Victoria's Secret to Offer Halloween Range.

Would you go to a Halloween party full of sparkle and angel wings?  While I’m sure there are plenty that happen every year, Victoria’s Secret would like you to buy your costume from them this year.  Tim Feran of The Columbus Dispatch asked me to comment on Victoria’s Secret’s recently announced move.

Halloween isn't just for kids anymore and Victoria's Secret is looking to get in on the fun with a line of costumes for the holiday season.

As a Columbus Dispatch piece points out, Victoria's Secret will be following costume shops, Frederick's of Hollywood, Playboy and others in getting in on a big business opportunity.

"Halloween has become much more of a grown-up activity and there are all sorts of merchandise product opportunities," Chuck Palmer, owner of Consumer X Retail and RetailWire BrainTrust panelist, told the Dispatch. "I'm not surprised Victoria's Secret would want a piece of that."

Numbers from the National Retail Federation show sales of costumes to adults and older teenagers began growing in 2005 until being hit by the Great Recession. Young adults spent just under $70 per person on Halloween last year versus $80 in 2008.

Victoria's Secret has not provided details on what its Halloween line will look like, but Mr. Palmer expects they'll avoid getting too risque.

"They'll probably be more fantasy-oriented, like you see in the runway show, and maybe play off the angel wings," he said.

I think it's interesting that the product will be in all channels. When Tim Feran of the Dispatch asked me to comment, his info pointed to just the direct channels--web and catalog. Having it in the stores adds a different dimension.

We all know consumer behavior is different in-store than it is online. I'll be interested to see how they present this in ads, promos, visual display and online.

And, yes, I'd go to that party.

Chuck Palmer

ConsumerX

customer-centric retail strategy

614.562.9315  |  cxChuck@ConsumerXretail.com

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The Lux Consumer is in for a Whole New Experience: Amazon Plans Haute Couture Takeover

Original Discussion: Amazon Plans Haute Couture Takeover - Retail News. http://bit.ly/cV0ON8 cX: Luxury's Savior?

Why haven’t Bergdorf Goodman, Harrod’s or Barney’s done this? The buyers of these and other globally respected stores have deep and abiding relationships with the best fashion houses.  Why hasn’t one of them emerged as the leader in luxury online?

The reason they have not taken advantage of the Web's reach and ability to deliver robust (even yet-to-be imagined) shopping experiences is two-fold: the luxury market thinks of online retailing as the place for remainder merchandise and secondary and tertiary labels (mass appeal=sales volume).  The second reason is their best customers have not been there.  At least that's what they thought.

As sales shrink and "traditional" retailers reconsider their sku volume, luxury brands are suddenly seeing the Web in a new light.

Amazon's opportunity here is exactly what it was with books; consolidate a fragmented business by creating value for brands and consumers alike.  After all, this is what Bergdorf's, Harrod's and Barney's does.

Amazon's challenge will be to learn about personality and creating emotional connections (ala Zappos) with their customers. The best luxury buyers and sales people know the value of a customer over time.

Selling on the Web is still about procurement.  While sites like Yoox and Net-a-Porter carry big names (the Gilt models is still about consumer manipulation), they are still showing lifeless stills of dis-embodied apparel and accessories, most of it off-season.

Take Balenciaga for example.  On Yoox, most of the product is marked down and on Net-a-Porter there are only a few accessory items.  Stella McCartney on the Harrod's site is only about intimates and the highest price point is only 230 Pounds.  If I were at Harrod's store in person, odds are I would have much greater choice of Ms. McCartney's products and they wouldn't have to ship it for free.

Amazon gets the numbers.  (I won't even start on SEO)  Now they have to get the consumer. At the end of the day, it's about moving the merchandise.  Will they figure it out?  Mr. Bezos didn't spend all that time with Target for naught.

From RetailWire

Original Discussion: Amazon Plans Haute Couture Takeover - Retail News. http://bit.ly/cV0ON8 cX: Luxury's Savior?

Amazon.com is looking to go upscale with its clothing and shoe business, staging a relaunch that has its sites set on "rivals such as Yoox and Net-A-Porter," according to a Financial Times report.

The e-tailer is recruiting software engineering talent to help it develop "great new features to change the way people shop for clothing." As it has done in other categories, Amazon is looking to set the standard by which consumers judge all others in the space.

