Retail in Asia

In Shops

Insights: Is China ready for a better customer experience?

I stood at the counter of one of Hong Kong’s premier supermarkets and watched as the cheerful clerk carefully wrapped my purchases, separating my chilled meats from fresh vegetables in clear plastic wrap and securely taping each bag closed. I know I’m paying relatively more by shopping at this store, I reflected, but the customer experience makes it all worth it. I have found customer-focused service to be rare in Hong Kong and mainland China, so I wondered if the extra steps taken at this store were appreciated by others as well, especially the Asian shoppers.

The desire to provide a good customer experience in other parts of the retail world has continued to grow in importance in recent years, and in tough economic times it has become a competitive point of difference between stores.

Let me clarify what I mean by a good customer experience. It means politely greeting the customer and then leaving them alone, but heroically being there when they need help. Accurate and helpful product knowledge is essential. But good design also contributes to a good customer experience. Stores need to be easy to shop, well planned, well lit, and they need to make merchandise the feature. When staff are not available, good signage acts as a silent salesperson, reducing the anxiety of shopper abandonment.

The best test for customer service capabilities comes from watching how a store copes when systems fail. Out of stocks, quality concerns, confrontations between staff and a shopper: the solution is to treat the customer as you’d like to be treated.

Giving that extra measure of attention to create a positive experience is noticed by consumers.

In the US, 61 percent of shoppers report that quality customer service is important to them and say they will spend an average of 9 percent more when they believe a company provides excellent service. However, only a little more than a third of Americans (37 percent) believe that companies have increased their focus on providing quality service, an obvious missed opportunity. Twenty-seven percent feel businesses have not changed their attitude toward customer service; a further 28 percent say companies are now paying less attention than before to good service. This is according to the latest American Express Global Customer Service Barometer, a survey exploring attitudes towards customer service conducted in the US and 11 other countries.

As for my service experience in Hong Kong, I wondered if my observations represented an aberration, or the beginning of a trend to better serve customers, racing forwards into a new consumer society in Asia.

Does the Chinese consumer want a better customer experience, and once delivered, would it change their shopping habits?

Are Chinese retailers prepared to offer a more consumer-centric shopping experience?

Jerry Gelsomino is the founder of FutureBest, a company providing studies and reports on consumer behaviour patterns. Gelsomino’s past projects include developing design and brand-building strategies for large and small companies, with a focus on creating the best possible experience for customers.