Store reviews help you make good business decisions
Store reviews should be used as a management tool in all retail chains according to Jonny Hansen, COO at Lipscore. «What you want to achieve with store reviews is to get an overview of the level of service in the various stores. » . Measuring customer satisfaction in the stores gives the management team unique insight and data that can be used as a basis for decisions. The retail chains get the opportunity to compare how stores in one or more countries are performing.
The customer data can raise several important questions that the management team needs to ask themselves. Like which stores perform well? Who performs less well, or downright poorly? What does the profit margin look like in a store with dissatisfied customers? Why does a store on one side of town have much lower customer satisfaction than one on the other side of town? Questions that are important to be able to help stores that are doing poorly. And to be able to identify and solve problems, regardless of whether it’s about the store’s location, staff, opening hours or something else.
Representative quality data over quantity
To make good decisions based on store reviews, one must have a substantial number of reviews. «You have to get continuous feedback from 20-30% of the customers. That gives you an amount data, you can use » explains Jonny. Unlike so-called mystery shoppers or smileys in stores, store reviews provide a more reliable overall picture. Mystery shoppers are based on anonymous customer visits to assess everything from customer service, service level and physical environment. But since a mystery shopper might only visit the store three times a year, the information they get is very limited. In the same way, smiley buttons are a way to measure customer satisfaction before the customer leaves the store. But in fact, it’s a highly random measurement tool. Which neither guarantees that the person pressing the button has shopped or that the feedback is genuinely meant.
«Feedback is needed every day, throughout the year, from all customers. Only then will it be representative and only then can you make good decisions » Jonny continues. Ratings and reviews collected through Lipscore ensure that the feedback comes from real customers. «IOn average, our customers receive feedback from 23% of their customers » says Jonny. This means that companies can build up a significant amount of data relatively quickly. «Quality data – over quantity. »
Omnichannel requires good analytics tools
The retail chains that Lipscore has spoken to state that they have a huge amount of data about their customers. For example, from recurring purchases and customer clubs. But the amount of data is often so large that it can be difficult to analyze and use. «Omnichannel has been around for a long time, but not all retail chains have a system to manage all customer data » Jonny explains. «That’s what Lipscore wants to simplify. » By ensuring a tool that can analyze large amounts of quality data, it becomes easier for the chains to act. And the data should ideally also include both product reviews from customers who shopped online, but also in a physical store. Along with feedback on the level of service from all stores.
Today there are many retail chains that have realized the value of quality data as a tool for analysis and action. «Both Elgiganten and Power think a lot about this. And the Norwegian company Skeidar as well, who is also a Lipscore customer » says Jonny. «Skeidar has even removed some products from their portfolio because of too many dissatisfied customers. An extremely important decision because it’s expensive to win back the customers’ trust. »
Click and collect has become an important sales channel
Among the retail chains’ various sales channels, «Click and collect» has emerged as an important channel for many. . Here, too, it’s crucial that the online store provides the customer with sufficient information. It’s in the online store that the customer decides how the product is to be delivered. If they choose click and collect, this is also where they choose which store the item should be picked up in. Therefore, it’s valuable for customers to see how other customers have experienced and rated the service when picking up in store. «It’s also important internally » Jonny adds. «If it works well in 9 out of 10 stores, you want to know why it works less well in one. »
Valuable data that benefits many, not just Ecom
Many different profiles in a company benefit from the customer data gathered via Lipscore. «We want more employees to work with Lipscore data. Not just those who work with conversion optimization online. The insight should most definitely also be used to get a better overview of what is happening in the stores. Help category managers, product managers, brand managers and purchasing managers evaluate products and make purchasing decisions. But individual store managers also benefit greatly from being able to see how the store performs in terms of service level. So, not only ecom matters, the data is valuable for a great many different profiles in a retail chain. »
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With Lipscore ratings & reviews, you can measure and track customer satisfaction in your physical store, in addition to your online store.
With Store Reviews, you can collect feedback on products purchased in the physical store in addition to being able to measure customer satisfaction in each individual physical store, in addition to the online store
This gives you large amounts of customer data that you can use to strengthen and perfect your omnichannel strategy.
Book a meeting with us and we will show you how!