The Last Word: Customer Solutions Profit Ideas

I came across some intriguing press coverage for the new Samsung “experience store” in Midtown Manhattan. These stores are designed to allow customers to mingle, test, and interact with Samsung technology. Checking your email, making long distance phone calls as well as watching a reality TV show replace traditional shopping as the leading activity for these new stores. In fact NO shopping will occur in the new Samsung concept store, only “loitering.”

Store employees are trained to stop wandering customers and encourage them to sit, relax and just listen to the music. There are no shelves, no price tags or cash/wrap stations. These stores are designed with comfortable spaces that are like a home living room, den or kitchen were the electronics can be enjoyed. I began to wish I was there myself!

Samsung follows many other companies, such as AT&T, Motorola, Apple, Sony, Maytag and others, exploring the world of Experiential Retail.

As the CEO for a company that surveys the “customer experience” with the end-goal of providing our clients with customer interaction management guidance to improve their top and bottom line, I was fascinated by the concept of stores focused on endless browsing and interaction with products. New concepts that give too much control to the consumer need to be carefully tested and monitored. Many companies who have tried this have found the concepts fail due to lack of consumer connection and resulting sales.

While the press correctly parallels this retail execution to book stores, it is important to note that when at a book store and in a hurry, consumers become frustrated when they can’t easily find the book they need. They become even more frustrated when they can’t find a sales representative (not always easy in a mega store) or anyone who can help them. It is at these points that frustration can turn into negative brand impression and possibly even brand switching. A frustrated customer can easily decide to go to the smaller book store or order on line in the future. Consumer control is what businesses need to carefully monitor and understand. Consumers will let you know if they like your concept with both their wallet, and in 30% of the cases, their voice — telling you, or worse others, about their experience.

This is not to say that the days of large department stores crammed with too many skews of disconnected merchandise is a better option. For consumers it is a careful balance of freedom and help that makes the experience successful — and satisfaction that turns into loyalty and ultimately advocacy.

I have seen this in tens of thousands of mystery shopping surveys we have conducted for customer-service dependent companies. Our mystery shoppers survey over 65 points that define the customer experience; everything from the initial greeting to finding what you need, satisfaction in the purchase experience and being helped by knowledgeable staff when requested are important. I commend Samsung on their attempt to take the shackles off of the traditional “stock and push” concept of retail but I would caution them to make sure ALL aspects of customer-desired sales support are present, accessible and top notch — and at the very least carefully monitor and survey consumer impressions and sales trends.