In a recent article entitled Waging the War for Shoppers’ Wallets, researchers at Gallup have identified that the victors in retail will be the ones who create an engaging customer experience. Their research shows that fully engaged customers spend $20 more per transaction than average customers at the same stores. A retailers’ most effective strategy for fending off competitors is focusing on creating an emotionally engaging experience for their customers.
This past weekend kicked off the official holiday shopping season in the United States. Over 138 million people in the U.S. alone set out to do some shopping. I know I did, maybe you did too. All told, I visited twelve different retailers over the past three days and each store had a chance to make an emotional connection with me. Most offered good service, but nothing beyond what you would expect–the place I bought my Christmas tree, the place I bought gas, the online purchase I made, and the book store I visited, for example. Some got close–the place I bought coffee, the place I bought groceries, and the place I had lunch. And two stood out for me—the place I picked up my dry cleaning and the place I shopped for a present for my father-in-law. I want to highlight those two stores as examples of how easy it is to create a connection with customers and also celebrate and recommend them both to you.
- The first is Town Center Cleaners in San Diego. How do they create a connection? Through customer intimacy. They know who their customers are and they demonstrate it on a daily basis. For example, they are already hitting the button to pull up my shirts the minute they see me getting out of the car. They always have a friendly greeting, check on how your day is going, and always make sure that Wednesday is okay for getting my shirts back. (And they never ask how I like my starch because it’s all listed on the customer record.) They do it so well, every time, that it has just become a welcome part of my Saturday routine.
- The second example is a little more subtle. My wife and I were checking out at a local sporting goods chain after looking for some running apparel for my father-in-law. (We didn’t buy anything for him, but I snapped up a great deal on a golf bag and umbrella.) As we were checking out, the cashier, an assistant manager filling in during lunch break asked us if anyone helped us with our purchase. My wife indicated that Sunny had helped us. Pretty standard except for what the assistant manager did next which was compliment Sunny on the good work. It was a genuine expression of appreciation and it made me feel good about the assistant store manager and the store itself. Way to go, Sports Authority in Carmel Mountain!
What was your experience shopping this weekend? Did anyone create an emotional connection with you? Tell me, and the rest of the world, by adding a comment to this post. Let’s catch people doing things right today!
PS: Everyone who posts by the end of the day today will automatically be entered for a raffle to win a personally autographed copy of Raving Fans, Ken Blanchard’s classic customer service book, or an advance copy of Lead with LUV, Ken’s new book with Colleen Barrett of Southwest Airlines coming out next month. I’ll announce the winner first thing tomorrow morning.
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Employee engagement is a popular topic these days and a whole industry has sprung up around helping managers identify people’s strengths, discover their motivations, and provide the tools and resources people need to succeed. The goal is to create a high-energy work environment where people want to come to work and be their best.
But do high employee engagement levels translate into better bottom line performance? Not necessarily. There is one additional component that has to be in place in order to drive bottom line impact. Read more…
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In an article for the May issue of Chief Learning Officer magazine entitled The Leadership-Profit Chain, authors Drea Zigarmi and Scott Blanchard identify the impact of leadership behaviors on employee passion and customer devotion. Their research shows that organizations can’t treat employees poorly, put pressure on them, and then expect them to perform at high levels.
Sometimes organizations operate as though they’ve forgotten the human element of business, and that people have strong feelings about the way they are treated that translates into subsequent behavior. Zigarmi and Blanchard remind us that leaders need to see employees as more than just assets to be maximized.
5 Recommended Leadership Behaviors
For leaders looking to treat people right and provide employees with the direction and support they need to succeed, here are five ways the authors recommend getting started:
- Provide strong strategic leadership that includes setting an overall vision for the organization, coordinating the efforts of employees toward that purpose, and keeping them prepared to adapt to changing conditions as necessary.
- Identify and focus the organization on key strategic imperatives that have purpose for the customer or meaning for the greater community. People want to be a part of something bigger than themselves.
- Send consistent messages based on a clear vision and the type of culture the organization wants to create. Behaviorally define the values that guide the way employees interact with customers and each other.
- Identify employee needs and strive to meet them. Day-to-day leadership is the linchpin that drives the ways that employees engage with clients.
- Don’t make profit your only goal. Profit is a byproduct of serving the customer, which can only be achieved by serving the employee. Don’t fall into a trap of thinking that an organization can’t focus on both people and results. Organizations can focus on both at the same time and should.
If leaders create the right environment and engage in the right behaviors, employees will give their best to the organization. This leads to a greater sense of excitement and passion at work that leads to better customer service and retention.
You can access the full text of The Leadership-Profit Chain article here. Also be sure to check out the Key Factors Influencing Employee Passion which identifies 12 components of an engaging work environment.
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In a column for Fast Company, Paul Worthington describes the impact that consumers can have on the image, reputation, and sales of your company’s products and services. As Worthington explains, “Consider for a moment that the humble Amazon product review can nullify millions of dollars of ad spend, that a search for “best razor” on Google can route around all of Gillette’s best efforts to communicate the “best a man can get,” and that a “hate Comcast” group on Facebook has the power to drive a consumer straight into the arms of DirectTV.”
Now, more than ever, the amplified internet soap box makes it essential that companies go out of their way to create “Raving Fans” – people who are so excited about your products and services that they tell others. At the very least, you want to limit the number of people who become raving foes –same idea, but on the negative side.
Here’s three ways to get started.
- Set a clear vision based on the customer experience. What should the customer expect when he or she uses your product or service?
- Be consistent. Make sure that your product delivers on that promise every time. Nothing creates a raving foe faster than inconsistent experiences.
- Deliver +1%. Give the customer a little more than they expected. This is the secret of creating a raving fan. What’s the extra touch that shows you care and makes people want to share their experience with others.
The internet gives consumers a loud voice in the marketplace. Make sure that it is a positive voice. If you are looking for more ideas, check out Creating Devoted Customers from our Ignite newsletter archives.
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Maintaining the status quo costs more than you think. In fact, in the average organization it costs over $1,000,000 dollars a year according to The Ken Blanchard Companies new Cost of Doing Nothing Calculator. The calculator which was just released on the company’s web site identifies three potential drains on performance—employee turnover, customer satisfaction, and employee productivity.
Using formulas based on independent research the calculator helps executives identify what excessive employee turnover costs a company when good people with developed skills leave an organization, what dissatisfied customers cost a company, and how less than optimal employee productivity numbers translate into bottom line impact.
The overall result? A shocking $1,000, 000 dollars or more in most cases.
Interested in finding out what your Cost of Doing Nothing might be? You can check out the Cost of Doing Nothing Calculator for free at www.costofdoingnothing.com or by clicking here to access The Ken Blanchard Companies web site.
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In a recent article entitled Waging the War for Shoppers’ Wallets, researchers at Gallup have identified that the victors in retail will be the ones who create an engaging customer experience. Their research shows that fully engaged customers spend $20 more per transaction than average customers at the same stores. A retailers’ most effective strategy for fending off competitors is focusing on creating an emotionally engaging experience for their customers.
