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LEROY MERLIN
Customer Satisfaction Project
Christine Whitehouse
Katie Riordan
Emmanuel Kritharides
Anna Osmanay
Anatolia College – American
College of Thessaloniki
1
EXECUTIVESUMMARY
Leroy Merlin in Thessaloniki is a home improvement retailer that specializes in DIY products
and focuses on reaching “everyone everywhere.” Not only do they reach a large amount of
consumers, they also offer the best prices to their customers, and also aid customers in
their DIY projects in a variety of ways.
Leroy Merlin is interested in improving their customer satisfaction through the creation of
the total customer experience. Research has shown that value is added to the customer
through a series of experiences. This experience not only leaves customers happy and
satisfied, but also connects to them emotionally, which improves their loyalty to the
company. Leroy Merlin needs to implement new strategies in order to make the customer
experience something extraordinary that differentiates themselves from their competitors.
The following report includes:
• An industry, competitor and customer analysis to evaluate the current trends in the
home and garden industry, as well as the practices of their customers and the customers
they target.
• Research on the total customer experience.
• An overview of the survey we distributed.
• Results of the survey and conclusions.
• Recommendations based on research of ways to create the total customer experience.
• Details on how to implement the specific strategies into their business processes.
Based on the research, it is concluded that Leroy Merlin incorporate as many of these
recommendations as possible. These new initiatives will provide Leroy Merlin with many
benefits including their total customer experience, as well as improving the customers
connection to the store beyond their purchases, and also improve their loyalty to the
company. If Leroy Merlin follows these recommendations, they will be a leader in Greece
that other Leroy Merlin locations and other companies will want to follow.
2
TABLEOFCONTENTS
Company Overview
Project Overview
Industry Analysis
Competitor Analysis
Customer Analysis
Total Customer Experience
Survey Results
Recommendations
Conclusion
References
Appendices
4
5
6
7
8
9
10-11
12-15
16
17
18-31
3
COMPANYOVERVIEW
Company Overview
Leroy Merlin is a French home improvement and retail company owned by Adeo. In 1960
they opened the first large store selling DIY Products. In 1989, the group opened up their
division in Spain. In 2007 the Greek market opened and in 2009 Leroy Merlin opened stores
in Ukraine, Turkey & Romania. Leroy Merlin is located in thirteen different countries and
offers a variety of products such as paint, decorating supplies, gardening supplies and home
improvement products. Leroy Merlin is unique in the fact that they are a privately owned
company; strategically deciding to not be on the stock market. Their mission is to provide
the best DIY materials for renovating the home. Their vision is to expand to emerging
markets such as Brazil and other countries in which competition is low. (Leroy Merlin, 2014)
Focus of relationships
Problem
Leroy Merlin believes that the relationship
between company and customers should be
considered more of a partnership. This allows
Leroy Merlin to create long-lasting
relationships as well as add value to both
employees and customers.
Opening a Leroy Merlin store creates many
benefits for a city and its suburbs. For example,
opening one store on average creates 150 jobs
for locals. The region’s suppliers enjoy the
opportunity to access the international market.
Although Leroy Merlin is a top competitor in the home improvement industry, the
company believes on constantly changing and improving themselves so that their
customers are satisfied and content. The customer service experience is a process which
Leroy Merlin is interested in perfecting.
4
PROJECTOVERVIEW
Assigned Problem
In order to improve customer satisfaction LM has charged us with the task of
researching and analyzing customer behavior within the store. From this research,
they ask us to provide recommendations upon improving their customer satisfaction
through their creation of a total customer experience.
We were presented with a survey that measures the current condition of the
customers feelings at each stage of the customer experience. This process includes
five basic steps in which we followed. They include and interview process, where we
spoke to our client about concerns he has regarding in store customer experience. We
then researched industry trends and developed a competitive analysis. After getting an
understanding of the industry we then distributed surveys to in store customers in
order to get an understanding of their feelings. We then analyzed these surveys and
found frequent concerns that multiple customers shared. From these conclusions we
developed our recommendations.
Key success factors
Interview Research Survey Analyze Recommend
Research Objectives
• Understand Leroy Merlin’s
values in which they conduct
business.
• Understand the current
condition of their customer
satisfaction.
• Understand what
competitors are already
doing.
• Understand key components
of the total customer
experience.
• Appreciate the value of customer
time
• Giving incentives for customers to
return
• Communicating effectively and
often with customers
• Understanding customer
expectations
• Keep up with current customer
trends
We believe that these are key factors to be
incorporated within the total customer
experience, and will make Leroy Merlin
more competitive in this aspect of their
business.
5
INDUSTRYANALYSIS
Industry Overview
The home care retail industry as a whole has been affected by the recession by not
obtaining the ideal sales they wish to acquire. As Greece fell deeper into a financial crisis,
consumer’s disposable income became less flexible. In response manufacturers increased
their discounting activities, hoping to stimulate consumer interest, however the retail
companies that sell home improvement and home care products are still not satisfied with
consumer sales.
Since the economy has made it difficult for most business to even survive, many industries
are thinking of new and innovative ways to distribute. In Greece, supermarkets still
account for the bulk of sales, however independent stores are now are starting to sell
economy level priced products in hopes of increasing sales. Outdoor markets, which are
typically high competition are taking new approaches to increase sales. An increasing
number of outdoor markets are beginning to sell other merchandise such as clothing and
footwear in hopes of attracting more customers (Euromonitor International, 2014).
Global Market
According to Passport, the global market size
figure for the home and garden industry in
2013 was $977,073.5 with Western Europe
responsible for the highest figure of
$303,688.9 million. Asia Pacific brought in
$257,018.1 in 2013 while Australasia brought
in the lowest figure at $19,610 (Passport,
2014).
As you can see from the chart below, most
markets found a large decrease in market size
from 2008-2009. Since 2009, market size has
been steadily increasing. The home and
garden market has the highest market size of
977,073.5 as of 2013 (Passport, 2014).
