Recommendations: Some retailers need to work harder than others

Starcom MediaVest’s head of thought leadership, Steve Smith, asks how hard do supermarkets need to work at impressing their customers in order to create recommendations?

In a competitive environment, retailers depend upon customers recommending them to help build business. One way they can achieve this is through good customer service.

People highlight John Lewis as setting the standard for good customer service. Yet how hard do supermarkets need to work at impressing their customers in order to create recommendations?

A quick survey of Touchpoints 2012 reveals some interesting results. While customers of M&S Food, Aldi and Lidl are most likely to tell their friends if these retailers impress them, customers of Waitrose, Tesco and John Lewis are least likely.

Clearly, these three need to work hardest at pleasing their customers in order for them to commend these retailers. This is especially powerful in an age of instant online communication to a large number of people.

Customer service is an obvious way of impressing customers. However, retailers can also do this through media by way of impactful and meaningful experiences. Retailers can also look to facilitate and enhance people’s personal communities by understanding and delivering on what is important to them, often expressed through their conversations.

What about the other side of the coin? Which shoppers are most likely to tell their friends if the retailers at which they shop let them down?

It turns out that M&S customers are not only most likely to tell their friends if M&S pleases them, they are also most likely to tell their friends if it disappoints them. Although Waitrose customers are among the least likely to recommend the supermarket following good experiences, they are among the most likely to tell their friends if they feel let down. Evidently, both retailers need to be careful in their dealings with customers.

Although John Lewis customers are least likely to recommend the brand if they are impressed with it, they are also among the least likely to pass on any criticisms.

Although questions about recommendation and criticisms are about brands in general, John Lewis customers may be reluctant to censure the department store to friends because of its apparent overall good customer service. However, this is likely to change if for some reason people begin to feel let down by it.

One take away from this is that retailers need to make sure they listen in on online social networks (including their own) and make sure they respond quickly to any criticisms.