Consumer Insight - Customer Service
The domestic retail industry has grown manifold over the past few years, coupled with competition intensifying and providing an international customer experience has become a buzzword for the sector. As part of this transformation, top management at retailers are increasingly paying attention to reorienting their customer service delivery model and the phrase, “How can I help you?” is a key theme. 

For organised retailers, across various formats ranging from hypermarkets to luxury segment, the key challenge is to ensure that customer service helps improve store loyalty and leaves a lasting impression in their mind. And, as the local retail sector matures and differentiation is not so visibly different, customer service is widely viewed as the key lever to drive growth.

Retaining customers in-store

Over the past several months, reporters from Retailer visited organised retail stores across various cities and undertook extensive ‘mystery’ surveys to understand the ‘new age’ customer experience offered.

We interviewed customers and staff at stores, and also the top management of leading retail chains, to gain greater insight on how modern retail is responding to the challenges of redefining the customer service experience. And, after extensive analysis, we were in a position to identify stores that ‘went an extra mile’ to meet customer needs on various parameters, including store design, staff, special offers, loyalty programs and ‘surprise’ elements. We present our findings.

Inviting store design  

The design of a store is the first factor to attract a customer to visit the outlet. A large number of consumers in our survey highlighted that store hygiene plays a crucial role when selecting a particular store to visit, and their perception for that brand.

The store should also offer a level of comfort to their customers. However, this is not always the case, and several customers pointed out that at lifestyle stores like DLF Emporio Mall, Vasant Kunj, New Delhi, they often felt that they had to ‘prove their worth’ before entering.

Amongst large format retail chains, HyperCity is widely viewed as a winner by consumers, given its world class store design and ease of access. For instance, large signages make it far easier to find the nearest store and once inside the store, the wide aisles leave enough space for many people together to view merchandise.  “No doubt, we offer so many product categories under one roof, but it is rather easy to find a particular product here, and our store designers have ensured that we remain at the cutting edge of retail development,” said Simon Hooper, COO, HyperCity Retail.

In the F&B segment, the global icon Starbucks which entered the Indian market in 2012 has become very popular in a rather short span, given its Indianised store designs. Recognised globally for its structured store design, Starbucks has gone a step ahead in India and had engaged local artisans to do their store fixtures.

Apart from store design, consumers praised the efficient POS at this chain. Akshay Ravi, an entrepreneur shared “Despite a weekend and large crowd, my order was delivered in less than eight minutes and they were very efficient.”

Surprise the shoppers

Retailers have realised that offering services which are not ‘normally’ given, helps to delight customers and ensure their loyalty, and it also helps to expand their target audience.

For instance, HyperCity offers free valet parking to its customers, coupled with a personal shopping agent and free home delivery; usually not expected in a mall store. “Our customer-centric store focuses on creating an environment where every shopper matters and our aim is to exceed customer expectation,” adds Hooper.

They are not alone. Ishana: The Conscious One, located on Terminal 3 of Delhi’s Indira Gandhi Airport, and this store helps tired travellers rejuvenate and relax before boarding the next flight. Ishana is also possibly the first ‘experiential’ retail store that offers a wide array of natural spas, yoga, ayurveda treatments, back massages and allied services under one roof.

In addition, the Healing Pool also helps to promote a sense of well-being and remove any ‘blocks’ in the minds of a consumer. It also serves has a surprise element for customers.

Ishana has also proved to be popular amongst travellers for providing a holistic experience based on a mix of Indian values and modern retailing principles. Amar Agarwal, MD, The SPA Group, said, “Our guiding principle for customer service is ‘Atithi Devo Bhava’, a guest is like a god.”

Agrees Ging Chen, a businessman from China, also highlighted that a visit to Ishana is must before departing from India.

Up close and personal

The Starbucks management has no doubt placed considerable emphasis on its customer service strategy, and connecting individually with him, including calling out there name when an order is ready for delivery.

Avani Saglani Davda, CEO of Starbucks, recently highlighted at a press meet, “It is important to achieve a perfect blend of customer experience and value else a consumer may be cheated.”

A view that was also echoed by Harshita, a recent customer at Starbucks, “I felt being part of a community.”

Another retailer who has struck a right chord with customers is Hamleys who has brought its international toy store design in India. The store is themed like a ‘wonderland’ and its objective is to let children enjoy this experience, including a Barbie Doll House or Disney Castle at the store and then make a purchase decision.

Don’t flood offers, Make them Special!

It’s not unusual for hypermarkets to offer several promotions at one time, and often consumers do not pay much attention. To overcome this problem, HyperCity has evenly placed relevant offers for customers at well planned intervals. They are not alone.

Make-up Art Cosmetics, better known as MAC, helps consumers learn to apply cosmetics, akin to a professional artist.  And, for Rs 6,000, private lessons are given for 90 minutes with a professional artist and she guides the consumer on various aspects.

This artist understands the needs of the consumer, helps her realise that, and also take the ‘beauty quotient’ a step ahead. And, to help bring about a transformation of the customer, the artist applies make-up on only half of her face, and the customer has to replicate it on the other half.

At the end of this lesson, the artist writes down the steps and exact products required, so that the customer does not forget the process. It does not end there, as a customer can get MAC products worth Rs 6,000 without paying anything extra.

‘Engage’ your customer

The staff members at Ishana have been trained to effectively deal with customer queries. Apart from that, retailers are increasingly relying on customer loyalty programmes to build a long-term relationship with their customers. For instance, at the Saket branch of Ishana, it has a Nirvana Card, which allows members a complementary treatment after every five treatments. Other players are also utilising this strategy, and the Starbucks Card helps customers make a purchase rather easily and the balance can also be checked online.

Clearly, retailers who have ‘won’ across various categories have distinguished themselves by taking the customer experience to the next level.

TOP 10 ASPECTS AN INDIAN CUSTOMER SEEKS IN A STORE

A survey of 1, 000 respondents regarding retail, highlighted the evolution of Indian consumer over the past few years:

·         Customer service by staff should be given only when asked for

·         Customers expect prompt answers from the staff, no room for error or waiting beyond 2-3minutes

·         False or undelivered customer service promises are not acceptable

·         Customers no longer hesitant to voice discontent over an issue at a store

·         Customers like surprises at a store and even shocking is welcome, as long as not overdone

·         Customers prefer to leave feedback on a social media platform rather than an in-store feedback form

·         Customers will leave a store, if it is overcrowded

·         Customers will not wait for more than 10 minutes in a billing queue

·         Trial rooms should be close by and very clean

·         Customers prefer stores that have valet parking and ease of moving goods purchase to their vehicle

·         Customers like stores with well displayed merchandise and no over crowding of shoppers

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