Is Customer Service In Retail A Differentiator? | #customersupport #supporticket

Retail businesses have been known to thrive on great products, in-store experiences, bold marketing tactics, new customers, and repeat purchases. But if you deliver good customer service in retail, you can turn casual browsers into buyers and eventually loyal customers.

Your products may have attracted buyers to your door the first time but when you meet customer expectations, and provide a positive and consistent customer-centric experience, they are likely to return and continue doing business with you. In a world of retail commoditization, you can make customer service your competitive advantage.

What is retail customer service all about?

Retail customer service is about providing seamless experiences that tell your customers that you not only care about making the sale, you care about their needs and them being satisfied with their purchase. Customers value their time and if they need to seek support either before, during or after the sale, they want it to be easy, efficient, and hassle-free. Here are top 3 factors that contribute to a holistic retail customer experience:

1. Personalized retail store experience that includes a team of trained salespeople who understand customer needs
2. Integrated online shopping experience to help deliver customer delight across digital storefronts and retail stores alike
3. Curated customer journeys on online retail platforms based on recorded customer data and purchase history

What is the importance of customer service in retail?

Whether it’s buying a gift for a loved one or treating themselves to something special, the joy of shopping is the sum total of all aspects of the retail experience – the products and the experience. While it’s important for a retailer to ensure that they’ve got their inventory loaded with and the right volume and variety of products, the experience you deliver plays a pivotal role in deciding whether a customer will return to your store or not. 70% of buying experiences are based on how the customer feels they are being treated. While customers set the bar high for their expected level of service, most small businesses find it hard to meet customer expectations.

Here are 2 reasons why the retail customer service experience plays a critical role for retail businesses in today’s competitive landscape:

1. Convert Casual Purchasers into Loyal Customers

A retailer’s customer service strategy and returns policy can also be a differentiator in the eyes of the customer. You should remember that the customer service doesn’t end after the sale is made, and the customer leaves the store. 

According to Harris Interactive, 9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience. All you need to ensure is that your customers feel confident that you will be available to extend your support and promptly address any problems or concerns post the purchase. This would promote customer loyalty and your buyers will be more likely to invest their time and money in your products and may even be willing to pay a little bit more for your products in future.

2. Shoppers rely on customer feedback and peer reviews

Modern consumers engage in rating, reading and sharing reviews of products and services online. They also rely heavily on opinions from their social group in developing brand perceptions and making purchase decisions. If your retail customer service is not up to the mark, either online or at your physical stores, your customers are likely to lose patience and get frustrated.

Bad customer service gets amplified in no time when the word gets out on social media. Customers resort to platforms like Facebook, Twitter and Instagram to vent their frustrations over poor experiences with a brand and this can be extremely damaging for your reputation. In fact, once there is a negative word of mouth in the market, damage control will be an uphill task.

How does a good retail customer service strategy differentiate you from competitors?

81% of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competition. Here are a few of the things you can do as a retailer to stand out from the competition.

#1 Easy Access to Information about Products and Processes

The customer service experience starts before the customer enters your store (whether that be for a new purchase or for help with a previous purchase). Most customers have similar questions, such as  your store opening time, what your return policy is, how they can track their orders, etc. 

You can take advantage of this behaviour by making this information available ahead of time and easily accessible across customer touchpoints. You can set up an FAQ section on your website, mention policies in the form of support articles and even reciprocate the same efforts across your ecommerce app, and your social media handle. Not only do you have to make it easy for customers to find the information they are looking for, you have to be available to guide them if they’re unable to reach you. That’s where a self-service portal comes in handy. Make sure you keep these details updated and this will significantly improve your customer experience.

#2 Customer data to deliver seamless customer experience

Providing a good retail experience helps you ensure that customer needs are met and they choose your brand every single time they have to make a purchase. In order to facilitate excellent customer service in retail, you need to have a single database to collect and store all your customer data.

Whether customers reach out on email, chat, social media or phone, enabling an omnichannel support allows service reps to have enough historical context for every customer before they can propose a solution. Unified dashboards that entail customer information play an integral role in making customer experience as seamless as possible.

#3 Visibility into the status of customer requests

Every customer question or request need not be addressed immediately. Your customer service teams solve issues with varying degrees of complexity every day. However, every customer needs to be well informed of how long the issue is going to take to fix while also providing a reason for the same.

