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The New Frontier of Customer Experience
Why fantastic in-store experiences matter more than ever – and how you can deliver them.
In such a fast-changing competitive
landscape, it has never been harder
for brick-and-mortar retailers to
compete. Competition has never been
fiercer and customers have never had
so much choice, or information at
their fingertips. The ease and comfort
of shopping online, as well as the low
prices this can offer, means customers
are more demanding and more willing
to walk away to a competitor than
ever before.
When customers come into your
stores, they’re looking for great
service and fantastic experiences.
Recent studies show when customers
have a bad in-store experience, such
as a lengthy wait time in a poorly
organised queue, 26 percent will
abandon their purchase and leave
the store1; and the damage continues
after they leave the store.
Brick-and-mortar retailers need to
unlock the potential of their biggest
assets – beautiful stores, engaging in-
store experiences, and enthusiastic staff
who have the expertise to make each
and every customer feel important.
The New Frontier of Customer Experience:
Why fantastic in-store experiences matter more than ever – and how you can deliver them.By Imogen Wethered
1http://www.pierhouse.co.uk/wp-content/uploads/2015/07/PierhouseSurvey_WhyShoppersLeave.pdf 2
The Fall-Out of Negative In-Store Experiences
One of the biggest challenges retailers face is that
customers are now more than ever, more demanding
and impatient. With more options available to them,
they are more likely to walk out the door if they have an
unsatisfactory experience.
2 Qudini independent market research3 Estimated cost to individual retailers have been calculated using research data combined with an estimated 1,100/month footfall, combined with average spend figures: http://www.statista.com/statistics/412509/shopping-spend-by-location-great-britain-uk/. The cost to retailers in aggregate has been calculated by and multiplying the individual retailer costs by the number of retail outlets in the UK: http://www.retaileconomics.co.uk/library-retail-stats-and-facts.asp.4http://www.pierhouse.co.uk/wp-content/uploads/2015/07/PierhouseSurvey_WhyShoppersLeave.pdf5 https://www.zendesk.com/resources/customer-service-and-lifetime-customer-value/ 6 https://www.zendesk.com/resources/customer-service-and-lifetime-customer-value/7 https://www.omnicoreagency.com/twitter-statistics/8https://zephoria.com/top-15-valuable-facebook-statistics/
To date, queues and wait times have presented an
insurmountable challenge to retailers when looking to
convert customers in their retail stores. As it stands, even
if you provide highly sought after products at a low cost
with best-in-class customer service; customers will choose
to go elsewhere. This can cause a detrimental impact to the
bottom line of the traditional in-store retailer.
This impacts retail revenue-generating potential in four critical ways:
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Walkouts...Customers will walk out without service
Our research shows that poor in-store experience and long wait times
lead to 10% of UK customers walking out of stores2. That means
the average store loses £52,000 every year3 directly from walkouts
and poor in-store experience, with the total cost of walkouts to UK
retailers at £15 billion a year and hitting the entire economy hard –
26% of customers who walk out of a store will discontinue their purchase completely4, costing the UK economy £3.4 billion a year.
Lost Loyalty...They often won’t return
After walking out on a retailer, most customers won’t return – 55% of customers have switched to another company5 after a poor
experience. Causing UK retailers to miss out on £8.1 billion of sales
that just one more visit would have brought in.
Word of mouth...Most will tell their friends
According to Zendesk, 54% of customers share bad experiences with more than five people6.
If 60% of those who listen to them visited the retailer in question one
more time, this would amount to another £14.7 billion of revenue.
Social media...Many will share their experience on social media
With 317 million monthly active users on Twitter7 and 1.86 billion
monthly active users on Facebook8, social media can compound
the issue of poor customer experience, with a significant impact on
revenue, reputation and more.
10%
of UK customers
walk out of stores
55%
of customers have switched
to another company
4x
Poor in-store experiences cost retailers £168 billion a yearIn summary, poor in-store experiences can have a negative impact on customer retention and can lead to
negative social media reviews, customer walkouts and propensity to purchase products from competitor stores.
To negate this, retailers need to invest in their stores and look at enhancing the customer journey.
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9 http://www.v12data.com/blog/90-percent-social-media-users-reach-out-retailers-why-social-media-your-secret-weapon/
The true costs of long wait times and poor experiences soon start to stack up – so what can retailers do about it?
Social Media and “the Twitter Effect”
The popularity of social media channels has grown exponentially over the
last decade. With this in mind, customers use them as a crucial touchpoint
to engage with retailers on a real-time basis for customer service, with
Twitter being the main platform for this.
Qudini conducted independent research in September 2016, providing an
analysis of the main customer complaint topics on or related to the search
term “Bad store experience” across a sample of 150 tweets on Twitter.
The results showed that 36% used social media to share a poor customer service experience,9 whilst also identifying the top two
complaints shared on Twitter:
22.9% 14.3%
This is what we call the ‘Twitter effect;’ the social media platform
amplifies the impact of long queues in stores, creating massive
headaches for retailers. If each negative post is seen by 200
people, 30% of whom would otherwise have visited the store
in question the lost revenue opportunity for an average store would amount to £451,000 a year – £130.7 billion for UK retailers as a whole.
