Nielsen: E-commerce will lead retail growth(69568)

Little chains can fight back with technology, service

The economy has battered small and medium-size retailers, and research giant the Nielsen Co. has more bad news. Nielsen forecasts that supercenters and e-commerce will gain five share points in consumer spending by 2015. The losers will be supermarkets, convenience stores, drugstores, toy stores and bookstores.

Consumers 45 and younger who rapidly adopt technology will fuel this growth.

"Retailers providing online buying options have never been stronger. ... Generation X and Millennials are growing in importance in both numbers and spending power ... to support online searching and buying," said Todd Hall, senior vice president at Nielsen.

So how can local retailers and small chains fight back?

To gain a share of e-commerce, you need to focus not only on your website, but also on mobile technology. In fact, Nielsen predicts smart phones will be consumers' primary e-commerce tool by 2015.

Consider smart phones as a tool alongside TVs and computers as the third screen you can use to stay in touch with customers, to offer discounts and provide updates about new merchandise and deals.

"The future will be owned by those companies that harness technology to make the consumer shopping experience easy, efficient and fun," Hall said.

Customer service counts

Here are two more strategies to help retailers of any size compete.

First, invest in training that leads to superior customer service. According to the American Express Global Customer Service Barometer, 81 percent of consumers probably will become repeat customers after a good service experience. Conversely, more than half will never come back after a poor experience.

Contrary to common belief, the report adds, more people will share their good experiences (75 percent) than will spread word of their complaints (59 percent).

Also, 61 percent of consumers believe that high-quality customer service is more important in the current economic environment.

Want another reason to provide good service? Consumers spend 9 percent more with companies that do it right.

"Customers want and expect superior service," said Jim Bush, American Express executive vice president for world services. "Especially in this tight economic environment, consumers are focused on getting good value for their money."

But don't despair if customers complain about your company's service. American Express found that 86 percent of consumers will give a company a second chance after a bad experience, provided you historically have met their expectations.

Finally, make sure you also offer customers a good deal. A recent Online Shopper Intelligence survey found that more than half of consumers used a coupon code during their last online purchase. In fact, 92 percent of consumers using coupons were either extremely or very satisfied with their overall shopping experience.

Nielsen: E-commerce will lead retail growth

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