Thesis statement: To assess influence of personalized customer services on customer and profits of business: A case study on Paul Smith Marylebone High Street Store”
Personalised customer products and services is the best approach of attracting buyers towards business and its services. In this the seller offers unique goods according to specific demand of particular buyer. The strategy helps the firm in managing innovation in services as per market trends and customers’ needs and wants. The essay will outline impact of personalized customer services on profits and buyers of Paul Smith Marylebone High Street Store, which serves designer women and men clothes and accessories.
In addition, large and medium size enterprise make use of loyalty cards where card is given to customer and point is added with every purchase. These points are free of cost and can be availed by consumer during any day shopping. Apart from this, personalizing customer services deals with designing of products and services by consuming with buyers like River island fashion retailer who designs clothes according to needs to customer. This demonstrates values of each individual to a firm. Moreover, offering personalised apparel is a beneficial strategy for small organisation because it reduces the risk of waste and pilling up of stock. For example, Paul Smith Marylebone High Street store can focus on designing unique design of apparels according to each buyer. It is an interesting approach which will help the designers in managing uniqueness retail services.
On the basis of above illustration, it is demonstrated personalizing services for purchaser play a significant role in improving business and its market image. As per the facts, it is clear that buying experience of 87 percent of purchased depends on store management which included associates, manager and sales staff. Apparently, 77 percent of customer seeks for the sales associate who have assisted the buyers in pat shopping experience. This denotes their trust and connection with particular person during in store shopping. Apart from this, shopping experience of 84 percent of shoppers depends on recommendation of sales associate as they have more knowledge about outfit and quality. Similarly, according to 73 % of purchased recommendation of sales associate have positive impact on their buying patterns and choices.
Every business uses different ways to personalize its services and make profits out of it. The ultimate objective of incorporating this concept is increasing customer satisfaction and value of organisational products and services (Lemke, Clark and Wilson, 2011). For example, Black penny small restaurant café made its services personalize by adding unique touch like greeting buyers with their name, offering them service by adding one line about their nature, etc. Thus, it can be said that motive of business behind personalizing is to gain loyalty of customer which is directly proportional to profits. There are numerous firm who have gained consumer trust and loyalty by personalizing their services like Tesco, Marks and Spencer, Aldi, etc. For example, Marks and Spencer, which is leading fashion retailer of UK offers its products online as well as offline. The main focus of business sin on attracting different population group for which the firm focuses on personalizing its services. The strategy used by M& S for branding its services are marketing and different loyalty programs like, discounts, free merchandise, etc.
Hidden cost behind personalizing buyer’s services depends on the ways which are used by company for effective branding. Cost of customer service is important for the business in order to maintain balance between sales and profits. The purchase and sales of services is based on personalize services offered by business to its particular buyer. In accordance, with this, it can be said that hidden cost include improvising of consumer experience and building relationship with buyers (Lemon and Verhoef, 2016). Branding of products and services by adding own unique touch helps the organisation in innovation management and denotes hunger of firm to patron own brand. Thus, from the discussion it can be outlined that personalizing goods and services assist the firm in gaining loyal life-long customer.
In accordance with fashion retailer high street store, the biggest problems faced by firm is substitute products at low price, huge competition and changing market trends. Paul Smith Marylebone is a designer High Street Store in London. The store has limited outlet and limited customer because of increasing substitute, emergence of e commerce and dynamic customer requirement. As per discussion over success of personalized customer services, it has been evaluated that the most significant problems of firm ins lack of customization and branding strategy. The business is limited to few loyal buyers an own unique designs.
It is essential for the fashion retailer to match market trends and gain insights over changing buyers requirements. Moreover, the increase in price and customer acquisition are the biggest challenge for Paul Smith Marylebone. On the other hand, it can be argued that small scale apparel business faces difficulty in meeting expectation of buyers due to which the individuals are unable to make optimum utilisation of resources which is leads to waste and impact cost effectiveness of an organisation (Homburg, JoziÄ‡ and Kuehnl, 2017). As per analysis of problem faced by retailer it can be implied that all the issues get piled up and hinder customer services of firm.
