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A Desire for Better CX is Driving Customers to Pivot from Retail Giants
The shift away from small, local stores to ubiquitous retail giants was a noteworthy element of the second half of the twentieth century. Big box retailers were more convenient: they often had longer opening hours, better stock, more choices and lower prices. Their popularity soared, and they managed to put a majority of the small shops some of us grew up with out of business.
But a funny thing has happened on the way to retail supremacy: Customers stopped valuing price as the be-all and end-all determining factor of where to shop. Increasingly, consumers are putting their money where the best customer experience (CX) is, and this ball in definitively in SMBs’ (small to medium-sized businesses) court.
A study released by customer experience automation solutions provider ActiveCampaign found that 60 percent of consumers indicate negative sentiment toward retail giants, jumping to 69 percent of Gen Z shoppers. Just over half – 51 percent – of Baby Boomers feel the same. Because of this negative sentiment toward the largest retail players in the game, 84 percent of consumers indicated they plan to shop small during the holidays.
While this presents an enormous opportunity for smaller retailers, it also presents a challenge. Shoppers are pivoting toward SMBs because they expect a better, and more personal, customer experience. Smaller businesses, therefore, need to be ready to provide it. The small business customer experience needs to capitalize on touchpoints and interactions across channels to reach more people, engage new leads and retain existing customers. For both B2C and B2B businesses, 1:1 experiences at scale are the differentiator for SMBs and the key to getting ahead this holiday season and beyond.
“Improving the small business customer experience should be the focus, not just a temporary boost in sales due to the holidays,” wrote the study’s authors. “While consumers noted they plan to support SMBs, they also noted that inflation impacts their ability to do so.”
Inflation is a tough obstacle for SMBs to overcome, and 88% of people say it’s one of their biggest obstacles in moving away from larger retailers. But, CX is not a short game and data suggests that SMBs can make a lasting impact by making the experience the focus of their models.
“To end this year strong and continue to grow, entrepreneurs report CX is their focus to gaining long-term loyalty,” add the authors.
Edited by Erik Linask