Rallying Retail Teams to Beat the Competition

Much has been written about the impact of inflation on retail sales. Most global consumers live that impact – when their money doesn’t go as far, they become more discerning where they spend it. That produces more pressure on retailers to retain existing consumers and attract new ones.

Pressure Produces Possibilities 

Winning retailers are doubling down on delivering more value and a better consumer experience. Those are time-tested tenets – especially in today’s marketplace. And easier said than done. The good news? It can be done.

As an executive who has led a multibillion-dollar market for a major retailer, I learned the key to success is tapping the team at every level. Engaging employees and creating a consumer-centric culture boosts existing customer loyalty, brings in new buyers, and bolsters sales.

A Deeper Dive on Value  

While pricing has always been important, inflationary pressures and access to price data make it more so today. Recent research published in The Harvard Business Review revealed the impact of price data on purchasing decisions. Consumers have instant access to historical price data and the ability to price check, influencing where and how they spend their money. As online and in-store lines are blurred, the importance of a clear value proposition is ever more critical to increasing sales.

A Deeper Dive on Consumer Experience 

Beyond price, studies continue to show the criticality of the consumer experience. A recent report by McKinsey & Company showcased the strong correlation between companies’ CX ratings and their revenue growth. They make the case that an exceptional customer experience equals the importance of value. In fact, their research shows that organizations that focus on improving existing customers’ experience can generate enormous growth – even doubling that of their industry peers.

OK, So Now What? 

All this means the obvious: organizations must maximize their efforts on what matters to the consumer. What isn’t as obvious is what to do about it. For more than a decade, I helped lead teams to improve operating efficiency and understand their role in the customer experience.

Here are five ways leaders can engage their teams to improve value, retain and grow their customer base…and increase sales.

• Connect Employees to Consumers – Gallup and other firms’ research reveals that post-pandemic consumers are more demanding, expect higher levels of service in person, and have greater expectations for virtual/remote service. This steps up the need for organizations to invest time and resources to understand their consumers and build a brand that reflects their wants and needs.

  How you make that happen is critical. Creating opportunities for employees to experience their brand through the lens of their core consumer is step one. While great data can be gained from consumer feedback, seeing the pain points firsthand helps employees understand the importance of processes and operations built to deliver the best experience. Example: Employees and leaders who work for groceries and other retailers should regularly shop for their families in their stores. AND shop the competition. Doing so allows them to assess what was easy to find (and what wasn’t!), identify pricing and assortment concerns, and deep dive the checkout experience. Then act on the learnings through training and/or operational changes.

• Create a Competitive Cost-Conscious Culture – With value as a core component of purchase decisions, operational and team efficiency are critical. Cost savings help companies offer the best possible price, creating a competitive advantage. How can organizations achieve this? Educating employees on the major drivers of cost is a great first step. Even better, benchmark your competitors’ cost structures and share that with your employees as well. Translate efficiency to job security and improved profit-sharing to showcase the benefits of reduced cost not only to consumers… but to your team.

  The next step is to empower employees to generate cost-saving ideas. Then act on them. Example: A major automaker applied lean principles to their operations, educating employees on every aspect of manufacturing cost and inviting their ideas. Armed with the intel of how much it cost to outsource the cleaning of rags used on the assembly line, one of their teams did some math. They approached management, offering to launder the rags in-house if they bought a washer and dryer and installed them in their area.  Plant leadership said yes – translating to thousands of dollars in annual savings. This became a celebrated story across the company, encouraging more creative ideas, allowing the company to invest more in its products, and contributing to future profit-sharing.

• Craft Consumer-Centric Goals – To consistently deliver a great consumer experience, your performance goals must align with customer requirements. For example, if check-out lines are long, adjust employee scheduling to increase staffing for peak shopping hours. If on-shelf availability is an issue, create targets for your inventory team and ask employees for ideas on how to streamline stocking. If items are hard to find, modify in-store signage and incentivize employees to help customers find their desired items. Measure the impact of your changes on basket size, and be prepared to continuosly improve to better serve your customers. And increase sales.
• Minimize Time, Maximize Convenience –  The pandemic’s impact on shopping habits meant a major, lasting uptick in e-commerce. And while that has translated to many store closures, a McKinsey & Company study shows brick-and-mortar retail is here to stay. While shopping habits have evolved, two factors perennially impel purchase decisions: Time. And convenience. Whether shopping online or in-store, customers expect the experience to be fast, easy, and hassle-free. Designing your business to meet or exceed these expectations is table stakes.

  One way to minimize time and maximize convenience is to anticipate things your customers might need and make it easy for them to get them. Example: When scheduling an appointment for an oil change or windshield replacement, some companies offer additional opportune services that prevent their customers from having to return a second time for more work. Tire rotations, new windshield wipers, or filter replacements all in one visit to the service center is often a win for the customer. And a sales opportunity for the company.

• Embed Your Consumers’ Mindset in Your Team – Another way to provide an elevated customer experience is to ensure that your team accurately reflects your market and has the expertise needed to understand their needs. According to the American Consumer Council, women comprise 80 percent of purchasing in several categories, such as grocery and clothing.  This highlights the importance of female employees in online customer service and in-store grocery and clothing retailers.

  Example:  Baby product companies would do well to employ people who are parents. When a first-time parent looks to build their baby registry, being able to solicit advice from a fellow Mom or Dad can provide a differentiated experience that builds brand loyalty. And also add to the shopping basket. Note knowledge of the products sold and the needs and trends of the community served are also important pieces of the experience equation.

Adding It All Up 

Competition for consumer dollars continues to climb. Winning retailers are tapping their team at all levels, educating them, unleashing their ideas and engaging them in every area of the business. Those who do that well bring triple benefits. To their team. Their customers. And their stockholders.

Written by Stella Romanov.

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