Building Customer Relationships
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Most retail businesses agree that providing excellent customer experience is imperative for a retail store to be successful.
But what is customer experience? According to Forrester, an independent market research company, customer experience is “How customers perceive their interactions with your company”.
They explain that good customer experiences have three relevant characteristics for the customer:
- They are useful, thus deliver value and meet customer needs
- They are usable, so the value is easy to find and engage with
- They are enjoyable, and emotionally engaging so people want to use them.
The customer ‘interactions’ are the two-way exchanges that customers have with the company. A customer will make a judgement as to whether the company meets their needs, is easy to use and enjoyable to do business with.
These judgements happen every single time the customer interacts with the company: when they navigate the company website, call the contact centre, enter the retail store, buy company products, talk to an employee, respond to an advert and so forth.
Providing excellent customer experience is challenging. The systems and processes required for excellent customer experience include understanding your customers, building a positive emotional connection with them, capturing and acting on feedback, developing and training everyone in the company and measuring the return on investment.
All this is difficult enough to manage in a national company but what does it mean in this age of international and multinational companies?
Providing a superb customer experience is first underpinned by understanding the cultures, history, experiences and sensibilities of customers and then respecting them.
Again, this is more manageable if your company is national and its cultural values are aligned with the national values and history. However, achieving this in a multi-national organisation where the historical experience and cultural values of the organisation may not be aligned with the country they are operating in, can be a real challenge.
A diverse workforce is also imperative to providing an outstanding customer experience and the importance of diversity is magnified in a multinational organisation.
This is demonstrated by the infamous ‘H&M hoodie incident’ that happened early this year. In Sweden the only jungle is urban, there are no wild monkeys and the black population is relatively small. As one would expect in a Scandinavian organisation, the H&M group board has good male-female diversity, but there are few black Swedes in senior decision-making positions.
Few Swedes have experienced how skin colour can provide an all-pervasive feeling of difference, of ‘us and them’, and they have little, if any, understanding of these issues on a personal level.
However, H&M is a global organisation and therefore needs to have an intimate understanding of the different cultures and sensibilities of their customers in the different countries where they have a footprint; and respect them.
The simple expedient of introducing a process whereby a local executive ensures that a new product is culturally sensitive could have demonstrated some organisational understanding of this issue.
The H&M hoodie debacle is an excellent example of how not understanding the customer can negatively impact on customer experience; how it can break the emotional engagement with customers and lose their trust. This incident has made it difficult for South African customers to engage positively with H&M.
The importance of diversity in the senior teams throughout a multinational can directly impact the customer experience and the bottom line. In short, one picture and a hoodie nearly undermined the reputation of the organisation in South Africa!
Are you working in a retail environment? Explore the Wits Plus online short course in Customer Relationship Building through the DigitalCampus.