In the contemporary era, competition has increased as customers persistently expect retail businesses to meet up and exceed their expectations. As a result of fact of homogeneity among these products made available from retail businesses, they are increasingly centered on delivering effective customer services to gain a competitive advantage. For such businesses, maintaining client satisfaction and trust is essential to make sure repeat purchases by customers. As these businesses operate in a very competitive environment, customers have many options to modify to other retailers, such conditions retailers are engrossed towards the analysis of factors that result in customer loyalty and retention.
Retail business is sort of trading where a company of business entity sell goods directly to the end-users. These businesses have direct relationships with customers, so they are directly involved in providing goods coupled with services to the customer. In retail business, client satisfaction and trust primarily be determined by the quality of services provided as they sell homogeneous products, based on which store cannot be differentiated from others. Examples of retail businesses include supermarkets, supermarkets, book stores, convenience stores, and drug stores.
Books-A-Million is a bookstore company also famous as BAM! (Books, toys and more). It is the second-largest bookstore chain in U.S as the organization operates almost 200 stores across the country. Apart from the goods, they feature i.e. books, toys, stationery, etc. they are unique within their services. The bookstore has developed an on the web help desk for customer support. Customers can check the status of the order or gift card balance by visiting the consumer support website of Books-A-Million. They are quick in responding for their customers’complaints and requests.
With intent to supply unique and superior services entailed with the prime products of the store, Books-A-Million strive to gain competitive advantage over other bookstores. The major strategy adopted by the book store is to achieve supremacy in providing quality and timely services to customers in order to generate repurchase intentions among customers Telus webmail outage The customers’repurchase behavior depicts their amount of satisfaction with the services of the organization, satisfaction or trust ultimately results in customer loyalty and customer satisfaction.
Wal-Mart is a multinational retail company, operating a chain of discount stores and warehouse stores. It is one of the largest store chain operating 4177 stores in United States. The CEO of Wal-Mart stated that loyal and repeat clients are the important thing to generating profits of Wal-Mart Company. Moreover, he stated that clients are more loyal to your store because our associates treat them proficiently when compared with other stores. Wal-Mart has always centered on training and developing friendly associates who understand the fact that customer is the king and act according to customers’needs. Adopting customer-centered policies Wal-Mart has been more successful than rival companies who’re just focused towards increasing profits.
The service strategy of Wal-Mart includes employee appreciation at its core which ultimately results in customer satisfaction. It’s been argued that Wal-Mart is in the commercial of providing services to its customers while its competitors are in the commercial of serving their CEO. The core principles of Wal-Mart include: customer is the boss, providing value to customer, delighting customer, providing recognition to employees and concern for communities where it operates.
Barnes and Noble
Barnes & Noble can be a retail company. It is known as as the largest bookseller company in U.S. and is the leading seller of digital media and scholastic products across the country. It operates 658 independent retail stores and 714 college and university bookstores. Delivering satisfaction and service quality to customers is the prime policy of the company. Additionally, it provides online status information to customers regarding their orders and record online orders and customer complaints and will respond as quickly as possible. The major purpose of these entailed services is to get customers’satisfaction ultimately causing customer loyalty and commitment to the company.
In this era of highly competitive world, it’s been become problematic for businesses to retain their customers specifically for retail businesses simply because they deal in homogeneous products. Such competition, superior service quality is just the important thing to get customers’satisfaction and trust. If the consumer is pleased with the services of an organization, he or she will want to repurchase products from that company. The customer’s repeat purchase behavior can be an indicator of customer’s loyalty and commitment with the organization and he or she won’t want to switch to any company. It is evident from the research studies that service quality is the important thing to retain customers.
Share of Wallet
It is an advertising term that identifies the degree of customer’s expenditures on a particular product or service made available from a company. The share of wallet of each product made available from a retail business could be calculated by tracking the sale volume of each product. This can be a process that is utilized by organizations or businesses to calculate revenue generated from a particular customer. The share of each customer to the full total revenue of the organization shows the purchase behavior of each customer and frequency of purchases of particular products. A happy customer will contribute more to the overall revenue of the company.
Referral can be an advertising term, it is simply considered in context of person to person in regards to a particular product, service or the company. A happy customer generates positive person to person about the organization and refers his/her friends and siblings to purchase products and services from a particular company. On another hand, a dissatisfied customer generates negative person to person regarding the organization which might results in losing existing and new potential customers.
Stock Market Performance
Stock market performance shows the in-patient and collective performance of the firms listed in stock exchange. The satisfied customers directly or indirectly increase the revenues and profits of the organization which have an optimistic effect on the worth of shares of the organization and which ultimately result in an excellent performance of the organization on stock exchange which is comprehended from the frequency of trading of shares of the company.
It is evident from the above explanation that in the present competitive world, retail businesses strive to gain competitive advantage aiming to differentiate themselves from their competitors. This really is only possible by providing superior services to the customers. It’s been argued in the research studies that there’s a significant and positive relation between service quality dimensions and customer satisfaction.