Vision - September/October 2007 - (Page 5) upgrading from consumers to advocates is easier than you think. Consumer advocacy is a relationship built between individual merchants and their customers. It is based on the customers’ perception of how well the individual merchant is meeting their needs—needs that often go beyond just having the right items in stock. building on your strengths to create active advocates. According to a study by GfK Customer Research North America, consumer electronics (CE) retailers, on average, have a low advocacy level (16%), though this varies depending on the type of retailer. This means that consumers consider CE stores interchangeable and do not have differentiating store experiences. The study shows that CE superstores create more consumer advocates than mid- to high-end CE stores. 50% 40% 30% 20% 10% 0% how does advocacy differ by industry?* 41% 30% 14% 16% 16% 35% HighGrocery Consumer Specialty Cell Tech Stores Electronics Apparel Phones Stores Stores Electronics Cosmetics by identifying and catering to consumer advocates, you can: Target consumers who spend more — advocates tend to spend 5–6 times more than shoppers who are indifferent* Increase your competitive position — catering to consumer needs leads to better differentiation from other retailers b Enhance non-traditional marketing strategies — advocates use unconventional channels to promote retailers including viral videos, blogs and more b b how to improve your consumer advocacy: Understand consumer impressions. The study by GfK Customer Research North America shows that consumers tend to advocate CE stores that have a knowledgeable staff; an unpressured, relaxed environment; and a large selection. b Increase viral marketing. An important part of consumer advocacy is having dedicated consumers that encourage and persuade others to patronize your store via word of mouth, peer to peer (chat rooms, customer communities) and viral marketing campaigns. b Target the factors that delight and disappoint your customers and seize those opportunities. Take the time to understand your customers, and take the actions necessary to give them an unforgettable experience. b so start meeting your needs by exceeding your customers’ needs. For more information and for a detailed report, contact Michelle Graham at michelle.s.graham@aexp.com consumer advocacy American Express is pleased to sponsor CEKnowHow’s 5th anniversary. American Express understands what having a more highly skilled retail workforce will do for the industry. *Source: 2005 American Express/GfK Customer Advocacy Research. ©2007 American Express Company.
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