Why Retailers Should Focus on the Ultimate Customer Experience? During an Economic Downturn

After some great conversations today in Tucson following my presentation at the Furniture Today Bedding Conference — the premier event for retailers and manufacturers in the sleep and bedding industry — I was reminded of the significant challenges that all retailers encounter when there is concern about a recession.

Economic downturns are a time of great uncertainty for businesses of all sizes. With consumer spending down and competition fierce, retailers need to find ways to create distinction from the competition and keep customers coming back.

One of the best ways to do this is to focus on designing and delivering an Ultimate Customer Experience.?

The Ultimate Customer Experience can make all the difference in a retailer's bottom line. Studies have shown that customers who have a positive experience with a retailer are more likely to return, spend more money, and recommend the retailer to others. In fact, a study by Bain & Company found that a 5% improvement in customer experience can lead to a 10% increase in profits.

There are a number of ways that retailers can improve the customer experience during an economic downturn. Here are a few tips:

• Make it easier for customers to shop.?This means offering a variety of convenient options, such as online shopping, curbside pickup, and in-store delivery. It also means making sure your website and mobile app are easy to use and navigate.
• Provide excellent service.?This means being responsive to customer inquiries, resolving problems quickly and efficiently, and going the extra mile to make sure customers are happy.
• Offer value.?This doesn't necessarily mean slashing prices. It can also mean offering insights of value to your customers with YouTube videos on how to get the most out of the product or service they’ve just acquired. My wife, Tammy, and I recently purchased a smoker for our back yard. The video instruction on how to use it has enhanced the value of the product for us — and motivated us to refer family members to purchase one, as well.
• Create a positive atmosphere.?This means making sure your stores are clean, well-organized, and staffed with friendly and helpful employees. It also means creating a welcoming and inviting atmosphere where customers will enjoy spending time. Have you educated every member of your team on how to engage more effectively with customers? (It’s a major part of my forthcoming book!)?

By focusing on the Ultimate Customer Experience, retailers can weather the storm of an economic downturn and come out stronger on the other side.

Here are some additional benefits of focusing on customer experience during an economic downturn:

• Increased customer loyalty.?When customers have a positive experience with a retailer, they are more likely to come back and do business with that retailer again. This can help retailers retain customers during a time when they are more likely to switch to a competitor.
• Reduced customer churn.?Customer churn is the rate at which customers stop doing business with a retailer. A recent Gartner study said a significant percentage of customers will stop doing business with you if they have ONE inferior experience! When retailers focus on the Ultimate Customer Experience, they can reduce customer churn and keep more customers coming back.
• Increased word-of-mouth marketing.?When customers have a positive experience with a retailer, they are more likely to tell their friends and family about it. This can help retailers generate positive word-of-mouth marketing, which can attract new customers and boost sales.

Focusing on the customer experience is a smart move for retailers during an economic downturn.

By providing an Ultimate Customer Experience, retailers can attract new customers, retain existing customers, and boost sales.