Customers tolerate longer wait times as long as they’re kept in the loop and given timely updates. Set the right expectations by having a clear line of communication. Maintain and share the link to the customer portal that underlines policies and gives customers the right information about their queries, how long it will take to resolve it, and regular status updates.

#4 Efficient Exchange and Return Policies

Returns are the most common request for post-sale support. It also accounts for the major reason where companies lose a customer. Here’s how some companies have turned this opportunity into a differentiator with easy-to-use tools/processes.

The US retail chain, Trader Joe’s, has an ‘unlimited days’ return policy on many of its items. The items are purchased at their store and can be returned no matter when they were purchased. They also don’t ask for a receipt which avoids the problem of trying to find that small piece of paper you had most likely thrown away. Not only does this encourage more consumers to choose their store, but this also differentiates Trader Joe’s from other retailers. 

When you’re trying to understand what good customer service looks like, we can always look at what the best in the business is already doing.

What are the 5 examples of excellent customer service in retail?

When you acknowledge your regular customers and really make them feel like they are part of your community it goes a long way in creating a positive image about your brand. Let’s take a look at how these 5 brands delivered excellent customer service.

#1 Zappos: Delight your customers in need

A customer bought six pairs of shoes from Zappos for their mother who had a medical condition where her foot was numb because of a recent surgery.[1] Unfortunately, none of the shoes provided the desired comfort, so the customer decided to return them. 

She called Zappos to explain her situation and requested a return and refund for the shoes. A couple of days later, the customer opened the door to find a bouquet of flowers that had a get-well-soon message and the entire family was given a free upgrade in membership status which included free shipping on all future orders.

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Learning: Not only did this win over the customer, Zappos went the extra mile to make them feel they were cared for. The extended offer for the family, just helped Zappos encourage the customer to trust the brand with its service for future purchase.

 

#2 T-We Tea: Share a personalized message with your customer

T-We Tea, a tea store in San Francisco, California offers various types of tea products and blends.[2]

One fine day, a customer who frequently purchased tea products from their online store, was amazed to see a small note when opening a freshly delivered order. The note read: “OMG, Hi Francesca! So lovely to see your name come up! We miss you dearly up here but know you are always doing epic things!” A personalized message like this really struck a chord and made the customer feel special.

 

Learning: Be empathetic- Small gestures like this can make your customers really happy and keep them interested to stay invested in your business.

 

#3 7-Eleven: Know your customers

It’s important for you to know your customers to deliver a personalized retail experience. There was a particular instance when a 7-Eleven store employee recognized a change in customer purchase behaviour and made the customer feel valued.[3]

The customer stepped into the regular 7-Eleven store with an intention to place an order for a quick meal but his usual order, Kimchi Fried Rice, was out of stock. He settled for another product, but was taken by surprise when an employee recognized this change in pattern. He walked up to his table and assured the customer that he would be intimated as soon as his usual order was in stock.

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Learning: Get to know your customers like you know your products. If you practice active listening and observe your shoppers closely, it would be easier to personalize their retail experience and even offer them the best deals on products they purchase frequently. 

 

#4 Birchbox: Win over customers with product knowledge

Here’s a story reported by a customer who decided to visit the Birchbox store in SoHo. For someone who didn’t have much idea about dry shampoos and hadn’t bought one earlier, the customer was assisted by a store associate who shared which brands she liked best, what their best-sellers were, and explained the distinctions between different products.

When the associate learned that the customer had never tried dry shampoo before, she even recommended her to test it out by purchasing a travel size bottle instead of pushing her to buy a full sized product. Not only that, the associate was kind enough to demonstrate how to apply the hair product. This resulted in the customer walking out of that Birchbox store with a product that she was excited to try, and with a reminder of how powerful in-store customer service can be.[4]

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Learning: Using the “FAB” formula, which stands for “Features, Advantages, and Benefits”, it helps you to remember what each product is all about and map your customer’s needs to the right product accordingly. If you can make every retail store experience customer centric, you win a customer for life.

 

#5 Schuh: Offer different support options

The shoe retailer, Schuh, offers a number of different channels for customer interaction. Not only do they have an excellent live chat feature on their website, they allow customers to choose from text, one-way video, or two-way video chat so customers can get direct help with your problem as quickly as possible. [5]

Customers can even contact them on various social media platforms. This means that whenever a customer wants to get in touch with Schuh, they are able to select their preferred communication channel and Schuh delivers the exact customer service experience they need.

