Roy Morgan Research’s latest survey of Australia’s non-food retailers has crowned shoe store The Athlete’s Foot as the chain with the highest customer satisfaction rating in Australia.
The chain, owned by listed retail group RCG Group, scored an impressive 90.9% satisfaction rating from the 448 customers surveyed by Roy Morgan who had made a purchase from the chain in the preceding four weeks.
The Athlete’s Foot narrowly edged out bookstore chain Borders, the ABC Shop, electrical goods retailer JB Hi-Fi and Dymocks to take the title.
Autobarn was the highest ranked automotive goods retailer, Chemist Warehouse took the title in the pharmacy category, while the top ranked clothing chain was Bras N Things.
While Roy Morgan does not break down the exact drivers of the satisfaction rating, industry communications director Norman Morris points out that price isn’t the only factor – bargain stores including The Reject Shop, Go-Lo and Fantastic Furniture are in the bottom half of the satisfaction ranking.
Indeed, Fantastic Furniture came in last overall, with a ranking of just 66.1%.
So if it’s not price that’s crucial, what is it? Let’s extract the lessons from the star performers:
The Athlete’s Foot
The Athlete’s Foot is certainly not a retailer that competes on price – compared to some of its bargain competitors it could even be considered as expensive. But the company’s customer service levels are renowned throughout the sector. Customers have their feet carefully measured and personal product recommendations are provided by staff who are promoted as experts. Clearly, this positioning has struck a chord with consumers.
Borders
While the book retailer sector is struggling around the world, Borders maintains a reputation built on one thing – range. While it might not be the cheapest place to buy books, the large-format stores are designed to give consumers a sense that they will be able to find what they are looking for. The use of instore cafes in some locations also emphasises that a Borders store is as much a destination as it is a retail outlet.
JB Hi-Fi
JB Hi-Fi might have the look of a bargain store, but its real emphasis is on value. While the prices of its CDs and DVDs are typically amongst the lowest in that category, JB Hi-Fi has also built a reputation on being willing to haggle with customers on larger purchases such as televisions, stereos and IT equipment. Clearly being seen as willing to do a deal is important to customers – that’s probably best highlighted by the fact competitor Dick Smith is now advertising that its staff are ready to haggle too.
Chemist Warehouse
There were a number of chemists who received high customer service rankings, which suggests that the specialist product knowledge and personalised service on offer at pharmacies is highly valued by consumers. Chemist Warehouse, which promotes itself as having the cheapest prices in the sector, appears to have got the balance between price and service pretty right – and that is not a bad niche to secure in an ageing population.
Bras N Things
It’s hard to beat specialisation. When you’ve been around as long as this chain has, you build up a level of recognition and trust with customers which is hard to match. Bras N Things’ focus on assisting customers with fitting and sizing in store extends to its online store, where a 100% money-back guarantee is offered for ill-fitting products.
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