess the success of their strategies. A critical
                                                                   component of any strategy is to continually assess, evaluate
3. Individuals Utilize The Skills & Exhibit The Behaviors          that data, and make course corrections before it’s too late.
Customer expectations are based on several factors                 By assessing the current strategy, evaluating the outcomes,
including past experience, marketing, word of mouth, and           and fine-tuning the strategy, retailers will continue to raise
experiences at other service organizations. Through the            the bar and stay ahead of their customers’ expectations.
use of defined skills and behaviors that have been aligned to
your defining moments, your associates have the opportunity
to create a positive gap between what a customer expects
and their perception of the actual experience. These                  81% of companies with strong capabilities and competencies for
critical components provide your stores the opportunity               delivering customer experience excellence are outperforming
                                                                      their competition.
to create loyalty among your customers, a higher referral
rate to potential customers, and ultimately, greater sales            				                                   Peppers & Rogers Group
opportunities.
4. Leadership Support & Coaching
Too often when a customer experience strategy is
implemented, retail leadership utilizes a “fingers crossed”
implementation, hoping it will stick. To truly see the desired
outcomes that a customer experience strategy can achieve,
How We Can Help                                                    About AchieveGlobal
To begin on the road of developing a customer experience           In the 21st century, the level of human skills will
strategy, ask yourself the following questions:                    determine organization success. AchieveGlobal
                                                                   provides exceptional development in interpersonal
•	 What is the essence of our brand promise?
                                                                   business skills, giving companies the workforce they
•	 What will it take to create a consistent experience across      need for business results. Located in over 40 countries,
   all channels?                                                   we offer multi-language, learning-based solutions—
•	 What is the precise customer experience that realizes           globally, regionally, and locally.
   the promise?
                                                                   We understand the competition you face. Your success
•	 What skills, attitudes, and behaviors are needed to enable
   a successful implementation?                                    depends on people who have the skills to handle the
                                                                   challenges beyond the reach of technology. We’re
•	 What are the responsibilities of leadership to ensure
                                                                   experts in developing these skills, and it’s these skills
   successful support and reinforcement?
                                                                   that turn your strategies into business success in the
•	 What metrics will be aligned to support the ongoing             21st century.
   measurement of the customer experience impact?
                                                                   These are things technology can’t do. Think. Learn.
AchieveGlobal is prepared to work with you to address              Solve problems. Listen. Motivate. Explain. People with
those questions, and help design and implement a customer          these skills have a bright future in the 21st century.
experience strategy. The difference between consumer               AchieveGlobal prepares you for that world.
loyalty and indifference lies in what the customer feels—
their emotional connection to your brand and people. A
detailed focus on the role human interaction plays is critical
to owning the customer experience. Without it, it’s the
definition of insanity.




                            World Headquarters
                            8875 Hidden River Parkway, Suite 400
                            Tampa, Florida 33637 USA
                            Toll Free: 800.456.9390

                            www.achieveglobal.com

© 2012 AchieveGlobal, Inc. M01241 v. 5.0 (02/2012)

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Owning the Retail Customer Experience: Increasing Revenue Through Customer Perception

