Learn from Innovators Transforming Companies to Align with Customers

Article by Ernan Roman Featured on CustomerThink.com

Summary: For years brands told consumers “YOU play by OUR rules.” Now, innovative companies are transforming themselves and developing new products/services built specifically to deliver on the changing needs of customers.

Consumers are increasingly disconnecting from brands that do not go the extra mile to understand their needs and are flocking to brands that do take the time to understand them.

VoC research we have conducted indicates that consumers feel that actions which demonstrate a commitment to personalization and value, build strong ties and reinforce loyalty. Conversely, when consumers feel that brands do not understand them, or fail to meet their needs, then the brand relationship is weakened and often, irreversibly damaged.

To connect with consumers, the following innovators are developing game changing methods of meeting consumer’s needs.

1. Test. Evaluate. Expand.

Nordstrom did a test run of their Reserve Online & Try In Store as a pilot and it was so successful that 80 percent of shoppers who tried it continued to use the service multiple times. So now the company is expanding the program. Consumers can select the service from the website’s product detail page. They then receive both a text notification when their items are ready to try on at their nearest location as well as an in-store notification to locate their dedicated dressing room.

Per Shea Jensen, senior vice president of customer experience at Nordstrom, “Many of our customers like to feel and try on clothes and shoes before they purchase them and we’re excited to offer them a more convenient way to do so.”

Nordstrom’s innovative use of multi-channel engagement with consumers is just one of the reasons the company has seen 45% year-over-year growth for its in-store pickup options in 2016 as well as being one of the only department stores to see positive results in its latest quarter.

2. Anticipate What Consumers Want, and then Deliver.

Apoorva Mehta founded the same-day grocery delivery start-up Instacart to meet an unmet need. “It was 2012, people were ordering everything online, meeting people online, watching movies online, yet the one thing everyone has to do every single week — buying groceries — we still do in an archaic way,” he said. So, he came up with the idea for an on-demand grocery delivery platform. The strategy behind Instacart has been to, “… innovative and respond to challenges creatively.”

Mehta noted that, “if you use new technologies or look at the problem in a different way, you can come up with a solution that’s much, much better … I liked putting myself in a position where I had to learn about an industry and try to solve problem.”

3. Don’t Compromise Brand Standards

On Amazon’s first day as owner of Whole Foods they spent their efforts cutting prices as much as 43%. This move is a direct action to demonstrate that they are serious in their promise to change the way customers shop for groceries. Amazon also understands that they can make changes, but they need to maintain the Whole Foods reputation.

“Everybody should be able to eat Whole Foods Market quality – we will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards,” said Jeff Wilke, CEO of Amazon Worldwide Consumer.

The company has also rolled out new services specifically for its Amazon Prime members such as its selection of 17 new Amazon Fresh meal kits, access to exclusive deals and benefits. 365 Everyday Value, Whole Paws, and Whole Catch, can be purchased via Amazon’s Prime Pantry and Prime Now food delivery programs and Prime members will be able to order food items online and pick up at an Amazon Lockers at their nearest Whole Foods.

In summary, the new bottom line is knowing customer’s needs so completely that you can transform your business to innovate and create new services that break unchartered ground in customer experience engagement and value.

Tumi's CDO Answers 4 Questions For Digital Innovators

Article by Ernan Roman Featured on CMO.com

Charlie Cole, chief digital officer of Tumi, has been overseeing and developing the luggage and travel accessory brand's global e-commerce and digital platforms since 2015. When Samsonite acquired Tumi last year, he also took on the official role of global chief e-commerce officer, which includes oversight of global strategy for brands such as Samsonite, American Tourister, Hartmann, Gregory, and High Sierra.

Prior to Tumi, Cole held various leadership positions, including CEO of The Line and head of e-commerce for Lucky Brand and Schiff Nutrition.

Cole recently participated in our "4 Questions for Digital Innovators" series.

1. What is one marketing topic that is most important to you as an innovator?
The balance of art and science in marketing is the single most important topic to make sure I am open to being self-critical and constantly evolving my thinking. When I was younger, I believed that nothing was more sacrosanct than listening to the numbers, and if you did that, you'd be fine. However, I've realized that at a premium brand, in particular, everything starts with creative and merchandising–and your job as a marketer is to support that, not overrule that.

This requires reciprocation. Merchandisers and creative directors need to be open to analytical feedback and evolve as well. I have framed this to other people as: Creative and merchandising set the guardrails, and it is my job to widen those guardrails as much as possible through education provided by the digital marketing sphere.

This is a big ask for a lot of marketers: You're not the center of the universe, and you are, in fact, a service department. It's very normal for marketers to be fairly exalted in business because we get to do a lot of sexy stuff. But, in reality, we are a support industry, not the driving function.

2. Why is this so important?
You can't be binary. You are seeing the ultimate personification of this taking place in the e-commerce ecosystem today. Amazon–arguably the greatest analytically driven company in history–is struggling to penetrate the luxury market. Brands rightfully fear Amazon's completely democratic approach to brand protection. While this may be a bit unpopular to say, great brands still drive the conversation. Yes, social listening and feedback is important, but the fact of the matter is people still wait for truly special brand newness.

