More sales activities or better customer experience - what gives the best results?

The quarterly report isn't as strong as you'd like and you're still some way from your budget. You need more profitability. You want more sales. But what 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, have more promotions, drive more visitors into the stores and get a quick deal. The problem is that it costs a lot of money, and is not always the smartest way to get results.

The alternative is customer experience

At a time when retailers need to be smart, bold and decisive to stay relevant, the customer experience can be a guiding light to focus on.

The idea is that a customer who gets a great experience will also shop. They will be more loyal and provide a higher customer lifetime value while being 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 in all meetings Amazon left a chair empty. That chair was reserved for the customer who had an important voice in driving business decisions forward. It doesn't really matter if that claim is just a myth, because the evidence suggests that few companies manage to deliver a customer experience on a par with Amazon. No company has probably A/B tested as much as Amazon to drive a better customer experience. This ranges from button placements, to recommendations. It's one click checkout, fast home delivery, instant customer support. It's simply smoother to shop on Amazon.

Apple stores

One company that has always focused on ease of use and experience in its products is Apple. It is therefore not surprising that the customer experience also plays a major role in their stores. What is perhaps surprising is that the customer experience has a higher focus than profit for them. Their stated policy is that it is more important that the customer leaves the store satisfied, than that they leave the store with a product they have purchased.

Systembolaget

Wait, aren't we talking about profitability? Think what you want about the monopoly position or their branding campaigns about how they're not out to sell more. One thing they do manage to do is top surveys year after year in customer satisfaction. Why? Their staff are incredibly knowledgeable, interested and therefore help customers choose the right products that work for the occasion and go well with the meals. Of course, monopoly plays into the numbers, but in terms of profitability figures, there's a strong case that their focus on customer experience would have produced 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 all sales people in each store know the products and understand how to help and guide customers in their needs. In the same customer meeting, the sales person 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 a customer's challenges and needs are not the opposite of good salesmanship. 

Good sales by knowledgeable staff is also part of a good customer experience. Today's discerning customer, with a thousand options to choose from, appreciates transparency and clarity. In the end, authenticity always wins. Focus on building relationships and listening - but don't be afraid to suggest your solutions when they're right. 

If you do this, the business will come, and it will be better and more loyal.

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