The push by Amazon comes on the heels of the eBay Fashion (fashion.ebay.com) launch in early April. That site is looking to build on the traditional eBay approach by adding an online mall of top retailers, such as Brooks Brothers and Lord & Taylor, as well as offering flash sales.

Fashion sales at eBay in 2009 have been estimated at somewhere between $5.5 billion and $7.1 billion. Scot Wingo, chief executive of ChannelAdvisor, said Amazon's clothing, accessory and shoe sales are in the $6 billion to $8 billion range.

Amazon has apparently taken some of the tricks of its Zappos business and made them its own. The company is now offering free returns on all U.S. clothing orders over $25.

It is also looking to provide a more sophisticated visual experience with expanded viewing options and color variations that it began using in its denim store during last year's Christmas selling season.

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US Retail Abroad: Is the Consumer Experience Different? Should It Be?

When I travel, I always seek out the best retail in a place.  Usually it’s a brand or a format, hotel or bistro I’m not familiar with that makes the biggest impression. So I was surprised and not surprised back in 1994 during my honeymoon trip to Paris to discover a Gap outpost at Galleries Lafayette.  (Much to my new wife’s chagrin, we spent probably a bit too much time “auditing stores”.)  That was the Gap’s first foray into international markets; today they have more than 500 company-owned and franchised stores outside of the United States.

The place I bought my khakis and t-shirts at Galleries Lafayette??  Of course, to the tourist and occasional Parisian consumer, the Gap was interesting.  I still have the classic black sweater I purchased that day.

Today, retailers from abroad like H&M, Zara, or Uniqlo are seeing the US as a ripe market for expansion.  (Take a look at those stores’ Web sites—tell me if you think their product is truly unique.)  U.S. retailers having saturated their home markets are doing the same thing—looking to the emerging middle classes of countries around the world for growth.

Partnering for Retail Expansion

I was recently asked to comment on a story for Business First  about US retail brands expanding abroad, specifically in the Mid-East.  The story by Dan Eaton points out that U.S. retail brands Payless shoes, Office Depot and Starbucks partner with companies like M.H. Alshaya Co. to make that happen.  In that piece, Colin O’Kane, an executive from Alshaya, says, “A customer who has shopped at a store in the U.S. should feel at home in one of the stores we operate.”

I hope they aren’t relying on customers who have shopped U.S. outlets of these brands.  Talk about niche marketing.  Yikes.  (Of course he wasn’t; I believe his point was about the appearance and operation of the stores.)

Will that be enough to sustain growth?  What about the long-term prospects of the business on the ground?  Fueled by encouraging numbers from competitors and online sales, some retailers are reporting up to 20% of their online sales are coming from non-U.S. markets, brands are very motivated to find the right market entry strategies.

Here in the U.S. we are in a “’post-brand” environment where we need to have constant dialog and build deep connections with our customers.  The brand stance alone no longer is enough for customers here. 

Is cultural relevancy relevant?

Are these brands banking on their novelty alone?  It’s hard to argue with what appears to be pent up demand for well-known U.S. brands like Abercrombie & Fitch.  Take a look at this video. It doesn’t need to be translated to understand that A&F did a good job on opening day.  Critics have pointed out that the Japanese consumer culture is not as overtly sexualized as A&F is comfortable with in Western markets.  Did they offend?  Did it hurt them?  Most likely not.  They have enough brand equity to be themselves—for now.

But what of the lesser brands?  When Tesco entered the U.S. with their Fresh & Easy brand they found a niche between grocery and convenience to exploit—a unique and possibly a defendable position.  They are constantly tweaking it for American markets.  How will Tween Brands’ Justice fare in Dubai?  How much will they have to understand the local culture to make the product, environments and staff relevant? 

The merchant and its partners must understand consumers and markets as they balance maintaining a brand image amid the dynamics of a new and foreign marketplace. Companies like Alshaya give retailers “someone on the ground” who has that market knowledge and can manage the business day to day and at less expense than if the retailer staffed and ran the stores itself.

Each Brand Deserves a Unique Strategy

International influences have always been a part of retail.  The fresh, new, exotic are what drive attention and desire. The first department stores of London and Paris shaped the great emporiums here in the U.S.  It was the buyer’s imperative to go out and find the most unique and interesting product—still is.

