For every retailer that sells tangible goods to end customers, the customer service function is one critical factor that can make or break the credibility of the business. It doesn’t matter whether you serve 60 customers or 60,000 customers, the fundamental challenges in customer services that you face are similar.
While brand trust usually translates into exponential profits, from product producers prospective, their go-to-market channels are often measured by two top metrics, the volume of sales and the cost of using the channel. If a retailer demonstrates high performance sustainably in these two simple yet critical metrics, it speaks for good customer satisfaction. Consequently, its relationship with suppliers can grow stronger by the days as well.
Therefore, as a retailer, how do you increase sales volume, reduce the cost, or preferably achieve even both? In this article we are taking a close look at sustainable profit growth from a customer service perspective.
For many customers who shop online, convenience and efficiency are the top factors that differentiate eCommerce shopping from in-store shopping. The inherited value, however, that a brand name retailer brings to end customers, resides in its strong ability to deliver trusted customer services. Sephora, a large brand name cosmetics retailer in the United States, for instance, is a good example of services-oriented retailing, operating both online and in physical stores.
If you walk into a Sephora store, you will be greeted by a beauty advisor, who offers to help you find any product you may be looking for. If you are simply browsing for ideas, your beauty advisor does not pressure you into buying products that you haven’t expressed interest in. It is a comfortable environment to make a purchase, while in the meantime, Sephora also ensures a smooth experience for returns or exchanges.
As a leading high-end cosmetics retailer, Sephora strengthens its identity with high quality customer service. Many loyal customers initiated their retail experiences through shopping at the physical stores. The customer service provided to customers who shop online and the in-store in person accountability mutually benefit each other.
As a customer, you have the option to enjoy the convenience of making a purchase online and having the products shipped to your doorstep. Meanwhile, the large number of physical retail stores across the country provides customers the sense of accountability, knowing that they can always visit a neighborhood store. In a mall or across the street, a Sephora physical store always offer the customer service to shoppers who purchase either online or offline, in case customers need any services post sales.
While the physical stores and in-person human customer services personnel provide accountability, digital customer services complement the shopping experience with the convenience of not leaving your home. Most importantly, as a nationwide chain retailer, a strong online customer services team help you expand your geographical coverage to the highest degree possible.
For shoppers who live in rural countryside locations, it is much easier to visit a local post office than to visit a physical cosmetic store. A young shopper could have built brand recognitions after a trip to the New York City. After she returns home to her countryside home, she is able to enjoy the convenience of shopping online, as well as the returns or exchanges through parcel shipments. In such cases, digital customer services quality can differentiate an extraordinary retailer from the mediocre ones.
Retailers, whether online or physical, are at the forefront of consumer discretionary sector, directly present the final products to customers, and deliver services. It is a good idea for retail businesses to periodically invest resources in enhancing the quality of customer services. The companies which do well serving customers both online and offline can surely put themselves ahead of the game.
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