Study points to importance of customer reviews, testimonials

Retailers know they can offer the best products for consumers, but if they are lacking in the customer service department, their retention and loyalty efforts can take a big hit. For this reason, merchants are aware of how crucial it is to provide excellent experience for shoppers, both in stores and online. This has become especially vital as individuals are taking to the internet to voice their opinions and reviews of brands, which many patrons research and view before deciding whether to purchase from companies. While retailers can't control every review that is posted on the web, there are steps they can take to react to negative opinions and use positive ones for their benefit.

Reviews are vital for business
Marketing Land cites a study from Dimensional Research and Zendesk, which found that most consumers read online reviews before making purchasing decisions. Ninety percent of respondents stated they have been influenced by positive online reviews for brands, while 86 percent said the same for negative reviews. The report also revealed that patrons are slightly more likely to post about their bad experiences than their good ones.

Among the channels shoppers use the most for making their opinions public are social media platforms, such as Facebook, and online review sites. Customers also take to retailers' websites to share their experiences, both positive and negative ones. Additionally, there are several things that constitute a bad experience, the research found. Consumers are likely to voice negative opinions about merchants when they deal with unpleasant employees, ask questions or explain issues several times and not have their problems resolved.

Fortunately, there are steps that retailers can follow to turn patrons' unsatisfactory experiences in positive outcomes, both for themselves and customers.

Take the good and the bad
Business 2 Community suggests that brands frequently monitor the "online buzz" that pertains to their operations. This can be accomplished on social media pages, review sites and companies' platforms. Another way to boost merchants' reputations is by responding quickly to web reviews. If posts are positive, thanking customers for their patronage shows they are appreciated. If opinions are more on the negative side, asking what can be done to rectify these situations gives businesses the chance to interact with dissatisfied consumers, improving the chances of building retention and loyalty.

Jump on the social media bandwagon to boost customer satisfaction, retention

Whether it pertains to online efforts or store operations, retailers know the importance of keeping customers satisfied. Offering poor experiences can result in declines in retention, as shoppers turn to competitors to get the products they want and the service the expect. Therefore, it is essential for merchants to ensure they are providing the best possible experiences for consumers.

One tactic that seems to be bringing in results for brands is engaging patrons through social media. A significant amount of people are on these networks, and while the sites started out as tools for connecting with other individuals, companies are increasingly using them to reach out to consumers, and social users are taking to the platforms to interact with retailers.

Social sites draw in customers
Internet Retailer reports that according to research from Janrain, consumers are using their Facebook details to log in to merchants' websites. Out of the sites managed by Janrain, 57 percent of shoppers used their Facebook information to access retailers' platforms during the first three months of the year. This is a jump from the 55 percent that did so in the fourth quarter of 2012 as well as the 43 percent in Q1 last year.

This is providing a variety of advantages to businesses, the news source states. By gathering the information from consumers' social profiles, brands can create more personalized marketing campaigns and learn more about what kinds of products customers are looking for. This wealth of data used to be hard to come by, but with the emergence of social media networks, retailers are now able to better connect with patrons and put more personalized elements into interactions, both in stores and online.

In a separate article, Internet Retailer reports that industry professional Warby Parker believes Twitter is playing an increasingly important role in how companies are communicating with consumers. Merchants that have yet to use the social site are risking losing customers, as feedback and opinions shared on the network provide valuable information for brands.

Best strategies for social media in the retail industry
So what are some effective techniques retailers can use to ensure their social strategies are successful? Retail Info Systems News recommends businesses assign a specialized team for social media tasks, such as updates and responding to customer interactions. In addition, implementing policies that outline appropriate behavior on the sites creates consistent messaging. 

Keeping customers happy is one of the top priorities for retail industry

Keeping customers happy is one of the top priorities for retail industry professionals, as they know that without shoppers, businesses can't succeed. Improving the consumer experience is more vital than ever before, as patrons are now going online to browse for and purchases products, but still expect interactions through all touchpoints that brands offer.

Retail Customer Experience writes that merchants often deal with unsatisfied shoppers, and although companies have certain ways for dealing with these types of situations, there are a few basic steps that businesses can take to soothe over disgruntled patrons. The source recommends that brands not assume they know what consumers are looking for or what solutions they want. Asking is the best way to learn how to rectify issues. In addition, when customers bring unsatisfactory experiences to retailers' attention, companies need to ensure they are offering something special to resolve the problem and let shoppers know their patronage is valued and appreciated.

The same excellent experience needs to be provided both in stores and online, or else merchants risk losing customers and their loyalty. Brand Channel writes that large companies like Walmart are blending their online and offline channels to create consistent messaging and interactions for shoppers. This is helping to reduce service issues and it also boosts consumer satisfaction.

Increased consumer spending boosting retail sales, economy

As more Americans grow increasingly confident about their own financial conditions, retailers across the country are expected to see positive impacts in the form of additional consumer spending. So far in 2013, sales have been significantly strong for merchants, and this upward trend is expected to continue.

Bloomberg reports that consumers spending throughout the month of February jumped to its highest level in five months, representing a 0.7 percent growth, according to data from the Commerce Department. This follows a 0.4 percent increase during January and it has resulted in more positive estimates from analysts. The news source explains that retail purchases account for approximately 70 percent of the U.S. economy, highlighting the importance of consumer spending for further improvement.

While the total sales volumes from March are not yet available, the first three weeks of last month were positive for retailers. Dow Jones writes that statistics from Redbook Research revealed that sales were up 0.6 percent during the first 21 days of March, and if spending continued to be solid for the last week, the month could be a good sign for the nation's retailers.

Consumers still use retail therapy to boost their moods

It can be due to a bad day at work, a fight with a friend or family member or just a general feeling of sadness, but whatever the reason, many American consumers are still indulging in retail therapy to cheer themselves up.

