Companies that prioritise understanding and meeting customer needs stand poised to thrive in a constantly changing marketplace. Foot Locker stands out as a beacon of innovation and customer-centricity. At the heart of their success lies a robust customer experience (CX) programme, meticulously designed to elevate every touchpoint of the customer journey. In this blog, we dive into the details of how Foot Locker is revolutionising retail through its CX initiatives.

Listening to ALL Customer Signals 

Foot Locker’s CX programme, run by InMoment, is fueled by a wide range of customer signals  that provide valuable insights into customer behaviour and preferences. These include:

• Surveys: Structured feedback mechanisms to gather comprehensive insights into the customer experience.
  • Customer Pulse Feedback: Real-time feedback channels that capture customer sentiments and preferences.
  • Non-Buyer Feedback: Insights from customers who visited but did not make a purchase, helping to identify barriers to conversion.
  • Staff Feedback: Gathering insights from frontline staff to understand customer interactions and pain points.
  • Contact Centre Feedback: Insights from customer interactions with support teams, providing valuable feedback on pain points and areas for improvement.
• Store Purchase Data: Insights from in-store transactions, helping to understand customer preferences and behaviour.
• Digital Post Fulfillment and Post-Purchase Data: Analysis of customer interactions and feedback after digital purchases, aiding in refining the online shopping experience.
• Competitor Analysis: Monitoring competitor performance and market trends to stay ahead of the curve.
• Click and Collect Data: Understanding customer preferences for omnichannel shopping experiences.
• Social Media Monitoring: Tracking customer sentiment and engagement on social platforms.
• FLX Membership Programme Data: Analysis of member behaviour and preferences to enhance loyalty programme offerings.

Foot Locker’s CX programme is not just about collecting data; it’s about making meaningful connections and driving actionable insights across departments. By leveraging cross-functional omni Voice of the Customer VOC strategies, Foot locker’s integrated data-driven approach allows them to identify trends, pinpoint friction points, and continuously refine their strategies to deliver exceptional experiences. Whether it’s identifying opportunities for improvement, sharing compelling stories backed by data, or aligning with departmental roadmaps, Foot Locker’s CX programme is a testament to their customer-centric, integrated customer experience approach.

Integrating Insights Across Departments

What sets Foot Locker apart is its seamless integration of VOC insights across departments. From sales to digital, every team leverages customer feedback to drive operational improvements. By aligning department-specific KPIs with overall CX goals, Foot Locker ensures a unified approach towards enhancing customer satisfaction and driving business growth. 

Elevating Acquisition and Retention

Central to Foot Locker’s CX strategy is its loyalty programme, FLX. By closely monitoring sign-up trends, sales capture rates, and conversion rates of non-members to FLX members, Foot Locker maximises customer retention and lifetime value. Insights derived from VOC data enable them to tailor rewards and incentives, ensuring that every interaction leaves a lasting impression and strengthens customer loyalty.

Measuring ROI

At the heart of Footlocker’s CX programme lies a focus on measuring return on investment (ROI), which includes various analysis of performance and impact. The correlation between NPS scores and operational metrics, demonstrates how improvements in customer satisfaction directly contributes to sales performance. By identifying changes in customer behaviour, driving acquisition and retention through loyalty programmes, and aligning with overarching business objectives, Footlocker exemplifies a commitment to delivering tangible business outcomes through integrated CX initiatives.

Fueling Brand Love

In today’s hypercompetitive market, brand love is the ultimate currency. Foot Locker understands this implicitly, which is why they invest heavily in monitoring brand health and market share. By analysing competitor performance, market trends, and customer sentiment, Foot Locker stays ahead of the curve, continuously innovating and evolving to meet changing consumer demands and building a brand that resonates with customers on a deeper level.