It needs to be said that among the many ways to expand internationally, each brand does it differently.  Whether it is Galleries Lafayette, Collette, franchising, licensing or some combination of the above, there are many ways to expand globally.   Companies like Alshaya understand middle-market specialty—mostly apparel—brands and their relevancy to the consumers already shopping there.  Al Tayer Insignia understands luxury brands and thus has been tapped by Macy’s to help launch their first international store, Bloomingdales in Dubai.  Walmart is pressuring the U.S. government to help change the laws in India preventing it from selling directly to consumers.  Will Kroger or Target pop up in Tesco’s back yard?  Probably not anytime soon.

Relevant links

Original Business First article: bit.ly/cF0MDe

A&F in Japan:

U.S. Grocer Chains Eschew International Development http://supermarketnews.com/viewpoints/us-chains-home-growth-0531/

Retail - All Abroad: U.S. Retailers Set Sights Overseas - CNBC http://bit.ly/amiu3j

Industry Statistics - Even without Web sites customized for foreign markets, global sales are rising - Internet Retailer http://bit.ly/dbQSOH

US retailers, unsure about home, should look abroad - Reuters - http://bit.ly/dqXevw

A&F Canada, Europe, Asia: http://en.wikipedia.org/wiki/Abercrombie_&_Fitch#Expansion_campaign

Walmart's Huge Overseas Expansion Distracts From Its Domestic Saturation Problem http://blogs.bnet.com/business-news/?p=1191&tag=col1;post-2452

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Consumer Experience Always Matters

Sometimes we get caught up—caught up in our busy lives, in our desire to solve problems or to take advantage of opportunities.  Stepping back and taking perspective is good, doing it on a regular and productive basis is tough.  It’s interesting what jolts you out of your focus.

 

Recently I was organizing our archives (read: moving old piles of stuff around to get to the stuff we needed to get rid of) and came across a piece I wrote in 1995 for a newsletter for the retail design firm I worked for at the time. I nostalgically read through this and a few others, fully expecting to be embarrassed and shove them back in the box.  I was delighted to see, while dated—remember Incredible Universe?—the core ideas are still relevant (while the writing is a bit

 clunky). 

 

We have a different perspective on what’s important now, but in the end, it’s the experience that matters.  Read below and let me know what you think.

 

Remember Incredible Universe?  Customers had to be members—it was complicated and we stayed away in droves.

 

As we enter the last half of the last decade of the present millennium, how can we not look forward?  Much has been written, spoken, and videoed and typed about entertainment retail.  At the root of this is something that has been true from the beginning: the buying public wants to be engaged.  They want to be wow-ed.  Even when buying trends ebb and flow from value pricing to the highest levels of customer service or one-stop convenience, there is a common thread: engagement.

 

The customer wants to be engaged in the activity.  At one time it was the stained glass or mosaic domes of the grand palaces of retail, then it became the convenient suburban mall that soon offered the budge basement and good costume jewelry that captured the consumers’ imagination and wallet.

 

Then advent of specialty retailing illustrated what the customer was looking for: an engaging environment where the merchandise was of high quality and service was impeccable.  (Meanwhile, department stores were struggling to find direction.)  Next came the warehouse clubs, hypermarkets, superstores and category killers; customers sacrificed environment for another kind of engagement: the perception of dirt-cheap prices.  During the 80s hangover that was the recession-ridden early 90s, who didn’t hear a story about buying a case of paper towels for $5.48 or a 5lb. box of pasta for $3.28 (and those were prices before the member discount!)?

 

As our population ages and becomes more marketing savvy, the challenge to retrial is to five the consumer a substantial experience.  This takes the idea of value-added to the next level.  The value added in this case is that of a transaction that results in the consumer feeling better than they did before they walked into your store.  This is not all that new; it is just being applied in a different way. 

 

Well, here we are and now the superstores are taking a cue from the specialty stores.  Galyan’s Trading Company and Incredible Universe both use product and presentation elements to engage their customer. The climbing wall and new tech showcase invite customers to participate in the store environment.  Not just be entertained by it.

 

So, now we have 100,000 square foot stores with ambience, quality merchandise and service.  Sounds like the palaces of a century ago.  You see, the customer hasn’t changed; they are just a bit more focused.

 

Ok, it was a bit amateurish, but as I look back, the cycles are there, almost predictable, but I think what’s most important is that even when hit with BIG recessions, we all still want to be engaged.

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Test. Test. Test.

Always test.

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Online Customer Reviews Becoming Bigger Purchase Driver

According to a new survey from e-tailing group and PowerReviews, online shoppers are taking more time to read customer reviews before making purchase decisions. They are also reading more reviews to gain confidence.

