2/10/2015 Customer Retention at Brand and Retail Customer retention begins during acquisition, their perception of product value and the uniqueness of the brand. Retention can be increased by working together through: Education • Brand Awareness • Focused Customer Service • 1
2/10/2015 Agenda 1. Branding ‐ Who Are You? 2. Brand Experiences 3. Quality of Product/Service 4. Value 5. Product Uniqueness 6. Ease of Purchase 7. Loyalty Mechanisms 8. Customer Service Branding ‐ Define Who You Are: If you are not clear, how can the customer understand you? Who is your Target? Customer Profile ‐ ie. Age, M/F splt Social Media ‐ Instagram, Brand Promise Facebook, Twitter Type of Customer ‐ Differentiation ‐ English, Western, how do you stand Etc out? 2
2/10/2015 Brand Experiences How do you connect with the customer in unique ways to create a positive, memorable experience? • Live the values of your brand • Create in store Pop Up Shops ‐ featuring brand/retail shared customer experiences • In store promotions • Make it fun and memorable for the customer • Build BRAND ADVOCATES every day Customer Expectations Verses Delivered Quality Customers evaluate products/experiences relative to their expectations. The brand must produce a superior product while the retailer must provide excellent service while both focusing on the customer Product meets customer expectations: • Repeat purchase Education is KEY: Manages expectations • Positive brand experiences: Increases • retention ‐ customer often shares Store Holiday Party – Brand interacting at an off site location ‐ horse – show, clinic, etc Interacting with a unique display – Educational Experience – 3
2/10/2015 Value Value to the Customer Quality divided by price. • What a customer believes the product is worth • When the customer believes they are getting a • good deal for the brand they are purchasing Packaging ‐ Does it enhance the product? • A retailer can provide greater value either by • offering higher quality and matching the competition on price or by offering the same quality at a lower price. – Coca Cola vs Pepsi vs Generic Cola PRODUCT UNIQUENESS How do you make your brand stand out? The more different a product is, the greater the retention rate. • Brand: Offers product that is unique and innovative – Retail: Specific store is known for carrying young rider clothing and accessories ‐ a child’s – mother will look there first Create customer pull by standing out amongst the clutter • Create a memorable experience that is unique in the customer’s mind • Brand: Kathryn Lily ‐ signature tent at horse shows – Retail: Store offers a measurement station ‐ thus providing a service others do not – Products must remain relevant to customers • Be on top of trends – Ask the customer what they want – Ensure your product portfolios contain "retention" offerings that customers • can trade up to as they proceed through their life cycles. 4
2/10/2015 Ease of Purchase Customers today can be overwhelmed with choices and information ‐ it is our role as brand and retailer to help them navigate through the clutter Create a positive shopping experience for • your customer whether it is online or in store. Make your product easily accessible • Display product neatly and in an orderly • fashion Are their too many choices? • Is the store online/retail easy to navigate? • Have enough staff readily available to help • customers navigate through the store and answer questions Customer Service Customer service is one of the most important factors in customer retention Brand: Direct customer service • regarding the brand Retailers: Direct customer service in • store while representing the brand Sometimes the brand and retailer need • to ask ‐ Does the retention equity created exceed the service cost? 5
2/10/2015 Loyalty Mechanisms Loyalty mechanisms can generate high retention rates even when competing products or services are almost identical. These mechanisms can become very powerful generators of customer retention. Loyalty Mechanisms: Rewards Programs • • Airlines: Frequent Flyer Programs • In store shopper cards: Example: Punch Card ‐ every 10 th purchase receives a free gift or discount VIP Programs • • Discounting to small top % of customers • Create value to the customer • Build Advocates THANK YOU 6
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