Retail - Fashion - Research - 201501

TK Maxx tops Loyalty and Satisfaction Chart; H&M Fails to Make an Impact with its Customers

London, U.K., 28 January 2015 – Results from a national retail fashion study by Market Force Information found that customer satisfaction and experience was relatively low for all seven retailers who topped the survey. The study found that 18 per cent were dissatisfied with their recent visit to their favourite retailer - a significant number, especially before Christmas. Crucially, those who were very satisfied/delighted with their experience would be twice as likely to recommend the retailer/brand to their friend or colleague.

In December 2014, more than 3,400 consumers participated in a nationwide study designed to uncover the consumer’s favourite retailer, investigate factors that drive satisfaction and loyalty and reveal trends in multiple channels, including e-commerce sites, in-store experiences, and mobile apps.

The Composite Loyalty Score* of all seven retailers shows an extremely tight competition between the brands, with TK Maxx topping the charts at 48 percent, followed by New Look at 43 per cent. Other brands had similar scores with variants of a percentage mark between them.

Consumers are Conscientious Buyers

Consumers confirmed this tight competition among fashion retailers with wallet share at about 50 per cent for all brands. TK Maxx had an average wallet share of 51 per cent in comparison to Marks and Spencer’s with 55 per cent. Next and New Look at 49 per cent and 50 per cent respectively. Primark had 53 per cent and Debenhams had 49 per cent.

The study identified four key drivers of satisfaction, including: Practicality (sizing, choices, value for money etc.), Environmentally Conscious (CSR and green practices, types of materials used, information on country produced etc.), Just For Me (opportunities to share fashion tips and ideas/information, customisation, exclusivity etc.) and finally, Store Operations (speed of checkout and overall atmosphere). Customers that indicated their favorite retailer executed on all four behaviors were 5 times more likely to be highly satisfied with their experience than those who felt that retailers executed well only one or two of these factors. Only 10 per cent of all consumers rated their favorite retailer as executing well on all four critical drivers.

Personalisation and Assistance is Extremely Important to Customer Purchase Decisions

Engaging with customers is vital to the brand loyalty and satisfaction. Retailers who have assistants that can create a look and offer support and advice on products are more likely to score a top box satisfaction rate of 5. Having delighted customers means that they are two times more likely to recommend a retailer to friends. With 1 in 4 customers having visited their favourite stores recently and 78 per cent spending money, NEXT and Debenhams were twice as likely to help shoppers and create high conversion rates of sale.

Online Retailing – Debenhams, NEXT and H&M Top Three E-Tailers

With over £1 billion recorded online sales in the UK in 2014, this area of ecommerce is an important consideration for retailers. Although TK Maxx does well in its physical stores, it fails with e-tailing, However, customers were more likely to purchase from H&M online than buy in-store. Next and Debenhams are almost equal in its percentage share of purchases (76 and 74 per cent respectively) but Marks and Spencer’s, although has a good satisfaction rate with the website, fails to close in on checkout completion.

Mobile Apps – The Future of Brand Longevity

Taking retailers and brands mobile is also essential. Over half of the respondents surveyed had downloaded the Mobile App once they knew it was available.  Use of the app was mainly to browse online but also to purchase items. Furthermore, having access to brands on a mobile phone enables browsers to store/locate items and make wish lists to purchase later or try in-store.

In addition to apps, social media and bloggers influence purchase decisions. Consumers like to engage with its retailer and brand, with New Look and TK Maxx fairing highest on the board. However, on average, most retailers are not doing enough on social engagement.

Survey Demographics

The survey was conducted online in December 2014 across the United Kingdom. The pool of 3,400 reflected a broad spectrum of income levels, with 66 per cent reporting household incomes between £25,000 and £49,000 a year. Respondents’ ages ranged from 19 to over 65. Approximately 72 per cent were women and 28 per cent were men.

Follow Market Force’s Retail Fashion Insights LinkedIn page for the latest insights, timely discussions, commentary and industry news.

*Composite loyalty score = Market Force asked participants to rate their satisfaction with their favourite retailer and their likelihood to refer that retailer to others. The results were averaged to attain a Composite Loyalty Score.