Of the 1,000 respondents, 64 percent of the online shoppers spend 10+ minutes reading reviews, compared with 50 percent who did so in 2007, according to marketingprofs.com. Thirty-nine percent said they read eight or more reviews to be confident in judging a product (vs. 22 percent in 2007) and 12 percent say they read 16+ reviews (vs. five percent in 2007).

Overall, 64 percent said they consistently read online reviews prior to making product purchase decisions. When asked what website capabilities or features most influence product selection and purchase decisions, customer reviews and product ratings was the top selected answer (72 percent). That was closely followed by customer service information (69 percent), third-party buying category guides and expert opinions (64 percent). Top-rated product lists, as rated by customers, were named by 60 percent.

MY COMMENTARY:
The role of third-party opinion in human decision-making is very important. That importance increases as the gravity of the decision increases. Interestingly, it is human nature to work through levels of investigation and then seek opinion to--consciously or unconsciously--confirm what has more or less been decided.

I can find opinions about Sunday brunch spots and laptop computers. How far will I go before I make an actual purchase? That depends on a variety of values and situational attributes. Is brunch with my mom and family or is it a cure for a hangover with my buddies? Is the laptop for client presentations or gaming at home? Did I get drunk with my mom and clients while presenting on my laptop?

Seriously, my point here is that we as consumers have more purchasing confidence today than any other time in history because we have access to this information. It is incumbent on us marketers to provide as many credible and authentic ways as possible for consumers to find and use the information in the way they see fit. At the end of the day, if the offer is not competitive, it won't sell. Now, the speed to that conclusion is ever increasing.

Read the original post here: http://bit.ly/aF2zYU

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Brand Dilution: When the Wrong Saks Comes to Town

Yes, when the wrong Saks comes to town, Saks dilutes its brand.

FROM RETAILWIRE:
Some retailers at the Bridgeport Village fashion lifestyle center in Portland, Oregon, were happy to hear about a Saks coming to their complex but were caught off guard when they realized it was actually the luxury retailer's Off 5th discount concept.

The 28,000-square foot location, opening in September, will be the chain's 12th "in a new 'luxury in a loft' design that aims for a modern and -- without aisles -- open feel," according to an article in The Oregonian.

Fred Bruning, chief executive of CenterCal Properties, which owns Bridgeport, told the paper that the concept looks like a mini department store. Jewelry departments are similar to Saks' full-price locations; with one Off 5th store he toured selling a $20,000 piece.

"We feel this will really fill a retail gap that exists here in Oregon," said Mr. Bruning.

About 20 percent of the Off 5th merchandise is from full-price stores, another 20 percent is private label, and the remainder is especially made for the store.

"We work with brands that you would find in other luxury retailers, whether Saks or Nordstrom or Neiman Marcus. We just work with them to create a value product," Robert Wallstrom, president of Off 5th, told the Oregonian.

The 500,000 square foot open-air center is located in one of the Portland metropolitan area's most affluent areas. Tenants include the Apple Store, Container Store, Crate & Barrel, Tommy Bahama, BCBGMAXAZRIA, J. Crew, Banana Republic, MAC Cosmetics and Ann Taylor Loft. It also includes restaurants such as California Pizza Kitchen and P.F. Chang's as well as the largest Regal Cinema in the state. The move comes as Saks just announced plans to close its full-price store in downtown Portland.

MY COMMENTARY:
I think it is an exciting prospect for the luxury department stores to be developing brand extensions. If that is, in fact, what they are doing.

It is not.

Unfortunately what's really happening here is forcing old formats into new places. AND on the heels of announcing the close of their “full-price” store.  This is considered strategic?

Consumers today know and understand the game. They realize that a small percentage--in this case 20%--of product is actually "off price." Will consumers accept and buy from these stores in lifestyle centers? Probably. They will be driven by price, not brand experience.

Easton in Columbus, Ohio was mentioned above. My gut tells me the we won't see an "off price" brand there. The managers of Easton are much better editors than that. (Puma, Lacoste, Burberry are the latest additions.)

My advice is to look at proper brand extensions such as Barney's Co-Op. While not an "off-pricer," it gives Barney's new and different relevancy in different centers, appealing to different customers. Consumers get the halo effect of the master brand, but it's accessible in their neighborhoods, more on their terms.

Saks et al should be re-inventing these operations for the new normal and to complement and enhance their core brands.

