Can't get no satisfaction

The Customer Dissatisfaction Study by the Verde Group and Baker Retailing Initiative at Wharton found more than 50% of Americans report a negative shopping experience they've heard about from a friend or family member will prevent them from shopping that particular store altogether. This is incredibly staggering information, especially in our industry where so many retailers say word of mouth is their best advertising vehicle.

"This study is unlike anything we've seen before because it shows that for every 100 American shoppers, 64 people will be told about a store's poor products or services and no matter what that store does to entice shoppers those people will not set foot in their store," said Paula Courtney, president, The Verde Group. Nearly one-third of all U.S. retail customers who have a bad shopping experience will tell four people on average in such a way that those four people will be more negatively impacted than the person who initially had the problem.

Stephen J. Hoch of the Wharton School, University of Pennsylvania said another risk identified by the study is that customers who have a problem are five times more likely to tell their friends about it rather than contacting the store itself.

The top problems consumers experience fall into these three areas: time — they can't find parking and it takes too long to get in or out of the store; merchandise— hard to find product, store layout is confusing and there's no product information on displays and front line staff— they have poor product knowledge and lack courtesy.

While the survey points out category killers, larger retailers and department stores are more apt to experience this word-of-mouth backlash, independents and smaller retailers are not immune.

Sometimes retailers assume because they haven't had any complaints things are running smoothly, but this study shows otherwise. Do you have customers who suddenly stopped shopping your store? Did you ever try to call and ask if there was a problem?

Since January I've visited about 30 home furnishings stores on business and a slew of others out of necessity. Everyone in the industry needs to do this occasionally because you'd be amazed at what's going on.

Unfortunately I found a lot of stores that left me wondering how they were still in business. In some stores I walked around for 15 minutes and was never once approached or even acknowledged and there were no other customers in sight. Employees, and sometimes even owners, were busy talking about their weekends, or worse, bad-mouthing vendors or bemoaning the fact they had to be working instead of doing this or that. Granted, we all vent to co-workers, but on the retail floor this should be forbidden. It leaves a bad taste in the shopper's mouth.

Then there are the stores themselves. The exteriors were unkempt, from peeling paint or dirty windows to misspelled signs and filthy parking lots. Many stores have multiple doors and it's not until you get right up on them and see the merchandise stacked in front that you realize that one's no longer being used as an entryway.

Sometimes the interiors weren't much better. I realize the first few months of the year are hectic for retailers getting all the Christmas stuff out and the new stuff in or setting up for the round of spring holidays, and that doesn't bother me; in fact it's sort of exciting wondering what they'll come up with next. But dusty, faded product, burnt-out lights and bad smells need to be addressed immediately.

Take a little time to really look at your stores, outside and in. Chat up some of your customers; find out how their latest shopping experiences have been; have someone "spy" (a.k.a. mystery shop) on your store to find out what your employees are like when you aren't there, you might be surprised. It's spring, do a little housekeeping.

Fortunately I found stores that were well merchandised, had friendly staff, were clean, interesting, exciting and fun and you'll read more about them in upcoming retail profiles.

This is my last column as HAT's retail editor as I'm taking over as editor for another Reed Business publication, Kids Today. In my four years with HAT I've met some incredible retailers and vendors, witnessed changes in the industry and made many friends. Ours is a creative, exciting and ever-changing business and I wish all of you the best. I still will attend some of the same markets, my e-mail remains lcasinger@reedbusiness.com and physically I'm moving about 10 feet, so keep in touch. And, if you know of any great kids' retailers or vendors, you know where to find me.