The retail business is a tough gig these days. High inflation, reduced spending and increased theft have put immense pressure on brick and mortar retail stores. Many larger chains have even given up, shuttering their stores in key metropolitan areas as both costs and losses dramatically rise. With that being said, physical storefronts are making a comeback in the post lockdown world. According to a recent study from Zippia.com, (https://www.zippia.com/advice/retail-statistics/#Retail_Statistics_By_Brick_and_Mortar_Stores)physical store sales will account for 72% of all US retail sales by 2024 and shoppers will spend 11% more while inside a store as opposed to online shopping. The resurgence in foot traffic means retail businesses must focus their energies in capitalizing on customer service opportunities to drive sales and increase spends in the face of higher operating costs.
Frontline Staff are Key Players in Customer Engagement
Customer service experiences in retail settings have one thing in common, they begin at the greeting. Frontline staff that understand the importance of customers and how they drive the business can create opportunities instantly with positive and upbeat attitudes right off the bat. Setting a positive tone early increases the chance of additional spending through a complete and exceptional customer experience. Thorough knowledge of the business’s products and / or services is critical for frontline staff and will instill confidence in customers during face to face interactions. The team should have information readily accessible to quickly answer any inquiries from customers.
Operations that employ a ‘customer centric’ culture will not only see improvements in revenue and profitability but will also see:
- An increase in customer loyalty and repeat visits
- Word of mouth and reputational marketing as customers pass on their experiences
- A possible reduction in loss as proactive customer service can deter some forms of physical theft.
Retail operations that put a focus on delivering consistent positive customer service experiences will be better equipped in maximizing customer opportunities and driving individual spending. Delivering that experience starts with a well trained frontline staff that embraces the art of customer service.
Deeper Engagements Create Deeper Baskets
There are a many facets to delivering exceptional customer service experiences but frontline staff with elevated communication skills can be much more successful in driving the bottom line. Any staff that comes in contact with customers or potential customers would benefit greatly from even basic communication skills training. Representatives who use active listening skills will have a better understanding of customer wants and needs, potentially creating more opportunities to increase the spend. During interactions, asking questions can reveal more information while sharpening the entire customer experience. Posing open ended questions will require customers to give more thought when responding.
Some other important communication skills that can increase individual spends:
- Understanding and utilizing tones to direct conversations
- Maintaining eye contact when speaking directly to customers
- Noting customer mood and body language to determine the best approach
Frontline customer service teams that have the necessary skills to engage customers will be able to maximize each opportunity by increasing the value of each transaction while delivering an exceptional and memorable customer service experience.
The Bottom Line
The retail industry is going through a crisis at the moment. While companies try to streamline operations by offering more automated services and self directed checkouts, customers are actually hungry for more personalized shopping experiences and are willing to spend the money for it. After 2 plus years of lockdowns and limited access, online shopping is just not cutting it when it comes to satisfying the consumer. Reducing frontline personnel by offering more automated services has also led to increased theft and losses for retailers. Customer service is the cornerstone of any retail operations and businesses that embrace a ‘customer centric’ culture will see positive effects on the bottom line. A well trained and skilled frontline team can effectively increase spending by each customer that walks in the door while also reducing potential opportunities for physical theft. Razor thin margins and increasing operational costs means owners and managers must utilize every possible tool to drive sales and profitability and detailed customer service processes and training is the quickest way to ‘drive the basket’.