Download - Customer Service in Retail Marketing
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CUSTOMER SERVICE.
Chapter 11.
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EFFECTIVE DIFFERENTIATION.
• Increasingly difficult with merchandise
(inventory turnover, merchandise, private brands)
• Nearly impossible with prices.
• What remains is…
excellent customer service.
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CUSTOMER SERVICE.
• Cannot be as easily copied or
matched.
• Creates positive word of mouth
• Creates referrals.
• Keeping existing customer is cheaper
than sourcing new ones.
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LOSING SUCKS.
And so is losing customers.
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LOSING CUSTOMERS.
• Negative word of mouth.
• Losing out on customer life time
value.
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SOCIAL MEDIA.
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HOW NOT TO LOSE YOUR
CUSTOMER?
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ADAPT TO THEIR
CHANGING NEEDS.
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CUSTOMERS
ARE CHANGING.
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CHANGING CUSTOMER NEEDS.
• Understand who your customers are.
• Know what they want.
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CHANGING CUSTOMER NEEDS.
• Understand who your customers are.
• Know what they want.
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CHANGING CUSTOMER NEEDS.
Get to know your customer:
• Scanner data
• Loyalty programs
• Insights from Facebook
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CHANGING CUSTOMER NEEDS.
Get to know your customer:
• Scanner data
• Loyalty programs
• Insights from Facebook
“We always value your feedback, ladies.
Do you have any suggestions for how we
can improve HomeChoice?”
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CASE IN POINT:
SHOPPING MALLS
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“Malls have to adopt to
what people want”
Hyprop CEO, Pieter Prinsloo.
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PROFIT / SQUARE METER.
Shuffling of stores - some will close &
replaced by stores that better suit the
market.
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PROFIT / SQUARE METER.
Shuffling of stores - some will close &
replaced by stores that better suit the
market.
• CNAs are getting smaller.
• Music stores: People rather download
music than buy cd’s.
• Cinemas: Occupy a lot of space. Pay
less rent.
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INNOVATION IS NEEDED.
Cinemas, music stores, book shops:
• Be a while before they disappear.
• Have to find new ways of enticing
consumers.
• Try new things to become more
profitable.
• Can you think of any?
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• Redefine CEO Marc Wainer says South
African shoppers are: “clothes crazy”
• Even lower LSMs love to shop designer
brands.
• Increasing number of South Africans
are seeking branded goods which are
popular in EU and US.
SOUTH AFRICANS LOVE CLOTHES.
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Trend opens door for more
clothing brands to enter SA.
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EUROPEAN RETAILERS.
• South Africa is a foothold for growth in
Africa.
• They have marketed themselves
through TV & movies: head start before
they even get here. Already pop culture.
• Hyprop: long list of international
retailers awaiting space in malls.
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FACILITIES & VACINITY.
Sandton City.
• Developments in precinct.
• Gautrain Station and OR Tambo.
• Vein pumping tourists with fat purses
straight into Sandton.
• Particularly popular with African tourists
– Angola, Nigeria, Ghana.
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Ever increasing need for WiFi.
Strategy to pull consumers.
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Online shopping is competing
with land based shopping.
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ONLINE vs OFFLINE SHOPPING.
• Visible trend that consumers much
rather shop for clothes in store – feel
try on and experience it.
• More likely to shop/buy gadgets online.
• High tech brands still have a place in
malls – repairs and advice. But they
need less space.
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ONLINE vs OFFLINE SHOPPING.
• Hyprop is rolling out wifi across all malls
• Experience product in store, then go sit
at coffee shop (in mall), visit website via
wifi.
• Apps to find good deals in mall, then go
that that store.
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SHOWROOMING.
• Examining merchandise in a traditional
brick & mortar retail store without
purchasing it.
• Then shopping online to find a lower
price for the same item.
• Online stores often offer lower prices:
different & lower overhead costs.
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SHOWROOMING.
• Online retail prices for consumer
electronics are up to 11% lower than in-
store prices.
• Half of all online shoppers check
products out in traditional stores first.
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SHOWROOMING: DOWNSIDE.
• Costly to offline retailers:
–Loss of sale.
–Damage to store’s floor samples of a
product through constant examination
by customers.
• Particularly popular for electronic items
(iStore).
• Target discontinued Amazon Kindle.
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SHOWROOMING: COMBAT IT.
• Certain items exclusive to brick&mortar.
• Avoid shipping costs by picking up online
purchase in store on the same day (Wal-
Mart).
• Fitting Fee refunded when customer
makes a purchase.
• Customer service experience!
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SHOWROOMING: COMBAT IT.
• Online competition waits in the space
between aisle and checkout.
• Special coupons to mobile phones & ePOS
• Use of splash pages to get in front of show
roomer and promote special offers.
• Other location based promotions – GEO
targeting, NFC loyalty.
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CUSTOMER SERVICE.
Chapter 11.
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Customer service experience to
differentiate your store.
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SERVICE APPROACH:
CUSTOMISED vs STANDARDISED.
• Inconsistent
• Expensive
• Relies on
performance
of staff.
• Consistency.
• Relies on
policy,
procedures
design layout.
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TYPES OF SERVICES OFFERED BY
RETAILERS.
• Assortment.
• Convenience.
• Financial Services.
• Delivery.
• Returns & Repairs.
• Complimentary Services.
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EVALUATE YOUR SERVICE
• Mystery Shoppers.
• Surveys.
• Social Media.
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RECOVERING FROM
SERVICE FAIL.
• Listen to complaints.
• Provide reasonable solution.
• Resolve the problem quickly.
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a
• a.
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EXTRAORDINARY
SERVICE
EXPERIENCES.
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It is not just about being nice
to the customer.
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Shopping vs Buying.
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‘We are living in the moment of
great change…it’s important to
create an experience that’s
magical and memorable.’
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WARBY PARKER.
• Shopping environment.
• Assortment.
• Staff.
• Repairs.
• Complimentary services (photo booth).
• Stakeholders.
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WARBY PARKER.
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EXCELLENT CUSTOMER SERIVCE
IS NON NEGIOTIABLE.
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ANY QUESTIONS?