The Verde Group, together with LoyaltyOne, partnered with Dr. Deborah Small from the Wharton School of Business to conduct a retail consumer study to assess the financial impact associated with poor customer experiences in the U.S. across key retail formats: Grocery Store, Mass Merchandise, Pharmacy, Department Store, and Specialty Apparel.
The study finds that retailers, in various industries, stand to lose significant revenue by not maximizing their customer interactions. Key insights for retailers are as follows:
- At-risk customers often account for over 10% of potential revenue. This figure is usually higher – the average mass merchant sees 25% of potential revenue at risk. Not addressing these critical experiences jeopardizes current and future spend.
- Retailers miss over 80% of problem occurrences. Even with staff or customer incentives to boost visibility, retailers must delve deeper to discover more than the negative CX that shoppers voluntarily share. For example, “Waiting too long in the check-out line” was cited as a problem impacting loyalty and a “most important problem” for customers of Mass Merchandise, Department Store, and Specialty Apparel retailers. However, it was the Sales Associates’ attitude or behavior (e.g. not being helpful) that was most impactful on loyalty for these particular retailer types.
- Take a customer-value lens to understand problematic experiences. Without customer insights, problems can appear to be equally detrimental even if high-value shoppers are disproportionally experiencing the effects of one issue over another.
- Measure on impact, as the frequency of issues can be deceiving. Some commonly reported problems aren’t as impactful as they appear, while other issues that retailers seldom hear about can be silently eroding valuable customer relationships.
Please click here to download the whitepaper and learn more about the study findings.
Chief Executive Officer, The Verde Group
Learn more about Paula Courtney
Verde Group and LoyaltyOne Consulting partner to deliver innovative Customer Experience solution
I am pleased to share exciting news. Verde Group has partnered with LoyaltyOne Consulting, a global customer loyalty consultancy specializing in the design and development of customer engagement strategies for Fortune 1000 brands, to develop an innovative new customer experience (CX) offering to add to Verde Group’s suite of services. The new offering will link the specific customer experiences most damaging to a company’s financial performance to specific shopping behaviors to gain maximum return on revenue and market share.
We recognize that in today’s hyper-competitive retail environment customer experience excellence is critical to market leadership. The offering will integrate LoyaltyOne’s behavioral analytics expertise and strategy consulting practice along with Verde Group’s 20 years of customer experience measurement and our Revenue@Risk™ methodology. The output will be a highly actionable segment-specific roadmap to create authentic customer loyalty, based on the CX improvements statistically linked to customer spend and brand equity. The data insights will have enterprise wide applicability, from corporate CX strategy development to location-specific implementation of CX delivery tactics.
We have partnered with LoyaltyOne because they are well aligned with Verde Group’s goal to provide you with experiential insights, strategies and treatments to take your business to the next level of customer engagement. Our partnership will deliver a unique blend of experiential and behavioral data insights to allow you to make business decisions differently and more powerfully than you do today.
Thank you for your interest in Verde’s work. As our offering with LoyaltyOne develops, I look forward to sharing more details on how it may be of value to you and how we can work together to achieve and sustain authentic customer loyalty.
Paula Courtney, President & CEO
71 Ontario Street
Toronto, ON M5A 2V1
LoyaltyOne is a global leader in the design and implementation of coalition loyalty programs, customer analytics and loyalty services for Fortune 1000 clients around the world. LoyaltyOne’s unparalleled track record of delivering sustained business performance improvement for clients stems from its unique combination of hands-on practitioner experience and continuous thought leadership. LoyaltyOne has over 20 years history leveraging data-driven insights to develop and operate some of the world’s most effective loyalty programs and customer-centric solutions.