Check out Off 5th here: http://bit.ly/9xKifr

Read the original post here: http://bit.ly/cAiCk7

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Women Will Swap Personal Information for Personal Attention?

I say it’s not that simple.

FROM RETAILWIRE:
Some of the 1,800 women participating in a survey by Q Interactive may have taken to heart the catch-phrase from a commercial that's frequently heard on British television - "Because you’re worth it." How open are women to targeted online ads?

According to the survey, 65 percent of the participants were delighted at receiving targeted online ads, exclaiming "Cool! How did they know I wanted this?" Of those surveyed 88 percent "wish brands they trust sent them more tailored offers."

But what they particularly appreciated was receiving gifts to show they are appreciated. To build an online relationship with women, brands need to "give me something" according to 58 percent of women; "get to know me better first" for over 19 percent; and "tell me something valuable" for over 17 percent.

MY COMMENTARY:
I'm not convinced that women (or men for that matter) differentiate their acceptance of online vs. other media messages as much as, say, an interactive agency might think. (Of course, that 1800 subject sample was probably skewed toward heavy internet users.)

The quid pro quo of "giving something" is simply a barrier to entry for this level of engagement. We need to not only get their attention, but the product/service must meet or exceed expectations AND if we want to maintain an ongoing relationship, it needs to be compelling and relevant over time.

Studies have shown that multi-faceted programs of engagement work best--tailor direct communication through a variety of channels and perhaps let your customer choose which way to engage your brand. That deepens the relationship even further.

Read the original post here: http://bit.ly/9k31nO

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Great Experience: Palindromic Poetry?

For those who may doubt the next or any generation, please take a moment to watch this.  It was a winning video in a contest sponsored by AARP asking twenty-somethings where they think they’ll be at 50.  It is simple, modern and brilliant.

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Retail Banking. A Watershed Moment?

Banks have struggled with relevancy for a long time.  Since the advent of telephone banking, the physical bank branch has had an identity crisis.  There have been some interesting experiments over the years—combining with other “errand services” such as dry cleaning and coffee; break down of teller/customer barrier, presenting the bank as a point of community (see Umpqua below) etc.

And there have been offers.  Lots offers. 

From consumers’ perspectives, it all just seems like a lot of promotional noise.  If an incentive to open a new account or a make a referral is acted upon, it seems it is a short term engagement, given that a new, more enticing offer will come down the path.  Consumers don’t switch banks the way the do coffee shops, but what is really going on here?

We are at a watershed moment; as we define a new economic normal, banks have a truly unique opportunity to reestablish themselves in the lives of their best customers.

Banks Standing Out

I recently asked people in my networks about their best banking experiences. (Thanks Jeff, Melissa, Emily, Nikole et al.)  There is a great deal of indifference out there.  Much of what banks offer is basic and is simply dressed up with promotions and advertising.  There seems to be very little product innovation, so when USAA and Bank of America and Umpqua (see below) get some nods on these fronts, they really stand out.

Money is an emotional thing.  What are these banks doing to elicit such enthusiasm?

“USAA! USAA! USAA!! It's the bank for Active Duty Military Members, Veterans and their families. Is your Dad a Veteran? If so you too can reap the benefits.”

“….for those of us lucky enough to be members, no one beats USAA, and they don't even have any brick and motor branches.”

“Chuck, they do lots of good things, excellent customer service and innovation like "deposit @home" - scan a check with your computer and deposit it. No fees, ATM charge refunds. Whenever I've needed a loan or to transfer money around it's always just a quick phone call or a few clicks.”

“Umpqua Bank is fantastic.”

Yes, this is a bank.  Umpqua. A point of community building.

We can see evidence of the Principles of Consumer Centricity http://bit.ly/9DbM7j in the reactions of the people above.  We see connections made between the brand and the customer based on deep knowledge and authenticity.  Consumers like good ideas that make sense, such as “deposit@home” and reassurances along the way that the Bank of America ATM experience video shows.

Bank of America ATM Experience

To paraphrase, Now is the time for all good banks to come to the aid of their customers.

So, tell me about what your best banking experience. 

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My cX: Hyatt Place, Atlanta Georgia

(Another in an occasional series of my consumer experiences, or “My cX”.  More to come.)

On a recent trip, I had the opportunity to experience a Hyatt Place for the first time.  I found it to be a very nice experience.  What really stood out for me, beyond the fresh design, were the obviously well-trained staff and the thoughtfulness of the amenities. 

