How consumer behavior recognition improves the bottom-line and reduces theft
By Leigh Buehler–Rappold
Fulltime Faculty Member, Retail Management at American Public University
As retail managers it is our responsibility to ensure we are meeting customer expectations. Today’s consumer expects quality customer service and products at fair prices. When expectations are not met, customers will happily take their business elsewhere. Knowing your consumer’s buying behavior can assist a retail manager in satisfying customers.
Consumers today are more conscientious about where and how they spend their money. Many want to shop around to find the best deal, use coupons, or online auction sites like Overstock or eBay. Today’s consumer tends to spend a lot of time researching an item online as well as the retailers selling the item. It’s important for a retail manager to implement the best customer service strategy possible to make the shopping experience for their customer as easy, efficient and cost effective as possible.
According to an August 2012 report by the National Retail Federation, July showed an increase in retail sales by 0.8 percent for the season and 1.2 percent for the year to date, demonstrating that consumer’s confidence in the economy is improving. Chief Economist for NRF states that despite the unemployment rate, “consumers are spending again, albeit cautiously.”
It’s important to know your audience. You can begin by creating psychographic profiles for the primary types of customers that frequent your business, as well as adding in profiles of those you want to include in your target scope. Tailor your store to purchasing trends. Focus groups can help to enhance your store’s layout and provide you additional insight into how consumers navigate while eyeing items they want or need to buy. Once you’ve identified consumer behavior for your business, you’ll have a better understanding of buying habits and how you can better align with consumer needs.
[Learn more about online education options in retail management at APU.]
Loss Prevention Tips
Shrink (a.k.a., theft) is on the rise. It is an ugly problem that managers have to deal with that comes from not only customers, but also employees. It is estimated that shrink costs U.S. retail companies more than $40 billion per year. Training employees on efficient and effective loss prevention methods can help a retail manager reduce overall shoplifting and associated shrink losses. It is also effective in helping deter employee theft.
One of the most effective methods for reducing shoplifting is by integrating the loss prevention strategy into customer service. Here are a few preventative shoplifting tips that align with a quality customer service approach.
- Use greeters: Greet each customer as they enter the store, identifying their presence and making them feel welcomed.
- Demonstrations: While customers wander around the store, offer demonstrations, samples or information about items they’re perusing.
- Attentive staff: Train your staff to be proactive and available to all customers during their shopping trip and to always greet and say goodbye to customers when they leave.
- Stay focused: Reinforce to your employees that they must always be attentive to the customers they are assisting and not be distracted by another person.
- Offer help: If a customer is acting suspicious, offer the customer a basket for their items or ask if the customer is okay. Let the customer know that you will be nearby to assist.
You can visit the NRF website to discover more ways to help reduce shrink in your company. Many of these tips are hallmarks of excellent customer service, but at the same time, they’re highly effective in helping retail managers to identify and adapt the overall shopping experience to consumer behaviors and deter potential shoplifters.
About the Author:
Leigh Buehler-Rappold is a fulltime faculty member for the Retail Management department at American Public University.
She received her B.A. in History from Texas A&M University and her M.B.A. from the University of Phoenix. Leigh has over 13 years of customer service experience, more than 10 years of experience in retail management within small and large retail markets, 5 years as a business owner, and specializes in re-structuring small business inventory systems and customer service training programs.
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