Why do our customers spend less on our network than in competitors?
Client: Children’s clothing franchise stores chain
Our client checked that their ticket purchase average was about 30% lower than competing chains even though the price range was similar.
Made some inquiries, several franchisees argued as the cause of this difference, that the communication policy was focused to a lower purchasing segment of potential customers than the target goal of the competitors. Other franchisees maintained that the design of children’s clothing was not as attractive as the other chains. The management of the franchise suspected that the reasons for this discrepancy could be other and sought professional support in Mr. Wat.
Considering that the customer was the axis of the question, the project focused on investigating in detail the shopping experience in a sample of establishments in the chain.
Looking for a representative sample of stores, we selected 25% of the establishments according to four criteria: location (shopping centers and shops with direct access from the street), population size, purchasing power of residents and average ticket purchase of each facility.
We appointed Mr. Wat evaluation team and performed the purchasing experience research through the mystery shopping technique in which the evaluator works undercover as an anonymous client.
During two weeks, we observed and analyze over 100 attributes, from accessibility to after sales service of the shopping experience.
The results showed many strengths and weaknesses of the shopping experience at the chain but the potential causes of the difference in the average value of the ticket were consistent in all facilities, with one exception, and did not coincide with those previously declared by the franchisees.
Specifically, we found that the reasons for which customers are not buying as many clothes as competing chains were as follows:
At no time the staff suggested additional or upgraded items to customers, or even advised them the existence of offers. The attitude was practically nonexistent. Leaving aside the lack of commercial ability of the staff we found that that the franchise manual itself, hardly included guidelines or sales strategy.
The purchases were made, a high percentage of mothers who went alone without children in the store and with little time. It was found that when in doubt over any garment decided not to buy. Return policy chain, although with high customer benefits in terms of financial reimbursement and time, was unknown.