Retail Merchandiser - November/December 2016 - 15


BY THE NUMBERS
Perhaps most interesting about the
successful offerings in this category
is that service is always at the forefront - not necessarily product. To be
considered consistently valuable to a
consumer, these brands must create a
culture of earning business month after
month since the products being
offered can often
be found on store
shelves anywhere.
Instead of massive
advertising budgets,
these brands invest
and allocate the
majority of resources
to service.
Subscription retail
services are creating an
increasingly demanded
approach to retail, and traditional brands must take note and deploy
efforts that spark the same level of commitment and sustained value in their
day-to-day shoppers.

Mobile is Multiplying
In the past, mobile was predominantly
utilized to research product reviews,
compare pricing and discover coupons
and offers. Today, that couldn't be further from the truth, with more than 82
percent of the 1.91 billion smartphone
users utilizing mobile devices to shop.
In 2015, consumers spent more time
inside mobile applications than watching television, according to a report
from Flurry. Additionally, research
has also found that nearly a quarter of
consumers said they have between six
and 10 retail apps on their smartphone
as of April 2016, up three percentage
points from October 2015. As mobile
shopping app usage continues to grow
in an exponential fashion, we can expect
to see more and more retailers innovate
through the development and evolvement of mobile apps.
Today's consumers expect retailers to
offer mobile apps that make shopping
on a smartphone even easier than in a

store or online. With that said, shoppers want any and all touchpoints to be
consistent no matter the chosen channel.
Delivering a robust and unified omnichannel approach allows retailers to track
consumers' interactions regardless of
whether they are purchasing via a brickand-mortar store, desktop or mobile
device. When done right, the collected
data allows for endless personalization
opportunities, creating the relevant,
one-to-one communications shoppers
are seeking. And with all signs pointing to consumers spending more when
shopping on mobile devices, this trend
that will play one of the largest roles in
customer retention and increased ROI.

Customer Experience is Key
It's been reported that it takes 12 positive experiences to make up for one poor
and unresolved one, and that a customer
is four times more likely to defect to a
competitor if the problem is related to
service rather than price or product. But
some retailers simply fail to understand the sheer importance of customer
service, when the reality is a retailer's
actions so often equate to consumers'
overall brand sentiment. And it's widely
known that consumers promote neg-

ative brand experiences far more than
positive ones.
These metrics are a testament to the
impact an inspired team of customer
service representatives can have on the
customer experience. The service level,
processes and technology they implement are critical for retailers to continually
improve the customer experience while
reaping the associated
monetary benefits.
The key to meaningful
customer experiences
is achieving the proper
balance between
customer service and
value. It's no secret that
retailers like Nordstrom, who commit significant focus
and resources to customer service, can
demand a higher price since shoppers
feel they are receiving value in return
that extends beyond the tangible items
they are purchasing. Analyzing target
audiences is critical to implementing
the proper methods, as some groups'
value will be solely based on the price a
retailer offers.
Once the appropriate balance is
achieved, it is integral to have a perfected service recovery process in place.
Issues are guaranteed to arise through
the customer's journey, but retailers
must anticipate what these issues are
likely to be so they can be prepared to
fix them immediately. Sometimes the
most satisfied customers are those who
have been won over after a problem was
handled efficiently and effectively. O
Mike Bornhorst is the CEO of DirectBuy, where for over three years he has been
transforming the savings club's member
experience to enhance lifestyles through
savings, selection and service. As a trusted
and decisive leader, Bornhorst's years of
executive leadership have centered around
the establishment of sustainable growth
opportunities and operational excellence.

November/December 2016

_DIRECTBUY.indd 15

RETAIL-MERCHANDISER.COM

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Table of Contents for the Digital Edition of Retail Merchandiser - November/December 2016

Contents
Retail Merchandiser - November/December 2016 - Cover1
Retail Merchandiser - November/December 2016 - Cover2
Retail Merchandiser - November/December 2016 - 1
Retail Merchandiser - November/December 2016 - 2
Retail Merchandiser - November/December 2016 - Contents
Retail Merchandiser - November/December 2016 - 4
Retail Merchandiser - November/December 2016 - 5
Retail Merchandiser - November/December 2016 - 6
Retail Merchandiser - November/December 2016 - 7
Retail Merchandiser - November/December 2016 - 8
Retail Merchandiser - November/December 2016 - 9
Retail Merchandiser - November/December 2016 - 10
Retail Merchandiser - November/December 2016 - 11
Retail Merchandiser - November/December 2016 - 12
Retail Merchandiser - November/December 2016 - 13
Retail Merchandiser - November/December 2016 - 14
Retail Merchandiser - November/December 2016 - 15
Retail Merchandiser - November/December 2016 - 16
Retail Merchandiser - November/December 2016 - 17
Retail Merchandiser - November/December 2016 - 18
Retail Merchandiser - November/December 2016 - 19
Retail Merchandiser - November/December 2016 - 20
Retail Merchandiser - November/December 2016 - 21
Retail Merchandiser - November/December 2016 - 22
Retail Merchandiser - November/December 2016 - 23
Retail Merchandiser - November/December 2016 - 24
Retail Merchandiser - November/December 2016 - 25
Retail Merchandiser - November/December 2016 - 26
Retail Merchandiser - November/December 2016 - 27
Retail Merchandiser - November/December 2016 - 28
Retail Merchandiser - November/December 2016 - 29
Retail Merchandiser - November/December 2016 - 30
Retail Merchandiser - November/December 2016 - 31
Retail Merchandiser - November/December 2016 - 32
Retail Merchandiser - November/December 2016 - 33
Retail Merchandiser - November/December 2016 - 34
Retail Merchandiser - November/December 2016 - 35
Retail Merchandiser - November/December 2016 - 36
Retail Merchandiser - November/December 2016 - 37
Retail Merchandiser - November/December 2016 - 38
Retail Merchandiser - November/December 2016 - 39
Retail Merchandiser - November/December 2016 - 40
Retail Merchandiser - November/December 2016 - 41
Retail Merchandiser - November/December 2016 - 42
Retail Merchandiser - November/December 2016 - 43
Retail Merchandiser - November/December 2016 - 44
Retail Merchandiser - November/December 2016 - 45
Retail Merchandiser - November/December 2016 - 46
Retail Merchandiser - November/December 2016 - 47
Retail Merchandiser - November/December 2016 - 48
Retail Merchandiser - November/December 2016 - 49
Retail Merchandiser - November/December 2016 - 50
Retail Merchandiser - November/December 2016 - 51
Retail Merchandiser - November/December 2016 - 52
Retail Merchandiser - November/December 2016 - 53
Retail Merchandiser - November/December 2016 - 54
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Retail Merchandiser - November/December 2016 - 57
Retail Merchandiser - November/December 2016 - 58
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Retail Merchandiser - November/December 2016 - 60
Retail Merchandiser - November/December 2016 - 61
Retail Merchandiser - November/December 2016 - 62
Retail Merchandiser - November/December 2016 - 63
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Retail Merchandiser - November/December 2016 - 88
Retail Merchandiser - November/December 2016 - Cover3
Retail Merchandiser - November/December 2016 - Cover4
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