Part of what we do at ConsumerX is deconstruct experiences in order to understand them and use that insight to develop new, idealized experiences.  We use our cX Framework ™ as our guide (more on the cX Framework ™ in a future post), which is based on the oft-used customer journey idea, but pushes it to yield implications for user, brand and any other entity along the value chain.

Given I was in Atlanta to do a series of experience audits, I couldn’t help but view the Hyatt Place property through the cX lens.  Take a look at the video, it’s a bit rough (NOT a videographer here) and see what you think.  I was impressed with the environmental design and the thoughtfulness behind the layout of the rooms, the food service and the staff was appropriately friendly.  I had the distinct impression that they cared and were eager to make my experience there just what I wanted it to be.

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Something Beautiful Happens...

Something beautiful happens on Saturday mornings at The Columbus College of Art & Design (CCAD), here in Columbus Ohio.  Kids from all over the region from grades 1 through high school learn about art, design and creativity in their Saturday Morning Art Classes (SMAC)

My daughter has been taking classes here for several years and she uses this part of her education all the time.  I’m confident that it helps her in math, science, music and social development. She has explored a myriad of subjects—from the fundamentals of drawing and landscape design and Photoshop to the development of a fantasy character and bringing it to life through illustration and sculpture.  I love seeing what she does with these experiences and I can’t wait to see where she takes it.

Here’s a bit from the CCAD page about SMAC

“CCAD has provided quality arts education for tens of thousands of Central Ohio children since 1880. More than 1,200 children each year participate in CCAD’s Saturday Morning Art Classes and Creative Summer Workshops. Not all of the young people who take art classes go on to become the next great painter or designer but they do take with them the long-lasting benefits of arts education.”

Learn more about CCAD at www.CCAD.edu or about Saturday Morning Art Classes (SMAC) here http://bit.ly/aJDooK.

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Idealized Experience: Biking LA's Empty Streets

<p>WOLFPACK HUSTLE: LA MARATHON CRASH RACE from Warren Kommers on Vimeo.</p>

A Facebook friend posted this video of a very unique and ideal experience.  It’s the morning of the LA Marathon and 26 miles of LA streets are blocked off and empty.  Bicyclists spread the word and at 4:00 am  thousands show up to bike the course—a once a year, very unique opportunity.

The video is nicely shot and a bit of visual poetry.  Check it out.

Thanks Lee!

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The Principles of Consumer Centricity

Over the course of a career as a merchant (at retailers Crate & Barrel and Macy*s—Executive Training Program class of Fall 1989) and consultant to retailers and brands, I have come to know a great deal about consumer behavior.  How and why we buy has always been fascinating.  As a kid, helping out my father in his corner store here in Columbus, Ohio, I learned the fundamentals of service and operations. See my post Channeling Mom & Pop.

I have been fortunate to work with very smart, talented clients, fellow strategists and designers from every discipline.  Throughout this body of work, I have seen patterns and core ideas that I have distilled into “The Principles of Consumer Centricity”.  They act as our guiding principles as we work with our clients.

At ConsumerX (cX) we apply them to retailers and consumer brand marketers, but the principles apply to most endeavors that involve people and money.  A wise woman—my wife—once said, “Everything is retail, isn’t it?”

Take a look and let us know what you think.  Look for posts about each one and the rules and tools we use at ConsumerX.

The Principles of Consumer-Centricity

The Prime Directive: Create SHARED RESPONSIBILITY with the consumer.

INTERNAL

Principle No. 1: Know Your BEST Customers. Fire the bad ones.

Build business around consumer segments not around products or operations.

Principle No. 2: Keep it FRESH

Link offerings with strategic partners to add value and maintain an ongoing conversation

Principle No. 3: Align everything around the IDEAL EXPERIENCE

Connect internal processes to focus on consumer experience

Principle No. 4: COLLABORATE across functional areas

Always ask how new ideas and opportunities benefit the consumer

Principle No. 5: Create DIRECT RESPONSIBILITY to consumers for all staff

Motivate and reward based on consumer behavior

EXTERNAL
Principle No. 6: Know THEIR story

Develop customer relationships based on DEEP INSIGHTS into their needs and lifetime value.

Principle No. 7: Know YOUR story

Speak to, listen and respond in CONSUMER LANGUAGE (informed by brand stance)

Principle No. 8: Tell THE story

Create consistency across all consumer touch points.