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Learning: Offer different channels of communication. Every customer prefers a different method of communication, and so it’s important that you support your customers through multiple channels, allowing them to share problems, and interact with customer support as easily as possible.

One of the advantages of being a smaller business is the deep, personal relationship that you can build with your customers, over time. When you acknowledge your regular customers and really make them feel like they are part of your community it goes a long way in creating a positive image about your brand.

 

How can you improve customer service in retail?

Well trained salespeople, excellent communication, effective use of technology and customer service skills to cater to customer needs are just a few things that retailers can do to ensure positive outcomes. We have compiled a list of 5 retail customer service tips for you to create better customer experiences.

#1 Enable competent service representatives and salespeople

Customers do their research often before coming into the store. When they engage with a sales or customer service representative, customers expect your employees to know all the details about your products you offer and your policies. Ensure that your support and sales representatives have the right customer service skills and the knowledge to deal with different types of customers and their issues.

#2 Empower customers to solve problems on their own

Don’t let the same questions waste your time. Collate and curate the list of frequently asked questions about your products and processes so that customers don’t need to reach out to an agent for an answer. Make this information accessible through knowledge bases, and community forums- Encourage self-service to simplify the retail customer service experience.

#3 Analyze customer data to personalize customer experience

Loyal customers assume that companies they engage with, understand their needs and preferences and process the collected data (loyalty cards, mobile apps, surveys, etc.) to deliver personalized customer journeys, curated shopping deals and seamless customer experience. Exceed customer expectations by studying your customers closely and offering them what they need.

#4 Engage at a time convenient to the customer

Your customers are your greatest asset. It’s important that you value their time. One of the key reasons customers shop online is because of convenience. They can browse, evaluate and place an order at a time that is convenient for them. Brick & mortar retail businesses may be affected due to restrictions set by business hours but most retailers are bridging this gap using technology capabilities that allow customers to raise customer service requests and solve issues asynchronously even when the physical store is closed.

#5 Create predictable and customer friendly processes

Every interaction counts. When customers are uncertain about your brand and its customer service, they leave. When a customer has a question or needs help, they want to talk to someone who cares. Make sure your customers know what to expect in the process and experience ahead of time. Make sure you have the necessary information and context to deliver a friendly customer experience and offer solutions even before your customer realizes, encouraging customer retention. When a customer has a question or needs help, they want to talk with someone who cares, and they want to know ahead of time what to expect in the process and experience.

 

How can Freshdesk help you differentiate your retail customer service? 

For most retailers, a cloud-based e-commerce help desk like Freshdesk is an ideal choice because it is easy to set up, integrates with third party apps to deliver a seamless experience for your shoppers, scales with your business and helps you identify bottlenecks with real-time reports and insights. Let’s dive deeper into Freshdesk features that help you deliver a great customer service experience:

• Contextual support with ticket history

To make sure your retail customer service is always up to the mark, you need to keep track of all your customer conversations. Freshdesk monitors and logs every action that was taken on a ticket, making sure you never lose context of customer issues. No matter which retail customer service associate handles incoming customer questions, they have the context to provide quick and efficient solutions.

• Seamless omnichannel engagement

With Freshdesk’s omnichannel capabilities, you can support your customers on a channel of their preference. It allows you to convert questions from across calls, emails, live chat, social media into tickets and also reply to those questions from within the help desk itself. This is a very convenient way for customers to get their queries across and for you to provide them with answers as quickly as possible.

• Empower customers to help themselves with self-service

The best way to help your customers is by giving them the ability to find answers on their own. Freshdesk gives you a great platform to build a customizable self-service portal with solution articles, FAQs and other helpful documents for public use. With an informative knowledge base, customers become empowered to find answers much faster which leads to better support experience and higher customer satisfaction.

 

Conclusion

Without the massive customer service budgets, small and medium retail businesses need to be leaner, smarter and even more personalized. One of the advantages of being a small business is the deep, personal relationship that you can build with your customers, over time. Retail customer service is about going the extra mile and providing seamless experiences that tell the customer that you care about them as people. We hope that the above recommendations help you improve customer service in retail and nurture a base of loyal customers.

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Originally published on Oct 25, 2019. Updated on May 27, 2022.