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“No one cared that I was there.” “I don’t think he even noticed when I left the showroom.” “I felt like I was interrupting the staff as they chatted.” Wow! It sounds like someone’s suffering from an inferiority complex.

With Communicate’s penchant for all things psychological, we’d gladly spend hours deciphering the roots, reasons, and remedies to such a debilitating complex. That won’t be necessary, though; it turns out Grass Roots Middle East, a business performance improvement consultancy (they test and train staff), has beaten us to it.

According to Grass Roots, these are not the quotes of a person in psychological distress, but the words of consumers on their experiences in the GCC retail environment and its service levels.

Thankfully for the region’s retailers it’s not all bad feedback. Through its mystery shopping survey entitled “Are you being served in the GCC?” Grass Roots has also identified positive feedback from the mystery shoppers they sent out to more than 350 stores across four industries (automotive, fast food and coffee shops, banking, and mobile phone products) in five Gulf states (Bahrain, UAE, Qatar, Saudi Arabia, and Kuwait). Some of the comments included: “The lady who was serving us gave us her full attention.” “The politeness of the staff made the whole visit worthwhile.” “I was given undivided attention and all my questions were answered promptly and pleasantly.” However, the overall feeling and results from the 2009 survey is not good, as Cathy Sparks, project director at Grass Roots Middle East, explains.

“The findings of our report will not make for comfortable reading for retailers in the Gulf region,” she says. “Across the Gulf, retailers are failing to create customer loyalty and missing sales opportunities. Our survey found that one in four shoppers said they would not return to or recommend the outlet visited based on the service received.” The survey shows retailers in the region place a lot of emphasis on advertising, public relations, and glitzy and fancy stores with polite and friendly staff. Unfortunately, retail outlets fall short of offering any depth.

“Though staff may have a positive attitude, they are short on sales skills and initiative,” says Sparks. “Forty percent of staff did not recommend or guide customers to a relevant product or service, and 41 percent did not check that customers had what they wanted or needed.”

Aubrey Ghose is founder and CEO of AIS Brand Lab, a strategic branding agency that also provides staff training. He says the findings of the report are very intuitive and “totally right,” and that the problems revealed in the survey reflect a brand promise not being delivered. “One of the big misconceptions about what a brand is, is around the elements of the brand,” he says. “People sometimes think it’s the logo or the environment. But whenever we do research after developing stores, the really surprising thing that transpires is that the staff are the brand. In many ways, the staff on the floor is your core brand deliverer.”

“What surprises me in the Middle East is that a lot of retailers are [only] vaguely cognizant of that,” he continues. “The staff on the shop floor is least considered and is lowly paid, and training is incredibly weak. People are happy to spend money on advertising and store design, but what’s considered secondary is that staff. They think the brand does the talking and that staff are another piece of collateral. But staff are key. If you think you had a dreadful experience with Emirates Airlines or Starbucks, chances are very high you’re relating it to a person.”

According to Sparks, that is what the Grass Roots survey showed most prominently, and most worryingly: “Employers need to take a close look at the problem areas and take responsibility for them,” she says. “One particularly worrying image that came out of this report was of the disengaged employee, who doesn’t take ownership and is just going through the motions. Yet it is unlikely, given the otherwise high levels of positive attitudes reported, that staff don’t care. More probable is a workforce that is not being given the tools or trust it needs to do the job properly.”

The survey reveals that 34 percent of shoppers found staff did not ask any questions to establish details about their needs. Sparks says that retailers need to look at training to counter the lack of initiative and poor sales skills, and to create a smarter workforce, rather than just throwing people at the problem. She says this can be done through incentives, in order to breed employee loyalty and buy-in.