If you are not self-aware and don't evolve, you will lose. The scariest thing? We're not talking about losing your job. We're talking about losing your career. If all you are is a brand marketer who can't listen to numbers or just a brilliant analytical marketer with no respect for the brand you're supporting, you're a dinosaur and more likely already dead.

3. How can this improve the customer experience?
The customer is the big winner. You get creativity, inspiration, and aspiration, and then it's mixed with evolution and personalization as you engage with the brand further. My mom bought me a pair of Air Jordans when I was 9 years old, and now I'm 34 and can design my own Nikes! Talk about a win for me.

4. How will this improve the effectiveness of marketing?
Customers will get what they didn't expect, what they didn't know they needed, and then practically give you the playbook on how to continue to market to them. For companies, you have to let your artists take the first guess; that's their job. Raw, pure creation. From there you can invest in iteration–which means investing in analytics plus science. If you balance those two things, you are letting people do what they do best. The biggest challenge for a larger company culture is to instill the trust throughout the organization to drive a collaborative environment between two types of people who think completely differently.

Bonus Question: What is your favorite activity outside of work?
Well, it's 70 degrees and sunny outside, so that may be influencing this answer a little bit, but I would say my absolute favorite thing to do is to sit on my back porch with my wife, throw the stick for our lab Tucker, and watch him romp around while sipping on a nice, dry rosé. Yup, that's the ticket.

For additional Digital Innovator stories, click here.

All These Mergers... Consumers Are Asking: Will Their Brand Connection Still Be There?

Article by Ernan Roman Featured on CustomerThink.com

“By combining companies, we believe will be able to…enhance the customer experience, increase customer value and put ourselves in an even stronger position to help shape and lead the next generation of shopping,” So said Mike George, QVC’s president and CEO.

But will they?

When brands merge are they diluting the brand message and connection with consumers? With so many mergers and acquisitions recently, you have to wonder what it means for brands and their connection with consumers.

L’Oréal which owns 34 brands has a unique perspective—let the brand be itself and be what consumers want. Jean-Paul Agon, L'Oréal CEO, noted, “Brands have to be authentic, but for [consumers], it means the brand is transparent and there is sincerity in what they express… We have to adapt permanently, or even anticipate permanently, the consumer’s demands…”

The lesson for brand managers going though mergers it that it’s essential to both respect and reassure consumers who have made a financial and time investment in selecting and patronizing “their brand.” When things “change” due to merger, an emotional connection could be at jeopardy if doubt sets in that that their original decision to become a customer is no longer valid.

The Harvard Business Review noted that an emotional connection between a brand and its consumers is a significant differentiator. “On a lifetime value basis, emotionally connected customers are more than twice as valuable as highly satisfied customers.”

Here’s a bit of insight they share that brand managers should take note of:

• “Most companies lack a strategic objective that spans the customer journey.”
• “Our research across hundreds of brands in dozens of categories shows that the most effective way to maximize customer value is to move beyond mere customer satisfaction and connect with customers at an emotional level – tapping into their fundamental motivations.”

The advice In our ERDM learnings from 15,000+ hours of VoC research interviews, consumers told us that understanding them and developing relationships is a competitive differentiator for maintaining a strong brand connection:

• “Your generic communication make it obvious that you don’t understand me. You are trying distill my complex needs into simple generalities to make it easier for you … and useless to me!”
• “You marketers don’t understand that personalization is valuable … it forges strong ties when there is the almost-certain outreach from competition.”

One of the issues in meeting consumer connection needs according to Adobe Digital Insights (ADI), is that brands think that they are delivering this experience but according to consumers—they are not.

Tamara Gaffney, principal analyst at ADI, explains why value is always the key to connections.

“[Brands] have to demonstrate value to the consumer. Companies are still not built to be able to do that…. At a time when marketers are competing for time and attention…Organizations, themselves, are fragmented, and, on top of that, their technology is fragmented, making it difficult to make progress…We’re in a really high-pressure environment where marketers need to not only protect their loyal base, but also efficiently steal from the competition… The winners are going to be the companies that have the technology and chops to serve relevant, personalized communications to consumers, consistently…”

TakeAways:

1. Consumers want meaningful relationships with brands. When doubt creeps into a consumer’s mind they lose the original motivation that sparked their connection in the first place. Brands need to be sincere and clear in all touch points so that the value “reason” is continually reinforced and present.

2. An emotional consumer connection with your company is a primary driver of engagement. Actively involved consumers are far more likely to be not only be top purchasers but also vocal and authentic brand ambassadors. But this takes a continual commitment to demonstrate understanding and develop highly personalized experiences.

3. To grow, companies need to protect the investment they have in their already loyal consumers while simultaneously reaching out to new prospects. And, finding ways to be relevant to both.

With so much merging and blending, the question is; will these combined companies thrive or not? However, one thing is for sure; consumers will want proof that any new union deserves their patronage. In an interview, Doug Rose, SVP of programming and marketing for QVC, said, “Amid the rapid transformation of our business, our recipe for cultivating loyalty has not changed: To deliver a shopping experience that fosters enduring relationships, rooted in trust.”