Foot Locker’s CX Journey Continues

As Foot Locker continues its journey towards retail excellence, one thing is clear: they are committed to delivering exceptional retail customer experiences. By harnessing the power of VOC insights, driving operational excellence, nurturing customer loyalty, and fostering brand love, Foot Locker is not just redefining retail; they’re setting the standard for CX excellence in the industry. So, the next time you shop for the latest kicks, remember that behind every purchase lies a meticulously crafted experience, courtesy of Foot Locker’s CX revolution.

Artificial Intelligence (AI) was no more than a vague, abstract concept for the vast majority of people until recently. Today, AI has gone mainstream, infiltrating both our personal and professional lives.

While still in its infancy, AI is transforming the way businesses across all sectors and industries engage with their customers. Retail is one industry that’s experiencing major disruption.

How Retail Companies Can Use AI to Improve Customer Experience

Retailers have no shortage of data, but they often struggle to make sense of disparate sets – much less identify ways to leverage that data to optimize the customer experience. Integrated CX platforms, powered by AI, have the ability to analyze and interpret these vast, disjointed data sets. Retailers that strategically leverage these platforms, and other AI-powered tools, are better equipped to deliver outstanding experiences throughout the customer journey.

Let’s dive into the role of AI and integrated CX in shaping retail customer experiences – and how this winning combination is empowering retailers to deliver intelligent, outstanding experiences that attract, convert, and retain customers. 

Ultra-Personalized Experiences for Every Shopper 

In the world of retail, generic, one-size-fits all communication and experiences were once the norm. A retailer would air a commercial on TV or run an ad in a magazine – and cross their fingers that it would resonate with at least a portion of viewers. 

Today, generic experiences no longer cut it. 

Retail consumers expect, and sometimes demand, experiences that are tailored to their unique needs and preferences. What’s more, they expect a brand to keep pace as their needs and preferences evolve over time.

Integrated CX platforms, powered by AI, unify customer signals from a myriad of sources, including historic transactions, different types of surveys, reviews, social media interactions, and more. Collectively, those signals provide a complete, 360-degree view of each customer. Retailers can tap into this holistic view to power ultra-personalized experiences for every customer.

Efficiency Across All Touchpoints

The way consumers interact with retailers (and want to interact with them) is evolving. During the pandemic, this evolution accelerated.

Browsing and buying in a brick-and-mortar store was once the default, but today, is far from reality.

They’re engaging with brands via mobile browsers, apps, messaging channels, and social media—just to mention a few. They expect instant feedback–-whenever and wherever a need arises. 

AI-powered chatbots allow retailers to deliver the instant engagement consumers expect. These chatbots and virtual assistants are equipped to handle all sorts of inquiries—whether the shopper is just starting to explore options or has already made a purchase. 

If a shopper is early in the purchase journey, an AI-powered chatbot can answer questions and provide personalized recommendations based on previous transaction history (if known) or on the customer’s answers to a few basic questions. Some chatbots also allow customers to quickly make a purchase right in the chat. After a purchase is made, virtual assistants provide order updates and help resolve any issues that may arise.

Conversational AI tools can help retailers deliver seamless, connected interactions. They can accurately determine when a customer’s inquiry requires the assistance of a real human—and can then transfer them to the right person for the task. This cuts down wait-times, which is a top frustration among consumers. 

Analyzing Feedback to Optimize Experiences

Customer feedback has always been key to optimizing retail CX. That’s nothing new.

Traditionally, surveys were the primary way for collecting customer feedback. Make no mistake: surveys are still valuable. However, many consumers are facing “survey fatigue”, decreasing their likelihood of engagement. Retailers need to diversify their feedback mechanisms.

Consumers leave plenty of signals (feedback) across these platforms—some direct, some implicit. But many retailers struggle to decode this hodgepodge of both structured and unstructured data.

Integrated customer experience platforms, using AI, empower retailers to amalgamate diverse datasets. All those customer signals are translated into actionable insights that will improve CX and increase customer satisfaction and retention. 

AI Presents Retailers With New Challenges

AI is improving the way retailers interact with their customers. By and large, this is a good thing. However, AI does present some unique challenges to retailers.

