Are customer experiences at your stores risking billions in retail losses?
CHICAGO — Attention retailers. It’s the mistreated customer who walks out the door in a silent huff who places the most revenue at risk, according to a collaborative study conducted by LoyaltyOne and Verde Group with professor of marketing and psychology, Deborah Small at the Wharton School of the University of Pennsylvania.
The March 2015 survey shows that approximately half of 2,500 U.S. consumers polled reported experiencing a problem on their last shopping trip. Of those customers, 81% decided not to contact the retailer about the issue. Among these silent shoppers, 32% said they were unlikely to recommend the retailer to friends and family, putting these shoppers at-risk of decreasing their spend with the retailer.
By comparison, the study shows that shoppers who did notify retailers of their poor experience and had their problem completely resolved were 84% less likely than silent shoppers to be at risk of decreasing their spend.
“The results are a resounding confirmation that poor customer experiences have a considerable negative impact on shopper spend and attrition which can run into the billions,” stated Dennis Armbruster, LoyaltyOne consulting VP and managing partner. “We’re ushering in a new era of customer experience measurement vital to retailers looking to make even more informed decisions.”
Building on its behavioral analytics solution, LoyaltyOne Consulting has partnered with Verde Group, a customer experience research consultancy. Verde's proprietary Revenue@Risk analysis will use experience impact modeling to identify the specific customer experiences most damaging to customer loyalty behaviors and prioritize them according to impact on revenue and market share.
According to the study, retailers should take note of the importance in identifying specific customer experiences most damaging to customer loyalty as billions of dollars are at risk. Below is the ranking per category:
• Mass merchandisers are putting 25% of potential revenue at risk;
• Apparel retailers are putting 16% of potential revenue at risk;
• Department stores are putting 15% of potential revenue at risk
• Drug stores are putting 12% of potential revenue at risk; and
• Grocers are putting 11% of potential revenue at risk.
“Our methodology precisely measures the impact of ineffective customer touch points. Insight around the effects of poor customer touch points can help retailers reduce the risk of negative customer experiences, while also enabling them to proactively design experiences that positively influence spend, visit frequency and basket size,” stated Paula Courtney, president of Verde Group.
The survey also revealed that big spenders within a category disproportionately experience certain problems:
- Mass Retail “Check Out” Risk: Shoppers frustrated by check out wait times reported spending 23% more than the average mass retail customer ($545 versus $446 a quarter)
- Department Stores “Not-My-Department” Staff Attitude: Shoppers troubled by an associate’s not-my-department attitude reported spending twice as much as the average department store customer ($543 versus $261 a quarter)
- Apparel Retailers “Ship Date”: Particularly in their online channel, customers who cited their inability to obtain a specific date or time to receive an online order reported spending 66% more in the category ($416 versus $250 a quarter).
The results are based on an online survey of 2,500 American respondents.
CVS Health collaborates with HHS to provide personalized preventive care recommendations
WOONSOCKET, R.I. — CVS Health is partnering with the U.S. Department of Health and Human Services to promote an online tool, which provides recommendations from clinical experts for the personalized preventive services patients should receive based on their age and gender, the company has announced.
Many of these preventive services are available to patients at MinuteClinic and CVS/pharmacy locations, as well as at their physician's office, and many are now covered by most insurance without additional co-pays or other cost sharing under the Affordable Care Act.
"We know that prevention is key to helping families stay healthy, so we are pleased to work with the U.S. Department of Health and Human Services to give people easy access to more information about the preventive services clinically recommended for them," stated Andrew Sussman, MinuteClinic president an EVP/associate chief medical officer, CVS Health. "Many of these recommended preventive services are conveniently delivered at MinuteClinic, where we can coordinate with a patient's primary care physician, and many preventive services are covered by health insurance, making it even easier for people to stay on their path to better health."
CVS Health is the first national partner to work with the U.S. Department of Health and Human Services to take advantage of the technology-based tools, developed within the Department by the Office of Disease Prevention and Health Promotion, which make it possible for the myhealthfinder tool to be available on MinuteClinic.com and at www.cvs.com/myhealthfinder.
According to the Department of Health and Human Services, about 137 million Americans have private insurance coverage of preventive services without having to pay a co-pay, co-insurance, or deductible — including more than 55 million women and 28 million children.
"The U.S. Department of Health and Human Services and CVS Health are working together to put lifesaving information about preventive services into the hands of millions of consumers where they are already looking for it — on CVS Health's MinuteClinic.com and CVS.com/myhealthfinder web sites," stated Karen DeSalvo, the National Coordinator for Health Information Technology and Acting Assistant Secretary for Health at the U.S. Department of Health and Human Services. "This tool supports physicians and the care team, and is an easy way to help people understand the recommended preventive services that are often available to them at no out of pocket cost thanks to the Affordable Care Act."
‘We were able to create Black Friday in April,’ Target’s Cornell tells ‘Mad Money’
Target chief Brian Cornell talks to CNBC's Jim Cramer about what the company is doing to turn its business around. What else does Target have up its sleeve and how will it keep the momentum going? To watch the full CNBC interview, click here.