The retail industry is witnessing a rapid growth on a global level. Moreover, among all the countries, India is leading the charts in this foray. The growth and progress seen in the Indian Retail Industry are astonishing. The nation’s economic growth and demography of the citizens play an essential part in the development of this sector.
Almost 10 percent of the GDP accounts to the retail sector employing approximately 8 percent of the nation’s total workforce. Following the change in consumer behavior patterns has given rise to multiple malls and shopping centers. This provides a platform to fashion stores, entertainment stores, theatres, supermarkets, food courts, etc to establish their roots across India. With the growth in technology, the Indian online market is also seeing a major boom.
Growth of the Indian Retail Industry
After the recent FDI policy in retail, many investors from across the globe are interested in the Indian retail market due to its increasing growth. India ranks 8th as per the FDI Confidence Index following big markets like US, Germany, U.K, China, Canada, France, and Japan.
With easy credit availability, the purchasing power of consumers has increased. Options like EMIs increase the sales of costly goods. The average Indian buyer belongs to the middle class, and this has resulted in a shift of mindset. A rise is observed in brand consciousness and the purchase of luxury products. Growth in salaries and increase in quality of lifestyle also drives the Indian Retail Industry.
Following is a graphical representation of the growing trends observed in the Indian Retail Industry as per IBEF.
What keeps this industry growing is the consumer behavior, which is purely based on a customer’s satisfaction. It is the key to drive the growth of the retail industry. A happy customer keeps returning to shop more, whereas an unhappy customer might not be willing to do so. So what factors impact a customer’s satisfaction?
Factors impacting Customer Satisfaction
1. Sale of Product or Service
Good quality product or service is what customers are looking for when they step into any retail store. If a company does not focus on the quality of the product, then both, customer acquisition and customer retention will be a difficult task.
Every brand must make sure that their sales people are well trained about the product. They should possess the ability to communicate with the customers and assisting them properly. Any bad behavior on their part will result in ruining the image of the brand. The customer might not want to visit a retail store that has rude salespeople. When it comes to online stores, an active customer care chat line is a necessity to deal with any issues faced by customers.
3. Visual Merchandise
Shabby displays can ruin the impression of the retail outlet and impact purchasing decision of a customer. On the contrary, customers would love it if they enter a store where products are neatly displayed. Similarly, customers tend to buy more through online retail stores that have a good website design, ad campaigns, collection, neat catalogs, etc.
4. After Sale Follow up
Engaging with the customers after sale will help develop a bond between the company and the customer. A feedback survey asking about the general performance of the product/ service makes the customer feel that the brand cares about them and their experience with the product. It encourages them to return to the same store and stay loyal to the brand.
However, how will retailers know about the issues faced by customers? To understand what makes a customer satisfied or unsatisfied, retailers heavily rely on customer satisfaction surveys. The growth of the retail industry is directly proportional to the increase in customer satisfaction. Let's see what kind of surveys can help the retail sector.
Mystery Shopping Surveys
Sales executives are the face of any company as they represent them in front of the world. Mystery shopping is a popular technique employed by brands to make sure their company sales executives are well trained and have complete product knowledge. It also tests the way a sales executive is treating the customers. Many companies also use this method to get know more about their competitors. There are many other reasons why retail company should consider mystery shopping survey.
Surveys are the best way to gather all this information. Mystery shoppers can input their observations in these surveys. They can also capture images and videos to validate their inputs. This data can be used to analyse the scope of improvement. With its help, companies can identify areas where they need to improve and build strategies around it.
Customer Feedback Surveys
Companies can ask the customers for feedback about their product or service. It will help in analysing what the customers feel about the product. This data can further be used to make strategic decisions of making improvements in their product and increase customer likeability. These surveys are mostly conducted immediately after the sale of the product or service, be it online or offline. General feedback on shopping experience can also be obtained with the help of customer feedback surveys.
Knowing the Demography of Customers
Surveys help retailers know the demography of their customer base. What age group shops the most for their brand, or what areas have more customers and more demand for their product? With the help of this data, retailers know what area to target and increase their product awareness.
What designs sell the most? Is pricing a factor taken into consideration for certain products? Surveys give an insight into the shopping patterns of a customer. Sales and promotions can be planned based on these inputs.
Increasing Bond with the Customers
It does not always have to be work. Often retailers or brands can create surveys to build a relationship with the customer. Asking them about their favourite holiday destination, favourite cuisine, etc. will bring a personal feel to the brand-customer relationship. However, this data might not necessarily be critical to the company but will help in increasing their relationship with the customer.
The retail sector will continue seeing a growth provided the customers are satisfied. As explained above, it is clear how surveys play an important role in the Retail industry. And we are the perfect solution partner for all your survey needs across multiple industries. GoSurvey has catered to many companies from the retail sector assisting them by making apt customer satisfaction surveys. We customise surveys as per the brand’s requirement that ensures the best output for them.