Principle No. 9: Let them IN on the story

Respect & learn from their intelligence: make actions TRANSPARENT and VISIBLE to consumers

Principle No. 10: Write the SHARED story together

Be where they are: Let your customer CHOOSE how to converse with the brand

Allow experience (with the brand) to be personalized and customized to develop emotional connections

©2010 Consumer Experience Design. All rights reserved.

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Domino's Pizza Turnaround? Maybe. Probably not.

Friday is Pizza & Movie night at our house.  It’s our family time and we’ve been doing it for years.  We try to find a movie we can all enjoy and a pizza we can all agree on.  Not always an easy task.  This time around I wanted to try Domino’s; their “Pizza Turnaround” campaign (see my compare/contrast blog post here: http://bit.ly/cg1oSk) had caught not only mine, but my kids interest.  They noticed how different the ads were, in that the brand was saying some not-so-nice things about itself.  Kids.  Pretty bright, as it turns out.

Online Ordering

So I thought I’d try out their online ordering system and compare it with how I typically order a pizza, on the phone.  Comparatively it’s a much more robust, albeit time consuming experience.  On the phone, you have a preconceived idea—mostly from preference and perhaps from suggestions made in advertising media—about what you want.  Same goes for online ordering, but the visual cues allow for a bit of configuration play with crusts, sauces, toppings.  Being a normal person, I started with the coupon offers to see if any of them fit with what we wanted.  There it was: two large pizzas and a 2 liter of soda for $19.99.  Given the idea of a pizza we can all agree on, we wanted one for the kids and one for the grown-ups.

The trip from the coupon to the pizza configurator was wonky.  The interface used confusing language, so I didn’t know how to tell it that I wanted double cheese on one, mushrooms on the other and Diet Coke to drink.  I hesitantly clicked what I thought was the right button, and whew, it was.

The experience of building my pizzas was kind of fun (not thrilling, just kinda).  For example, when I ordered double cheese, a prompt came up letting me know that the reason I couldn’t see the extra cheese on the pizza (a limitation of the visual database, I imagine), was because the extra cheese was layered below the top layer.  That was a nice moment of reassurance and thoughtfulness.  It reinforced the promise in the “Pizza Turnaround” campaign that Domino’s is different now.

Once the order was complete, I got a nifty order tracker that tells me when the pizzas went into the oven and when they will be ready for pick up. It's very interesting; I found out at pick up (no Domino’s near my house) that there is actually a Cory, and he made and boxed my pizzas. I like the idea of the real-time tracker, although it made me feel like I was tied to my computer screen.  If it were delivery, I could see how reassuring it could be.

The Pick Up

The closest Domino’s is on busy High Street near The Ohio State University campus.  On my way over, I checked my email (at a red light—don’t drive distracted) and saw that I got a confirmation of my order spelling out all the details in a mobile-friendly format.  Nice.

I found a parking spot on the street, jumped some giant snow piles and dashed in (the parking spot wasn’t exactly sanctioned by the city of Columbus).  Yikes.  There was a bit of a line and at the front was a smallish woman with twenty pizzas piled on the counter in front of her.  This was going to take longer than I thought. 

It didn’t take that long.  The staff was courteous and efficient; this of course is a high volume location and it has to work like a well-oiled machine.  Further reinforcement of the turnaround promise.  I told the staffer that I had ordered online, she immediately grabbed my order and started ringing me up.  I didn’t have to present the coupon and since I opted to give the online system my card number, it was ready to go.  I asked her if there really was a Cory, she smiled and said yes.  She pointed him out and I thanked him for making my pizzas.  He grinned (it might have been pride in his work or a way to get this nut-job-who-knows-my-name out of the store, I’m not sure which).

Make It Yummy

In my family, it’s the driver’s prerogative to taste the pizza on the way home.  It’s really about quality control.  Really.  I was hungry. First bite.  Not bad. 

Once home, we settled in to watch the opening ceremonies of the 2010 Winter Olympic games.  As we’re munching on the pizzas and discussing our dinner, the consensus was resoundingly neutral.  It was ok, but there’s better pizza out there.

So yes, it doesn’t taste like cardboard anymore, but it doesn’t really taste like pizza either.  It seems that Domino’s is pitting itself against its biggest competitors and shooting for parity.  If this is the case, they have achieved their goal: they have moved beyond pizza that consumers openly mock to pizza that is as ordinary as the next huge national chain. So what?