Ghose also emphasizes the importance of staff training, because when a staff member is talking to a customer, he says the brand is effectively talking to that customer. “People want to interact with an actual human being,” he says. “Staff here don’t generally feel liberated or empowered to actually be the brand champions. But each one of the guys on the shop floor, they are the brand champions, not the CEO and not the manager. The most important thing to do is train the staff to understand what the brand exists to do. Secondly, it’s important to allow staff to understand and deliver brand’s values, because every brand has values to deliver. Staff are like actors on a stage, they have to be given a script.”

“One of the things I found so interesting in the survey is that staff very rarely make recommendations,” continues Ghose. “This signals a lack of connection between staff and customers, because staff feel they are there to serve, not to deliver and suggest. But the staff have to do the thinking for the customer, so they have to feel liberated. It doesn’t matter if you’re Filipino or Indian or a wealthy local, as a member of staff you have to be empowered, and know that you’re acting on behalf of a great brand you’re working for.”

Attitudes are beginning to change, though; according to Sparks, increasing competition will drive the market in the right direction. “As both local and international competition increases it will be those companies that really understand what it takes to make a satisfied customer that will make it to the top,” she says.  “Many Gulf retailers understand this and Grass Roots has seen a steady increase in demand for our performance measurement services in this region.”

In fact, it would seem that this demand has made Grass Roots’ specialism an attractive field to be in, and now other companies want a slice of the action. Renno Communications Group, for example, recently launched its new “Customer Retention Program” (in essence a mystery shopper program). Such new arrivals underline the increased market interest in retail experience.

One regional retailer that has understood the need to invest in staff training is supermarket chain Choithram. Rheea Thanwani, director of marketing for Choithram, says the chain is revamping its brand identity, without changing its core values. “We are improving on all aspects, such as better service, better quality, and training staff,” says Thanwani. “We’ve hired AIS Brand Lab who will do brand identity, like [working out] how we will revamp our new stores from A to Z. We want to improve the quality of customer service, and become more interactive with customer needs – basically understanding customers more. These are changing times, and we feel that focusing on improving our level of customer service and on the retail experience in our stores is key.”

Ghose believes Apple is the perfect example of an international brand successfully delivering a shopping experience to its customers.

“At the Apple store, there are “Genius Bars,” and standing behind are Apple geeks –that’s what they call themselves,” he says. “They’re really empowered, they have lots of knowledge, they love their brand, and they are brand champions. They care about you as a person because they’re just being human beings, delivering a very consistent brand message. They love the product and the brand. They’re getting the right balance between the physical environment and the relationship with staff in the stores and following that up. If you built a relationship, only then can you trust a brand sufficiently to buy online. That’s why online shopping hasn’t taken off; there’s not enough trust.”

While advertising works to attract consumers on an initial level, it is clear from the Grass Roots, “Are you being served in the GCC?” survey that the shine fades fast if the customer shopping experience is not met with knowledgeable and empowered staff, who will champion a brand and keep consumers coming back for more.

“What use is it having one of the most eye-catching branding campaigns around, if customers walk into one of your stores and are put off purchasing anything due to the poor level of service they receive?” asks Sparks. “Frontline staff are vital to the success of a company. They are the public face and brand guardians, outwardly expressing all the positive values of a company or brand.  Many companies do not have a clear view of their brand from their customers’ viewpoint. 
Those companies that closely measure the customer experience react to the challenges presented and change the frontline to deliver real customer satisfaction and build long-term loyalty will ultimately flourish.”

Retail results
Some of the findings from Grass Roots’ Are You Being Served in the Gulf mystery shopping report

Retail researcher Grass Roots sent its mystery shoppers – real consumers paid a nominal fee – to more than 350 stores throughout the region. The shoppers were given missions, and had to report on their experiences through an online survey within 24 hours of visiting the shops.

THE MISSIONS
•    Fast food outlets and coffee shops: Order and consume one menu item and enquire about the details of another.
•    Automotive showroom: Browse and request price/feature info for a medium-level car.
•    Bank branch: Enquire about interest rates paid on an instant access savings account.
•    Mobile phone retailer: Express interest in a branded phone and ask whether it would fit the shopper’s needs.

