Why Retailers should bother about customers’ experience- Joseph Ebata

The President, Bervidson Retail Group, Joseph Ebata

The President, Bervidson Retail Group, convener of the annual Retail Leaders Conference, Mr. Joseph Ebata has said that poor customers’ experience impacts negatively on customer loyalty, retention, referral and advocacy, saying that this will lead to customer frustration.

Speaking on the topic “Customer Experience -The New Battleground of Retail Success” at the just concluded 4th edition of the annual Retail Leaders Conference in Lagos, Ebata noted that poor customer experience impacts negative on driving outlet footfall, sales and profitability.

He further stated that indifferent attitude to customers’ experiences will inevitably lead to churn and even worse negative advocacy.

“Customer frustration will lead to churn. Studies shown that 67 percent of customers mention bad experiences as a reason for churn. 13 percent of unsatisfied customers will tell to 15 or even more people about their unhappy experiences. Even worse, only 1 percent out of 26 unhappy customers complain, the rest, they just leave! Conversely, only 72 percent of customers will share a positive experience with 6 or more people,” he said.

According to him Customer Experience is the sum total of customers’ perception or feeling before, during and after his encounter with brand, store product, people etc.

Ebata stressed that of critical value to retail customers are: the location of the store, merchandise quality and price, range and availability of product and services, knowledge and professional personnel, reputation (of store, people and process), customer service and customer experience.

Of the factors listed above, he said customers’ experience is the single most exciting opportunity for today’s businesses success, and knowledgeable associates’ is the key to retailers’ successful execution of customers experience strategy.

“The critical role of retail associate in driving customers experience and sales is very important. Studies revealed that when customers are attended to, helped by professional and knowledgeable associates, 90 percent of customers are likely to buy, and 60 percent and more would buy more than they originally planned. 91 percent are more likely to shop again at that store when they leave satisfied and helped.

Unfortunately, 90 percent cannot find a knowledgeable associate to help them and 85 percent leave without purchasing anything as a result,” he emphasized.

He further explained that positive customer interaction and engagement with skilled associates have the capacity to increase sales. Results from studies shows that 91 percent would leave the store more satisfied. 91 percent of customers would shop with that retailer, again and again.  90 percent are likely to make purchases when professional and knowledgeable sales associates connect with indecisive shoppers and customers. 80 percent of retailers have noted that sales increased by 25 to 50 percent when professional and knowledgeable store associates assist customers and 60 percent of customers said they would spend more money if they get help they need from skilled associates.

"As the battleground of retail success shifts to customer experience, how prepared are you? What experiences are you, your store and your associates (employees) creating for your customers? The time to change is now, otherwise, you may just become history!, Ebata concluded.

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