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Apr. 21, 2008
Rich Brand, Poor Brand: Differentiate Your Product Through Outstanding Customer Experiences
By Suzanne Hader, 400twin
Most people gravitate toward luxurious experiences. Some crave a perfectly made $4 cappuccino. Others, a unique handbag they're willing to pay thousands for. But all standout brands, from the most luxurious to the utterly humble, share one thing in common: They successfully deliver an outstanding customer experience. Today's brands are scrambling to refine their programs so as to better satisfy the desires of an increasingly sophisticated consumer base and to compete on what is now a global playing field. And customers have more choices than ever before in how to spend their discretionary income. To capture their attention—and their dollars—brands must bring more to the table than an outstanding product. Successful long-term growth will hinge on brands' ability to wrap top-quality products in an experience that entices and enthralls and keeps customers coming back for more. ‘In the typical retail store experience, the onus is on customers to figure out how products fit into their lives.’ Upscale online apparel and accessories retailer Net-a-Porter is a prime example of a brand that gets this type of customer experience right. Its sole outlet, Net-a-Porter.com, is a cleanly designed and fast web site that allows users to move fluidly between sections to browse, view and purchase items. Its full-featured and well-designed interface—combined with highly personalized customer service—has resulted in distinct financial rewards: Net-a-Porter's business has almost doubled in size every year since its inception in 2000, and ambitious growth plans are in place to continue the trend. Consider the experience of a young research professional who has worked with our consultancy. I'll call her Cindy. She described her direct experience, shopping for a Marc by Marc Jacobs sweater coat on Net-a-Porter.com on our internal blog. The sizing specifications on the site implied she should buy a size "small," even though she usually wore medium Marc Jacobs clothing. Skeptical, she clicked on the "More questions?" link to a Net-a-Porter Product Advisor right below the online sizing chart. She typed in her question and received a personal email response in a little more than an hour:
Dear Cindy, The email provided the sizing and confirmed she really was a small. Cindy was delighted. The response seemed to come from a sincere, real and fun person who was knowledgeable about the product. She liked the fact that the size chart in her email was specific to the piece of clothing she was interested in and she was engaged by the creative merchandising. The email included a photo of the coat paired with different items than the web site had displayed. At the core of the success of this communiqué is the fact that the company is viewing the purchase from the customer's point of view. It demonstrates that the company is committed to doing everything it can to make Cindy's selection a good fit in her closet. In the typical retail store experience, the onus is on customers to figure out how products fit into their lives. Based on my experience with luxury brands, it seems to me that Net-a-Porter is one of very few retailers making the most of the heritage luxury experience. Viewing the sale from the client's point of view—focusing more how the product can make the customer successful instead of how to get the customer to make the product successful—is an approach luxury brands used to take. Unfortunately, such a viewpoint has all but disappeared from the retail experience. Creating a deeply satisfying customer experience at this level requires that you know not only your customers but also your brand and what it represents—and, perhaps most importantly, what you want it to represent to your customers. To that end, it's critical to find the right people and processes to enable your brand to most effectively keep its promises. Here are three recommendations to guide you in establishing a branded online customer experience:
Creating a stand-out brand requires marketers to make the most out of each and every marketing opportunity. But most importantly, brands must walk the talk and deliver a consistent, high-quality customer experience at every juncture. The positive customer connections created today will be those that differentiate your brand—and ultimately ensure its long-term success.
Suzanne Hader is principal of 400twin, a New York City-based consulting firm that provides evaluation of and strategic direction for luxury brands. She can be reached at shader@400twin.com.
MarketPlace Customer Service as a Differentiator: The Road to Excellence at Overstock.com Companies are beginning to realize they don’t have the option of ignoring the quality of their customer’s experiences. Overstock.com realized that customers want service that is excellent, regardless of which channel is used. But they had to overcome some serious obstacles on the road to excellence. Read their story. New Research Report: Customer Experience Maturity Monitor Discover the five levels of customer experience maturity, ranging from Limited Capability to Experiential Master. Find out where your company stands, and explore what it takes to move from the base level to the peak. Download free research report here. Selling the "New Consumer" with Smart Conversations, Not Blind Automation Learn how to engage your customers in a great cross-channel conversation that will set your company apart. CustomerThink founder/CEO Bob Thompson reveals his latest research on the multi-channel buying experience, and Lisa Abbott of Genesys explains how to solve cross-channel challenge. Four Strategies to Shift Your Support Center from Surviving to Thriving With an economic upturn on the horizon, it's time to focus on how to gain a sustainable competitive edge. In this webinar, contact center guru Bill Price reveals how to improve the customer experience, reduce operational costs and retain top technical talent. TCE (Total Customer Experience) Model Building e-Workshop for Financial Services Providers [August 27, 09:00-10:30 GMT] This program is designed to help Marketing, Sales and Service Executives of Financial Services Providers to build a TCE model to monitor, manage, and enhance the total customer experience across multiple channels and touch-points throughout the whole customer lifecycle. Global Customer Experience Management Certification Program [Sep. 30-Oct. 1, Paris] Learn cutting-edge CEM methods from a team of international gurus. This 2-day course applies CEM essentials, strategies and methodologies on Marketing, Sales and Services; provides a framework with relevant guiding principles and tools for designing the best experience to your customers. Featured Links
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Consumer Buying in a Downturn
Suzanne
The evidence suggests that many people are not gravitating to luxury experiences at all in these difficult economic times. Instead, they are trying to search out for bargains offering more bang for their buck. They are struggling to make ends meet.
In rich countries like the USA or Europe, this has already shown itself through reduced discretionary spending on items such as cars and holidays, and going downmarket for most other FMCG items.
In the poorer countries that make up the majority of the world, this has shown itself through reduced consumption of meat and fresh vegetables, and in the poorest counties, cutting down on cereal staples so that they can eat at least one meal a day.
The signs are that this will get significantly worse (more bad news in the sub-prime market, reduced liquidity in markets, increases in layoffs, increasing food prices, etc) before it gets any better.
What a topsy-turvy world we find ourselves in at the moment.
Further reading:
Battered luxury goods
http://www.adnkronos.com/AKI/English/Business/?id=1.0.2047691566
http://www.nypost.com/seven/10242007/business/luxury_stocks_fall_as_holi...
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN01298...
How the poorest live
http://www.economist.com/opinion/displaystory.cfm?story_id=11050146
Graham Hill
Independent CRM Consultant
Interim CRM Manager
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