As the days shorten and retail’s Golden Quarter gets into full swing, we’re reminded that this is a critical trading period. For retailers and hospitality operators especially, but many other sectors too.
While autumn has been mild, when we might expect footfall to rise, we’ve seen consumers cut back on spending, as higher interest rates and economic uncertainty have made many of us hesitant to part with our cash. News this week that the UK economy expanded just 0.1% in August underscores the challenging environment businesses face.
Acknowledging this reality and adapting accordingly will be key to making the most of what is traditionally a lucrative period for consumer spending.
Thinking beyond the transactional element of service
Against this backdrop, the most successful organisations today are those that are intentional in how they attract, engage and retain their customers.
This starts with placing the customer at the centre of your strategy, ensuring key decisions are focused on delivering meaningful outcomes for the end consumer. This applies operationally, behind the scenes and in supply chains, as well as in our direct interactions with customers.
Of course, the transactional element of service is important. With so many ways to engage and connect with businesses nowadays, whether that’s in person, online or through an app, thinking carefully about the design and purpose of each channel is key. Customers should be able to access the information and support they need in a timely way, using the channel of their choosing. And increasingly, getting the end-to-end customer experience is what matters. Interestingly, as we continue to use a variety of channels to interact with businesses, research tells us that over 90% of us still choose to make purchase decisions in-store, after browsing elsewhere.
Despite the rise of ecommerce and online shopping in recent years, consumers still value the physical experience of shopping on the high street. To capitalise on this, businesses should look to create a genuine, thoughtful and memorable experience in store; one that’s made possible by well-trained, engaged staff operating in a considered, well-designed space.
Securing long-term business success
With many consumers feeling the pinch of rising prices, stagnant wage growth and inflation, it will be interesting to see if people head out to the high street as they usually would this quarter.
There are fears that we, as consumers, will delay our spending until closer to the Christmas period, given the level of economic uncertainty. A week ago, I spoke at the FT Live Future of Retail Summit about loyalty cards, and I really do think we need to recalibrate what we mean by a loyalty card. For me, loyalty cards should give added value in a way that aligns to the brand, not just access to better pricing.
Customer-obsessed brands are thinking more creatively about what loyalty means, and using their data more effectively to demonstrate greater personalisation in this area. To get this concept right, we need to apply this creativity to give me reasons to spend my hard-earned cash with you. I want more than just a better price – I want to be made to feel special and have access to something exclusive and personal.
What is crucial, however, is making sure customers feel they’re receiving the level of service they expect when they do. In today’s environment, as consumers, we want to know that we’re getting value for money. Great service is part of that expectation, And we know more than a third of customers are willing to pay more for – as the latest UK Customer Satisfaction Index showed.
This means getting things right first time, having the systems in place to help customers – whether human or digital (or a combination) – and offering a unique, personalised experience that truly stands out in the modern world that can often feel impersonal and cold.
This is about more than short-term satisfaction. As Maya Angelou (or others, depending on who you believe) once wrote: “people will forget what you said, people will forget what you did, but people will never forget how you made them feel”.
And it’s this feeling – the trust, the reassurance and the feeling that you care about me – that will keep me coming back to your business long into the future.
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