About Market Force Information

Market Force is the leading global customer intelligence solutions company for multi-location businesses, including major retailers, restaurants, grocery and convenience stores, financial institutions, entertainment studios and consumer packaged goods companies. Market Force has pioneered the industry with a suite of customer intelligence solutions that enable multi-location business to manage operational excellence and customer loyalty. Proprietary decision-support tools comprise a platform of data collection techniques including mystery shopping, customer surveys and contact centre; analytics algorithms for predicting growth in loyalty and financial metrics; and a technology platform for integrating multiple data streams. Market Force solutions enable brands to identify the actions required at the store level to increase customer loyalty and improve financial performance. For more information, visit www.marketforce.com.

Date: Wednesday, January 28, 2015
Fashion Retail - Research 2015

Foot Locker tops list as favorite shoe store

Louisville, Colo. – 28 January 2015 – Findings from a national consumer study by Market Force Information, a worldwide leader in customer intelligence solutions, revealed that Nordstrom is consumers’ favorite fashion retailer for the third consecutive year, followed by Kohl’s, T.J. Maxx, Macy’s and Dillard’s. The study also revealed that Foot Locker is consumers’ favorite shoe retailer, followed by Skechers, Nike, DSW and Famous Footwear.

More than 4,300 consumers nationwide were polled for the study in December 2014, which was designed to uncover consumers’ favorite fashion and shoe retailers, and factors that drive satisfaction and loyalty.

Fashion Retailer Rankings and Satisfaction

For the rankings, Market Force asked participants to rate their satisfaction with their most recent fashion retailer experience, and their likelihood to refer that retailer to others. The results were averaged to attain a Composite Loyalty Score [See Graph 1]. Nordstrom, known for delivering exceptional customer service, ranked first among the retailers studied. Kohl’s was second and T.J. Maxx ranked third, moving up two spots from the previous study’s rankings.

Graph 1 – Favorite Fashion Retailers

When asked how satisfied they were with their most recent visit to their favorite fashion retailer, 57% said they were less than delighted. This suggests that there is room for retailers to improve on attributes that drive satisfaction and win over more customers to increase their Composite Loyalty Score. Market Force’s research has shown that customers who have an exceptional shopping experience (a rating of 5 on a scale of 1 to 5) are not only more loyal customers, but also 2.5 times more likely to recommend the place to friends and family.

“Our research is telling us that for a retailer, being good just isn’t good enough,” said Cheryl Flink, chief strategy officer for Market Force. “In order to move the needle in an industry where several retailers are clustered closely in the ‘good enough’ zone, brands must strive to utterly delight their customers across many attributes in order to rise above the noise and win wallet share.”

Performance in Four Key Areas

Market Force’s study results showed that fashion retail brands are highly competitive and difficult to differentiate, so executing well on a number of attributes is critical to winning wallet share. Market Force has identified four key areas that a retailer must execute on to achieve overall customer satisfaction: Merchandising (selection, choice, ease of finding items, value for money spent), Environmental Consciousness (corporate sustainability/green practices, non-synthetic fibers, information on country where merchandise was produced), Just For Me (opportunities to share fashion ideas, style information ability to customize merchandise, access to exclusive merchandise, etc.) and Store Operations (speed of checkout, overall atmosphere of store). When retailers execute well in all four areas, the percent of highly satisfied customers increases five times - from 17% to 86% [See Graph 2].

Graph 2 – How Execution in Four Key Areas Drives Satisfaction

To better understand how well fashion retail brands are executing in those four important areas, Market Force asked consumers to rank the performance of their favorite fashion retailer during their most recent visit. Not surprisingly, Nordstrom scored highest in two of the four categories: Merchandising and Just For Me. H&M ranked in the top two in three of the categories, including Environmental Consciousness (first), Just For Me (second) and Store Operations (second). Dillard’s, T.J. Maxx, Ross Stores and Macy’s also landed in the top three in at least one area [See Graph 3].