6
COMPETITORANALYSIS
The Leroy Merlin Brand
Leroy Merlin is a company that at its root is focused on “man at the heart of the
business” (Interbrand). The company places a high emphasis on not only their customers,
but their employees as well. Leroy Merlin has differentiated itself from its competitors by
doing their best to improve their customers experience, in hopes of increasing their
satisfaction and loyalty to their brand. To illustrate this, Leroy Merlin provides the
customers everything that they need “under one roof”, and also provide a superior
customer service that is better than that of its competitors (Leroy Merlin: An innovative
approach to in-store selling). Leroy Merlin employees help their customers find a solution
that satisfy their exact needs for their projects, while also offering the best price and a
variety of options.
Competitors
There are several top home improvement companies that compete with Leroy Merlin
(see figure below). Much like Leroy Merlin they place an emphasis on reaching their
customers through their customer service, and in aiding customers with their DIY
projects.
Home Depot and Lowes are the top competitors with Leroy Merlin following in third
place. The biggest advantage of Home Depot and Lowe’s is their established brand name,
as well as the accessibility of the store and products through their website. Customers
can browse and compare prices online before even entering the store. This enhances
their relationship with the brand beyond their in store experience.
Other ways in which these two companies compete is through their rates and the
incentives the provide their customers. Home depot provides free delivery of their larger
products such as washer and dryers which is not offered by all of the other competitors.
Lowes on the other hand has a unique way of reaching their customers through their My
Lowes card. This card tracks their purchases and makes it easier for them to repurchase
the exact products that they may need for repairs or if they want to keep track of
products or brands that they like best.
Looking Ahead
Although Home Depot and Lowe’s are the top competitors, the areas they serve are the
United States, Canada, Mexico and several other areas. Leroy Merlin can differentiate
themselves in the international market by improving their website as well as offering
ways to better support their customers or offer incentives to improve their customer
loyalty.
7
CUSTOMERANALYSIS
Customers of Leroy Merlin
Media Influence
Leroy Merlin Company reaches a large
customer base which is illustrated through
their slogan “everyone, everywhere.” Their
customers span from all ages and reaches
professionals such as technicians and
designers as well as nonprofessional
DIYers. The figure to the right displays the
brands that different customers tend to
purchase for their specific needs such as
air and water treatment, electrical, interior
design, hardware and more.
The professional customers that shop at
Leroy Merlin tend to buy products more
often because they tend to take on many
projects at a much larger scale. These
customers are experienced and know the
brands and products well. The non-
professional DIY customers are not as
familiar with specific DIY processes or
products and need assistance in discerning
which products they need or training they
need before beginning a project. These
customers also only tend to shop when
they need to make home repairs or are
making renovations.
A movement towards social media began
several years ago, but an increasing trend
is not only connecting with people, but
connecting with companies and
organizations. Customers have began
connecting with companies in order to
stay in touch with current news or
products, as well as receive discounts and
incentives to return. This is a trend not
only for young tech savvy consumers, but
for as adults as well as they desire to stay
in touch with their favorite companies.
Customer sensitivity to prices
Due to the recession customers tend to
be very sensitive to price changes. This
results in changes in their spending
habits, and often make choices between
price and quality. When prices rise
customers respond by buying less or not
buying products at all. This is an
important factor to consider when
creating a competitive strategy as well as
creating other initiatives or experiences
to incent customers to return.
8
TOTALCUSTOMEREXPERIENCE
The Total Customer Experience
An increasing trend in the market today is improving customer relationships and retention
through the creation of a total customer experience. Today it is about the total customer
experience from their first encounter to the last, and everything in between. The main idea
behind the total customer experience is to create value for their customers in the form of
experiences. This does not mean to merely provide entertainment, but rather creating a
journey for their customers.
In order to create this experience companies must gain an understanding of the customer’s
journey- from the expectations they have before the experience occurs, to the assessments
they are likely to make when it’s over (Berry, Carbone & Haeckel, 2002). By using this
knowledge companies can strategically coordinate a series of “clues” that can meet or
exceed customer’s emotional needs and expectations. The value the customer’s gain through
these clues hold a greater meaning to them, and thus create a better experience and a sense
of loyalty to that particular company and the experience that they create.
Creating the Total Customer Experience
The first step in creating the total customer experience is to recognize and analyze the clues
the company is currently sending to its customers. Clues are anything that can be perceived or
sensed- or recognized by its absence- is an experience clue (Berry, Carbone & Haeckel,
2002)For example, the product or service gives off one clue, the physical setting of the store
another, through employees dress and tone more clues. Each of these clues gives a precise
message to the customer. The combination of these clues creates the total customer
experience.
Research suggests that there are two categories of these clues, the first concerning the
functioning of the good or serviced, the second category concerns the emotions such as smells
and sounds, as well as the environment and atmosphere of the company and store. The
second category that focuses on the emotions is also split into two categories- the mechanics
and humanics. When analyzing the current state of the customer experience, it is important to
not only analyze the physical conditions of the product or store, but also the side of the
experience that includes their interactions and relationships with employees of the store.
Clues
Concern the
functioning of
the
good/service
Concern the
emotions
Mechanics
Clues emitted by things
Humanics
Clues emitted by people
Entry Greeting Browsing Help Purchase Exit
Use of
Product
Support
9
SURVEYRESULTS
Customer Satisfaction Survey
When creating a total customer experience, it is important to observe and analyze the
current condition and clues that they are sending to their customers. One of the best ways
to discern the current condition is by asking the customers directly through the form of a
survey. We were charged with the task of distributing a survey that was created by Leroy
Merlin, and then collecting and analyzing the data to form conclusions and create
recommendations to move forward in creating a better total customer experience. The
survey provided by Leroy Merlin sought to better understand the demographics of their
customers, as well as how they feel at each stage of their experience with the store.
Survey findings/Process
Survey Goal:
•To understand the current opinions of Leroy Merlin
customers at each stage of their journey.
10
Gender
Male
Female
0
10
20
30
40
50
60
70
Under
25
25-35 35-45 45-55 Over
55
Ages
Ages
As you can see from the graphs most
of the customers we interviewed were
between the ages of 35-55 years old.
The gender was split almost evenly at
52.5% and 54.2 %. This way we can
see exactly what type of person enters
Leroy Merlin. More graphics regarding
the survey can be found in the
appendices.
