It takes a lot of work for retail brands to deliver a remarkable experience. It can be done, however, by making sure the environment touches each of the five senses.
Getting customers whatever they need whenever they need it, and as quickly as they expect it, has become easier. Yet the returns process has some retailers winning and others floundering.
Customers have been spoiled. Thanks to companies such as Amazon and Apple, they now expect every organization to deliver products and services swiftly, with a seamless user experience. Are your processes up to that level of expectation?
In a survey that tracks consumer satisfaction in several areas, consumers expressed disappointment with commercial shipping, with much of their dissatisfaction caused by last-minute shopping during the holidays and delivery delays attributed to harsh weather.
Analyst Insight: Customer relationship management evolved from contact management, a sales-focused process for suppliers. In many cases, CRM must be rethought; it should be stood on its head, starting with customers' needs and working back to suppliers. Because most companies lack sufficient resources to satisfy every customer, this approach initially leads to frustration. But "every customer totally thrilled" is the wrong objective. To the contrary, it's critical to focus: to "wow" the most profitable customers, and serve them perfectly. Supply chain responses must match segmented and targeted relationships to build satisfaction and profit. - Robert Sabath, Principal Essentialist SCM, Trissential
Competition within the supply chain industry is fierce. Internal executives, third-party providers and industry consultants all have their own special sauce strategies to navigate the twists and turns of the supply chain. Touting a company's strength is important for shareholders and marketing efforts. But value can be generated by recognizing operational deficiencies, and seeking out partner companies with complementary competencies. By this initiative, both companies capture or retain the ultimate prize - the customer. Sometimes a company's best choice for a partner is the least expected or desired - a competitor.
Canadian Tire will deploy at least 5,000 tablet devices to its core network of 490 stores beginning in May. The rollout follows fast on the debut of a digital content hub designed to improve both in-store and online shopping experiences at Canada's largest retailer.
Analyst Insight: Innovative and strategic supply chain segmentation is a key strategy for effective supply chain analysis, enabling greater responsiveness and the ability to focus resources. Competition requires a better identification of key supply chain segments, considering that 80 percent of results come from 20 percent of items. An additional factor adding complexity is that increasingly manufacturers are adding services as part of their offerings - termed "servitization." Effective segmentation is the key to managing these complexities. - Nada R. Sanders, Professor of Supply Chain Management and Iacocca Chair, Lehigh University
Luxury shoppers are more likely to use mobile channels when shopping but are slightly less satisfied with e-commerce overall, according to the Luxury E-Retail Satisfaction Index released by customer experience analytics firm ForeSee.
