This article originally published in Retail Customer Experience magazine, Jan. 2008.
I co-own a digital signage installation and consultancy company. I also am a social psychologist, which comes in handy since my experience and training involve how individuals, information, the environment and groups influence each other.Despite what out-of-home marketing has brought retailers, the opportunities you have once a customer is in your place of business are endless. More importantly, there is method to the customer madness; there are tips and rules of thumb that can be used to your benefit.
In the following months, I'll talk with you about your customer's individual and personal experience, and about opportunities and pitfalls when mixing marketing and environment in-store. But as an introduction, here are three common-sense questions that affect your bottom line:
How does your store affect customer mood?
Mood contributes to your customer's shopping mindset — and by "mood" I mean the overall positive or negative feelings that your store environment generates. Legions of psychological tricks and processes can trigger a more positive mindset (or a negative one). Most of these potential pitfalls can be avoided, to some extent, by ensuring your store is a pleasant place to be. Keep your store's layout, lighting levels, color scheme and overall comfort in mind. You may offer the best products and services out there, but if your store is a maze, dirty or cluttered, you're losing customers.
How much personalized attention do customers receive?
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The more you know about human thought, feelings and behavior, the more you can tailor your business to what the customer needs and wants. |
In the rush of out-of-home marketing, many companies have forgotten that it's customers' personal experiences that keep them coming back. Repeat business is the bread and butter of any retail company. Market as you will, but well-trained customer associates can provide your message, assist the most garrulous of customers and make a positive personal impression.
There isn't enough space here even to begin, but positive personal experiences with customers, regardless of personality type, will bring them back more often than any special offer you advertise. Granted, no one wants to be accosted in a grocery store when buying cheese, but a well-trained cashier with the right customer skills and training will bring that customer back.
What's happening with customers who leave unhappy or dissatisfied?
Every customer who comes in because of your advertising, but has to wait too long, can't find what he needs or is ignored by store staff probably is not going to come back. As you well know, unhappy customers will talk to friends and family, which is publicity you don't want or need. You may be able to coax them back eventually, but they won't buy as much and they'll bad mouth your business while they do it.
As a rule of thumb, people tend to remember (and dwell on) negative events a lot longer than positive ones. It will take a lot of positive experiences to erase your customer's one bad experience.
I will talk about these issues more specifically in the upcoming months. I'll share psychological principles you can use that aren't typically covered in marketing and, more importantly, provide a layman's explanation of why they work.
Business is entirely about human interaction. The more you know about human thought, feelings and behavior, the more you can tailor your business to what the customer needs and wants. One way or another, that provides you, the business owner, with more business and customers who are happy to do business with you. Everyone wins.
Brian Laythe, Ph.D., is a digital signage consultant, professor and co-owner of L3 Digital Media Solutions, a company focused on the content effectiveness of digital signage.