  • 1. retail industry Owning the Retail Customer Experience: Increasing Revenue Through Customer Perception
  • 2. The most successful retailers are developing strategies to own 86% of consumers quit doing business with a company because the customer experience—which involves focusing everyone of a bad customer experience, up from 59% 4 years ago. in the organization on the simple, yet sophisticated task of Source: Harris Interactive, Customer Experience Impact Report. ensuring a customer’s perception of a shopping experience is greater than their expectations. To do that, it takes more than floor set changes or lighting. It takes the ability of: The New Consumer Reality In today’s tough environment, retailers need to take a long • Executives to define the experience that will enhance hard look at their strategies for customer engagement. the brand • Field management to direct the processes and coach their Consumers today: employees on the successful implementation • Ride a roller coaster of economic anxiety • Frontline associates to deliver on the plan to positively impact the customer’s impression of the brand • Have limited time • Have more choices than ever—both in merchandise When done effectively, owning the customer experience is a and in ways of getting it differentiation strategy that provides the retailer with a leg up on the competition. • Expect value beyond product and price • Can shop whenever and wherever they are Owning the customer experience yields tangible results that are music to a retailer’s ear. Case in point—see the following Even with the changing consumer and shopping results from several of AchieveGlobal’s clients: environment, many retailers continue doing the same old • $1.55 increase in sales per square foot thing—often focusing heavily on process improvement— • 3% increase in conversion with expectations of differing results. Isn’t that the definition of insanity? Forward thinking retailers are addressing these • 4% increase in units per transaction issues by aligning their organizations with the realities of • 17% increase in customer satisfaction scores today. More important, they are realizing that employees • 12.5% increase in average dollar sales are no longer just bodies to handle operational tasks, but a strategic differentiator of both brand and These results confirm that a carefully branded customer customer experience. experience increases sales opportunities, drives customer loyalty, and maximizes revenue. Owning the Shopper’s Experience Corporate Customer Facing Organizations Target Markets (Store, web, in-home, catalog, call centers) Brand MERCHANDISE Experience INCOME MARKETING Expectation RETAIL Vs. GENDER & AGE OPERATIONS Perception HR/LEARNING Field IT Manager Manager Associate Revenue Customer LOCATION
  • 3. there must be active leadership at all levels to direct the The top three drivers for investing in customer experience processes that invigorate the strategy, and develop their management are: people on the appropriate skills and behaviors necessary 1. Improve customer retention – (42%) through constant feedback and coaching. One important 2. Improve customer satisfaction – (33%) link in the leadership chain - store managers and frontline 3. Increase cross-selling and up-selling – (32%) leaders - do the critical day to day work that brings the customer experience to life. They must continually assess Aberdeen Report – Customer Experience Management: Engaging the level of service their team members provide customers, Loyal Customers to Evangelize Your Brand give feedback, both positive and constructive when necessary, and work to build a team that exceeds customer The Path to Owning the Customer Experience expectations. Without this support, associates lack Drawing from extensive worldwide research and decades of the consistent reinforcement and application to instill experience partnering with retail clients, AchieveGlobal has the desired behaviors for successful execution. In turn, outlined five critical components for retailers to own the customers will report inconsistent levels of satisfaction. customer experience. 5. Effective Corporate Support At All Levels 1. Establish a Clear Definition Of The Desired Operational focus is still critical to a retailer’s success Customer Experience and plays a critical component of owning the customer All members of the organization should be able to say with experience. However, it is not the only thing. Too often conviction, “I understand why this is important, what my corporate leadership pays attention only to productivity role is in achieving the desired outcome, and I am committed or revenue metrics. While important, so is the need to to being a part of the solution”. Engaging everyone to say “I align those metrics and other dashboard measures to the know, I care, and I can” is a transformative strategy – one that appropriate skills and behaviors aligned to the customer is best if it emanates from the Executive Suite and permeates experience. Doing so will align the tangible tasks and every level down to the front-line. measures like revenue, inventory, marketing, with the 2. Develop a Consistent Customer Engagement Strategy proper skills and behaviors that impact those results. Once a clearly defined experience is developed, resources, skills, and behaviors must be identified and aligned to the Assess, Evaluate, Course Correct critical touch points or “defining moments”. Doing so will Here’s the usual scenario: store operations say they need support the implementation of the strategy. A consistent, training in the store. They turn to their Learning & enterprise-wide set of focused tools should be developed Development group and ask for a training program. A to support the acquisition and application of skills and program is developed and implemented—problem solved, behaviors at all levels. Without this step, many retailers fail right? While the retail industry is known for gathering data to see long-term success. Instead, they continue to see varied on everything, very few truly utilize the data in an effective levels of implementation across all channels. way to assess the success of their strategies. A critical component of any strategy is to continually assess, evaluate 3. Individuals Utilize The Skills & Exhibit The Behaviors that data, and make course corrections before it’s too late. Customer expectations are based on several factors By assessing the current strategy, evaluating the outcomes, including past experience, marketing, word of mouth, and and fine-tuning the strategy, retailers will continue to raise experiences at other service organizations. Through the the bar and stay ahead of their customers’ expectations. use of defined skills and behaviors that have been aligned to your defining moments, your associates have the opportunity to create a positive gap between what a customer expects and their perception of the actual experience. These 81% of companies with strong capabilities and competencies for critical components provide your stores the opportunity delivering customer experience excellence are outperforming their competition. to create loyalty among your customers, a higher referral rate to potential customers, and ultimately, greater sales Peppers & Rogers Group opportunities. 4. Leadership Support & Coaching Too often when a customer experience strategy is implemented, retail leadership utilizes a “fingers crossed” implementation, hoping it will stick. To truly see the desired outcomes that a customer experience strategy can achieve,
  • 4. How We Can Help About AchieveGlobal To begin on the road of developing a customer experience In the 21st century, the level of human skills will strategy, ask yourself the following questions: determine organization success. AchieveGlobal provides exceptional development in interpersonal • What is the essence of our brand promise? business skills, giving companies the workforce they • What will it take to create a consistent experience across need for business results. Located in over 40 countries, all channels? we offer multi-language, learning-based solutions— • What is the precise customer experience that realizes globally, regionally, and locally. the promise? We understand the competition you face. Your success • What skills, attitudes, and behaviors are needed to enable a successful implementation? depends on people who have the skills to handle the challenges beyond the reach of technology. We’re • What are the responsibilities of leadership to ensure experts in developing these skills, and it’s these skills successful support and reinforcement? that turn your strategies into business success in the • What metrics will be aligned to support the ongoing 21st century. measurement of the customer experience impact? These are things technology can’t do. Think. Learn. AchieveGlobal is prepared to work with you to address Solve problems. Listen. Motivate. Explain. People with those questions, and help design and implement a customer these skills have a bright future in the 21st century. experience strategy. The difference between consumer AchieveGlobal prepares you for that world. loyalty and indifference lies in what the customer feels— their emotional connection to your brand and people. A detailed focus on the role human interaction plays is critical to owning the customer experience. Without it, it’s the definition of insanity. World Headquarters 8875 Hidden River Parkway, Suite 400 Tampa, Florida 33637 USA Toll Free: 800.456.9390 www.achieveglobal.com © 2012 AchieveGlobal, Inc. M01241 v. 5.0 (02/2012)