Many were hoping that 2011 would be the year of global economic recovery. Sadly as the year comes to an end, it is quite clear that in 2011 the international financial picture failed to improve and as we head into 2012, there is significant uncertainty in financial markets and economies.
Looking back on the year and specifically on how retail businesses have improved their customer relationship management, we can see how business as we know it is changing. With the cost of living going up all the time, consumers are changing their spending habits and are becoming very savvy shoppers.
As a result, those retail businesses that are able to differentiate themselves through their service, or quality of customer experience are the more likely to succeed. For some organisations, this has led to dramatic changes to the way it interacts with its customers.
Those retail businesses who have invested in an effective CRM programme will lead the way. They know their customers, can communicate with them in a targeted, segmented way, which improves return on investment and allows them to maximise the customer experience. Customer interaction, both in and out of the store, becomes far more effective and profitable. Look at John Lewis, who have just bucked the trend and turned in successful growth figures for 2012. How do they do it? By offering first class service through their staff training and their marketing campaigns at all levels.
In 2011, businesses have not only seen customer spend drop, but also seen customer expectations grow. Customers are aware that businesses are fighting tooth and nail for their time and custom, which puts the customer in quite a powerful position. For businesses, this means offering something more than just a good deal to the customer. It means offering a great customer experience.
One such way which businesses have been able to nurture a better customer experience is to embrace social media. What was once perhaps viewed with mixed feelings now has much more widespread support due to the success many businesses have had using social media.
It is important to note that social media is constantly evolving and in such a dynamic environment making predications is a challenge. Utilising Facebook, Twitter and the like is crucial. The market in social media is crowded and retail businesses need to stand out.
So, what does 2012 have in store? The Institute of Customer Service has talked about 2012 being a ‘war for customers’ due to the intense competition in a difficult trading environment. With this in mind, the businesses which really understand their customers, can innovate and offer the right service both on and offline will be best placed in 2012. If you do not have an effective CRM programme in place, now is the time to consider it. Over time, retailers will reap the rewards.
Deborah Stone at The Stone Consultancy, a leading retail consultancy agency in CRM, comments: ‘Retailers are often deterred by the initial investment a CRM campaign requires, but it is false economy. They are essential to customer retention and increased spend over time and this will only become more important as we head into 2012.’