SURVEYRESULTS
Survey findings
Customers’ Comments
After answering the survey questions, follow up questions were asked in order to measure
their satisfaction on specific aspects of the customer experience. The customers made
insightful comments that allowed for a greater understanding as to the reasoning behind
their feelings about the customer experience.
11
In conclusion, the above graphic is showing frequent customer complaints and concerns.
The comments in orange are considered negative comments we received from customers
regarding their shopping experience and the comments in green were positive comments
we received in regards to the shopping experience
Having to by a shopping bag is frustrating
Build a playground for kids to play while parents shop
It was hard to find help when you needed it
The signs were confusing to read
Customers enjoyed the Garden
Good Prices and Good Quality
Leroy Merlin Feels Like Home
When creating a total customer experience, it is important to observe and analyze the
current condition and clues that they are sending to their customers. One of the best ways to
discern the current condition is by asking the customers directly through the form of a survey.
We were charged with the task of distributing a survey that was created by Leroy Merlin, and
then collecting and analyzing the data to form conclusions and create recommendations to
move forward in creating a better total customer experience. The survey provided by Leroy
Merlin sought to better understand the demographics of their customers, as well as how they
feel at each stage of their experience with the store.
RECOMMENDATIONS
Recommendation Overview
The survey results showed that generally customers are satisfied with Leroy Merlin, but
with this response there is still room for improvement. As previously mentioned, the best
way to differentiate themselves from their competition is to develop a total customer
experience with their company. This experience will engage their customers and give them
a more personal way to connect with the company. With this in mind we have developed
several recommendations that we believe will help them create this customer experience
and in turn in improve their customer satisfaction.
Market Research
Market
Research
• Targeted
surveys
• Employee
opinion
Store
Environment
• Store layout
Customer
Relationships
• Engage with
customers
• Social Media
New Initiatives
• Customer
Days
• Comment
Box
From the survey we distributed to customers we gained general information and received
many positive responses, the drawback however is that we do not have an idea of specific
areas of improvement. We recommend creating a new survey with more specific
questions in order better gauge what is most import to Leroy Merlin customers, which will
in turn lead to better conclusions in order to make changes and initiatives to implement.
Another area of improvement for the survey would be to allow anonymity, this will
encourage more honest responses. Incentives will also encourage participation in the
survey and will give customers an incentive to come back.
While the focus of our project is on customer satisfaction, we believe that employees play
a crucial role in the total customer experience. Employees should be asked their opinions
and where they could see improvements, if they are dissatisfied with the company or
their work it will also have a ripple effect in their relationships with customers. Research
shows that when employees are valued and have the opportunity to offer suggestions
they feel a closer connection to the company and are committed.
Goal of survey: To understand what customers feel through their senses
and learn what customers want to feel.
“What customers feel about the experience is what potentially
creates value for the customer and emotional connection to the
company.”
12
RECOMMENDATIONS
Store Environment
The store environment plays an important role how customers feel about a company and
affects their shopping habits. If customers feel more comfortable they have more of a reason
to stay. Creating a comfortable store environment focuses on the use of mechanic clues such
as building design, displays, lighting and more. We believe that by making a few small changes
to the store, customers will dramatically feel more comfortable in the store. Figure to the right
displays the three areas of improvement we recommend
Signs
Color scheme
Temperature
While surveying the customers we found
that many of them had trouble finding
departments and specific products they
were looking for. The store currently has
many signs to direct customers, but we
believe customers may find them more
confusing. We recommend that the amount
of signs be limited in order to clearly direct
their customers.
Another area that we believe is important is the color scheme of the store. Research shows
that shoppers often choose what they buy based upon the color and often accounts for up
to 85% of the reason why people buy one product over another (Porter, 2012). The role of
color is not limited to merchandise; the colors surrounding customers while they shop can
also influence how long they stay and whether or not they make a purchase. Colors in stores
can create different emotions, and retailers can use these emotions to better connect with
their customer. We believe that the store would benefit by choosing a different color
scheme to provide a more relaxing and comfortable environment for their customers. We
also believe that by muting the colors within the store will help place more of an emphasis
on the products and services.
The third area of improvement we recommend is in regard to the store temperature. During
our survey phase many customers expressed that the store was too hot. Research studies on
retail stores found that in very warm or very cold temperatures, customers were less likely
to brose and more likely to leave without buying. With the heat playing an important role in
the weather in Greece we believe it is very important for customers to enter the store
feeling relief from the heat and refreshment of the cold air in the store. We have found that
71% of shoppers prefer a retail store to be around 20 degrees Celsius (James, 2012). We
think that managing the temperature in the store will leave customers feeling more
comfortable in the store and will give them a more positive shopping experience.
“You work so hard and
invest so much to get people to visit your store,
why would you want them to have to leave?”
-Len Riggio
13
RECOMMENDATIONS
Create Relationships with Customers
Leroy Merlin strongly encourages staff to build and create personal relationships with its
customer through many different outlets. When employees of LM make an effort to get to
know each of their customers, it will not only give Leroy Merlin direct feedback on the areas of
the store that could be improved, but the customers will feel valued when employees are
making an effort to get to know them and listen to their opinion.
Creating these strong relationships will not only attract new customers, will also make current
customers more loyal to the brand. If customers feel like they are valued they are more likely
to spread positive word of mouth and refer their friends to shop at Leroy Merlin. After
conducting research, 84% of global consumers believe recommendations from friends and
family are the most trustworthy sources of information about products. Spreading positive
word of mouth is essential and crucial to attain.
Social Media is an inexpensive and crucial part in
building customer relationships. Leroy Merlin can
reach out to their customers through social media
websites such as Facebook, Twitter, Instagram,
blogs and other popular social media apps. From
the figure to the left you can see that Leroy Merlin
in Greece only has a total of 76 followers and they
have only tweeted a total of 6 tweets. These are
very poor numbers which could be improved by
promoting their twitter account and tweeting to
their customers more often. LM could tweet
special promotions, deals, or could speak of new
products that are in store.
When looking at Leroy Merlin website we noticed that most information available on the
website is the mission statement of the business as well as the history of the business. Changing
the layout of the website by adding more tabs about DIY projects or current crafting trends that
customers could easily make.