One key challenge is balancing personalization and privacy. Retail consumers have come to expect personalized experiences, wherever they are on the shopping journey. Of course, such experiences depend on data. Retailers must ensure their customer data – and their use of AI to analyze it – is safe and secure.

When it comes to AI, there are three additional, major concerns:

• AI Operates as a “Black Box”: To the average person, the ins and outs of AI are largely a mystery. For example, there’s usually no visibility into:
  • Which datasets are being used
  • Where the data comes from 
  • Which algorithms are being implemented

As such,  it’s difficult – if not impossible – to discern how a specific recommendation or decision was made.

• Bias is Common: In the world of AI, inherent biases are rampant. This can lead to skewed or biased outputs. 

• There is Risk: In today’s world, AI is everywhere. It’s woven into the fabric of our personal and professional lives. People are leveraging AI for just about everything, from creating a household budget to drafting professional correspondence to finding a spouse. The sheer volume of data being channeled into public spaces introduces risk. 

Consumers are loyal to retailers they trust. Retailers must be laser-focused on earning and preserving the trust of their patrons.

Though it’s tempting to go “all in” on AI, retailers, and everyone else for that matter, must do so responsibly. Retailers must recognize the challenges presented by AI – and then work to address them. In addition, retailers must prioritize transparency to foster consumer trust. 

A Final Word

Though it’s a relatively new technology accessible to the public, AI is already transforming the retail customer experience. 

Retailers have a wealth of data available to them to fuel better experiences. Integrated CX is integral to making sense of data from disconnected sources—and shedding light on opportunities to act on those insights.

Retailers must make it a priority to use AI  ethically and responsibility in order to preserve customers’ trust. In today’s competitive marketplace, the most successful retailers will be those that create intelligent, personalized AI-driven CX, that are safe, private, and secure. 

See how InMoment is leading this charge with its award-winning, integrated CX platform.

It can be argued that the customer experience is more important in retail than any other industry. With 93% of consumers reading reviews before making a purchase, and 58% of consumers being willing to drive further or pay more for a product with good reviews, a good customer experience and brand reputation management have never been more critical than it is today. 

The retail customer experience is also a complex one. It encompasses the in-store experience just as much as it does the online experience. In order to master the retail customer experience, you first need to understand the whats, the whys, and the hows. 

What is the Retail Customer Experience?

At its core, the retail customer experience encompasses every touchpoint a customer has with a brand, from the first interaction to post-purchase engagement. But, it goes beyond transactions, it also encompasses emotions, perceptions, and overall satisfaction with the brand from the view of the customer. 

Why is the Retail Customer Experience Important

The retail customer experience has become increasingly significant in the success and sustainability of any business operating in the modern marketplace. Consumers can quickly become lifetime customers and brand advocates when they have continuous positive experiences with a brand. But, there are more benefits to a well-crafted retail customer experience that go beyond customer loyalty. Let’s examine a few:

1. Revenue Growth

Satisfied customers are more inclined to spend more and make repeat purchases. When the retail customer experience exceeds expectations, customers feel a connection with the brand, leading to increased spending and higher lifetime value. Positive experiences contribute directly to revenue growth as customers become more engaged and willing to invest in the brand.

2. Competitive Edge

In a crowded marketplace where products and services may seem similar, the retail customer experience becomes a powerful differentiator. Businesses that prioritize delivering exceptional customer experiences gain a competitive edge over their counterparts. Customers are more likely to choose a brand that provides not only quality products but also a memorable and positive overall experience.

3. Word-of-Mouth Marketing

Satisfied customers become brand ambassadors, sharing their positive experiences through word-of-mouth marketing. Recommendations from friends, family, or online reviews play a significant role in attracting new customers. A brand that consistently delivers excellent retail customer experiences is more likely to benefit from positive word-of-mouth marketing, expanding its customer base organically.

