The impact of in-store customer experience on retail sales growth: A study of supermarkets in Benue State
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Background of the Study
In the retail industry, customer experience is increasingly recognized as a critical factor in driving sales growth. Customer experience encompasses every aspect of a customer’s interaction with a retail business, including store ambiance, staff behavior, product availability, and the overall shopping journey (Nwogugu, 2023). Supermarkets, as a key retail segment, are particularly sensitive to the quality of customer experience due to their focus on high-volume sales and customer retention. Research has shown that a positive in-store customer experience leads to increased customer satisfaction, higher purchase frequency, and greater customer loyalty (Oluwaseun, 2024).
In Benue State, supermarkets have become a significant part of the retail sector, providing a variety of consumer goods to a growing urban and suburban population. However, competition in the retail sector remains fierce, and supermarkets must find ways to differentiate themselves through superior customer experience. Factors such as store layout, cleanliness, staff friendliness, and product presentation can all influence a customer’s perception of the store and their likelihood of returning. However, the impact of these in-store elements on retail sales growth in Benue State has not been sufficiently explored. This study will assess how in-store customer experience affects the growth of supermarket sales in Benue State, highlighting the role of customer service, store environment, and product offerings in driving sales.
Statement of the Problem
Despite the increasing importance of customer experience in retail sales growth, many supermarkets in Benue State still struggle to create an environment that fosters repeat business and customer satisfaction. In-store experiences in these supermarkets may be hindered by factors such as poor store layout, untrained staff, or a lack of attention to customer needs, which could ultimately negatively impact sales. While there is evidence suggesting that a positive customer experience correlates with sales growth, the specific dynamics of this relationship in Benue State's supermarket sector are not well understood. This study aims to explore how different aspects of in-store customer experience influence sales growth in Benue State supermarkets and provide insights into improving customer retention and business performance.
Objectives of the Study
- To investigate the impact of in-store customer experience on sales growth in supermarkets in Benue State.
- To identify the key factors that contribute to a positive in-store customer experience in Benue State supermarkets.
- To evaluate the relationship between in-store customer experience and customer loyalty in supermarkets in Benue State.
Research Questions
- How does in-store customer experience impact retail sales growth in supermarkets in Benue State?
- What are the key factors that contribute to a positive in-store customer experience in supermarkets in Benue State?
- To what extent does in-store customer experience influence customer loyalty in supermarkets in Benue State?
Research Hypotheses
- In-store customer experience has a positive impact on retail sales growth in supermarkets in Benue State.
- Key factors such as store ambiance, staff behavior, and product availability significantly influence the in-store customer experience in Benue State supermarkets.
- A positive in-store customer experience leads to higher customer loyalty in supermarkets in Benue State.
Scope and Limitations of the Study
This study will focus on supermarkets in Benue State, Nigeria, and will explore the impact of in-store customer experience on retail sales growth within this region. The study will not consider other types of retail businesses, such as fashion or electronics stores, as their customer experience dynamics may differ. Limitations of the study include the potential for biased data due to the subjective nature of customer experience and the challenge of measuring the full range of customer interactions.
Definitions of Terms
- In-store Customer Experience: The overall impression and satisfaction a customer gains from interacting with a retail store, including factors like store layout, staff service, and product offerings.
- Retail Sales Growth: The increase in the volume of sales over a specific period, indicating a growth in business performance.
- Supermarket: A large retail store that sells a variety of food, household goods, and other products, typically organized into aisles for easy access.
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