In the figure to the right you can see that LMs
Facebook account has 4,597 likes and 126
people are talking about LM Greece store.
Since LM frequently uses Facebook, a
recommendation would be to have customers
“check in” when they are at a Leroy Merlin
store. Those customers that “check in” will
then be entered into a drawing. One customer
will win a discount or a coupon on their next
LM purchase.
14
RECOMMENDATIONS
Customer Relationships
When conducting surveys, it was observed that parents were brought their kids into the store
while they were shopping. This would be a great opportunity for Leroy Merlin to connect with
its customers by showing appreciation to their kids. Handing out stickers or balloons as the
kids enter the store will make the parents feel as if their child and their business is valued at
Leroy Merlin. Another way to target parents to take their children with them to Leroy Merlin
would be to start a child crafting DIY class that both children and parents can go to. This will
get families involved and familiar with the store and the products being sold in Leroy Merlin.
Child
Craft
Classes
Stickers
and
Balloons
Play
Area
After researching companies that focus strongly on customer service, there are many stores
who have suggestion boxes for their customers to write down any suggestions for improving
the store. This box should be located in a place that is frequented by customers. Cashiers
should be informing customers as they leave that they can write any suggestions or
comments about their experience while shopping. This will give Leroy Merlin the opportunity
to find out exactly what the customers are wanting, while also showing appreciation of their
opinions and ideas.
Since many customers are becoming interested in DIY classes, Leroy Merlin should display
customers projects that they made while attending these classes. That way, customers can
see what kind of projects they could make if they decided to attend one. It also gives the
customers who made the DIY project a sense of accomplishment and adds value to their
shopping experience
15
Offering incentives to customers is an easy way to keep customers interested in shopping at
the store. For example, offering them a discount on their next purchase for filling out surveys
is a great way to get customer feedback. Customers will be more willing to give information if
they know that they will be rewarded for their input. Another incentive that Leroy Merlin
could implement is that they could have a customer loyalty card in which customers would
get certain deals after spending a certain amount of money at the store.
Another complaint from customers is that they could not find an employee to ask for help
when they needed it. Instead of customers going to find an employee to ask questions to,
the employees should find customers to assist. More employees should be walking around
the store, coming up to customers and asking them if they need any help.
Incentives
CONCLUSION
Conclusion
The most important aspect of any company is the satisfaction of their customers. There are
many ways to achieve this goal, but there is a balance involved in providing the right kinds
of products and services, but also connecting with them beyond what they spend at the
store. Customer satisfaction occurs when they customers feel valued by the company, and
feel a personal connection to them. The best way to improve customer satisfaction is by
providing a total customer experience that connects the customer to the brand at every
stage of the journey with the company. The following ideas are recommended to be
applied to Leroy Merlin’s customer satisfaction plan:
• Specific market research
• Improve store environment
• Improve relationships with customers and develop personal connections
• Provide incentives for their customers to return
Implementing these recommendations while focusing on customer relationships can help
improve Leroy Merlin’s overall customer experience. Our goal is to make the customers
feel relaxed while enjoying there time spent at Leroy Merlin. Customers perceive shopping
at Leroy Merlin as mostly a positive experience but there is still room for improvement. By
taking our recommendations into consideration, Leroy Merlin can improve how their
customers perceive their services.
16
REFERENCES
17
Berry, L., Carbone, L., & Haeckel, S. (2002). Managing the total customer experience. MIT
Sloan Management Review, 43(3), 1-6. Retrieved from
http://www.expeng.com/articles/EE_Sloan_ Mgt_
RevAPR02_MITSloan.pdf
Facts Tagged With Word of Mouth. (2013, August 17). Word of Mouth Facts and
Statistics. Retrieved May 22, 2014, from
http://www.factbrowser.com/tags/word_of_mouth/
Home and Garden Dashboard. (2014, January 1). . Retrieved May 22, 2014, from
http://www.portal.euromonitor.com.proxy.library.ohiou.edu/Portal/Pages
/Magazine/WelcomePage.aspx
Interbrand - Best Retail Brands 2013 - Leroy Merlin. (n.d.). Interbrand - Best Retail Brands
2013 - Leroy Merlin. Retrieved May 20, 2014, from
http://www.interbrand.com/en/BestRetailBrands/2013/LeroyMerlin
James, N. (2012, April 12). Harper grey: A lesson in temperature from the 3 bears.
Retrieved from http://www.signs.com/blog/harper-grey-a-lesson-in-
temperature-from-the-3-bears/
Leroy Merlin. (n.d.). /http://www.leroymerlin.gr. Retrieved May 19, 2014, from
http://www.leroymerlin.gr/etairia
The Total Customer Experience. (n.d.). Michael Hyatt. Retrieved May 22, 2014, from
http://michaelhyatt.com/the-total-customer-experience.html
APPENDIXA
Survey Results
Gender:
Age:
First Visit
18
APPENDIXB
Survey Results
How do you feel once you decide to go to Leroy Merlin?
19
APPENDIXC
Survey Results
How do you feel when you park?
20
APPENDIXD
Survey Results
Feeling once you enter Leroy Merlin?
21
APPENDIXE
Survey Results
How do you feel when you walk around the bati?
22
APPENDIXF
Survey Results
How do you feel when you go out of the store to buy/explore
the plants outside?
23
APPENDIXG
Survey Results
How do you feel when you choose products to buy?
24
APPENDIXH
Survey Results
Feeling when you wait at the cashier?
25
APPENDIXI
Survey Results
How do you feel when you pay for your products?
26
APPENDIXJ
Survey Results
How do you feel when you leave the store?
27
APPENDIXJ
Survey Results
How do you feel when you get into your car at the parking
lot?
28
APPENDIXK
Survey Results
How do you feel when you use the products that you bought?
29
APPENDIXL
Survey Results
Survey Comments:
1. The prices and the products are good. We are
generally very satisfied from the prices.
2. The fact that we have to pay for bags frustrate us.
3. We love the garden, makes us happy !
4. We love to drive through and pick up of goods in the
garden. Cant they do that in the other side as well??
5. The swings are awesome in the garden!
6. They need to create a playground so we can leave our
children while shopping .
