3 Lessons in Customer Satisfaction

We all know too well the travails of brick-and-mortar. But a retail customer satisfaction index rose significantly last year.

That’s good news for a traditional sales channel facing steep online competition. And it provides a few lessons for all omnichannel businesses.

Customer Satisfaction Reverses Course

Retailers did an about-face in 2016.

After two years of declining customer satisfaction, the American Customer Satisfaction Index showed a 4.7% increase in its overall score to reach an all-time high for the entire retail sector.

The annual report asked 70,000 people to rate their experience across in department and discount stores, specialty retail stores, online retail, and other categories.

What happened to change shoppers minds?

For starters, retail saw thinning crowds. It seems like a drop in foot traffic led to better customer service.

“As traditional outlets such as Sears, Macy’s and JCPenney shed properties, shoppers may experience better service in the stores that remain,” ACSI Managing Director David VanAmburg said in a press release. “Although this is obviously not ideal or sustainable in the long run, fewer customers mean shorter lines, faster checkout and more attention from sales staff.”

Physical retailers know they need to improve customers service. After all, consumers can find nearly anything online. So why bother going to the store when you can have it shipped to your door, sometimes the same day, and sometimes shipped for free?

Consequently, as Motley Fool writes, retailers treat people better.

But shorter lines, faster checkout, and greater sales staff attention did not improve customer satisfaction alone. Brick-and-mortar retailers also improved customer satisfaction with omnichannel strategies, the report noted.

Lessons for the Omnichannel

All omnichannel sellers can take something away from some of the top retail winners.

1. Stay Nimble
   Customers shift their buying patterns. That’s why it’s important to know which of your channels are serving them best. Retail chain Dillard’s, an index category winner, responded to the shift from in-store to online sales by beefing up its branding and omnichannel strategy. This included programs to get products faster to their customers.

1. Reward Loyalty
   Retailers proved that recognizing loyal customers translates to stronger sales. Costco, for instance, has not struggled against online competition, even when it made a disruptive change in its loyalty card program. The process caused problems but provided customers better incentives. Another category leader, K-Mart Pharmacy, benefited from having “only the most loyal customers left.”

3. Provide Perks
   Nobody will be surprised that Amazon scored highest in customer satisfaction in the online retail category. That was due to the addition of Sunday delivery to its two-day shipping offers and other perks. Obviously, you won’t have streaming video to entice customers. But there is almost certainly a bonus you can add to sweeten the deal.

Finally, all omnichannel sellers need data to know what customer satisfaction efforts are working and what are not. That’s what makes real-time inventory control and reporting such a vital tool.