Retailer Strengthens Customer Focus With surveys

Background »

Retailers today are faced with more challenges than ever before. Rapid change, increased competition and especially the decrease in consumer spending are among the strong outside influences affecting this sector. To survive in such a climate, retailers must distinguish themselves from the competition through an exemplary focus on customer needs and satisfaction.

Our client is a major multi-chain department store operator. Because each chain caters to a unique segment of the market, store level data is essential for the parent company to understand the needs of each customer mix. Approximately two years ago, the retailer established a Quality department whose mandate included the measurement and management of customer satisfaction. Their primary store-based research method was mystery shopping. Each store was charged with hiring a supplier to conduct the research and send data to corporate headquarters. Mystery shopping proved to be a useful tool for gathering high level qualitative data. However, the retailer was looking to enhance the research with more detailed customer feedback.

Understanding the customer base »

In-Touch implemented an in-store research program involving 100 plus locations over two weeks. An average of 218 customers answered the survey in each store, which yielded statistically significant findings. Each store received a report of their results that included comparisons to the average score and indicated opportunities for improvement. With the aggregate report, head office gained an understanding of the similar characteristics shared by loyal customer groups, and those shared by less frequent shoppers. Here's a snapshot of some of the findings:

• customers with children were more satisfied and more likely to return to the store;
• females on average were more loyal shoppers;
• shoppers aged 65 and older were much less satisfied, and most of them were not likely to recommend the store to others;
• the company's flexible return policy was a key driver of satisfaction;
• charge card holders shopped far more regularly than other customers;
• stores were reporting an average of 11% additions to their existing customer base, and only 4% defections.

When reporting of mystery shop and employee attitude data are added to the mix »

In addition to delivering the full survey program, In-Touch is also reporting and analyzing the mystery shop data, which head office collects on standard forms. The forms are then scanned, but until now, no efficient or effective process existed for turning the mystery shop data into a useful improvement tool. Through the In-Touch reporting methodology, data from the two in-store research programs can be integrated and delivered in a consistent fashion for easy comparisons and analysis.

A third application of In-Touch expertise within this retail operation is the reporting and analysis of their employee attitude surveys. The company is currently testing the In-Touch kiosk as a replacement for the paper-based questionnaires used to date. In the interim, In-Touch has assumed responsibility for reporting and analyzing the employee-based data which will then be correlated with the customer satisfaction data and for a more complete analysis.