7. We buy whatever is on sale or on occasion !
8. We sometimes look for employees. There is not
enough service. We need more employees.
9. We feel comfortable and satisfied. Leroy Merlin feels
like home.
10. Sometimes the in-store service is not good (new
customer’s opinion most)
11. Leroy Merlin is better that Praktiker and Ikea.
12. We come often and will come again !
30

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Leroy Merlin: Customer Satisfaction Project

  • 1. LEROY MERLIN Customer Satisfaction Project Christine Whitehouse Katie Riordan Emmanuel Kritharides Anna Osmanay Anatolia College – American College of Thessaloniki 1
  • 2. EXECUTIVESUMMARY Leroy Merlin in Thessaloniki is a home improvement retailer that specializes in DIY products and focuses on reaching “everyone everywhere.” Not only do they reach a large amount of consumers, they also offer the best prices to their customers, and also aid customers in their DIY projects in a variety of ways. Leroy Merlin is interested in improving their customer satisfaction through the creation of the total customer experience. Research has shown that value is added to the customer through a series of experiences. This experience not only leaves customers happy and satisfied, but also connects to them emotionally, which improves their loyalty to the company. Leroy Merlin needs to implement new strategies in order to make the customer experience something extraordinary that differentiates themselves from their competitors. The following report includes: • An industry, competitor and customer analysis to evaluate the current trends in the home and garden industry, as well as the practices of their customers and the customers they target. • Research on the total customer experience. • An overview of the survey we distributed. • Results of the survey and conclusions. • Recommendations based on research of ways to create the total customer experience. • Details on how to implement the specific strategies into their business processes. Based on the research, it is concluded that Leroy Merlin incorporate as many of these recommendations as possible. These new initiatives will provide Leroy Merlin with many benefits including their total customer experience, as well as improving the customers connection to the store beyond their purchases, and also improve their loyalty to the company. If Leroy Merlin follows these recommendations, they will be a leader in Greece that other Leroy Merlin locations and other companies will want to follow. 2
  • 3. TABLEOFCONTENTS Company Overview Project Overview Industry Analysis Competitor Analysis Customer Analysis Total Customer Experience Survey Results Recommendations Conclusion References Appendices 4 5 6 7 8 9 10-11 12-15 16 17 18-31 3
  • 4. COMPANYOVERVIEW Company Overview Leroy Merlin is a French home improvement and retail company owned by Adeo. In 1960 they opened the first large store selling DIY Products. In 1989, the group opened up their division in Spain. In 2007 the Greek market opened and in 2009 Leroy Merlin opened stores in Ukraine, Turkey & Romania. Leroy Merlin is located in thirteen different countries and offers a variety of products such as paint, decorating supplies, gardening supplies and home improvement products. Leroy Merlin is unique in the fact that they are a privately owned company; strategically deciding to not be on the stock market. Their mission is to provide the best DIY materials for renovating the home. Their vision is to expand to emerging markets such as Brazil and other countries in which competition is low. (Leroy Merlin, 2014) Focus of relationships Problem Leroy Merlin believes that the relationship between company and customers should be considered more of a partnership. This allows Leroy Merlin to create long-lasting relationships as well as add value to both employees and customers. Opening a Leroy Merlin store creates many benefits for a city and its suburbs. For example, opening one store on average creates 150 jobs for locals. The region’s suppliers enjoy the opportunity to access the international market. Although Leroy Merlin is a top competitor in the home improvement industry, the company believes on constantly changing and improving themselves so that their customers are satisfied and content. The customer service experience is a process which Leroy Merlin is interested in perfecting. 4
  • 5. PROJECTOVERVIEW Assigned Problem In order to improve customer satisfaction LM has charged us with the task of researching and analyzing customer behavior within the store. From this research, they ask us to provide recommendations upon improving their customer satisfaction through their creation of a total customer experience. We were presented with a survey that measures the current condition of the customers feelings at each stage of the customer experience. This process includes five basic steps in which we followed. They include and interview process, where we spoke to our client about concerns he has regarding in store customer experience. We then researched industry trends and developed a competitive analysis. After getting an understanding of the industry we then distributed surveys to in store customers in order to get an understanding of their feelings. We then analyzed these surveys and found frequent concerns that multiple customers shared. From these conclusions we developed our recommendations. Key success factors Interview Research Survey Analyze Recommend Research Objectives • Understand Leroy Merlin’s values in which they conduct business. • Understand the current condition of their customer satisfaction. • Understand what competitors are already doing. • Understand key components of the total customer experience. • Appreciate the value of customer time • Giving incentives for customers to return • Communicating effectively and often with customers • Understanding customer expectations • Keep up with current customer trends We believe that these are key factors to be incorporated within the total customer experience, and will make Leroy Merlin more competitive in this aspect of their business. 5
  • 6. INDUSTRYANALYSIS Industry Overview The home care retail industry as a whole has been affected by the recession by not obtaining the ideal sales they wish to acquire. As Greece fell deeper into a financial crisis, consumer’s disposable income became less flexible. In response manufacturers increased their discounting activities, hoping to stimulate consumer interest, however the retail companies that sell home improvement and home care products are still not satisfied with consumer sales. Since the economy has made it difficult for most business to even survive, many industries are thinking of new and innovative ways to distribute. In Greece, supermarkets still account for the bulk of sales, however independent stores are now are starting to sell economy level priced products in hopes of increasing sales. Outdoor markets, which are typically high competition are taking new approaches to increase sales. An increasing number of outdoor markets are beginning to sell other merchandise such as clothing and footwear in hopes of attracting more customers (Euromonitor International, 2014). Global Market According to Passport, the global market size figure for the home and garden industry in 2013 was $977,073.5 with Western Europe responsible for the highest figure of $303,688.9 million. Asia Pacific brought in $257,018.1 in 2013 while Australasia brought in the lowest figure at $19,610 (Passport, 2014). As you can see from the chart below, most markets found a large decrease in market size from 2008-2009. Since 2009, market size has been steadily increasing. The home and garden market has the highest market size of 977,073.5 as of 2013 (Passport, 2014). 6