Causes of problem
There are numerous causes of problems which are becoming barrier to customer services of Paul Smith Marylebone. The firm offers limited designs of clothing and that too at high price. Further, the business does not use any marketing technique to reach customer and improvise its service experience of buyers. However, as per the views of Parise, Guinan and Kafka, 2016, growing consumerism is the major cause of challenges faced by fashion retailer where buyers have too many option for same designer product. Buyers are sensitive to trends and their demand changes frequently as per change in fashion industry. Therefore, matching up the changing needs of customer is the biggest threat which need to be addressed in order to boost sales and increase market presence.
Creating unique experience for visitor is the responsibility of store management for which gaining attention of consumer is major concern. On the basis of problems, it can be said that lack of personalisation in services and in store entertainment is the significant cause of customer acquisition and loyalty (Kay and Kummerfeld, 2012). In addition, uniqueness in apparels and selling strategies are the strategy for inventory management, which are not followed by Paul Smith Marylebone.
Solution to problem
In accordance with significant problems faced by Paul Smith Marylebone, it can be said that the firm can adopt personalize customer services approach which will reduce the need of marketing but on the other hand will helps the firm in boosting sales. As per the approach the firm will make clear buyer experience vision which will be based on culture and behaviours of enterprise with its customers. It is the best thing which will help the business in gaining attention of visitors. Further, the store management will be focusing on understanding buyers according to their individual requirement in order to make their buying experience simpler. This will assist small business in connecting and communication with customers. It is important for the firm to interact with consumer because it helps in analysing the need of training and development an improvement in product quality and services. Personalizing will be effective for fashion retailer because in this the management will be able to design clothes according to buyers need and wants and that will help in inventory management and optimum utilisation of resources.
Apparently, Buhalis and Amaranggana, 2015, suggested that personalizing customer services plays a vital role for small firm because it creates emotion connect with buyers. It promotes easy understanding and customer loyalty which plays significant role in branding. Moreover, the scholar discussed about capturing feedback which plays a critical role in improvising business services. It can be done by Paul Smith Marylebone by making outbound call to every visitor to gains insights over their experience and needs of changes in services, quality, in store experience, etc. Likewise, acting on feedback is a mandatory step which will help fashion retailer in overall improvement that is inventory management and customer loyalty.
Personalizing of services plays crucial role in improving enterprise and its services. For example, manager of Paul Smith Marylebone outlet can use name of customer during conversation which will helps the individual in building connect with buyers and gaining their trust. The use of name and reacting according to customer situation is the best strategy to personalize services as it develops bond of trust and friendliness. As per the views of Orel and Kara, 2014, keeping personal and buying history of customer is beneficial strategy for personalized customer experience because this reveals buying pattern of individual on the basis which the firm can offer discounts and schemes to particular buyers. Paul Smith Marylebone can make use of loyalty programs for enhancing its customer service where the management can offer coupons, merchandise and rewards on particular product to seek attention of group of buyers at same time.
Thus, it can be summarized by outlining that small business management can improvise its services by implanting various techniques of personalizing purchaser experience like training and development to sales associate for assisting shoppers while shopping can help in gaining insights over individuals buying perception. In addition, allocating sales staff at right place in store to assist consumer and influence their buying decision is another effective strategy which can help Paul Smith Marylebone in dealing with problems like, high price for designer clothes, increasing competition and dynamic market trends.
Effectiveness of solution
Loyalty of buyers is an indicator of success as it derives consumer perception towards business and its products and services. Effectiveness of solution will be reflected by tracking return on investment where the small business management will be able to evaluate its increase is sales and revenue. The increase in sales and customer will demonstrate benefit of personalizing customer services. According to Amatriain, 2013, success of personalizing is denoted with two factors that is customer relationship management and service quality. The relationship with customer is informal aspect but will help Paul Smith Marylebone in service personalization and determining changing expectation of buyers. However, service quality is a formal aspect which will aid small fashion retailer in serving buyers satisfaction and advocacy.
The essay summarized brief research over importance of personalizing customer service approach which helps the business in building relationship with customers. It outlined example of different firm using this concept for enhancing buyer’s experiences and improving quality of own services. Further, the assessment focused on significant problems faced by Paul Smith Marylebone, a small size high street designer store in UK. The major challenges which are faced by SME are low price, huge competition and changing market trends. On the basis of potential issues, the research concluded with solution and effectiveness of personalising customer services for improving purchaser relationship management advocacy.
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