Home Facts trade

USA:J Crew tops in customer engagement within apparel industry

USA:J Crew tops in customer engagement within apparel industry

Write: Kalpana [2011-05-20]

When it comes to Customer Engagement, J. Crew, Nine West, Ann Taylor, Aeropostale, Chico's, Guess and American Eagle Outfittes receive the highest ratings in the apparel industry, according to PeopleMetrics, a leading customer and employee research firm.
The PeopleMetrics study looked at 100 brands across four service sectors (Hotel, Retail, Banking and Casual Dining) and ranked Customer Engagement based on feedback from approximately 10,000 customers throughout the United States. Nearly half of the 100 brands were retail stores, with 13 of these in the apparel category.
PeopleMetrics Customer Engagement ranking is determined by behavioral and emotional elements. Engaged customers, according to PeopleMetrics, do the following: 1) promote the company or brand, 2) intend to return in the future, 3) go out of their way to do business with the company, and 4) feel passion, even love, for the brand and experience.
Executive Vice President of PeopleMetrics, Kate Feather, who led the study, noted that PeopleMetrics Customer Engagement measurement is "very stringent," and, as a result, "it is a strong and reliable predictor of customers' behaviors and attitudes."
The PeopleMetrics study also looked at links between Customer Engagement and financial performance. Overall, companies with more engaged customers outperformed those with less-engaged customers in terms of gross margin, earnings per share and return on equity.
Retail expert Bobette Stott, Principal of DesignSource said, "Retailers of all types would benefit immensely from the PeopleMetrics study, as the customer is no longer king and employees are viewed as a liability not an asset."

PeopleMetrics study also considered what retail chains can do to build more engaged customers. In particular, the study revealed a strong link between engaged customers and engaged employees.
"We know Customer Engagement matters in terms of financial performance," noted Feather, "but high performing companies are also deeply invested in building more engaged employees ... .they see that more engaged employees are creating better customer experiences and, as a result, more engaged customers."
Other apparel retailers in the study were: Abercrombie and Fitch, Foot Locker, Men's Warehouse, The Gap, The Limited, and Urban Outfitters.