Customer Experience and Service Management

NIFT April 2007

Table of Contents

Customer Experience Relevance of Customer Experience in Retailing. Customer Experience parameters Types of Customer Mapping Experience Parameters to Customer Types. Customer Service Strategy

Customisation & Standardisation Approach 3 Step & 5 step Process Customer Service Issues

Ways of Achieving Customer Delight Global Experience. Superior Customer Experience:

Three es of Experience. Great Leap Inspirational retail.

Customer Experience

Customer Experience encompasses the Experience felt by the customer from the time of entering the store to completing the Transaction and Leaving the Store.

Relevance of Customer Experience

It is much more expensive to get a new customer as compared to an Existing Customer. Every happy customer gets atleast 3 new customers to a store thereby saving the Cost of Advertising for New Customers.

Relevance of Customer Experience

Improves the Conversion Ratio Increases the Average Ticket Size and Number of Items per Transaction. Thereby increasing the profitability of the store.

Relevance of Customer Experience

Encourages Repeat Shopping & Builds a Loyal Base of customers. Creates Word-of-Mouth & thereby attracts new customers. Creates a Loyal Customer Base who do not defect to competition. Reduces need for high advertising spend.

Components of Customer Experience

Product Related : Selection , Quality and Pricing Physical Store Related: Location, Ambience & Ease of Shopping Experience Related : Store Design & Display, Knowledge of the sales staff & Returns Policy.

Customer Segmentation

Value Oriented Customers ;

Families, Middle & Older Aged , Middle Class & Lower Middle Class. Youth, Young couples, Middle, Upper Middle and Affluent.

Fashion Conscious Customers:

Customer Experience Matrix

Value Oriented Product Price Fashion Conscious Product Selection

Store

Ease of Shopping Cash Tills/ Parking,Convenience of Location . Experien Product Knowledge, ce Warmth in Treatment

Ambience

Pleasing Display of Merchandise,Flexibility in Returns, Special Treatment.

Customer Experience

A customer is delighted only when a store exceeds the customers expectations in terms of the Product , Store or Experience Related Parameters.

Who provide Customer Experience?

Project Team : Identifying a convenient location, Customer Flow Design which is convenient & Comfortable to customers. Merchandisers: Select Right Products, Refreshing the product mix to bring newness to the store. DC Staff: Products are replenished in time, Barcoding & Price Stickers are proper. Sales Staff: Customer Service Cashiers: Make Checkout Quick and Simple. Security: Security unintimidating.

Global Examples

Walmart : Exceeds customers Expectations in Price, Guarantees Satisfaction on Product Selection, Customer Service. Nordstrom: Exceeds Customer Expectation in Service, Returns Policy, Meets Expectations on Range. Seven-Eleven stores: Appropriateness in Location (27900 stores) & Product Selection

Customer Service Strategy

Customization Approach: Tailor the service to meet each Customers unique needs. Fashion Conscious customers. Benchmarks:

Disney : Guest Service

Customers are guests, Store is a Stage, Employees are Cast Customers are guest, Employees are Guest Ambassadors, Cash Till is Guest Service Counter.

Target : Guest Service Program

Customer Service Strategy

Standardisation: Establishing a set of rules and procedures to provide a consistent customer service. Value Conscious customers. Mc Donald:

Timely Service at a low cost

Customer Service Strategy

Ikea : Standardisation in a non-standard business.

Ready to Assemble Furniture. Catalogs and extensive displays. Tape Measures given to a customer. Display covering Quality of wood/ fabric and testing procedures. 70 Roomlike settings to create Right Atmosphere. Child Care Center to enable customers spend enough time.

Customer Service Strategy

3 Steps Process ;

Greet Smile Thank You.

Suitable for Value-Oriented Customers.

Customer Service Strategy

5 Steps Process:

Greet Understand Customer Requirement : Ask Questions : Open Ended & Closed Ended Questions Satisfy Customer Needs : Explain Product Knowledge. Help Customer Make the Right Choice.

Customer Service Strategy

5 Steps Process: Suggest Complimentary Products Accessories with Apparel Kids Wear with Womens wear if women are accompanied by children.

Conclude Thank you Invite for coming again etc. Inform about new events in the store.

Suitable for Fashion Conscious Customers.

Customer Service Issues

HEART approach

Hear Empathise Apologise : Apology doesnt mean accepting a fault. Respond to the guests needs. Taking Action and Follow up.

Customer Service : Summary

RATE Reliability , Responsiveness Assurance Trust Empathy

Improving Customer Service

GAP model:

Knowledge Gap : Knowledge of Customer Expectations. Standards Gap: Customer Expectations & Standards. Delivery Gap : Standards and Delivery. Communication Gap: Delivery and Communication.

Superior Customer Experience

Customer Experience Differentiators

3 es of Experience:

Education Engagement Environment

Education

Helping Customers in purchasing the right product.

Proper In-Store Information on Products, Prices & Promotion Product Knowledge of Staff. Product Demonstrations In-Store Trainings Seminars Group Product Demonstrations.

Engagement

Warm Greeting

Ten Foot Rule of Wal*Mart.

Pleasant Store Staff Trained Store Staff Floor Strategy on a Day-to-Day / weekly basis. Focus on Customers.

Environment

Ambience. Visual Merchandising Change in Display on a Regular Basis. Aisle Space Clear In-Store Signs to guide customers. Clean & Quick Cash Tills.

Inspirational Retailing

Inspire Customers to raise their Expectations to a New Level and become the only Retailer to meet these expectations. Ex: Home-Depot, Costco, Starbucks, Tesco, Amazon, E-Bay.

Home-Depot

Inspire more customers to use DIY concept in all Home Requirements. Provides Do It Yourself Learning Seminars. Special Order Kiosks to order products not available at Stores.

Tesco

Order Online Pickup from stores.

Reduce time spent in purchasing Homeessentials.

CostCo

Wholesale prices to end consumers. Inspire customers to Hunt for Bargains.

Amazon

Information as a Customer Experience Differentiator. Help Customers to take better purchase decisions by :

Editorial Reviews Recommended Lists Personalised e-mail suggestions.

E-Bay

Search for Bargains among Products available with other consumers. Motivate customers to start their own home businesses on E-Bay.

Starbucks

Celebrate Coffee Drinking as a way of Life Romantic Experience. Create Mood for Drinking Coffee & Destressing themselves. Motivate Customers to try different varieties of coffee and develop a taste for them.

Food for Thought

You aren't creating an 'experience' if it's not fundamentally different from what everyone else is doing."

Food for Thought

Customers only talk about the businesses that are superlative. So there is a critical threshold which says 'be great and you build the bond. Be good and customers will shop with you until they find someone who's great'

Food for Thought

The components of the experience that drive satisfaction are not the same for each customer. Identify your customers and hence the right experience mix for them.

Your competitors may be able to match your products or prices, but the experiences you create are yours alone. This is your true competitive advantage. Push it to its limits.

Wish you all the Best