What’s the difference between clienteling and customer service?
Customer service has always been a crucial component of customer experience. Yet, in recent times, both major retailers and boutique stores have focused and redirected their resources on modern clienteling methods.
“Even though I moved far away from my old neighborhood, I still shop there from a local clothing store. The commute is longer, parking is a challenge, and navigating through a different neighborhood can be a bit overwhelming. Yet, my loyalty persists because of the exceptional service I receive from the store's sales associate, Sarah.
Sarah knows my style preferences like a fashion confidante and suggests me new items that complement my outfits. In other words, she makes the shopping experience efficient and enjoyable. Sarah doesn't just sell clothes; she curates personalized outfits that suit various occasions in my life.
Despite the inconvenience, I'm not tempted to explore other stores closer to my current residence. Sarah's ability to understand my fashion needs, keeps me coming back.”
And in a nutshell, that’s clienteling.
Why Clienteling Isn’t Just Customer Service
Obviously, clienteling surpasses mere customer service. Franchises may offer custom items but the personalized attention is the one that will make the difference, as it is by far more influential.
Clienteling involves leveraging information to craft exceptional customer experiences. However, it's not merely about enhancing or improving customer service. It marks a fundamental shift in the way your business interacts with customers.
The crux lies in the proactive nature of clienteling compared to the reactive stance of traditional customer service. The reactive stance of traditional service turns into a proactive culture.
Customer Service:
-Responds to customer inquiries
-Treats all customers well
-Collects data to address purchase-related issues
-Nurtures short-term, transactional relationships
Clienteling:
- Anticipates customer needs and inquiries
-Treats each customers' unique preferences
-Gathers data to personalize the shopping experience
-Cultivates long-term, loyalty-driven relationships
To deliver a personalized shopping journey, clienteling establishes a proactive approach to fully understanding individual customers. It harnesses personal data from both online interactions and in-store visits to show how different individuals engage with your brand.
Granted, implementing a clienteling strategy may seem challenging, in terms of time or cost. Yet, the question remains: Is the investment worthwhile?
Why Clienteling Holds Significance in Today's Retail Landscape
Online shopping has undeniably revolutionized the retail sector. Especially e-commerce giants like Amazon, have had a significant impact in the last few years as they heightened the customers' expectations for personalization.
Thanks to trailblazers in the online realm, such as Amazon, customers have developed an insatiable appetite for personalized experiences. A survey conducted by Epsilon and GBH Insights, encompassing 1,000 US adults, revealed that an overwhelming 80 percent of respondents prioritize personalization from retailers. Personalization has transcended from a mere preference to a "hygiene factor" – customers expect it as a standard, and any misstep in this regard could prompt them to seek alternatives. - McKinsey & Co
So in a strange turn of events, the obviously impersonal nature of online shopping has led to a desire for tailored experiences in traditional retail. It's logical, isn't it? In a world where social media feeds are customized to individual preferences, why wouldn't consumers expect the same level of personalization when it comes to spending their money?
Embracing personalization through a clienteling approach brings tangible results, notably in revenue generation. According to McKinsey, retailers experience a significant 10 to 15 percent increase in sales conversion rates through clienteling strategies. However, what's truly remarkable is that the clienteling approach also leads to a notable reduction in marketing and sales expenses, typically by around 10 to 20 percent.
Efficient customer service in the traditional way often proves costly due to the working hours and employees required to address customer needs reactively. The reduced marketing and sales costs, many retailers have achieved through clienteling, lead to a transition from basic customer service to more modern ones. This shift not only boosts revenues but also lowers the cost per sale, becoming a win-win scenario for retailers.
Can Clienteling Scale?
While the sales advisor in the local jewelry store can provide a personalized experience due to the one-on-one nature of the interactions, most retail businesses don’t have the capacity for this luxury. Keep in mind that Amazon, despite its limited physical presence, delivers personalized shopping experiences to all its users through robust data mining and tailored promotions in the digital landscape.
By utilizing the right clienteling software, your retail business can emulate this approach, enhancing the shopping experience both online and in-store. For instance, a fashion retailer may distribute a lookbook for the spring season to certain customers. When these customers visit a physical store, the sales staff can reference the items they previously showed interest in, fostering a seamless transition from online to in-store engagement.
Moreover, it's essential to consider the 80/20 rule of retail, where 80% of sales originate from just 20% of customers. By prioritizing clienteling efforts towards this loyal 20%, your team can significantly impact the bottom line as your clienteling capabilities expand.
How Sales Associates Excel in Clienteling
Even the most exceptional sales associate isn’t able to recall every detail of every customer's shopping journey. This is where technology fills the gap, equipping your representatives with access to customer data to deliver memorable shopping experiences for each individual.
In today's retail landscape, customers have been accustomed to sales associates holding their tablets or smartphones. Empowering your sales team with a Mobile Customer Relationship Management (CRM) system capable of instantly retrieving each customer's data is vital for successful clienteling.
"Hello, have you shopped with us before?"
"Yes, I have."
"Could you share your name? I can provide you with tailored recommendations."
"It's Sofia Peters."
"Hi, Sofia! According to your history and preferences, the spring collection contains some items you might love. Would you be interested in seeing some options?"
While mastering interactions like these requires retail training, they epitomize personalized shopping experiences and drive retail success in today's market.