A retailer could offer the most up-to-date and popular products at the best prices, but if that merchant fails to deliver an exceptional customer experience, shoppers are likely to turn to competitors. So why is this? Many may think that because a patron is able to find the item he or she wants, this is enough to keep them coming back to certain companies for future purchases. But that's just not the case, as most consumers are also searching for exceptional experiences when doing business with brands. People want to know that they are valued and appreciated by retailers, and merchants find that these factors are key drivers for retention and loyalty rates.

What is an excellent experience?
To improve their customer bases, businesses often ask "What exactly is an exceptional customer experience?" While the answers on this may vary due to differences between consumers as well as companies, there are certain steps that every merchant can take to build a strong foundation for offering the best possible experience, both in their stores and online.

Unified Communications Strategies recently highlighted several components of what defines a great experience based on findings from its Interactive Intelligence Customer Experience Research Study 2013. When asked about what they believe excellent service entails, most consumers stated that interacting with a knowledgeable and personable staff member was the most important factor. Having their issues solved and questions answered was also another top element for a good experience. Companies can offer both of these aspects in their stores and on their web platforms.

It's all about the 4 C's
Retail Customer Experience expands more on this topic and suggests that merchants focus on four specific methods, known as "the 4 C's," for providing exceptional customer experiences. The source writes that the first C stands for "connections," and brands should give shoppers a way to connect with them at any time, whether through mobile channels, websites and in-store interactions.

The second C is "conversation," and retailers should aim to engage consumers with interesting conversations that are relevant to them and their needs. The third C is "choice," and by offering a variety of sought-after items, businesses can bring in additional sales, writes the news source. And lastly, the fourth C stands for "convenience," which is something that customers are looking for both at brick-and-mortar locations and online. Providing streamlined transactions is one of the best ways to boost satisfaction and offer the best possible experience, the source notes.

Without consumer purchases, retailers know they wouldn't last long. That is why many merchants were concerned about their operations during the U.S. economic recession, and it's also why many businesses are breathing a sigh of relief as customers are coming back into their stores and logging onto their websites.

Bloomberg reports that according to the Thomson Reuters/University of Michigan Consumer Sentiment Index, May showed a robust growth in optimism among Americans. The index increased to 83.7 for the month from April figure of 76.4. This beat analysts' expectations of 82.5. The source explains that the latest index is far better than the average figure that was seen during the recession, which stood around 64.2 until the downturn ended in June 2009.

This strong boost in confidence is certainly expected to have an impact on the nation's retail sales, which will further help to improve the economy. April was a good month for merchants around the country, as Voice of America reports that data from the Commerce Department showed sales totals rose 0.1 percent in April from March. While it's not significant growth, analysts do expect more increases in the coming months.

As the U.S. economy continues on its path to recovery, one reassuring sign of steady improvement has been consumer confidence levels and their impact on the nation's retail sales. While there have been fluctuations in recent months, for the most part, conditions are looking up as American shoppers are heading back to merchants' stores and websites to purchase products.

According to the latest MarketPulse survey from Information Resources, Inc., consumer sentiment rose during the first quarter of this year following a decline in 2012's fourth quarter. At the end of last year, consumer sentiment was at 94, the lowest level since 2011. However, the first three months of 2013 saw a sharp jump, with sentiment coming in at 103, showing that American consumers are becoming increasingly confident in their financial conditions and the economy.

This sentiment boost was perhaps one factor that led to a growth in retail sales during April. USA Today reports that data from the Commerce Department revealed that sales rose 0.1 percent last month, beating expectations of a 0.3 percent decrease. This is welcome news for retailers, as they begin to stock their shelves with summer merchandise in anticipation of a busy shopping season.

When it comes to the amount of information that retailers deal with on a daily basis, the list can seem endless. Details about customers and their past purchases, product preferences and future demand trends, along with data related to finances and operations, is just some of the information merchants handle. In the past, keeping track of all this data was usually done through manual processes, but with the emergence of technology, many businesses are turning to retail management systems to collect, store and access all of the information they need to keep their companies running effectively.

