To Build Customer Loyalty, One Size Doesn't Always Fit All
Retailers may watch customers walk out the door—perhaps
for good—if they fail to differentiate themselves in terms
of services, products, store atmosphere and customer service,
according to a new survey of American shoppers by IBM (Somers,
N.Y.).
In fact, more than half of all shoppers surveyed said they
are turned off by stores that offer comparable service and
products, the survey shows. Shoppers also tend to stay away
from retailers that look and feel the same (46 percent), stores
whose employees are not helpful (43 percent) and store that
are disorganized (31 percent).
According to the survey, consumers prefer retail stores where
they are recognized as individuals, where products are easy
to find and where employees are knowledgeable. Eight out of
10 respondents (81 percent) are loyal to specific retailers,
citing the helpfulness of employees (34 percent) and a well-organized
store (32 percent) as key reasons for going back.
Shoppers familiar with the Web and other technologies such
as wireless devices expect retailers to offer high-tech ways
for them to get loyalty discounts, product details and out-of-stock
products. In fact, more than half of all survey respondents
(58 percent) said they want retailers to adapt as their needs
and expectations change over time.
“Consumers are clearly telling retailers that they
want a personalized and interactive shopping experience,”
said Joseph Gagnon, global leader of IBM’s retail consulting
practice. “They want immediate access to promotions
based on past purchases and loyalty, as well as precise details
on product availability or items that are out-of-stock. They
also want helpful sales associates, fast service and a store
that is easy to shop, sometimes even more than they want low
prices.
Other highlights from the survey:
- 68 percent of respondents prefer retail stores with price
scanners that confirm prices before checkout.
- 50 percent said receiving a personalized offer or coupon
geared to their lifestyle and purchasing history would encourage
them to shop at specific retailers.
- 45 percent said that interactive touch screens with product
information near merchandise displays would encourage them
to shop at specific stores.
- 26 percent prefer to shop in stores where they can receive
customized sales alerts as they walk through the aisles.
For details, visit www.ibm.com. [August 2005 PET AGE]
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