The Importance of Customer Engagement in the Retail Industry

Capturing buyers’ attention and maintaining customer loyalty can be challenging for the retail industry. Offering products that people want is just the first step in having a successful store.

Eye-catching branding, special deals, an easy-to-use website, and quality customer service are all essential aspects of the retail customer experience (CX). If you’re missing just one of these elements, it will be difficult to attract repeat buyers.

The secret to driving retention is implementing a thoughtful retail customer engagement program. With so many competitors in the retail industry, connecting with customers in meaningful ways is key to avoiding customer churn.

At Radius Global Solutions, we have over two decades of experience partnering with retail brands to improve their customer engagement strategies and drive sustainable growth. Read on to find out how.

Offer Personalized Experiences for Retail Customers

Personalization is an essential part of enhancing the retail customer experience. According to McKinsey & Company, 71% of consumers expect companies to deliver personalized interactions – and 76% get frustrated when this doesn’t happen.

Think about how irritating it is to receive ads or recommendations that don’t align with your interests at all. Make sure that your retail business is collecting customer data and suggesting products similar to ones they’ve viewed in the past. Customers appreciate when businesses take the time to understand their preferences and deliver tailored recommendations.

Here are a few ways to personalize the customer experience:

• Use customer data to segment your audience and deliver targeted marketing messages
• Implement personalized product recommendations based on past purchases or items in their cart
• Send personalized emails with special offers and promotions based on individual preferences

Showing customers that you understand their needs and preferences helps create a more engaging experience. When customers feel connected to your brand, they’re less likely to purchase similar products from your competitors.

Leverage Technology for an Omnichannel Retail Customer Experience

Technology plays a crucial role in enhancing customer engagement. Your customers don’t want to have to pick up the phone and call your company with every question they may have. They also may prefer to shop for your products online rather than perusing your inventory in person.

Check out these examples of how omnichannel experiences enhance customer satisfaction and loyalty:

• According to Salesforce, 88% of customers say receiving good services makes it more likely that they’ll purchase again in the future. Offering multiple customer service and purchasing channels is the foundation of any strong CX strategy.
• According to IMD, major U.S. retailer Target enjoyed its best-ever quarter in Q2 2020. Their sales increased by 24.3% and digital sales soared by 195%. It won market share from all of its physical competitors thanks to the integration of physical and digital.

Not every retail store has the resources to pivot their operations during a global pandemic like Target did. However, it’s essential to consider the technologies you have in place to simplify the customer experience.
At Radius, we work with retailers to identify their customers’ preferred purchase and communication channels. We have the tools and expertise to help your business handle inbound and outbound customer calls, chat, email, video, and SMS through secure channels.

Create a Customer Loyalty Program

Loyalty programs are a highly effective way to drive customer engagement. Offering incentives and rewards for repeat purchases can help retailers encourage customers to stay loyal and continue engaging with the brand.

The data speaks for itself:

• Over 83% of consumers say belonging to a loyalty program influences their decision to buy again from a brand.
• 77% of consumers with retail subscriptions buy more products from the brands they have relationships with.
• 79% of customers say they’re more likely to recommend brands with good loyalty programs.

Not sure how to launch a new loyalty program? Consider the following strategies:

• Implement a points-based system where customers earn points for every purchase, which can be redeemed for discounts or exclusive rewards
• Offer tiered membership levels with increasing benefits to incentivize customers to reach higher levels of engagement
  Provide personalized rewards and offers based on individual customer preferences and purchase history

A well-designed loyalty program can create a sense of exclusivity and excitement, motivating customers to regularly purchase from your store. Couple that with excellent customer service and it will be easier than ever to increase retention.

Craft Unique and Engaging In-Store Experiences

In-store experiences should be positive and memorable to encourage customers to visit regularly – and even bring their friends along. An inviting and interactive store environment can attract more foot traffic, giving you an edge over competitors.

• Here are some strategies to enhance your customers’ in-store experience:
• Train staff to greet customers warmly and offer assistance
• Organize special events like holiday celebrations, product launches, or customer appreciation days
• Use digital kiosks, tablets, or QR codes in-store for customers to leave feedback easily
• Invite customers to sign up for your loyalty program at checkout to receive exclusive deals
• Ensure the store is easy to navigate with clear signage and logical product placement

Radius’ Retail Customer Engagement Case Study

To illustrate the impact of a well-executed retail customer engagement strategy, let’s take a look at one of our success stories. Radius provides customer engagement services for a brand management company that works with major retailers and membership clubs across the country.

The client came to us faced with two significant challenges:

• High level of chargebacks due to customers not understanding the value of their membership.
• Previous service provider struggled to meet quality objectives.

Our team addressed these challenges by clearly explaining the benefits of the program and offering specific ways for customers to use their membership. We also utilized advanced scripting and rebuttal techniques to improve conversion rates and maintain low exception rates.

This included providing daily quality reporting and targeted feedback to ensure the effective use of rebuttals and voice tone. The results of our efforts were impressive:

• Increased conversion rates to 21%-23%
• Increased revenue to the client
• Continued low exception rates (less than 2%)
• Increased sales revenue

After implementing these improvements, our client was able to add new brands and become a trusted partner to their card issuer client.

Start Building a Retail Customer Experience Strategy

Modern customers are seeking more than just the products they need from their favorite retailers. They’re looking for brands that make them feel exclusive, provide efficient customer service, and deliver competitive rewards along the way.

If you’re looking to enhance your retail customer engagement strategy, consider partnering with Radius! With our retail industry expertise and proven track record, we can help you build an effective program that drives sales and boosts retention.

Reach out to Radius today and start building a customer engagement strategy that sets your retail business apart from the competition.