Typically when customers are indifferent to a brand they usually seek the simplest and most convenient path to get what they want. In terms of choosing where to fuel, customers most often select the location that offers the best trade-off between price and convenience. In contrast, when customers are “emotionally engaged” in the experience or somehow feel enabled by the product or service, the odds are greater that they will pay more for it and come back often.
Key takeaway is the customer experience, not necessarily the brand, can have a greater impact on your store's profitability and loyalty.
In today’s fast paced retail environment, it’s easy for us to get so caught up in the “selling” process that we forget our customer’s “purchasing” process. Our challenge is to suspend what we think we know about the customer and “walk in their shoes” to fully understand what stimulates their shopping experience. Only through that intimate knowledge can we start to intuitively match our selling process with the consumer’s view of how they want to purchase. Careful thought of what matters to your customer can truly create an impactful and memorable customer experience.
The ability to create an appealing and differentiated customer experience at your site can do wonders for your brand, drive site traffic and inside sales. Consider the following case study of Preem, a gas station / convenience store chain in Sweden.
Preem was facing unfavorable market conditions and was struggling to differentiate themselves and create a connection with their customers. With stiff competition eroding fuel margins, Preem’s only hope was to drive the retail profitability of its c-stores rather than rely on fuel sales. Sounds familiar?
Preem realized that competing on completely rational product features was not going to win, so they decided to focus on something radical. Instead of trying to grab a larger part of the total fueling consumer market, Preem focused on attracting and appealing specifically to the female segment.
Specific focus was placed on areas where customers would really notice a difference and those that would reflect the radical market segmentation of women. Through research, the number one most important point of interface for women centered on the toilets. By redesigning their bathroom customer experience (ex. full length mirrors, framed pictures, vibrant colors and softened lightning), Preem became a talking point within social circles. Their toilets were a genuine point of differentiation among female customers, who happily shared their experiences through friends by word of mouth.
Preem didn’t stop there. They extended the same design elements into the rest of site (ex. forecourts were more brightly lit, food choices were fresher and healthier) and before long they transformed themselves from a dreary, rundown gas station into a vibrant, inviting social hub.
Preem pilot service stations initial YOY sales results saw a 28.8 percent increase in fuel volume and a 146.1 percent increase in fresh food sold.
Amazing what identifying and acting on your customer’s wants and needs can do for your business. I look forward to hearing your comments and other ways you’ve seen businesses transformed through enhanced customer experience.
Read the Landor thinking article, Sex and the c-store, or getting the toilets right for more information on Preem.
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