For this reason, it is vital that merchants adopt business intelligence tools that allow them to review and analyze all of the data pertaining to their operations. By doing this, retailers can ensure they are successful by leveraging the most up-to-date and accurate information to improve their processes.

Business intelligence solutions bring in results
Merchants want to be sure they are using captured information to enhance their operations in some way, whether it's through better customer engagement, product development or inventory procedures. Business intelligence tools are the key to running successful stores and websites, according to Cisco. Having a solution in place that allows retailers to gather information and then store it for later access is one of the best ways that companies can pinpoint any areas for improvement and find their strengths, giving their organizations the chance to enhance product offerings and customer experiences.

Cisco notes that data can be collected through a variety of platforms, whether it's in stores, on merchants' web platforms and even on social media sites. Once details are garnered, businesses will want to be sure they are entering the information in an easy-to-use, secure solutions that compiles the data and then allows merchants to visualize metrics. This gives companies the ability to see firsthand the most important details relating to their operations and allows them to make more informed decisions.

All processes can benefit from business intelligence
While a variety of operational processes can be enhanced through increased business intelligence – such as customer management and market demands – perhaps one of the most important aspects that can benefit from these tools is inventory procedures. Overseeing the supply chain is vital for keeping companies running, and Supply Chain Digital explains that technology offers key performance indicators, successful frameworks and other metrics for merchants to boost their inventory oversight. Data can be pulled from multiple sources, allowing retailers to see which products are being bought and which ones customers will want in the near future, the source writes.

Although it needs to be passed through both houses of Congress, the recent successful vote of the Marketplace Fairness Act by the U.S. Senate is being seen as a victory. Now, all that's left is a vote by the House of Representatives and a final signature by President Barack Obama for the bill – which would allow states to apply sales taxes to internet purchases – to become law.

The Washington Post reports that the legislation was passed in the Senate after a vote of 69 to 27, generating bipartisan support. The potential law would mean that for retailers that operate solely online, they would be required to collect sales tax from shoppers based on the rates of the respective states that buyers live in. Currently, ecommerce merchants, such as eBay and Amazon, do not charge state sales taxes for customers, the source explains.

While some web companies are against the Marketplace Fairness Act, the bill has garnered a large amount of support from both lawmakers and those in the retail industry. The National Retail Federation released a statement saying the legislation makes it more fair for retailers of all sizes to compete in the marketplace.

"Congress needs to address this sales tax disparity and allow retailers to compete freely and fairly," stated NRF chairman of the board Stephen Sadove. "Retailers of all shapes, sizes and channels deserve a level playing field."

When consumers are out and about on shopping excursions, they often look for posters and banners displayed at retailers' locations letting them know about deals, specials and sales that are currently going on. While this is still an effective way to draw in passers-by, the rise of smartphone use has given merchants another tool for capturing potential patrons' attention.

Recently released research from CouponCabin.com revealed that shoppers are beginning to prefer receiving or looking up location-based deals on their smartphones when they are near physical storefronts. Of the people that responded to the survey, nearly seven in ten said they would like apps on their smartphones to alert them to nearby discounts. There were several reasons why individuals stated they would like to be notified of retailers' sales and offerings, including added convenience (44 percent) and the ability to use coupons to save money (40 percent).

Once these shoppers are in brick-and-mortar locations, businesses can turn them into loyal patrons by offering other mobile options so they can keep using their smartphones. Mobile POS solutions, which are effectively managed through retail point of sale software, give consumers the chance to further utilize their devices to find the products they are looking for.

The road to full economic recovery has been filled with ups and downs, and the American retail industry is one sector that has certainly felt these effects. The last months of 2012 and the first months of this year have been giving businesses a hazy picture of how long it will take until conditions fully improve.

According to Bloomberg, the latest data from the Commerce Department revealed that the nation's economy had solid growth during 2013's first quarter, especially when compared to the fourth quarter of last year. Gross domestic product increased at a 2.5 percent annual rate during the first three months of 2013, significantly surpassing the previous quarter's figure of 0.4 percent. The statistics also included the fact that consumer spending jumped at the start of this year, rising 3.2 percent from 2012's fourth quarter. The source noted this marked the biggest growth in consumer spending since the last quarter of 2010.

