With economic conditions heightening consumer sensitivity around purchasing decisions, retailers that design differentiated 'experiences' around their products and services can drive growth, profitability and lasting consumer loyalty, while also maintaining a price premium over competitors, according to a report by PwC US.
The study, entitled 'Experience Radar 2011: Retail Insights', measured the experiences of more than 6,000 US consumers across 11 industries, and concluded that consumer loyalty is born from shopping experiences that create strong psychological connections, rather than from points or rewards programmes alone.
After examining five core consumer experience attributes - accessibility, support, quality, presentation and social belonging - the report suggested that retailers should focus on enhancing service through investing in knowledgeable staff and leveraging front-line employees.
"In today's economy, retailers must identify new ways to set themselves apart, and that begins with a clear focus on customer experience," said Susan McPartlin, PwC's US retail & consumer industry leader. "A single purchase experience can leave a lasting impact on how the consumer identifies with the retailer, so it's imperative that retailers enhance how they serve customers to minimize potential hurdles from beginning to end."
According to the study, product knowledge and recommendations accounted for almost one third of good experiences related to support, while only one percent of shoppers cited rewards programmes alone as influencing their purchase decisions. According to PwC, retailers should consider developing an experience action plan built upon their loyalty programme's customer knowledge that strives to achieve five key 'experience enhancers', as follows:
"Customers are social beings, seeking connection and community," explained Lisa Feigen Dugal, PwC's US retail & consumer practice advisory leader. "When retailers move beyond solely relying on points and develop experiences based on what's most important to consumers, you not only drive loyalty, but you create ultimate brand ambassadors who spread the word on their positive experiences."
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