Posts tagged ‘customer experience’

January 13, 2012

Does Virtual Shopping Mean Curtains for the High Street or Are We Being Seduced Back into the Real World?

Question:  What distinguishes those retailers who will survive and thrive on the high street and those who will sink into oblivion under the weight of internet shopping?

Answer: An in-depth appreciation of the things that customers value about a direct retail experience.  The things that make the in-store experience something of genuine added value.

 The economies of scale and reduced overheads, and sheer shopping convenience achieved by a virtual store will never be matched by real life bricks and mortar shops, so the competitive advantage has to lie elsewhere.  Reducing prices and increasing ranges will only go so far in driving sales and eventually the squeeze on profits will force many shops into radical restructuring or liquidation.   Those who survive will have had a concerted re-think about what they are offering over and above the internet.

HMV, the iconic music and entertainment high street retailer in the UK is a case in point.  Despite announcing profits warning after dismal forecast during 2011, the company pushed on throughout the Christmas trading period and continues to insist that it will survive, despite a sales slump (8.1% decline in like for like sales for the 5 weeks to the end of December).

I fear the writing is on the wall HMV.  The internet offers identical products cheaper and without the trip into town.   Your store refurbishment programme is nice but not sufficient and your British stiff upper lip in the face of continual bad results is admirable but Titanically hopeless.  If you continue to do what you have always done, you will get what you have always got – and in your case that is consistently declining sales.  There is only one place it can end up: administration or disposal of assets.

There are many other examples of high street retailers struggling to survive against the combined might of internet retailing and the global economic depression: Blacks the outdoors retailer, Past Times the nostalgia gifts retailer, Hawkins Bazaar the toy shop, Barratts the shoe shop and Thorntons the chocolatier.  What unites them is that they are all long-established high street retailers dealing with the new world around them by doggedly sticking to doing what they have always done.  Perhaps they are reducing prices and making “efficiencies” but essentially, with the exception of an updated product range, when you enter their shops you might as well be stepping back ten years.

The high street is doomed.

But wait!  There is a new breed of high street shops that don’t seem to be declining.  In fact they are filling up the empty shop-fronts with bold new offers.  They include shops like Hollister, Build-a-Bear, and countless beauty emporiums. There is nothing new in the type of products they are offering – we are still buying clothes, toys and lotions as we always have – but  the way these companies sell them is different and they are expanding as quickly as others are falling around them.

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November 24, 2011

Anatomy of a Service Failure. How to Lose an Online Customer in 3 Easy Steps

Like a great many working parents, I do as much shopping as I can online.  It saves time and effort and reduces my carbon footprint.  Ok, I admit the last point is a happy coincidence and poor relation to the first two motivations, but I am working on it.

The point is that I and people like me are core customers of all the retailers who sell their wares in what everyone knows is a highly competitive marketplace.  However, I seem to have made the basic school-girl error of thinking that retailers understand that and more importantly that this makes me valuable to them and so every once in a while I am brought down to earth with an eye-opening bump. 

A bump that shocks me out of the inertia effect or “loyalty” so depended upon by banks, utility providers and others to keep us unthinkingly buying our services from the same organisations, despite increasing costs and the quiet downward creep of interest rates and value.  A bump which means I vow never to buy from that company again.  Service failure and no more chance of recovery.

For all the PR huff and puff about providing online ordering and delivery to make life easier and cheaper for us “valued” customers, the reality on the ground is rather different.  And it is pretty easy to lose a customer forever.  A recent experience with a big-name value retailer reminded me that there are 3 simple steps to making sure you don’t get another chance with the customer.

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April 28, 2011

What’s the Big Fuss about Positive Affectivity?

What?  You mean you haven’t heard anything about it?

Well, no.  Like most people, you probably haven’t heard much discussion about it because it’s one of those psychobabble terms that doesn’t easily trip off the tongue and so it gets very little air-time outside of academia.

But it’s something that we probably all have some awareness of, and with a bit more understanding we may well be able to give a good account of how much we tend towards it ourselves. More than this, research to date indicates that it might be one of the unseen and unmeasured features that means one group of people can perform better than another, when on paper everything else is equal.

What Exactly is Positive Affectivity?

Positive affectivity is the personality trait that predisposes someone to generally feel positive, optimistic and to pick themselves up quickly after disappointment or setbacks.  It is the tendency towards feeling happy about situations and outcomes and to express positive responses to adverse situations.

However, it’s more than just being in a good mood because it’s an enduring and measurable variable of behaviour.  Some people are more like this than others and this difference follows them across all sorts of situations.

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