Leadership

Retailers Can Improve Relationships with Customers

By Nicole Solis

Updated on: August 20, 2007 / 5:54 PM EDT / MoneyWatch

A recent study of 1,200 customers revealed some interesting insights into how customers view their relationships with major retailers. Some of the results were fairly obvious:

90 percent of customers surveyed place a high priority on customer service
89 percent value retailers that are easy to do business with
93 percent said pricing and availability of products

But digging deeper into the study reveals some less-obvious also found that 70 percent consider a brand's corporate reputation and 50 percent look at a brand's moral values. The study's authors, Carlson Marketing and the Peppers & Roger Group, believe this may be why Wal-Mart found itself ranked in the bottom three retailers, along with Macy's and AutoZone.
Steve Riggio, the CEO of the study's top-ranking retailer, Barnes & Noble, told BrandWeek,"Our service is rooted in core principles which revolve around ensuring that we say 'yes' to virtually every customer request," said Steve Riggio, CEO at Barnes & Noble, New York."

A third of consumers surveyed said that participation in a loyalty program has driven additional purchases. [Carlson Marketing's VP of loyalty marketing, Luc] Bondar said that, unfortunately, these programs "are often not supported at retail. Companies spend millions and millions of dollars building, running, marketing and fulfilling these programs, and they fall down at the final hurdle when a customer actually comes into contact with a sales rep and asks questions."

So if the formula for building a successful customer relationship is straightforward-- keep products in stock, price products well, treat your customers well, and follow-through on your customer loyalty plans -- why did a chain like Macy's, which was founded in 1929, fare so poorly? As gas prices rise, limiting customers' disposable income and leaving retailers less leeway with pricing, and retailers continue to post lackluster sales, customer service could become a make-or-break factor.