Rude or inefficient staff
at the number one spot
with 22.9%
Wait times, accounting for
14.3% of complaints, coming
a close second
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The Transition to Technology; Why Retailers are Investing in Customer Experience Technology in Stores
10 www.pwc.com/gx/en/retail-consumer/publications/assets/total-retail-global-report.pdf 11 http://www.retaileconomics.co.uk/library-retail-stats-and-facts.asp 12 https://www.accenture.com/gb-en/insight-digital-disconnect-customer-engagement 13 https://www.pwc.com/gx/en/retail-consumer/publications/assets/total-retail-global-report.pdf
Although 86% of customers now use multiple channels to make a purchase10, 88% of retail transactions are still completed in-store11.
It’s now more important than ever to
create a memorable experience from
the moment customers walk in to
stores. Customers are looking for more
than just products to buy. Only the
best retailers can give them unique,
engaging, tailored experiences across
multiple channels.
“Customers are voting with their feet as they shop more online, and for multi-channel retailers that means the need for an increasingly focused, curated and engaging brick-and-mortar store experience that creates maximum conversion – no matter what channel ultimately records the purchase.” – PwC Total Retail Global report, 201613
Better in-store experiences can beat lower online prices
With store operating costs high,
retailers can’t compete with online
prices – however price isn’t the only
factor in buying decisions. In fact, 47%
of consumers surveyed indicated they
are willing to pay a premium for a
better customer experience12.
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The shift from transaction-based to service-based retail
has led physical retailers to evolve their store experiences
to encourage more customers to complete their purchase
journey in-store.
Retailers are using innovative technology to deliver
outstanding in-store experiences; driving online sales,
improving conversions and increasing spend by transforming
their brick-and-mortar stores into hubs for exciting brand
experiences and service interactions. We’re seeing retailers
rethink their stores in a variety of ways, for example:
• Offering additional services and events in-store
(including ones that customers can pre-book),
therefore creating more opportunities to build lasting
relationships with customers
• Creating more immersive, memorable experiences in store
that enable customers to see products in action
• Using a concierge or host to engage customers and help
orchestrate their in-store experience from the moment
they walk in
Transform In-Store Experiences...
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Improve immediate in-store sales
On average, customers reporting the best in-store experiences spend 140% more than customers reporting a
poor experience14
Drive online sales and conversion and higher spend
Customers who engage through multiple channels generate
three times the volume of sales and more than twice the margin of store-only customers15
Build long-term loyalty to support business growth
A 5% increase in customer retention produces more than
a 25% increase in profit16
Differentiate from competitors
Consumer Intelligence Consultancy, Walker, have estimated
that by 2020 customer experience will become the number
one differentiator between brands, succeeding both price
and product17
Increase word-of-mouth marketing and brand advocacy
77% of of customers are more likely to buy products
recommended to them by family or friends.18 Through
excellent customer experience, word of mouth and social
media can be utilized to benefit your business
Transform Business Results
Retailers are reimagining their in-store customer experience to help them:
14 http://www.mycustomer.com/community/blogs/connieharrington/the-link-between-customer-experience-and-revenue15 https://www.accenture.com/t00010101T000000__w__/gb-en/_acnmedia/PDF-10/Accenture-Strategy-GCPR-Digital-Profitabilty.pdf#zoom=50 16 http://www.bain.com/Images/BB_Prescription_cutting_costs.pdf 17 http://www.gartner.com/smarterwithgartner/test/18 http://www.nielsen.com/uk/en/insights/news/2015/how-shoppers-look-watch-and-listen-for-new-products.html
What retailers do Why retailers do it
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The fact is, great customer experiences drive revenue
growth. Research has shown that retailers who
deliver the best in-store experiences will outperform
their competitors by a huge margin.
Forrester analysed companies’ revenue growth over
a five-year period. The results speak for themselves.
Forrester’s customer experience ‘leaders’ achieved 17% growth. The poorest customer
experience performers, on the other hand, grew by
just three percent.
Better Experience, Better Revenue
17%
growth by Forrester’scustomer experience leaders
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In this retail revolution, we work closely with retailers to transform their in-store
experiences to boost sales, streamline operations and create lasting, valuable
customer relationships.
Our enterprise Customer Experience Management solutions enable you to easily
manage and connect with your customers across multiple journeys and channels,
all within a single platform, using:
We are Qudini
Walk-in & Queue Management
Multi-Channel Appointment Bookings
Click & Collect Management
Request Assistance
Collection & RepairManagement
Workshop & Event Bookings
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62% 10%
reduction
in walkouts
within O2 UK
store conversion increase, as a
result of online appointment
bookings for one our new
enterprise customers
Increased customer browsing
and spend whilst customers
wait for service for John Lewis
40%
satisfaction
improvements
for House of Fraser
Buy and Collect
By thinking about customer journeys as a series of service experiences, rather than a
series of financial transactions, and using technology to improve those experiences,
forward-thinking retailers are starting to achieve some phenomenal results.
View our case studies online: qudini.com/customers
Rethinking Customer Engagement
Let’s design your customer experienceIf you’d like to discuss how enhanced in-store experiences could open up new possibilities for your business, get in touch at imogen@qudini.com?
“It’s been fantastic working with Qudini. We found them incredibly agile. They’ve been very receptive to our needs, and we’re really really comfortable that what we’ve got now is absolutely perfect for our stores.”– Bridget Lea, General Manager, O2
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