  • 7. COMPETITORANALYSIS The Leroy Merlin Brand Leroy Merlin is a company that at its root is focused on “man at the heart of the business” (Interbrand). The company places a high emphasis on not only their customers, but their employees as well. Leroy Merlin has differentiated itself from its competitors by doing their best to improve their customers experience, in hopes of increasing their satisfaction and loyalty to their brand. To illustrate this, Leroy Merlin provides the customers everything that they need “under one roof”, and also provide a superior customer service that is better than that of its competitors (Leroy Merlin: An innovative approach to in-store selling). Leroy Merlin employees help their customers find a solution that satisfy their exact needs for their projects, while also offering the best price and a variety of options. Competitors There are several top home improvement companies that compete with Leroy Merlin (see figure below). Much like Leroy Merlin they place an emphasis on reaching their customers through their customer service, and in aiding customers with their DIY projects. Home Depot and Lowes are the top competitors with Leroy Merlin following in third place. The biggest advantage of Home Depot and Lowe’s is their established brand name, as well as the accessibility of the store and products through their website. Customers can browse and compare prices online before even entering the store. This enhances their relationship with the brand beyond their in store experience. Other ways in which these two companies compete is through their rates and the incentives the provide their customers. Home depot provides free delivery of their larger products such as washer and dryers which is not offered by all of the other competitors. Lowes on the other hand has a unique way of reaching their customers through their My Lowes card. This card tracks their purchases and makes it easier for them to repurchase the exact products that they may need for repairs or if they want to keep track of products or brands that they like best. Looking Ahead Although Home Depot and Lowe’s are the top competitors, the areas they serve are the United States, Canada, Mexico and several other areas. Leroy Merlin can differentiate themselves in the international market by improving their website as well as offering ways to better support their customers or offer incentives to improve their customer loyalty. 7
  • 8. CUSTOMERANALYSIS Customers of Leroy Merlin Media Influence Leroy Merlin Company reaches a large customer base which is illustrated through their slogan “everyone, everywhere.” Their customers span from all ages and reaches professionals such as technicians and designers as well as nonprofessional DIYers. The figure to the right displays the brands that different customers tend to purchase for their specific needs such as air and water treatment, electrical, interior design, hardware and more. The professional customers that shop at Leroy Merlin tend to buy products more often because they tend to take on many projects at a much larger scale. These customers are experienced and know the brands and products well. The non- professional DIY customers are not as familiar with specific DIY processes or products and need assistance in discerning which products they need or training they need before beginning a project. These customers also only tend to shop when they need to make home repairs or are making renovations. A movement towards social media began several years ago, but an increasing trend is not only connecting with people, but connecting with companies and organizations. Customers have began connecting with companies in order to stay in touch with current news or products, as well as receive discounts and incentives to return. This is a trend not only for young tech savvy consumers, but for as adults as well as they desire to stay in touch with their favorite companies. Customer sensitivity to prices Due to the recession customers tend to be very sensitive to price changes. This results in changes in their spending habits, and often make choices between price and quality. When prices rise customers respond by buying less or not buying products at all. This is an important factor to consider when creating a competitive strategy as well as creating other initiatives or experiences to incent customers to return. 8
  • 9. TOTALCUSTOMEREXPERIENCE The Total Customer Experience An increasing trend in the market today is improving customer relationships and retention through the creation of a total customer experience. Today it is about the total customer experience from their first encounter to the last, and everything in between. The main idea behind the total customer experience is to create value for their customers in the form of experiences. This does not mean to merely provide entertainment, but rather creating a journey for their customers. In order to create this experience companies must gain an understanding of the customer’s journey- from the expectations they have before the experience occurs, to the assessments they are likely to make when it’s over (Berry, Carbone & Haeckel, 2002). By using this knowledge companies can strategically coordinate a series of “clues” that can meet or exceed customer’s emotional needs and expectations. The value the customer’s gain through these clues hold a greater meaning to them, and thus create a better experience and a sense of loyalty to that particular company and the experience that they create. Creating the Total Customer Experience The first step in creating the total customer experience is to recognize and analyze the clues the company is currently sending to its customers. Clues are anything that can be perceived or sensed- or recognized by its absence- is an experience clue (Berry, Carbone & Haeckel, 2002)For example, the product or service gives off one clue, the physical setting of the store another, through employees dress and tone more clues. Each of these clues gives a precise message to the customer. The combination of these clues creates the total customer experience. Research suggests that there are two categories of these clues, the first concerning the functioning of the good or serviced, the second category concerns the emotions such as smells and sounds, as well as the environment and atmosphere of the company and store. The second category that focuses on the emotions is also split into two categories- the mechanics and humanics. When analyzing the current state of the customer experience, it is important to not only analyze the physical conditions of the product or store, but also the side of the experience that includes their interactions and relationships with employees of the store. Clues Concern the functioning of the good/service Concern the emotions Mechanics Clues emitted by things Humanics Clues emitted by people Entry Greeting Browsing Help Purchase Exit Use of Product Support 9
  • 10. SURVEYRESULTS Customer Satisfaction Survey When creating a total customer experience, it is important to observe and analyze the current condition and clues that they are sending to their customers. One of the best ways to discern the current condition is by asking the customers directly through the form of a survey. We were charged with the task of distributing a survey that was created by Leroy Merlin, and then collecting and analyzing the data to form conclusions and create recommendations to move forward in creating a better total customer experience. The survey provided by Leroy Merlin sought to better understand the demographics of their customers, as well as how they feel at each stage of their experience with the store. Survey findings/Process Survey Goal: •To understand the current opinions of Leroy Merlin customers at each stage of their journey. 10 Gender Male Female 0 10 20 30 40 50 60 70 Under 25 25-35 35-45 45-55 Over 55 Ages Ages As you can see from the graphs most of the customers we interviewed were between the ages of 35-55 years old. The gender was split almost evenly at 52.5% and 54.2 %. This way we can see exactly what type of person enters Leroy Merlin. More graphics regarding the survey can be found in the appendices.
