Relying on price discounting to retain customers and attract new ones will not be enough to succeed in another challenging year for retailers. Research from Verdict says that growth in consumer spending, at 1.2%, will be the lowest in 40 years, while the Institute for Public Policy Research recently said economic growth will be lower than the 0.9% predicted by the government and unemployment higher.
The success of Christmas sales at John Lewis, Waitrose and Sainsbury’s, and at the opposite the flop of Tesco’s Big Price Drop, shows that offering value, rather than discounting, will be retailers’ saviour in 2012.
“The recent years have seen a polarising in consumer habits. On the one hand consumers are attracted by the practical side and attractive price of online shopping, conveniently delivered to their door. But when they do go out shopping, they expect a pleasant experience as opposed to a purely pragmatic one. Going shopping is now a behaviour which is not only driven by price,” comments Douglas Stafford’s Client Relationship Manager Jason Jeggo.
“To succeed, retailers must differentiate themselves by providing something online retail cannot offer: real customer service, a friendly contact, some expert advice. All this represents additional value which will make consumers come back and create loyalty. Delighting customers…. that should be a priority for retailers in 2012.
“Retailers will need to continue investing in developing customer insight, despite a tight control on budgets. Customer Satisfaction Index surveys and Mystery Shopping are two important tools that will allow them to clarify what their specific target audience want and what it gets from them; it will help them understand the relationship their customers have with them and how to make this relationship better.”
To discuss how Douglas Stafford can help retailers differentiate in 2012, give Jason a call on 02392 830 011 or contact him at [email protected] .