Customer Experience Lab

Tailor your retail strategy to your customer experience goals

By Joe Novak on December 12, 2017

Using conclusions drawn from Centriam’s 2017 Retail Study, we have proposed areas of focus to enhance customer experience for two common NPS objectives.

If you are trying to reduce detractors, focus on making shopping easy. When the goal is to increase promoters, focus on making shopping more enjoyable. Either approach will raise your overall NPS, but the tactics are very different. Let’s quick review the evidence and how some retailers are implementing each approach. 

What exactly is the relationship between retail customer experience and the bottom line? Download our ebook to learn more!

Increase promoters by crafting enjoyable experiences

If your goal for 2018 is to raise the proportion of promoters at your company, we encourage you to look carefully at opportunities to increase the emotional connection with your consumers.  Why?  Enjoyability shows a stronger relationship with being a promoter. Customers who found a transaction enjoyable were 20% more likely to be promoters. Forrester Research independently came to a similar conclusion in research earlier this year on their CX Index.

Retail Customer Experience Joyful Moments

Customer Experience for RetailThere are many ways to make an interaction more enjoyable and foster the emotional connection between your brand and consumers.  Perhaps adding something fun and unexpected like the Popsicle Hotline at the Magic Castle Hotel or the Sprinkles cupcake ATM. More retailers are also listening carefully customer feedback for opportunities to add new enjoyable experiences. Toys R Us and Target have both held toy presentations for parents to bring some happiness back into the often stressful process of finding the perfect toy. Customers of Tom’s Shoes wanted a way to see the good they were doing through the company’s Buy One, Give One program, and so Tom’s installed VR in their stores to see the program in action in Peru.

Decrease detractors by making It easy

If your goal is to decrease the proportion of detractors, we recommend focusing on different drivers. Detractors often perceive their basic needs are not being met, as can be seen in the data from Centriam’s 2017 Retail Study.  Those who describe their shopping trip as not easy are over 30% more likely to be detractors. Long lines, poor user interfaces, and inventory struggles all contribute to a difficult retail experience.  Amazon has rolled out a series of technologies to make shopping easier; such as one-click ordering online, Prime to reduce worry over shipping costs, one button ordering with Dash, Prime Now for same day delivery and voice purchasing with Alexa.

Taming Retail Customer Experience Detractors 

Regardless of your approach—increasing promoters or decreasing detractors—you will be building a more profitable customer base. Customers that are less price sensitive and more likely to keep purchasing.

Centriam’s 2017 Retail Study investigated the connection between customer experience and the bottom line. It confirmed that investing in customer experience is important. The results also identified a simple opportunity for retailers to improve. Our first white paper based on this research—How to Drive Retail Sales: Ask Your Customers—is available here.

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Topics: Retail customer experience

Author: Joe Novak

Joe is committed to improving the ability of Centriam’s clients to act upon data and insights. Joe brings diverse experience utilizing data and advanced analytics to improve performance across many industries. Prior to Centriam, Joe managed risk for multiple credit card and auto loan portfolios at US Bank. Joe also worked in marketing analytics at Target and survey analytics for the Minnesota State Colleges and Universities system. Joe holds a B.A. in mathematics and computer science from Macalester College and an M.S. in applied mathematics from the University of Colorado.
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