How to Improve the Retail Customer Experience

In order to improve your customer experience in retail stores, you will need to focus on two main types of experiences: in-store and digital. These two types of experiences are equally important in cementing customer loyalty and improving the overall experience that is associated with your brand. 

Improving the Digital Retail Experience

Providing an exceptional online retail experience is crucial for capturing and retaining customers. Here are strategies to enhance the digital customer experience:

1. User-Friendly Website

Design and optimize your website for ease of use. Ensure intuitive navigation, quick loading times, and a seamless checkout process. A clutter-free and visually appealing layout enhances user experience and encourages visitors to explore and make purchases.

2. Personalization

Leverage data analytics and customer insights to personalize the online shopping experience. Implement personalized product recommendations, targeted promotions, and customized content based on individual preferences and past interactions. Personalization creates a more engaging and relevant experience for users.

3. Responsive Customer Support

Offer responsive and accessible customer support across various channels, including live chat, email, and social media. Providing real-time assistance and resolving issues promptly contributes to a positive online experience. Implement chatbots for immediate responses and streamline customer communication.

4. Mobile Optimization

Given the prevalence of mobile device usage, optimize your website for mobile responsiveness. Ensure that the online shopping experience is seamless and visually appealing on smartphones and tablets. Mobile optimization is essential for capturing the growing number of consumers who prefer to shop on mobile devices.

5. Secure and Transparent Transactions

Instill confidence in online shoppers by prioritizing the security of online transactions. Clearly communicate your website’s security measures, use secure payment gateways, and provide transparent information about shipping costs and return policies. A secure and transparent transaction process builds trust with customers.

Enhancing the In-Store Retail Customer Experience

While digital experiences are vital, the in-store customer experience remains a cornerstone of retail success. Here are strategies to enhance the in-store retail experience:

1. Store Layout and Design

Create an inviting and well-organized store layout that aligns with your brand identity. Consider factors like product placement, aisle navigation, and overall ambiance. An aesthetically pleasing and easy-to-navigate store layout contributes to a positive in-store experience.

2. Staff Training

Invest in comprehensive training programs for your staff to ensure they provide excellent customer service. Equip them with product knowledge, effective communication skills, and the ability to address customer queries. A well-trained and motivated staff enhances the overall in-store experience for customers.

3. In-Store Events and Promotions

Organize in-store events, promotions, or exclusive sales to create a sense of excitement and urgency. These initiatives not only attract foot traffic but also provide customers with a memorable and enjoyable shopping experience. Consider incorporating interactive elements or entertainment to make the events more engaging.

4. Efficient Checkout Process

Streamline the checkout process to minimize wait times and enhance convenience. Implement technologies like self-checkout kiosks or mobile payment options to offer customers faster and more efficient ways to complete their purchases. An efficient checkout process contributes to overall customer satisfaction.

5. Customer Feedback Stations

Place feedback stations within the store to encourage customers to share their opinions and suggestions. Use this feedback to make informed improvements and adjustments. Actively seeking and acting upon customer feedback demonstrates a commitment to continuously enhancing the in-store experience.

Using InMoment’s predictive customer analytics tool, you get automated insights from unstructured feedback that help you notice what needs to be improved, or what is performing well. 

By focusing on both the digital and in-store aspects of the retail customer experience, businesses can create a cohesive and comprehensive strategy that caters to the diverse needs and preferences of their customer base. Integrating these strategies ensures a well-rounded approach that fosters customer satisfaction and loyalty across various channels.

How to Measure Customer Experience in Retail 

Effectively measuring customer experience in retail is essential for identifying strengths, areas for improvement, and overall customer satisfaction. There are three common customer experience metrics that most companies will use to measure customer experience. 

1. Net Promoter Score (NPS)

What it is: The Net Promoter Score (NPS) is a widely used metric that assesses customer loyalty by asking a simple question: “How likely are you to recommend our brand to others?”

