Retailers Hoping To Connect With Consumers This Holiday Season

From Black Friday “bait and switch” schemes to poor customer service, consumers have grown to view the holiday shopping period with a jaundiced eye. Many retailers say they've gotten the message and want to make this shopping season better.

“What we can say with certainty is that consumers are looking for two things, to enjoy their holidays and avoid a buyer’s remorse hangover,” said Casey Chroust, Exective Vice President for Retail Operations for the Retail Industry Leaders Association (RILA). “And retailers want to offer an exceptional shopping experience for their customers in every way possible and end the year on a good note.

But with unemployment still high and money still tight, consumers are likely to be watching their spending closely, seeking the best value for their money across all segments of retail. They will look deals and promotions, and items that are more multipurpose with better quality and with potential for everyday use.

Chroust says retailers who want to earn consumers' trust, as well as their business, will have to work harder to deliver the value that consumers want.

Bethany may be a challenge

They may have to work hard to win over customers like Bethany, of Rehobath, Mass., who says she's angry at the level of customer service she received at a Best Buy recently.

“I am extremely busy and placed an order online so I could easily pick it up without having to wait for assistance and then wait in the regular line,” Bethany told ConsumerAffairs.com. I waited at the 'pick up' line for over 15 minutes while a employee flirted with two girls that he was cashing out. When he was done with the two customers he walked away. I asked him if he was working in this area and he told me no. I told him i was there to pick up an online order and he told me that he couldn't help me and to go wait in the customer service line.”

“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, of PwC, a retail consulting firm. “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.”

Looking for value, not rewards

According to a PwC study, product knowledge and recommendations are much more important to consumers that rewards programs. The company identified five things retailers can do to win over consumers and keep them:

• Focus first and foremost on shopper experience: Use front-line staff to create experiences that result in psychological connections with consumers. Invest in service by training knowledgeable staff to help affirm consumer purchase decisions and to prevent buyers’ remorse.
• Make customers brand ambassadors: Consumers who experience a positive shopping experience can be the best marketers for retailers, while a single, bad experience can cause widespread damage.  Identify, incentivize and promote brand ambassadors.
• Help consumers avoid risk: Attract new customers by helping them overcome psychological hurdles. Overcome shoppers’ worries about losing money on shipping, and press the emotional hot-button of free things.  Reduce consumer purchase anxiety with flexible return policies.
• Embrace the anytime, anywhere economy: With consumers shopping both online and offline, understand their shopping preferences before the competition does. Develop a multi-channel strategy that makes it easy for consumers to shop online, offline, at home or in stores. 
• When something bad happens, fix it: Provide customers with feedback channels as it may not be obvious that they are unhappy until they leave. Make sure that they are happy with the results—an apology may be enough to create an evangelist.
• “Customers, like all of us, are social beings, seeking connection and community,” said Lisa Feigen Dugal, PwC’s U.S. 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.”

In other words, treat the customer well. That's an old-fashioned business concept that many consumers probably hope catches on.