key driver in retail: helpful expertise
DESCRIPTION
Retail Buying Experience Survey Results 2013TRANSCRIPT
Key Driver in Retail: Helpful Expertise
Retail Buying Experience Survey Results 2013
Retail Buying Experience Survey Results
Agenda: The Most Important Driver of Retail: Helpful Expertise
Retail has a Problem
eXperticity 2013 Retail Buying Experience Survey Results
A Renaissance in Helpful Retail Sales Expertise
Introduction to eXperticity
eXperticity Recommendations for Retailers
page 2
Retail Buying Experience Survey Results
Retail Has a Problem
• The price wars are over: Walmart and Amazon won
• While self-service and selection did improve …
• Quality of service and personnel suffered
• Knowledgeable associates flushed out of the system
page 3
Retail Buying Experience Survey Results
Customers Struggle to Fill Expertise Void
• Internet provides lots of raw data, very little wisdom
• Consumers want wisdom• Which product should I buy? Is it right for me?
• Alternates when selection not available
• How to get the most out of what I buy?
page 4
Retail Buying Experience Survey Results
Retailers Centered on Helpful Expertise are Prospering
page 5
Retail Buying Experience Survey Results
eXperticity 2013 Retail Buying Experience Survey
What do consumers want from retail sales associates?
What do retail sales associates provide?
Which retail brands are doing the best job?
page 6
Retail Buying Experience Survey Results
Methodology
Fielded by ReRez Research, Dallas, TX
600 U.S. Consumers
5 Affinity areas• Outdoor
• Sporting Goods
• Hunting or Fishing
• Health and Nutrition
• Prestige Beauty
page 7
Retail Buying Experience Survey Results
Key Findings
• Expertise gap at point of sale• Consumers expect and crave helpful expertise in retail
• Retail sales associates often fall short
• Consumers struggle with alternative ways to find helpful expertise
• eXperticity’s recommendations
page 8
Retail Buying Experience Survey Results
Consumers Expect Helpful Expertise from Retailers in Key Areas
I've come to respect one particular salesperson. She always knows whether a product is going to work for me or not.
- Focus group attendeeI want them to be knowledgeable and be able to answer my questions precisely, concisely and competently.
- Focus group attendee
page 9
Prod
uct K
nowle
dge
Help
Select
ing
Prod
uct
Categ
ory Kn
owledg
e
Find
Altern
ative
s65%
67%
69%
71%
73%73%
71%69%
68%
Respondents who Rate Service from Sales-person
as “Somewhat” to “Extremely” Important
Retail Buying Experience Survey Results
40%of Consumers Find Sales Associates Fall Short
They don't know a lot about the product because they haven't had the proper training.
- Focus group attendee
I go in stores and the people don't know the product.
- Focus group attendee
page 10
Find Alterna-tives
Category Knowledge
Product Knowledge
Help Selecting Product
32%
34%
36%
38%
40%
42%
44% 43%
39%38%
37%
Respondents who say Salespeople fall short of delivering Specific Services
Retail Buying Experience Survey Results
Other Sources Consumers are Tapping to Find Helpful Expertise
You can just research so much and there's a variety of opinions. It's hard to separate fact from opinion.
- Focus group attendee
The Internet can definitely be information overload for sure.
- Focus group attendee
page 11
Someone You Perceive to
be an Expert
Online Research
Online User Reviews
Traditional Product Reviews
56%
58%
60%
62%
64%
66%
68%
70%
72%
74%72%
71%
66%
62%
Top Sources of Expertise for Consumers
Retail Buying Experience Survey Results
Renaissance in Helpful Expertise
Consumers want helpful expertise
Is it worth it for retailers to invest here?
page 12
Retail Buying Experience Survey Results
Helpful Expertise Increases Sales
1The Store Strikes Back: Why Onmichannel Retailers Should Win over Pure-Play Competitors, The Kurt Salmon Review, March 2013
30%more engagement
leads to
50%increase in conversion1
75%
of customers offered, buy
additional items; and their average
order value increases by
25%1
page 13
Retail Buying Experience Survey Results
4Five Best Practices to Retain High-Quality Employees, RetailCustomerExperience.com, 2011 5Hay Group study finds employee turnover in Retail industry is slowly increasing, Hay Group, May 2012
Helpful Expertise Keeps Employees Around
54%
of retailers say
TRAININGis a key tactic to
reducing turnover4
Sales associates report
2xhigher job
satisfaction if they can meet
customers’ needs5
page 14
Retail Buying Experience Survey Results
Helpful Expertise Creates Loyal Customers
• 70 percent of all purchases come from returning customers6
• Top three drivers of customer loyalty7
• Customer service (57 percent)
• Product availability (52 percent)
• Store experience (45 percent)
5%increase
in loyalty
8
65%increase
in profits
8
100%
growth8
6Delivering Your Intended Brand: Six Keys to an Authentic Customer Experience, Corvirtus7Customer Loyalty in Retail, ENK Research, Fall 20128
7The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, Harvard School Press, 1996
page 15
Retail Buying Experience Survey Results
eXperticity at a Glance
• Focused on bringing helpful expertise back to retail
• Strong market traction
• 579 brands• 55,856 retailers• 1,359,604 experts
page 16
Retail Buying Experience Survey Results
eXperticity at a Glance
• We engage and reinforce detailed product knowledge
• Brands reward expertise with product discounts and unique incentives
• Members watch their ranking within their store and their expertise category
• Brands/retailers gain insight on most engaged/knowledgeable employees
• Allow people with helpful expertise to identify themselves
page 17
Retail Buying Experience Survey Results
eXperticity Recommendations
Invest in the right people - There are people out there who love and use your products and your competitor’s products every day.
Train the people who love your stuff - So often retail employees get trained in things like how to improve service. That has a place, but if they don’t know the products inside and out, they won’t be able to provide the proper guidance. And if your customers have a bad experience after they leave your store, that smiley face from your team doesn’t mean much
Reward expertise - If your employees are in love with the stuff you sell and know everything about it, then they probably want to be rewarded with your stuff—discounts merchandise, tickets to related events, etc.
Evangelize the value of helpful expertise - We are all consumers and fundamentally can speak to how a great buying experience impacts your satisfaction. Leading people to the lowest price on your shelf doesn’t build relationships. Ask customers what they want, why they want it.
page 18
Thank You