On the other hand, recent research of Americans' sentiment toward the economy dropped in April, providing a confusing look into the ongoing recovery. In a separate article, Bloomberg reports that the Thomson Reuters/University of Michigan consumer sentiment index fell from 78.6 in March to 76.4 for this month.

Computers, smartphones and tablets have led to an increase in internet use over the past few years, and as consumers are taking to the web to search for, compare and buy products, merchants have started to join in on the trend. But how are individuals really using online platforms, and how can retailers create elements that attract customers?

Internet Retailer reports that a study by Experian Marketing Services revealed that social media sites are the top focus of individuals accessing the web on a regular basis. While this may seem like discouraging news for merchants, the research also found that online shopping was the second most popular task among consumers. The source reports that about 16 minutes of every hour that people use the internet is spent viewing social media networks. This represents 27 percent of a 60-minute time period, while 9 percent of that hour is spent browsing for and purchasing items from businesses.

Even though some merchants may think that 9 percent is low when it comes to catching the attention of online shoppers, they can use these findings to boost their social media strategies, and ultimately, their revenues. Companies should maintain and frequently update pages on the most popular social sites, including Facebook, Twitter, Pinterest and YouTube. This way, brands will increase their chances of being seen by potential customers.

When consumers are not  feeling too confident about the direction of the economy or their own financial conditions, it certainly takes a toll on retailers. During times like these, which is occurring now due to slow recovery from the global recession, merchants do everything in their power to keep shoppers coming back for repeat purchases.

Brand Channel reports that there have been recent declines in consumer optimism, mainly due to ongoing economic recovery and payroll tax hikes that took effect at the beginning of 2013, leaving many workers with less take-home pay. The source explains that this has led to drops in brand loyalty for many companies, as shoppers look to more affordable businesses to find the products they want and need. This is taking place both in brick-and-mortar locations as well as ecommerce platforms.

So what can retailers do to combat this decreasing loyalty and keep their valued customers? In a blog post for Media Motivators, retail industry professional Thomas Murrell writes that companies should offer repeat shoppers a way to share their positive experiences, whether through social media, retail websites or referrals. Providing loyalty programs is an effective strategy to enhance satisfaction and loyalty, so handing out deals and discounts to patrons will keep them coming back, Murrell notes.

It has been a long and slow road to full economic recovery for the country, and there is still much progress to be made. Retailers took a hit during the downturn due to a lack of consumer spending and drags in optimism. However, for the past year, conditions have been steadily improving, and many businesses have gotten their operations get back on track following the recession. On the other hand, there are often many ups and downs on the path to recovery, and it seems as though the nation's consumers have recently hit a snag in regards to their confidence in the economy and their own finances. Hopefully this is only a temporary setback, but if the declines in optimism continue, the retail industry could experience adverse effects.

Consumers keeping wallets closed
According to a recent study by Deloitte, although there has been strong economic improvement over the past several months, 94 percent of Americans stated they still remain cautious when it comes to their spending. To save money, many individuals are becoming more resourceful in terms of finding ways to cut back – 86 percent said they are being more precise about the items they purchase, and 88 percent of respondents have switched to more affordable brands for merchandise. This has led to decreases in loyalty for some retailers, Deloitte revealed, but many merchants are now offering frequent shopper cards to keep customers coming into their stores and onto their websites.

The Consumer Reports Index found that many companies are experiencing setbacks as a result of declines in consumer spending. The research, which analyzes Americans' views toward their personal finances, revealed that low confidence levels were still apparent in March. The index was unchanged from February, coming in at 50.1. The figure has been fluctuating since the end of 2012, but last month was a less-than-positive time for many consumers.

Take steps now to combat stagnant conditions
Fortunately, there are steps that retailers can take now to boost their own customers' confidence and keep shoppers coming back. Implementing solutions such as retail management software can significantly enhance a variety of processes, such as inventory control, consumer retention and customer service initiatives. In addition, adopting technology like mobile POS systems gives merchants the chance to accommodate patrons who prefer to pay with their smartphones. Establishing loyalty programs is another effective way to ensure shoppers return for future purchases.