How to measure: Customers respond on a scale from 0 to 10, categorizing them into promoters (9-10), passives (7-8), and detractors (0-6). The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.

Why it matters: NPS provides a direct indicator of customer satisfaction and loyalty. Higher NPS scores indicate a greater likelihood of customers promoting the brand.

2. Customer Satisfaction (CSAT) Score

What it is: CSAT measures overall customer satisfaction by asking customers to rate their experience on a numerical scale.

How to measure: Typically, customers respond on a scale of 1 to 5 or 1 to 10, indicating their level of satisfaction. The average score represents the CSAT score.

Why it matters: CSAT offers a straightforward way to assess customer satisfaction after specific interactions or transactions. Regularly tracking CSAT scores helps in identifying trends and areas for improvement.

3. Customer Effort Score (CES)

What it is: CES measures the ease with which customers can achieve their goals or resolve issues.

How to measure: Customers rate their agreement with statements like “The company made it easy for me to resolve my issue” on a scale. The average score represents the CES.

Why it matters: Reducing customer effort enhances satisfaction and loyalty. A lower CES indicates a more straightforward and positive customer experience.

With InMoment’s reporting platform, your CX program performance can become quickly and easily digestible. We allow advanced data filters that allow you to segment insights for the audience that matters most to you. And, with our Reports and Dashboards Builder, you can create reports tailored to your business. 

Retail Customer Experience Trends

As a retailer, you know that the vast majority of the insights you need to shape your merchandising, product development, e-commerce, and overall business strategy are on review sites, social media, from your employees, and beyond. In order to stay ahead of your customers, you need to be utilizing all of these channels to the best of your ability. But, in an effort to help you do so, our strategic insights team has conducted independent research to uncover two major trends in retail customer experience. 

Trend #1: Consumers Will No Longer Settle for Convenience 

Convenience-based experiences such as self-checkout, buy online and pick up in-store, and flexible payment options are no longer seen as above and beyond features, they have now become the standard. That doesn’t diminish the importance of these features. As a matter of fact, without these features, consumers may not shop with you at all. 

In order to take your retail experiences to the next level, you need to embrace the power of social media and influencer marketing. In our research, we found that over 60% of retailers who had a strong TikTok and Instagram presence noted higher “purchase intent” sentiments. 

Trend #2: Consumers Now Expect Hybrid Experiences

There is no longer a difference between your in-store customers and your online customers. One in three consumers now expect a blend of both in order to enjoy a seamless, hybrid experience. These hybrid experiences can take many different forms, but we asked consumers to rank the hybrid experiences they expect from retail brands:

In our research, it became clear that consumers were excited at the prospect of using their mobile devices as a part of their in-store experience in a variety of ways:

• 50% of consumers said they’d like to leverage their phone/an app to view product ratings and reviews while browsing in store
• 50% of consumers said they’d also like to be able to view product options (such as colors or sizes) by scanning a product with their smartphone in store
• 33% of consumers said they’d like to view recommended product pairings via an app/mobile site while in store
• 25% of consumers said they’d like to view social media product reviews/mentions while shopping at a brick-and-mortar location

Essentially, consumers want to bring their favorite digital experience elements into the physical store with them. Whether it’s seeing what other buyers had to say in the moment, getting product pairing recommendations, or other similar options, your consumers are looking to be wowed with personalization while in store. It’s time to start delivering!

Retail Customer Experience Examples

One InMoment client that consistently delivers best-in-class retail experiences is FootLocker. FootLocker was able to utilize the XI Platform to get all of their Voice of Customer and operational data into one, easy to digest platform. As a result, they achieved: 

• Increased OSAT score
• Improved issue resolution 
• Added social media capabilities to their program

Take Your Retail Customer Experience to the Next Level

Are you curious to see how InMoment can help you improve your retail customer experience? Whether it’s our AI capabilities, customer reporting, or contact center software, we have just the solution for you. Schedule a demo to see for yourself today!