I’m sure they and their marketing agencies have worked very hard to realign their operations and build compelling stories, but at the end of the day, they may be disappointing these new and returning customers by giving them what they expect from Pizza Hut and Papa Johns.  Will the cool order tracker or the courteous staff get me to go back?  No.  Those things are vital to the experience.  They are expected.  (It’s still easier to call on the phone.)

Those things don’t make the pizza yummy.   

Our Favorites

This week we're back to our local favorites here in Grandview Heights Grandad's http://bit.ly/dkcZD5, Rotolo's http://www.rotolospizza.com and Cow Town http://www.cowtownpizza.com .

Let Me Know What You Think

I invite you to give it a try.  Start your customer journey here: http://www.dominos.com/home/index.jsp.  I’d love to hear about your experience with Domino’s Pizza Turnaround.

©2010 Consumer Experience Design. All rights reserved.

Posted via email from ConsumerX: cXChuck's Stuff

Olympic Design

Watching the Winter Olympics with the family. I've always been fascinated with the comprehensive execution of Olympic aesthetics. I thought it interesting that the visual standards book and lots of info about how the team developed the graphics. Here's an interesting link: http://www.canadiandesignresource.ca/officialgallery/graphics/vancouver-2010-graphic-identity/

What sparked this idea was the torch from last night's opening ceremony. The design of the torch is elegant and organic. The design team cites the patterns winter sports makes in snow and ice as inspiration. Check out the designer's brief here: www.bombardier.com/files/en/supporting_docs/BI-Bombardier-torch.pdf

Posted via email from ConsumerX: cXChuck's Stuff

Ideal Experiences Start with Provocative Conversations

When designing the ideal consumer experience, where do retailers and brands start?  The smart ones, of course, start with the customers.  The brand landscape is littered with companies that have become so operationally-centric that they become irrelevant to their customers (let alone new ones).  Why DOES Domino’s pizza taste like cardboard?  Why did it take them so long to listen and respond in consumer language?



Take a few minutes to watch this video.  Does your marketing team think of your customers like this?  Do your customers feel neglected like this?  You won’t really know until you ask. 

Now, contrast it with Domino’s Pizza Turn Around. 



I hate to call it a campaign, because it seems to be the best of consumer-centricity: listen and respond.  What they are saying here, is that they are re-aligning their operations around delighting their customers and in turn, they have faith that they will bring back those of us who wouldn’t think of ordering from Domino’s and perhaps win over new generations that don’t even know the brand. 

Domino’s response has been about presenting a level of transparency that feels fresh.  They have committed national media buys to telling the story of what they heard and how they are responding.  Innovation and creativity applied to the consumer experience; keep an eye on this.  We should all be learning from it.

©2010 Consumer Experience Design. All rights reserved.

Posted via email from ConsumerX: cXChuck's Stuff

SnowPocolypse 2010 Videos

It is a truly beautiful experience when it snows here in Grandview Heights, Ohio.  It’s still snowing and starting to get messy.  I’m going to close one eye and just look at the snow coming down.

Posted via email from ConsumerX: cXChuck's Stuff

SnowPocolypse 2010

The photographer in me couldn’t resist.  It is beautiful right now here in Central Ohio.

See and download the full gallery on posterous

Posted via email from ConsumerX: cXChuck's Stuff

Freeway Giraffes & the Buttermilk Chicken Sandwhich

The Buttermilk Chicken Sandwich at Bake Sale Betty’s

I used to live in the Bay Area and I have to say that Oakland was a place I drove through to get elsewhere. Like many cities in America, it is full of contradictions, but at the edge of the good and the bad, we find some pretty cool stuff.

While doing research on the distinctiveness and brand stance of cities, I came across this piece on YouTube from Cool Hunting.  It’s about Oakland and they call it a  Word-of-Mouth Guide http://bit.ly/8gVWu7.  The approach is to ask interesting and unique people for recommendations of their favorite things, places, people that make a place, well, a place and not some other place.  My father taught me a long time ago to ask the locals and I still believe this is the best way to experience a place.  This lovely video offers glimpses into parts of Oakland that you may not know about.

And if you want the recipe for that sandwich, go here: http://bit.ly/92qqUB.  It seems “Betty” has some Chez Panisse in her.

Enjoy.

Posted via email from ConsumerX: cXChuck's Stuff