  • 11. SURVEYRESULTS Survey findings Customers’ Comments After answering the survey questions, follow up questions were asked in order to measure their satisfaction on specific aspects of the customer experience. The customers made insightful comments that allowed for a greater understanding as to the reasoning behind their feelings about the customer experience. 11 In conclusion, the above graphic is showing frequent customer complaints and concerns. The comments in orange are considered negative comments we received from customers regarding their shopping experience and the comments in green were positive comments we received in regards to the shopping experience Having to by a shopping bag is frustrating Build a playground for kids to play while parents shop It was hard to find help when you needed it The signs were confusing to read Customers enjoyed the Garden Good Prices and Good Quality Leroy Merlin Feels Like Home When creating a total customer experience, it is important to observe and analyze the current condition and clues that they are sending to their customers. One of the best ways to discern the current condition is by asking the customers directly through the form of a survey. We were charged with the task of distributing a survey that was created by Leroy Merlin, and then collecting and analyzing the data to form conclusions and create recommendations to move forward in creating a better total customer experience. The survey provided by Leroy Merlin sought to better understand the demographics of their customers, as well as how they feel at each stage of their experience with the store.
  • 12. RECOMMENDATIONS Recommendation Overview The survey results showed that generally customers are satisfied with Leroy Merlin, but with this response there is still room for improvement. As previously mentioned, the best way to differentiate themselves from their competition is to develop a total customer experience with their company. This experience will engage their customers and give them a more personal way to connect with the company. With this in mind we have developed several recommendations that we believe will help them create this customer experience and in turn in improve their customer satisfaction. Market Research Market Research • Targeted surveys • Employee opinion Store Environment • Store layout Customer Relationships • Engage with customers • Social Media New Initiatives • Customer Days • Comment Box From the survey we distributed to customers we gained general information and received many positive responses, the drawback however is that we do not have an idea of specific areas of improvement. We recommend creating a new survey with more specific questions in order better gauge what is most import to Leroy Merlin customers, which will in turn lead to better conclusions in order to make changes and initiatives to implement. Another area of improvement for the survey would be to allow anonymity, this will encourage more honest responses. Incentives will also encourage participation in the survey and will give customers an incentive to come back. While the focus of our project is on customer satisfaction, we believe that employees play a crucial role in the total customer experience. Employees should be asked their opinions and where they could see improvements, if they are dissatisfied with the company or their work it will also have a ripple effect in their relationships with customers. Research shows that when employees are valued and have the opportunity to offer suggestions they feel a closer connection to the company and are committed. Goal of survey: To understand what customers feel through their senses and learn what customers want to feel. “What customers feel about the experience is what potentially creates value for the customer and emotional connection to the company.” 12
  • 13. RECOMMENDATIONS Store Environment The store environment plays an important role how customers feel about a company and affects their shopping habits. If customers feel more comfortable they have more of a reason to stay. Creating a comfortable store environment focuses on the use of mechanic clues such as building design, displays, lighting and more. We believe that by making a few small changes to the store, customers will dramatically feel more comfortable in the store. Figure to the right displays the three areas of improvement we recommend Signs Color scheme Temperature While surveying the customers we found that many of them had trouble finding departments and specific products they were looking for. The store currently has many signs to direct customers, but we believe customers may find them more confusing. We recommend that the amount of signs be limited in order to clearly direct their customers. Another area that we believe is important is the color scheme of the store. Research shows that shoppers often choose what they buy based upon the color and often accounts for up to 85% of the reason why people buy one product over another (Porter, 2012). The role of color is not limited to merchandise; the colors surrounding customers while they shop can also influence how long they stay and whether or not they make a purchase. Colors in stores can create different emotions, and retailers can use these emotions to better connect with their customer. We believe that the store would benefit by choosing a different color scheme to provide a more relaxing and comfortable environment for their customers. We also believe that by muting the colors within the store will help place more of an emphasis on the products and services. The third area of improvement we recommend is in regard to the store temperature. During our survey phase many customers expressed that the store was too hot. Research studies on retail stores found that in very warm or very cold temperatures, customers were less likely to brose and more likely to leave without buying. With the heat playing an important role in the weather in Greece we believe it is very important for customers to enter the store feeling relief from the heat and refreshment of the cold air in the store. We have found that 71% of shoppers prefer a retail store to be around 20 degrees Celsius (James, 2012). We think that managing the temperature in the store will leave customers feeling more comfortable in the store and will give them a more positive shopping experience. “You work so hard and invest so much to get people to visit your store, why would you want them to have to leave?” -Len Riggio 13
  • 14. RECOMMENDATIONS Create Relationships with Customers Leroy Merlin strongly encourages staff to build and create personal relationships with its customer through many different outlets. When employees of LM make an effort to get to know each of their customers, it will not only give Leroy Merlin direct feedback on the areas of the store that could be improved, but the customers will feel valued when employees are making an effort to get to know them and listen to their opinion. Creating these strong relationships will not only attract new customers, will also make current customers more loyal to the brand. If customers feel like they are valued they are more likely to spread positive word of mouth and refer their friends to shop at Leroy Merlin. After conducting research, 84% of global consumers believe recommendations from friends and family are the most trustworthy sources of information about products. Spreading positive word of mouth is essential and crucial to attain. Social Media is an inexpensive and crucial part in building customer relationships. Leroy Merlin can reach out to their customers through social media websites such as Facebook, Twitter, Instagram, blogs and other popular social media apps. From the figure to the left you can see that Leroy Merlin in Greece only has a total of 76 followers and they have only tweeted a total of 6 tweets. These are very poor numbers which could be improved by promoting their twitter account and tweeting to their customers more often. LM could tweet special promotions, deals, or could speak of new products that are in store. When looking at Leroy Merlin website we noticed that most information available on the website is the mission statement of the business as well as the history of the business. Changing the layout of the website by adding more tabs about DIY projects or current crafting trends that customers could easily make. In the figure to the right you can see that LMs Facebook account has 4,597 likes and 126 people are talking about LM Greece store. Since LM frequently uses Facebook, a recommendation would be to have customers “check in” when they are at a Leroy Merlin store. Those customers that “check in” will then be entered into a drawing. One customer will win a discount or a coupon on their next LM purchase. 14