Graph 3 - Brand Performance in Four Key Areas

E-Commerce and Mobile Apps

Understanding that many shoppers are turning to the Internet for their apparel purchases, Market Force looked at e-commerce and mobile app use as it relates to fashion retailers. Twenty-eight percent of study participants indicated they had shopped on their favorite retailer’s website in the past 90 days. Of those, just 46% were delighted with their experience leaving more than half (54%) of consumers who were less than very satisfied. When broken out by fashion retailer brand, Nordstrom.com shoppers were the most satisfied at 56%, resulting in a 72% conversion rate. Dillard’s, Old Navy, Kohl’s and Ross Stores rounded out the top five [See Graph 4].

Graph 4 - Website Use, Satisfaction and Conversion Rates by Brand

When it comes to mobile apps, the majority of consumers (67%) were unaware if their favorite fashion retailer offered a mobile app. Of the 25% who were aware of their favorite fashion retailer’s app, more than half (52%) had used it. Target has the highest mobile app adoption rate, followed by H&M, Walmart, Nordstrom and Kohl’s. Consumers are primarily using their favorite retailer’s mobile app to check prices (75%), receive promotions or discounts (62%), browse merchandise (59%), check merchandise availability (41%) and purchase items (39%).

Is Customizable Fashion Going Mainstream?

The last couple of years have seen a rise in made-to-order fashion that enables shoppers to individualize shoes and clothing with their preferred patterns, designs, fabrics and more. Market Force’s findings show this movement may be gaining even more steam, with 58% of respondents indicating that they have customized at least one fashion item in the past six months. Eighteen percent had customized at least three items within that timeframe.

If the Shoe Fits

In order to understand which shoe retailer was seeing the most traffic, Market Force asked which consumers to name the shoe retailers they had visited in the past six months. Payless Shoes rose to the top, followed by DSW, Famous Footwear, Shoe Carnival and Nike. However, the number of visits does not necessarily translate into satisfaction and favorites. Based on the Composite Loyalty Score, Payless shoes was the sixth favorite retailer, preceded by some brands that did not appear in the recent visits rankings [See Graph 5].

Graph 5 – Favorite Shoe Retailers

Survey Demographics

The survey was conducted online in December 2014 across the United States. The pool of 4,350 respondents represented a cross-section of the four U.S. census regions, and reflected a broad spectrum of income levels, with 55% reporting household incomes of more than $50,000 a year. Respondents’ ages ranged from 19 to over 65. Approximately 76% were women and 24% were men.

Follow Market Force’s Fashion Retail Insights page on LinkedIn for the latest insights, timely discussions, commentary and industry news.

About Market Force Information

Market Force is the leading global customer intelligence solutions company for multi-location businesses, including major retailers, restaurants, grocery and convenience stores, financial institutions, entertainment studios and consumer packaged goods companies. Market Force has pioneered the industry with a suite of customer intelligence solutions that enable multi-location business to manage operational excellence and customer loyalty. Proprietary decision-support tools comprise a platform of data collection techniques including mystery shopping, customer surveys and contact center; analytics algorithms for predicting growth in loyalty and financial metrics;  and a technology platform for integrating multiple data streams.  Market Force solutions enable brands to identify the actions required at the store level to increase customer loyalty and improve financial performance. For more information, visit www.marketforce.com.

Our research is telling us that for a retailer, being good just isn’t good enough.

Date: Wednesday, January 28, 2015

ALDI: Food for thought

Learn how ALDI was able to enter the crowded US grocery market and not just survive, but thrive, rapidly expanding and taking the lead in customer satisfaction.

"The monthly insights and intelligence provided by Market Force are vital to our business and key to our continued growth.”

— Laura Bauer, Divisional Vice President, ALDI

 

Get the case study:

Pages

Schedule a Briefing

To discuss your needs for improving performance for your multi-location brand, give us a call. We’d be happy to discuss best practices for measuring the customer experience and compliance to brand standards, using analytics to understand what matters most and the ROI for change, and technology solutions that integrate large quantities of data on one single platform. We look forward to a great discussion!

Schedule a Briefing
We've noticed you might not be visiting the appropriate version of our site. Would you like to: