Customer Engagement After the Recession - A New Takeon the Dating Game?


How to build the perfect customer relationship is awell-worn subject for many retailers. Much time, energy and cutting edgebusiness thinking has been devoted to the topic, with concepts such as'commitment', 'intimacy', 'loyalty', and 'communication' echoing much of thesentiment found in agony aunt columns. This shouldn't surprise us. After all,it makes sense that there are parallels between how retailers covet their mostvalued customers, and how we, as individuals, conduct our intimaterelationships. But what do these sentiments mean today, during one of thetoughest recessions many of us have ever known?


The retail landscape has changed dramatically since late2008. It is now a case of survival of the fittest. Traders can no longerhide behind over zealous, case spending consumers, and the credit crunch means thatcustomers are thinking much more carefully about where and how they spend theirmoney.


So, where to start? Stores need to woo their customers allover again-with a new set of priorities in mind. Consumers now requiredifferent things from this important relationship, and retailers need to actquickly to craft an attractive and sustainable offer that is superior to theircompetitors to win back the 'new look' customer-and secure their futurebusiness. How might they do this according to the rules of the dating game?Read on...


1. It's a numbers game


The more dates one goes on... the greater the chance of findingthat special one and romantic fulfilment. In retail, we want to maximise thenumber of customer interactions, so we are actually looking for many 'specialones'. The more people you can reach out to and draw in, the higher thelikelihood of you connecting with a larger number of the 'right' customers. Makesure that what you are offering appeals to a wide and attractive audience, notjust a select few.


2. First impressions are everything


Something needs to 'click' between both parties at firstsight for there to be an interest in what each has to offer. So, make sure youlook the part and are sending out the right messages. In the dating game, lotsof thought goes into what clothes to wear, how you smell, where to meet, and inmaking interesting conversation. In retail, first impressions are as equallyimportant. On entering your store the customer should feel at ease, beattracted to what they see, and feel 'this is for me'.


3. Give out positive vibes


On a date, each party is looking for hints that indicate theother's interest, whether they are visual, verbal or subconscious. In face-to-faceretail selling, a skilled salesperson will hone in on buying signals, however,in self-service environments, visual merchandising fulfils this role -assortment, promotion, pricing and display trigger positive customer responsesthat make them feel 'this is the retail experience for me'. Get this right andthe following vital stage of commitment will be confirmed, achieving that vitalsecond date/visit.


4. Communicate, communicate, communicate!


Communication is the essential catalyst in forming andsustaining relationships. In the dating game, good communication requiresactive listening from both parties and finding out about the other person-helpingthem to feel comfortable and valued. Equally for retailers to enjoy beneficialcustomer relationships they need to listen to, acknowledge and reward theircustomers for what they put in to this relationship. Get to know your consumerand make use of any variety of communication channels including face to faceforums, online marketing, and social networking sites-just be sure that howeveryou communicate it is in a way that means something positive to them.

 

5. Be aware of the tipping points


On a firstdate there are two critical tipping points-making the first move and handlingrejection. Making the first move requires self-confidence, and retailersshould demonstrate this in moves which align their offer with customerexpectations and requirements. This assurance is based on intuitive customerunderstanding,

and awareness of the dynamics of the trading environment. The second tipping point is handling rejection-never easy, even for the most confident of suitors! Retailers quickly realise when customers are rejecting their offer, but need to be agile to get back on track. This agility comes from knowing when and what to measure, and implementing strategic and operational contingencies. The important lesson for both daters and retailers is to learn quickly from rejection-why it went wrong and how to avoid repeating the mistake.


6. Is this Mr or Ms Right?


This question is rarely answered on a first date, however many suitors have a clear picture of who their ideal partner would be, how to attract this person, and where to find them, in their head. The same goes for retailers. A clear picture of target customer segments, an understanding of their shopping expectations, requirements and behaviours, and a robust strategy for acquiring and retaining these customers are all essential-particularly in the changing market place.


Conclusion


Waiting for the recession to be over is a false hope-2010 will simply be replaced by new challenges. Retailers have got to get their businesses in a position where they can cope with whatever the economy or market throws at them next.

The author is Director of Consultancy Services at Retail Assist