According to a recently released survey by Ebates.com, a majority of shoppers turn to retailers – both in stores and online – to improve their moods when they are feeling down. Fifty-one percent of Americans admit they visit merchants to buy various items when they are feeling down. The research revealed that women are more likely to engage in retail therapy, with 63 percent of females buying merchandise when sad, compared to 39 percent of men.

Ebates.com also highlighted the most preferred items for retail therapy among both genders. Women are more likely to buy clothing, followed by shoes, accessories and books and magazines. Men purchase food, electronics, music and movies as well as games and toys to boost their moods.

While it is hard for retailers to pinpoint exactly when shoppers will want to indulge in some retail therapy, they can reach out to existing customers with messages containing information about patrons' preferred products and services, increasing the chances that consumers will turn to these brands for some good mood shopping.

Customer personalization needs to take place both in stores and online

Trends within customer service sometimes come and go, but one aspect that seems to satisfy consumers significantly is personalized elements during their shopping experiences. This factor has become more prevalent in recent years, as businesses have been able to gather and store information related to shoppers' preferences, needs and other pertinent details. For this reason, consumers have come to expect personalized service.

Internet Retailer reports that according to research from the e-tailing group, 44 percent of internet shoppers stated they prefer when brands offer personalized product recommendations based on past purchases. In addition, 41 percent said they would be more likely to purchase from a retailer that provides suggestions and personalized elements. However, this trend doesn't pertain only to ecommerce, but should be incorporated into store operations as well.

While data about shoppers can be gathered easily from online purchases, merchants can also collect information about in-store patrons. Fast Casual writes that transactions provide businesses with a variety of details about customers, and retailers can take that time to get other details from consumers, such as birthdate, preferred items and other factors. This data can then be used to create more personalized experiences for shoppers next time they come into storefronts. 

Building customer loyalty requires personalized, proactive service

Retailers are aware that shoppers, both online and in stores, like to feel appreciated by brands and know their patronage is valued. While merchants use many strategies to let consumers know they are important, providing personalized interactions may be just the thing to build loyalty.

Marketing Land cites research from Harris Interactive and inContact that found most retail customers are influenced more by personalized experiences than previously established brand loyalty. This means that even if a shopper has done business with a merchant in the past, they are more likely to buy products from another business if that company offers more proactive and personalized customer service options. The study revealed that more than half of respondents (56 percent) said they are somewhat likely to forego a favorite retailer and switch to one that provides better experiences, the source reports.

So how can retailers either retain customers to build loyalty or attract new shoppers with exceptional service? Media Post suggests that companies offer various channels for communications, through phone, email, social media and even live chat on websites. In addition, merchants can store and analyze customer data to develop campaigns that provide deals and discounts for items and services shoppers will be interested in.

Incentives can help retailers collect customer data

When completing a purchase, especially online, shoppers are often required to enter various forms of information about themselves, such as name, address, phone number and sometimes even birth​ date. While most consumers are comfortable giving out these details, others are not so sure about it.

Internet Retailer reports that research from the Luxury Institute revealed that shoppers buying luxury items online are not happy about sharing their information with businesses, but they only do so because it is required to complete a transaction. Of the 68 percent of customers who give retailers their data, three-quarters of that group only do it since it is necessary. Some of the hesitance of sharing these details comes from concerns for their privacy and security. Another reason was because some shoppers believe merchants sell their information to third parties, the source noted.

So how can businesses get consumers to give them information, most of which is vital for marketing and building loyalty? The importance of customer data is not lost on companies, as The Huffington Post reports a study by the Marketing Society showed that executives believe understanding shopper information is the key to success. Retailers can offer incentives, such as discounts, deals and free items to patrons for sharing details.

Retailers can make it personal for more customer satisfaction

When shoppers enter retail stores or log onto merchants' websites, they want to feel like their business is appreciated and valued. Companies have ways of providing this, perhaps through discounts and free offerings, among other strategies. But now, consumers are looking for personalized interactions and products to keep them loyal to brands.

Independent Retailer explains that shoppers want to connect with brands, and while businesses may provide the products individuals are looking for, it may not always be enough. To boost retention and loyalty, the source recommends that merchants look into offering options for consumers to have their names and other details put onto products. This approach can be used on a variety of merchandise, including jewelry, clothing, cutlery and other items.

"Consumers are drawn to things they can connect with and the first thing many people connect with is their name," Joe Pirrucello of The Name People told the source. "When customers see a product with their name on it, they establish an immediate relationship with that item."

Personalization shouldn't apply to only products, as QSR Web points out that shoppers want specialized attention during interactions with brands as well. Retailers can provide this by analyzing data about consumers and their past purchases to offer similar items.

More personalized messages and interactions lead to higher loyalty

Providing great customer service both in retail stores and online starts with understanding the needs, wants and issues of consumers. However, it doesn't stop there, as merchants can work to boost retention and loyalty by making interactions more personalized. This makes shoppers feel more valued and appreciated, further increasing the chances of making future purchases with a brand.

When it comes to ecommerce, creating personalized messages is one of the best ways to connect with customers and get them interested in retail products. To add more personal elements, BizReport recommends that businesses develop emails based on what shoppers are looking for, and this data can be gathered by simply asking individuals what their preferences are. In addition, the source explains that retailers should focus on engagement instead of promotional content, as this is an effective method for boosting personalization.

As for retail brick-and-mortar locations, offering personal aspects may seem more challenging, as sales associates are not able to memorize the names and faces of each shopper. However, with the help of solutions such as retail management software, companies can store and track information related to customers' past purchases. This information can be reviewed during checkout, giving retailers the chance to interact with individuals and find out their preferences pertaining to products and services.