Case Studies > How shoppers select retailers

How shoppers select retailers

Company Size

1,000+

Product

Luminoso Analytics

Tech Stack

Text Analytics
Natural Language Processing (NLP)

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Brand Awareness
Customer Satisfaction
Digital Expertise

Technology Category

Analytics & Modeling - Natural Language Processing (NLP)
Analytics & Modeling - Predictive Analytics
Analytics & Modeling - Real Time Analytics

Applicable Industries

Consumer Goods
Retail

Applicable Functions

Business Operation
Sales & Marketing

Services

Data Science Services
System Integration

About The Customer

Luminoso Technologies, Inc. helps companies understand their customers better and take action to optimize customer experience and improve satisfaction and loyalty. Luminoso applies cutting-edge methodologies to quickly process and analyze unstructured text data such as open-ended survey responses, product reviews, and call center transcripts. Multi-lingual capabilities, including Chinese, Spanish, and Arabic, give global companies the ability to understand their customers worldwide.

The Challenge

In the fast-paced world of retail sales, the secret to attracting and retaining customers is often highly specific and can change on a monthly, or even weekly, basis. Still, there are fundamental drivers of shopper satisfaction – and dissatisfaction – that lead them to choose one store over another. Luminoso partnered with a survey provider who sent surveys via a mobile app to shoppers as soon as they left a store. The 13,752 shoppers who responded told us why they had chosen to shop at the retailer they did and how they would rate that retailer on a scale of 1 to 5. Their feedback revealed fascinating insights about why they choose the retailers they do, what impacts their satisfaction, and how different leading retailers are perceived differently.

The Solution

We used Luminoso Analytics to analyze consumer feedback and identify root drivers behind shopper sentiment and store selection. Shoppers discussed location and convenience at far higher rates than they did about price, inventory selection, and even customer service. Although customer service isn’t discussed as frequently by customers, it still has a strong impact on how shoppers perceive retailers. Good customer service can be the 'cherry on top' that drives customers to rate your company as 'great' instead of 'good'… whereas poor customer service can sour an entire interaction and negatively impact a customer’s perception of a retailer. Comments made by shoppers who mentioned coupons or deals but rated their experience as poor or unsatisfactory (1 or 2 on a 5-point scale) indicated that the only reason they went to that particular retailer was because they had a coupon or were running a sale on a needed item. In short, coupons and sales do work to drive business – but on their own, they will not make your customers loyal or even particularly happy.

Operational Impact

Location and convenience are the primary factors influencing retailer selection, surpassing price and customer service.
Good customer service can elevate a shopping experience from 'good' to 'great,' while poor service can have the opposite effect.
Coupons and sales can attract customers even if they have a negative perception of the store, but they do not ensure loyalty or satisfaction.
Customer feedback provided insights into how different leading retailers are perceived and what impacts their satisfaction.

Quantitative Benefit