| A company cannot be customer-centric without focusing on the customer experience. Over the last year, we shopped well over 100 companies, examining the multichannel shopping experience in more than a dozen industries. It is our strongly-held belief that the primary determinant of business success and the central strategic issue of every company is the customer experience.
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As marketers, we all recognize that our customers are critical to our existence. That which a customer encounters at every stage of her interaction with a company shapes and ultimately dictates what she thinks of the brand. It is not simply a matter of one touch point, such as, "lower prices." It is creating an exceptional experience that leaves the customer feeling like she is dealing with a brand that understands her because her experience is in line with being treated "the right way.” Yet based on our research, it is not clear that most companies leverage off this principle by creating a consistent, exceptional experience for our customers. Customer-centricity and its practice should be found across all channels equally. While most understand the concept of customer-centricity, putting together a game plan to make that vision manifest is another story. However, ignoring it will be your largest obstacle to growth.
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Our research has pointed out repeated instances of inconsistencies. For example, does the actual return policy match the promise on delivery? Catalogers spend significant resources on the front-end and few bother to see how the back-end is working, and whether it supports all the front-end claims. Many catalogers have unlimited return statements. How many reiterate this on the pick ticket? When a customer makes a return, is it a 60-day policy as the pick ticket says, or satisfaction guaranteed – unlimited, as stated in the catalog?
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Consistency between branding, messaging, and actual experience are oftentimes not in sync. We found “Commitment to Quality’ guarantees with misspellings. Another performance category rife with inconsistencies is delivery. Online, or offline for that matter, when a customer reads, “next-day delivery, ” or when a customer representative promises “next day,” will the package arrive “next day” or will it arrive the next day after the order is received in the warehouse, which might take 3 days for delivery?
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Having experienced hundreds of call centers, we found many to be so loud and distracting that information is not exchanged accurately. Some employ operators who joke about the working conditions and the antiquity of their order entry systems. Others are not proficient in English, are totally indifferent to the company’s mission, and/or possess little or no product knowledge. Do we realize that the few minutes our customers are spending on the phone with these operators, that our brands are being represented to our customers by these individuals?
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Training issues appear in every channel. Once a cataloger drives a customer to the web, is the customer able to complete an order quickly, or is he trapped in a mire of pop-ups, promotions, and cross-selling to the point that he will never go there again? After being encouraged online to place an order and pick it up at the retail outlet – is the store’s sales staff and infrastructure set up to complete the customer experience with efficiency, or is the customer treated like his order was an anomaly which will require a supervisor’s assistance to complete? Are field personnel trained in how to handle taking an order and issuing a return?
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Below you will find selections from our 2006 Shoppersmith Cross Industry Customer Experience Summary:
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General Gift Category
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From a customer service perspective, all mailers are focused on asking for a customer number. 80% of the catalogers have embraced technology and are using voice recordings. We were surprised to discover that despite the increased focus on multichannel marketing, only 60% asked for an email address and only 20% followed up via email. In addition, only 40% were actively upselling on the inbound order call.
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All companies are focused on getting the product to the consumer and offer expedited shipping; however, costs vary as much as 50% in overnight delivery. Only 40% brand their packages; however, all provide a bounce back offer in the shipment. UPS is the primary courier in this category, with merchandise being received within 7 days. Pricing is competitive in the category; however, quality of goods ranges significantly.
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Tabletop Category
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The overall experience varied greatly in this category driven primarily by differences in selling channels – catalog vs. web vs. retail. The use of voice recording in call centers was predominant, with easy to follow instructions. Customer service representatives in this category were generally friendly and focused on the multichannel experience, asking for email addresses and/or providing local retail store information. Cross-selling, however was non-existent.
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88% of websites were easy to navigate, resulting in products being found quickly. Quality of merchandise was good and was accurately represented on websites. Only 13% branded their packages, and 50% utilized inserts or bounce back offers in packages. Shipping charges varied significantly, however, delivery times were consistent, averaging five days.
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Tools and Equipment Category
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The total customer experience varies in this category. 75% utilize voice recordings on inbound calls, 66% play advertisements while customers are on hold, and customer service representatives are knowledgeable and friendly. Pricing for same items vary as much as 30% in this category. 75% provide free shipping on returns and provide a return label. Items can be returned anywhere from 30 days to an unlimited timeframe. Only 50% brand their packages and insert bounce back offers.
