The fifth ‘P’ of marketing: premium shopper experience

Ken McMeikan, the chief executive of Greggs ("the home of fresh baking")says: "If people can buy goods as easily online [as they could in-store], retailers will have to think about why customers would come to their shops. The service in shops has to be so good that it will encourage people to browse and buy in-store."

Sales-reps at the front really make the difference. It is the sales-reps who deal directly with one of the only things that makes money for a company: customers. Recent research by agency Iris puts forward the idea of the ‘outsellers’, those retailers which consider the fifth ‘P’ of marketing: premium shopper experience. It cites an Accenture study showing that a quarter of shoppers have gone to another retailer because of a bad experience and just 8% would accept poorer customer service if it means they get a lower price.
With M&S launching an online outlet shop and Tesco trialling virtual fitting rooms via Facebook, it will be interesting to see how retailers also focus on making shopping in-store a brilliant experience.
Greggs - a retailers' case
After more than 10 years of delivering yeast and eggs to local families so they could bake their own bread, John Gregg opened a small bakery on Gosforth High Street in 1951. With a single shop and bakery at the rear, Greggs began to bake superb quality bread, using flour milled from specially selected wheat for that distinctive Greggs taste and texture. Following the death of his father, Ian Gregg took over the family business in 1964. Under Ian's leadership, Greggs developed a reputation for good quality and great value. Greggs also began to grow by acquiring regional bakery retailers across the UK and by the 1970s there were shops in Scotland, Yorkshire and the North West. By the 1990s competition was strong as supermarkets began to make their mark in the bakery market. But Greggs' continued to focus on their strengths: developing fresh, quality food-on-the-go at great value prices.

Today, Greggs has over 1,400 shops. The plan is to open 600 new shops over the next few years. "We still bake our delicious bread every day in our own local bakeries. Our bakers are meticulous and they understand that baking a great loaf is all about precision, timing and experience. Quality is a priority and the people with the friendly faces you see behind the counter at Greggs, expertly make our tasty sandwiches in store every day, using our own fresh bread. And our legendary delicious golden sausage rolls and pasties are all baked on the premises in small amounts, throughout the day, for maximum freshness - just one reason they call us the home of fresh baking".

The Premium shopper experience remains a "hard to compete" parameter for the faceless on-line, abstract competition. In my understanding of marketing, I always fancy a smiling, knowledgeable, non - stereotype front-line employee who will provide me with a quality product.