Findings from a national retail fashion study by Market Force Information, a worldwide leader in customer intelligence solutions, reveal that customer satisfaction and experience was relatively low for all seven retailers who topped the survey. The study found that 18 per cent were dissatisfied with their recent visit to their favourite retailer – a significant number, especially before Christmas. Crucially, those who were very satisfied/delighted with their experience would be twice as likely to recommend the retailer/brand to their friend or colleague.
In December 2014, more than 3,400 consumers participated in a nationwide study designed to uncover the consumer’s favourite retailer, investigate factors that drive satisfaction and loyalty and reveal trends in multiple channels, including e-commerce sites, in-store experiences, and mobile apps.
The Composite Loyalty Score* of all seven retailers shows an extremely tight competition between the brands, with TK Maxx topping the charts at 48 percent, followed by New Look at 43 per cent. Other brands had similar scores with variants of a percentage mark between them.
Consumers are Conscientious Buyers
Consumers confirmed this tight competition among fashion retailers with wallet share at about 50 per cent for all brands. TK Maxx had an average wallet share of 51 per cent in comparison to Marks and Spencer’s with 55 per cent. Next and New Look at 49 per cent and 50 per cent respectively. Primark had 53 per cent and Debenhams had 49 per cent.
The study identified four key drivers of satisfaction, including: Practicality (sizing, choices, value for money etc.), Environmentally Conscious (CSR and green practices, types of materials used, information on country produced etc.), Just For Me (opportunities to share fashion tips and ideas/information, customisation, exclusivity etc.) and finally, Store Operations (speed of checkout and overall atmosphere). Customers that indicated their favorite retailer executed on all four behaviors were 5 times more likely to be highly satisfied with their experience than those who felt that retailers executed well only one or two of these factors. Only 10 per cent of all consumers rated their favorite retailer as executing well on all four critical drivers.
Personalisation and Assistance is Extremely Important to Customer Purchase Decisions
Engaging with customers is vital to the brand loyalty and satisfaction. Retailers who have assistants that can create a look and offer support and advice on products are more likely to score a top box satisfaction rate of 5. Having delighted customers means that they are two times more likely to recommend a retailer to friends. With 1 in 4 customers having visited their favourite stores recently and 78 per cent spending money, NEXT and Debenhams were twice as likely to help shoppers and create high conversion rates of sale.
Online Retailing – Debenhams, NEXT and H&M Top Three E-Tailers
With over £1 billion recorded online sales in the UK in 2014, this area of ecommerce is an important consideration for retailers. Although TK Maxx does well in its physical stores, it fails with e-tailing, However, customers were more likely to purchase from H&M online than buy in-store. Next and Debenhams are almost equal in its percentage share of purchases (76 and 74 per cent respectively) but Marks and Spencer’s, although has a good satisfaction rate with the website, fails to close in on checkout completion.
Mobile Apps – The Future of Brand Longevity
Taking retailers and brands mobile is also essential. Over half of the respondents surveyed had downloaded the Mobile App once they knew it was available. Use of the app was mainly to browse online but also to purchase items. Furthermore, having access to brands on a mobile phone enables browsers to store/locate items and make wish lists to purchase later or try in-store.
In addition to apps, social media and bloggers influence purchase decisions. Consumers like to engage with its retailer and brand, with New Look and TK Maxx fairing highest on the board. However, on average, most retailers are not doing enough on social engagement.
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