Customer Retailer Relationship January 1st, 2006
Improving the customer experience can bring a higher return on investment, the National Retail Federation advises retail executives.
The latest “Customer Centricity Study,” conducted by Ogden Associates for the NRF Foundation, shows that retailers are increasingly using customer data to improve marketing programs and merchandise offerings – a fundamental, yet often elusive goal, of retailers’ customer relationship management (CRM) programs.
“In perhaps the clearest indication of retailer commitment to customer knowledge-driven strategies, 65 percent of retailers in this latest survey say their technology expenditures for CRM will increase this year,” states the Customer Centricity Study.
The Customer Centricity Study, which surveys more than 200 retailers, found overwhelming support among retail executives for strategies that improve the customer experience.
Nearly 98 percent of the respondents said that improving the customer experience was important, while another 97 percent cited that increasing customer satisfaction was a priority, according to the study.
The survey finds that retailers are deploying a wide variety of techniques to build customer understanding including market and customer research, focus groups, store intercepts, supplier input, web statistics, third-party data, and Internet research.
“For years retailers have been seeking new, more personalized and relevant, ways to connect with and serve their customers,” said Janet Murphy, president of Ogden Associates.Other key findings include:
“In this business, pleasing the customer means everything,” said Mike Gatti, RAMA Executive Vice President. “Retailers clearly recognize the significance of developing relationships, evaluating customer feedback, and ultimately improving the overall retail experience for the consumer and boosting their own sales.”
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