Sunday, March 9, 2008
Enhancing the Customer Experience
Today’s experience
The best manufacturers and retailers do a great job at attracting the customer for the initial sale. But in measuring business results, the best way to enhance growth and profitability is by developing unwavering customer loyalty, i.e., strong repeat sales. One common way this is done is by building brand identity including superior product innovation, value and customer service.
What we find though is that customers somewhat expect a “courtship” before the sale but to establish consistent repeat business manufacturers and retailers alike would benefit from establishing a “cradle to grave” customer experience—drawing the consumer into the manufacturer’s world. And although this is typically done via newsletters, press releases industry magazine articles and the like. In the end these are one-sided, passive and random touches with the consumer versus an active experience.
A better way…
The manufacturer and retailer would do much better at establishing customer loyalty by visual and tactile stimulation that consistently reminds the consumer of the product experience. When a product is purchased there is a high level of excitement which quickly wanes after the product is built and in use over the first few weeks and months—especially after the product is boxed up and put in storage. The manufacturer needs to reinsert themselves on the back end of that build and first use experience, i.e., closer to “the grave”, to build that customer loyalty. One way to do that is through customer awards. Note that the term used was awards and not rewards. Reward programs have become increasingly popular over the past decade. We see that loyalty cards and points programs are increasingly ineffective at establishing customer loyalty. They have become so commonplace that they are now viewed much more as a bother than as a means to build brand loyalty and repeat business. So customer awards (not rewards)—how might this be done?
Just like a virgin…
Maybe it would be best to construct an example (we could use any brand-conscious retailer)… For instance Bass Pro Shops does a great job at attracting a fishing enthusiast (larger than life stores and displays), and consulting on the sale (tackle available to touch and feel, live simulated trout streams to test the product, knowledgeable sales personnel) which generally leads to a satisfactory buying experience. Then when you first try out your new purchase you have the anticipation, the excitement, the performance “edge”, and likely the beginners luck to go along with it and then of course, it becomes the greatest purchase you ever made! The real problem is that after that purchase and first use experience, the newness wears off. Excitement wanes. But for Bass Pro Shop to develop that long-term relationship with the sportsman, and as a means of establishing a repeat buyer, they must extend, and better yet relive that first use experience.
Maybe Bass Pro Shops could encourage its customers to share and brag about their experiences through an online forum? How about sharing pictures of that first “big catch”? Bass Pro Shops is used as an example, because, unlike most retailers they do the above already. But now, what if they could take that online interaction and build a full size, real-life “trophy” of their own? Upon purchase, Bass Pro Shop could deliver a replica of that prize fish on a plaque ready for mounting in the sportsman’s workshop. Of course, it would have a Bass Pro Shop logo in the bottom corner and every time one of the sportsman’s friends “drops by” they would ooh and ah over that fish and literally and/or subliminally see that Bass Pro Shop logo. Where do you think the fisherman’s friends will go to equip themselves for the next excursion? After so much positive reinforcement, where do you think the sportsman will plan, consult and buy his next rod, reel and complement of tackle? Bass Pro Shops of course. This is just one means of extending that customer experience, "bringing it home" to them everyday.
The grave is the cradle
So retailers, get creative in your customer engagements. Extend far beyond the capturing of the customer and winning that first purchase by helping them relive that first use experience and strive for creating a means for your customer to receive positive buy decision reinforcement. Drive your engagement with the customer into the “grave phase” of their experience with your product. Why? Because that “grave” is actually the “cradle” of future purchases—and so on, and so forth.
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