Wednesday, January 27, 2010

Shopper service or shopper disservice?

A shopper marketing focus follows the shopper journey all the way to the critical final purchase. What happens along this journey, what motivates the shopper and how the shopper behaves and interacts with others is crucial.

One could argue that these interactions become more important as we get to the actual purchase. Customer Service staff are the last line of defence. So what is the standard of 'customer' (meaning shopper) service and does it provide a service or a disservice?

I don't believe that the retail sector is attracting or retaining 'A grade' staff. Retail staff in Australia tend to be lower paid, part time, after school jobs. Most retailers view employees as an expense rather than an investment. Low paid, poorly trained front of house service staff says a lot about an organisations culture and priorities. The result is clear shopper disservice.

At the most crucial stage in the purchasing decision, brands and retailers are making a colossal mistake.

Well established consumer brand loyalty and shopper purchasing intentions developed throughout the shopper journey are simply wasted. And the reason? Brand and retailers on behalf of the brands want to keep staff costs low. Shopper service quickly becomes shopper disservice. And the loser is the brand, the retailer, the shopper and probably the 17 year old kid who never enjoyed his job anyway.

This is possibly why some brands have taken control of this crucial last step of the customer journey. These brands recognise the importance of Shopper Marketing at the retail level. They have taken shopper service to a new level with well trained staff who are motivated and passionate about their brand. The staff are not only advocates of the brand, they are the brand.

The best example I can think of is the Apple Store. There would not be many people who have had a bad shopper experience in the Apple Store. Apple currently has over 250 retail stores which contribute to more than a quarter of the company's profits. The iconic stores and 16,000 employees give Apple a public face and serve as training centres as well as retail outlets. The branded stores have been so successful that Microsoft has announced plans to dive into the retail business with its own corporate-branded stores to take on Apple's growing visibility among consumers.

The Apple Store in Sydney reflects the brand

The staff at the Apple Store live the brand

Other brand entering the retail the retail channel are Nike and Adidas, where the store and the staff in the store clearly reflect the brand. It is a consumer branding campaign broadcasting from the retail channel. Shopper marking is now affecting overall brand recognition.

Nike Store in Germany is all about Nike

Adidas Store in Tokyo takes brand to the streets

There are also some retailers who are doing a great job with shopper service on behalf of the brands they sell. I don't think this is the norm, but those retailers that do it well, use their service offer as a point of difference.

The staff in JB Hi-Fi are probably not paid a premium, but they do appear to be advocates and passionate about their products.

JB Hi-Fi may be positioned as a low cost retailer, however...

there is investment in staff who are advocates of the products and it shows

The Apple Store, Nike, Adidas and JB Hi-Fi are extremely successful brands and retailers. Today Apple announced a 50 per cent increase in quarterly net profit to $A3.74 billion.

Perhaps their retail led branding and shopper service culture is paying dividends. Literally.

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