More sales activities or better customer experience – what delivers the best results?

The quarterly report is not as strong as you had hoped, and there is still a gap to budget. You need more profitability. You want more sales. But which approach should you take to get there? How do you best drive both short-term and long-term results?

You can always spend more money on marketing, run more campaigns, drive more visitors into the stores to go for quick closes on a good deal. The problem is that it costs a lot of money and is not always the smartest way to reach your targets.

The alternative is customer experience

In a time when retail chains need to be smart, bold, and decisive to stay relevant, customer experience can be a guiding principle to focus around.

The idea is that a customer who has a fantastic experience will also buy. They will be more loyal, deliver a higher customer lifetime value, and be more likely to recommend you.

Here are three examples of successful organisations that focus on customer experience rather than sales.

Amazon puts the customer first

It is said that Amazon would leave a chair empty in every meeting. That chair was reserved for the customer, who had an important voice in driving business decisions. It does not really matter whether that claim is just a myth, because in hindsight we can confirm that few companies manage to deliver a customer experience on par with Amazon. No company has probably A/B tested as much as Amazon to drive a better customer experience. It covers everything from button placement to recommendations. It is one-click checkout, fast home deliveries, immediate customer support. It is simply smoother to shop on Amazon.

Apple Stores

A company that has always focused on user-friendliness and experience in its products is Apple. That customer experience also plays a major role in their stores is therefore no surprise. What may be surprising is that customer experience takes priority over profit for them. Their stated position is that it is more important for the customer to leave the store satisfied than to leave the store having bought a product.

Systembolaget

Wait, are we not talking about profitability? Think what you will about their monopoly position or their brand campaigns about how they are not trying to sell more. One thing they succeed at is topping the customer satisfaction surveys year after year. Why? Their staff are incredibly knowledgeable, interested, and as a result help customers choose the right products for the occasion and to pair with their meals. Of course the monopoly plays into the figures, but looking at profitability metrics, there is a strong case that their focus on customer experience would deliver the same, if not better, results in a free market.

Customer experience is the key to profitability

Of course the world is never black or white. You need a mix of the short-term and the long-term. You need to make sure that every salesperson in every store knows the products and understands how to help and guide customers based on their needs. In the same customer interaction, the salesperson should have the knowledge to guide the customer to a decision if the solution is right, and be able to present added value through upselling.

Fortunately, helpfulness and understanding of a customer's challenges and needs is not the opposite of good sales technique.

Good selling by knowledgeable staff is in fact also part of a great customer experience. Today's discerning customer, who has a thousand alternatives to choose from, appreciates openness and clarity. In the end, authenticity always wins. Focus on building relationships and listening – but do not be afraid to suggest your solutions when they are right.

When you do this, the sales will come, and they will be better and generate greater customer loyalty.