Now More than Ever, Building an Emotional Connection with Employees and Customers is Key to Retail Success, According to PeopleMetrics

PHILADELPHIA--(BUSINESS WIRE)--Creating positive retail shopping experiences depends on an engaged workforce, says Kate Feather, Executive Vice President at PeopleMetrics, who presented research into Customer Engagement at the National Retail Federation conference in Chicago last week. Feather noted that with consumer confidence at an all time low and shoppers cutting back on spending, retailers must differentiate on service if they are to weather the downturn.

“The key for retailers is to ensure they’re fostering an emotional connection between their employees and customers”

And according to John Kyees, CFO of Urban Outfitters, creating a unique shopping experience is critical to survive. “When the economy is tough shoppers tend to gravitate to the store with the best shopping experience,” Kyees noted at an RBC Capital Markets conference in New York City in October.

Feather demonstrated that creating a superior retail experience is based on the ability to forge an emotional connection between the customer and the employee. According to PeopleMetrics research, customers report more positive shopping experiences if the employee they interacted with made the shopping experience fun and went above and beyond to meet their needs. These emotional elements of the experience matter far more than store environment, convenience or product range.

“The key for retailers is to ensure they’re fostering an emotional connection between their employees and customers,” noted Feather. “To do this you must start with employees. If retailers take care of their employees, employees will take care of their customers.”

Feather highlighted Williams Sonoma, Wegman’s Supermarket and The Container Store as retailers noted for providing exceptional customer service and investing in their workforces.

“It’s no coincidence that these stores make their customers feel special and have employee turnover rates well below the retail industry average,” noted Feather.

“Top retailers know their employees will help them weather this tough economy,” noted Feather. “We predict they will continue to invest in their workforces to maintain their competitive edge.”

PeopleMetrics is preparing to launch their second annual Most Engaged Customers study which will examine customer engagement ratings across a variety of retail establishments, in addition to airlines, wireless providers, eRetailers, paid TV providers, and luxury brands. Results will be available in early 2009.

To receive the results of PeopleMetrics 2008 Most Engaged Customers study or inquire about the 2009 study, contact Frank Rowe, PeopleMetrics Vice President, frowe@people-metrics.com or (215) 979-8030.