In the contemporary era, competition has increased as customers persistently expect retail businesses to meet and exceed their expectations. Due to the fact of homogeneity among the products offered by retail businesses, they are increasingly focused towards delivering effective customer services in order to gain competitive advantage. For such businesses, maintaining customer satisfaction and trust is vital to ensure repeat purchases by customers. As these businesses operate in a highly competitive environment, customers have many choices to switch to other retailers, in such conditions retailers are engrossed towards the study of factors that lead to customer loyalty and retention.discover this link.
Retail business is a sort of trading in which a firm of business entity sell goods directly to the end users. These businesses have direct relationships with customers, so they are directly involved in providing goods coupled with services to the customer. In retail business, customer satisfaction and trust primarily depend on the quality of services provided as they sell homogeneous products, on the basis of which one store cannot be differentiated from others. The examples of retail business include supermarkets, grocery stores, book stores, convenience stores and drug stores.
Books-A-Million is a bookstore company also famous as BAM! (Books, toys and more). It is the second largest bookstore chain in U.S as the company operates almost 200 stores across the country. Apart from the goods they offer i.e. books, toys, stationary, etc. they are unique in their services. The bookstore has developed an online help desk for customer support. Customers can check the status of their order or gift card balance by visiting customer support website of Books-A-Million. They are quick in responding to their customers’ complaint and requests.
With intent to provide unique and superior services entailed with the prime products of the store, Books-A-Million strive to gain competitive advantage over other bookstores. The major strategy adopted by the book store is to achieve supremacy in providing quality and timely services to customers in order to generate repurchase intentions among customers. The customers’ repurchase behavior depicts their level of satisfaction with the services of the company, satisfaction or trust ultimately leads to customer loyalty and customer satisfaction.
Wal-Mart is a multinational retail company, operating a chain of discount stores and warehouse stores. It is one of the largest retail store chain operating 4177 stores in United States. The CEO of Wal-Mart stated that loyal and repeat customers are the key to generating profits of Wal-Mart Company. Moreover, he stated that customers are more loyal to our store because our associates treat them proficiently as compared to other stores. Wal-Mart has always focused on training and developing friendly associates who understand the fact that customer is the king and act according to customers’ needs. Adopting customer-centered policies Wal-Mart has been more successful than rival companies who are just focused towards increasing profits.
The service strategy of Wal-Mart includes employee appreciation at its core which ultimately leads to customer satisfaction. It has been argued that Wal-Mart is in the business of providing services to its customers while its competitors are in the business of serving their CEO. The core principles of Wal-Mart include: customer is the boss, providing value to customer, delighting customer, providing recognition to employees and concern for communities in which it operates.