Have you seen The Marketing Operations Playbook?

Learn the insider's tricks and techniques to super-charge your company's marketing operations, build up your market share, make more sales through repeat business and customer loyalty, and prove your marketing's true worth through analysis and reporting.

Get it on Amazon (Kindle/Print)

Bad customer experiences risk huge retail losses

The March 2015 survey shows that approximately half of 2,500 US consumers polled reported experiencing a problem on their last shopping trip. Of those customers, 81% decided not to contact the retailer about the issue. Among these silent shoppers, 32% said they were unlikely to recommend the retailer to friends and family, putting these shoppers at-risk of decreasing their spend with the retailer.

By comparison, the study shows that shoppers who did notify retailers of their poor experience and had their problem completely resolved were 84% less likely than silent shoppers to be at risk of decreasing their spend.

"The results are a resounding confirmation that poor customer experiences have a considerable negative impact on shopper spend and attrition which can run into the billions," says Dennis Armbruster, LoyaltyOne Consulting Vice President and Managing Partner. "We're ushering in a new era of customer experience measurement vital to retailers looking to make even more informed decisions."

Building on its leading behavioural analytics solution, LoyaltyOne Consulting has partnered with The Verde Group, a leading customer experience research consultancy. Verde's proprietary Revenue@Risk analysis will use experience impact modelling to identify the specific customer experiences most damaging to customer loyalty behaviours and prioritize them according to impact on revenue and market share.

Retailers should take note of the importance in identifying specific customer experiences most damaging to customer loyalty as billions of dollars are at risk. Below is the ranking per category:

• Mass merchandisers are putting 25% of potential revenue at risk;
• Apparel retailers are putting 16% of potential revenue at risk;
• Department stores are putting 15% of potential revenue at risk;
• Drugstores are putting 12% of potential revenue at risk;
• Grocers are putting 11% of potential revenue at risk.

"Our methodology precisely measures the impact of ineffective customer touch points. Insight around the effects of poor customer touch points can help retailers reduce the risk of negative customer experiences, while also enabling them to proactively design experiences that positively influence spend, visit frequency and basket size," says Paula Courtney, President of Verde Group.

The survey also revealed that big spenders within a category disproportionately experience certain problems:

• Mass Retail "Check Out" Risk: Shoppers frustrated by check out wait times reported spending 23% more than the average mass retail customer (US$545 vs. US$446 a quarter).
• Department Stores "Not-My-Department" Staff Attitude: Shoppers troubled by an associate's not-my-department attitude reported spending twice as much as the average department store customer (US$543 vs. US$261 a quarter).
• Apparel Retailers "Ship Date": Particularly in their online channel, customers who cited their inability to obtain a specific date or time to receive an online order reported spending 66% more in the category (US$416 vs. US$250 a quarter).

"In a very robust platform, these partners have taken the psychology of shopping and married it with the economics of shopping. Insights around the impact of the silent customer could prove to be valuable tools for retailers looking to minimize the risk of attrition created from weak customer experiences," says Dr. Deborah Small, from The Wharton School of the University of Pennsylvania.

Have you seen The Marketing Operations Playbook?

Learn the insider's tricks and techniques to super-charge your company's marketing operations, build up your market share, make more sales through repeat business and customer loyalty, and prove your marketing's true worth through analysis and reporting.

The Marketing Operations Playbook walks you step-by-step through the techniques, metrics, reporting, analysis, marketing models, technologies, tools and innovations for successful marketing strategies - both traditional and emerging - with expert guidance from thought leaders in every major market.

Find out the best ways to gather, analyse, and act on customer data to increase profitability, build your brand, empower your customers, beat the competition, reduce churn, and increase customer profitability. This is the marketing book you can't afford to be without.

Find out what works - and what doesn't - and who's succeeded, and how they did it. See how the world's top brands keep their competitive edge against all odds.

This comprehensive and practical guide to the latest ideas in marketing operations hands you over 200 packed pages of strategy, best practices, do's and don'ts, practical know-how, facts and figures, and ideas to optimise your marketing strategy, boost sales, market share, increase ROI and profit.

This book aims to hand you all the facts, figures and research data you need for the best decisions for a more profitable, more engaging marketing strategy. It also highlights all the facts, forecasts and trends identified by our experts from the global Marketing Factbook's vast database of market data, news, studies, research and articles, and presents you with an invaluable library of ideas and practical support you can call upon at will.

With The Marketing Operations Playbook at your side, you'll gain to a true goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, research and market data, plus all the supporting arguments you need to build a solid, profitable marketing strategy: All the know-how, strategies and ideas you need to get your own Marketing Playbook right, first time.

Get it on Amazon (Kindle/Print)