FIRST IMPRESSIONS
•    94 percent of customers felt stores and showrooms were clean.
•    83 percent said stores and showrooms were clutter-free.
•    81 percent of shoppers said branches were excellent or good.
•    6 percent had a poor first impression.
•    Bahrain’s stores won on appearance. 94 percent said the environment was excellent or good.
•    In Qatar, only 78 percent of shoppers felt the outlets were clean. 48 percent were unhappy with levels of clutter. 22 percent described environment as poor.
•    Levels of air conditioning, lighting and space drew comments from shoppers. Gulf consumers don’t like to feel crowded.
•    Shoppers said adequate parking was important.
•    Many shoppers commented on how dirty or clean windows were.

A HELPING HAND
•    Only 24 percent of shoppers were approached by staff on their arrival at the store.
•    30 percent of shoppers had to locate a member of staff themselves.
•    45 percent of shoppers had to stand in line for help.
•    In Saudi Arabia, only 9 percent of shoppers were approached with an offer of help.
•    61 percent of shoppers in Saudi had to stand in line.
•    30 percent of shoppers were served immediately.
•    28 percent had to wait longer than three minutes to be served.
•    Employees in Kuwait and Saudi Arabia served customers fastest.
•    28 percent of shoppers ranked Qatar’s speed of service as “poor.”

SERVICE WITH A SMILE
•    82 percent of staff were judged to be friendly.
•    92 percent of staff were polite.
•    82 percent of shoppers found staff helpful.
•    82 percent of staff made eye contact when first meeting customers.
•    35 percent of employees didn’t smile when meeting customers.
•    Although 92 percent of staff listened to what a customer was after, 34 percent asked no further questions.
•    Much of the shoppers’ feedback revolved around whether staff were genuinely interested or just going through the motions. Many shoppers questioned the sincerity of service, but there were positive comments from shoppers who felt staff were engaging with them. Many shoppers didn’t appreciate being rushed through the sales process.
•    In Qatar, only half of sales staff questioned customers about their requirements, and 42 percent didn’t smile.
•    When mystery shoppers were asked about the high and low points of their visits, the attitude of staff made the biggest impact.

GENERAL KNOWLEDGE
•    Results relating to product knowledge and meeting customer needs were some of the lowest in the Grass Roots report.
•    40 percent of staff didn’t recommend a product to shoppers or take them to the relevant area of the store.
•    Only 59 percent of employees checked if customers had what they needed.
•    When literature was available, only half the staff gave it to shoppers.
•    20 percent of shoppers said staff didn’t show good product knowledge.
•    Although the UAE scored best on product knowledge, only 75 percent of sales staff guided clients towards suitable products, and less checked if they had found what they wanted.
•    Staff in Saudi Arabia were least likely to recommend a product, with only 52 percent doing so.
•    Only 26 percent of staff in Kuwait provided literature to the customers.

COME BACK FOR MORE
•    Only 77 percent of mystery shoppers said they would return to the outlet they visited. 23 percent would not.
•    73 percent said they would recommend it to family and friends. 27 percent wouldn’t.
•    Asked to rate their entire service experience, shoppers gave an average score of 69 percent.

CONCLUSIONS
•    Gulf retailers make a good first impression with clean stores, quick and polite service and short queues.
•    Shoppers want more depth, and staff who are genuinely interested in their custom.
•    Real knowledge is lacking, and staff lack the initiative to assess customer needs and deliver on them.
•    Customer expectations are low. Grass Roots suggests that its shoppers scored mediocre service as more than satisfactory because, “Consumers have become used (or resigned) to low service levels and poorly trained staff.”
•    Retailers are losing the war for repeat custom. Low expectations lead to low loyalty.
•    In Grass Roots’ own words, “The region is offering distinctly three-star service in a five-star environment.”

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