  • 15. RECOMMENDATIONS Customer Relationships When conducting surveys, it was observed that parents were brought their kids into the store while they were shopping. This would be a great opportunity for Leroy Merlin to connect with its customers by showing appreciation to their kids. Handing out stickers or balloons as the kids enter the store will make the parents feel as if their child and their business is valued at Leroy Merlin. Another way to target parents to take their children with them to Leroy Merlin would be to start a child crafting DIY class that both children and parents can go to. This will get families involved and familiar with the store and the products being sold in Leroy Merlin. Child Craft Classes Stickers and Balloons Play Area After researching companies that focus strongly on customer service, there are many stores who have suggestion boxes for their customers to write down any suggestions for improving the store. This box should be located in a place that is frequented by customers. Cashiers should be informing customers as they leave that they can write any suggestions or comments about their experience while shopping. This will give Leroy Merlin the opportunity to find out exactly what the customers are wanting, while also showing appreciation of their opinions and ideas. Since many customers are becoming interested in DIY classes, Leroy Merlin should display customers projects that they made while attending these classes. That way, customers can see what kind of projects they could make if they decided to attend one. It also gives the customers who made the DIY project a sense of accomplishment and adds value to their shopping experience 15 Offering incentives to customers is an easy way to keep customers interested in shopping at the store. For example, offering them a discount on their next purchase for filling out surveys is a great way to get customer feedback. Customers will be more willing to give information if they know that they will be rewarded for their input. Another incentive that Leroy Merlin could implement is that they could have a customer loyalty card in which customers would get certain deals after spending a certain amount of money at the store. Another complaint from customers is that they could not find an employee to ask for help when they needed it. Instead of customers going to find an employee to ask questions to, the employees should find customers to assist. More employees should be walking around the store, coming up to customers and asking them if they need any help. Incentives
  • 16. CONCLUSION Conclusion The most important aspect of any company is the satisfaction of their customers. There are many ways to achieve this goal, but there is a balance involved in providing the right kinds of products and services, but also connecting with them beyond what they spend at the store. Customer satisfaction occurs when they customers feel valued by the company, and feel a personal connection to them. The best way to improve customer satisfaction is by providing a total customer experience that connects the customer to the brand at every stage of the journey with the company. The following ideas are recommended to be applied to Leroy Merlin’s customer satisfaction plan: • Specific market research • Improve store environment • Improve relationships with customers and develop personal connections • Provide incentives for their customers to return Implementing these recommendations while focusing on customer relationships can help improve Leroy Merlin’s overall customer experience. Our goal is to make the customers feel relaxed while enjoying there time spent at Leroy Merlin. Customers perceive shopping at Leroy Merlin as mostly a positive experience but there is still room for improvement. By taking our recommendations into consideration, Leroy Merlin can improve how their customers perceive their services. 16
  • 17. REFERENCES 17 Berry, L., Carbone, L., & Haeckel, S. (2002). Managing the total customer experience. MIT Sloan Management Review, 43(3), 1-6. Retrieved from http://www.expeng.com/articles/EE_Sloan_ Mgt_ RevAPR02_MITSloan.pdf Facts Tagged With Word of Mouth. (2013, August 17). Word of Mouth Facts and Statistics. Retrieved May 22, 2014, from http://www.factbrowser.com/tags/word_of_mouth/ Home and Garden Dashboard. (2014, January 1). . Retrieved May 22, 2014, from http://www.portal.euromonitor.com.proxy.library.ohiou.edu/Portal/Pages /Magazine/WelcomePage.aspx Interbrand - Best Retail Brands 2013 - Leroy Merlin. (n.d.). Interbrand - Best Retail Brands 2013 - Leroy Merlin. Retrieved May 20, 2014, from http://www.interbrand.com/en/BestRetailBrands/2013/LeroyMerlin James, N. (2012, April 12). Harper grey: A lesson in temperature from the 3 bears. Retrieved from http://www.signs.com/blog/harper-grey-a-lesson-in- temperature-from-the-3-bears/ Leroy Merlin. (n.d.). /http://www.leroymerlin.gr. Retrieved May 19, 2014, from http://www.leroymerlin.gr/etairia The Total Customer Experience. (n.d.). Michael Hyatt. Retrieved May 22, 2014, from http://michaelhyatt.com/the-total-customer-experience.html
  • 19. APPENDIXB Survey Results How do you feel once you decide to go to Leroy Merlin? 19
  • 20. APPENDIXC Survey Results How do you feel when you park? 20
  • 21. APPENDIXD Survey Results Feeling once you enter Leroy Merlin? 21
  • 22. APPENDIXE Survey Results How do you feel when you walk around the bati? 22
  • 23. APPENDIXF Survey Results How do you feel when you go out of the store to buy/explore the plants outside? 23
  • 24. APPENDIXG Survey Results How do you feel when you choose products to buy? 24
  • 25. APPENDIXH Survey Results Feeling when you wait at the cashier? 25
  • 26. APPENDIXI Survey Results How do you feel when you pay for your products? 26
  • 27. APPENDIXJ Survey Results How do you feel when you leave the store? 27
  • 28. APPENDIXJ Survey Results How do you feel when you get into your car at the parking lot? 28
  • 29. APPENDIXK Survey Results How do you feel when you use the products that you bought? 29
  • 30. APPENDIXL Survey Results Survey Comments: 1. The prices and the products are good. We are generally very satisfied from the prices. 2. The fact that we have to pay for bags frustrate us. 3. We love the garden, makes us happy ! 4. We love to drive through and pick up of goods in the garden. Cant they do that in the other side as well?? 5. The swings are awesome in the garden! 6. They need to create a playground so we can leave our children while shopping . 7. We buy whatever is on sale or on occasion ! 8. We sometimes look for employees. There is not enough service. We need more employees. 9. We feel comfortable and satisfied. Leroy Merlin feels like home. 10. Sometimes the in-store service is not good (new customer’s opinion most) 11. Leroy Merlin is better that Praktiker and Ikea. 12. We come often and will come again ! 30

Editor's Notes

  1. http://www.entrepreneur.com/article/223799 http://smallbusiness.chron.com/choose-paint-color-retail-store-39952.html http://www.signs.com/blog/harper-grey-a-lesson-in-temperature-from-the-3-bears/
  2. http://www.factbrowser.com/tags/word_of_mouth/