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Home Improvement Category
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Voice recordings in call centers appear as the standard in this category. 60% utilized a branded hold message, further reinforcing their strength in the general home improvement category. Cross-channel marketing is prevalent, with 80% asking for an email address; however, only 40% sent a follow-up email. In addition, only 20% tried to upsell on the inbound call.
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| The following are online standards in this industry, with 100% compliance: |
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 | requesting customers to register when making a purchase |
| offering deferred payment and payment by check |
| requesting the customer’s email address. |
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| UPS is the carrier of choice with delivery times varying from 5-11 days. 75% utilize inserts or bounce backs in outbound packages, while only 20% brand their packages. The standard return policy in this category is for customers to call the merchant and obtain an authorization number for the return shipment and ship the item back themselves. |
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| Floral Category |
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| 100% of the companies have embraced technology and are using voice recordings; however, only 33% have a branded hold message. 77% focused on upselling, but only 66% asked for a catalog key number. |
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| Overall, packaging in this category was strong, with extra steps taken to protect the delicate nature of the items. 55% utilized branded packaging and took the extra step and employed branded contents such as plant food. In addition, 55% enclosed a note card. 77% of the participants delivered the product within 3 days. |
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| Uniform and Work Apparel |
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| 100% of the companies offer personalization and various types of logo application. 83% do personalization in-house and have digital embroidery equipment. 100% price according to quantity. 16.6% have a 12 item minimum for embroidery, while 83% have no minimum. 100% charge one-time set-up fees, while embroidery fees are charged on a per item basis. |
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| 100% of the merchandise was manufactured outside the United States. 50% had their brand’s name on the inside, back collar tag of the shirt. 100% of the companies brand their packaging. 100% offer satisfaction guarantees. 33% offer satisfaction guarantees without a time limit. |
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| To illustrate the stark difference between a brand that understands customer-centricity and that of one who pays little to no attention to it, let’s take a look at two excerpts from 2006 shopping experiences: |
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| Experience 1: Our shoppers entered the Louis Vuitton store, located inside a high-end New Jersey mall to report a broken key valet. Upon entering this pricey boutique, the shoppers instantly observed evidence of the high priority placed on quality, style and service from sales staff through the merchandise displays. The salespeople embodied the brand’s culture, donned the latest couture, and possessed a command of their role as extensions of the Louis Vuitton brand. The key valet was happily sent for repair. Our shoppers were immersed in the Louis Vuitton culture during their time in the store and were made to feel like members of an exclusive club. Although the merchandise is priced very high, the total shopping (or in this case, repair) experience is exceptional and elevates shopping beyond that of common culture. |
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| Experience 2: Our shoppers entered one of the locations of a well-known New Jersey-based kitchen cabinetry and countertop provider. An immediate sense of poor upkeep, an absence of other customers or a salesperson prompted our shopper to call out “Hello, hello?” From an office in the back of the showroom, a woman emerged eating her dinner. This was indeed a salesperson. Her brief discussion with the shoppers concluded in her handing over a business card of a competitor with the handwritten name and phone number of a carpenter whom she thought may be of help in other reconstruction projects in our shopper’s home! Ouch. |
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| Experiences such as these are not anomalous. They are the direct result and a true metric of the importance a company places on its customers’ experience. |
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| Although some companies focus on customer experience, the reality is that most do not. Making sure that your cross-channel branding and messaging are consistent with your customer’s experience is critical. The smallest to the largest multichannel marketer should work equally as feverishly to ensure constant improvement. Marketsmith deems itself the only fully integrated expert in the field of customer experience, from the contact strategy to the close of the sale. Many marketers think they can get the email, catalog or SMS to the right person, but do not take it further than that. Conversion is mission-critical, while retention is essential to maintaining a healthy ROI on marketing dollars. Maintaining a strong dedication to continually improving your customers’ experience will not only lift your business’ position within your industry, it will ensure its viability in the years to come. |
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| Do you truly know what it's like to be one your customers? Or one of your competitors' customers? Chances are, we already know! Contact Susan Wernick at swernick@marketsmithinc.com, or call 973.889.0006 to get our professional opinion regarding your customers' experience (in every channel) at no cost. |
