Wide Angle

On Monday, Fortune came out with a long, in-depth piece on the success of Trader Joe’s – the wildly popular small gourmet grocery store. The chain, owned by German grocery conglomerate Aldi, has experienced dynamite growth in the last 15 years, expanding from its base in Southern California to over 200 stores nationwide. Their sales numbers ($8 billion in 2009) are similar to those of semi-competitor Whole Foods, and their sales per square foot are an estimated $1,750, more than double those of Whole Foods.

Fortune spends a lot of ink (or pixels, I suppose) analyzing aspects of Trader Joe’s success. It’s a good article, but what has made TJ’s such a cultural phenomenon isn’t too difficult to discern. I’d separate it into a few key buckets: Read More »

I met with a retail-industry member last week that’s in the midst of growing one of their businesses from a regional brand focused on Latin America to a global brand with a strong footprint in the US and the UK.  As we talked about what it will take to enter a crowded retail space, our member expressed it this way, “we need to be very clear what are our brand standards and what are our brand standouts.”

I loved the simplicity of the statement and the depth of the insight. Given the increasing prevalence of mobile/social/location technologies like Foursquare, it can be awfully tough for retailers to differentiate, so the customer experience has never been more important.  Do you know the difference between your brand standards and your brand standouts?  If you are like most businesses, the truthful answer is “no”. Read More »

Last year at Blogwell, Nick Ayers, Interactive Marketing Manager at Home Depot, shared his perspective on how the company is using social media to revitalize its customer service reputation.  Check out the video below for extra details.

Video: You Can Do It, We Can (Still) Help

Slidedeck: You Can Do It, We Can (Still) Help

The Opportunity:

Home Depot found that previously overlooked “passionates” that sat outside the brand’s historic target audience were engaging with the Home Depot brand online.  The company would try to capitalize on this organic interest to use social media as a way to differentiate itself from competitors with the goal of recapturing a group of consumers they lost during the customer service slip. Read More »

Best Buy’s Twitter-based customer service tool has created a lot of buzz over the last year. We asked John Bernier, Best Buy’s Social Media Steward, what makes it work behind the scenes. John is the Digital Product Line Manager and Social Media Steward at Best Buy. He develops digital products and tools for Best Buy employees and customers, while shepherding social media initiatives, such as Twelpforce.  He has worked at Best Buy since 2004, playing a variety of roles in marketing communications and marketing strategy. We spoke to him early last month. Read More »

When it comes to loyalty program enhancement, most marketers are squeezing basis points of response out of email marketing or are micro-tweaking status tiers and reward levels.  Of late, however, we’re noticing a handful of brands pursing discontinuous innovation, which seems to fall into one of three categories: Read More »

The clock is ticking for retail: create a truly multi-channel customer experience or perish.   A recent consumer survey released by ATG reveals:

• 78 percent said they use two or more channels to browse, research and make purchases; 30 percent said they use three channels or more
• 43 percent said they start their research online or through a mobile device, but then need to call a customer service or call center representative to complete the transaction because the necessary product or service information cannot be found online
• 39 percent said they browse via the online or mobile channel and then make purchases in the store because they prefer to touch and feel the product; 36 percent said they do this to compare several brands of the same product

Consumers are embracing the freedom the new multi-channel environment provides them in evaluating products and services to ensure that whatever purchase they make is the right one.  Retailers are starting to follow suit, but they face some significant barriers in doing so: Read More »

A recently released report by Gallup underscores how difficult it is for marketers today to know where to focus their efforts.  The report, which is based on a survey of US consumers’ retail shopping behavior (and includes some really interesting data on the engagement premium), at first suggests that success lies in the quality of customer service efforts and ease of shopping—both very functional aspects of the retail experience.  But three paragraphs later, the authors argue that retailers’ most effective strategy is to build an emotionally engaging experience. 

Well, which is it?  Of course, we’d all like to have an experience that is as good as can be, both functionally and emotionally.  However, we as marketers have limited time and financial resources.  We appreciate advice that steers us on how to prioritize. 

So, here is MLC’s take on how to make those tradeoffs.  Read More »

So perhaps the title here is a bit harsh, but something needed to catch your eye. We’ve long known retailers to be a unique beast, managing more products than any CPG marketer could imagine, focusing on category-specific merchandising strategies (often to the detriment of cross-sell), and most recently, managing the tradeoffs between brick-and-mortar stores and online sales.

But frankly, this too often turns retailers into myopic, proximity-biased incrementalists in their customer strategy (too harsh again?). Imagine my encouragement when I see retail CMOs begin to tout the very elements of customer-focused strategy their CPG peers have long known. Read More »

Let’s face it – as the frontline for cutbacks in consumer spending, traditional retail has suffered through a miserable two years. Abercrombie & Fitch gambled that higher prices would keep its panache and lost terribly. Sears Holdings’ stores had their best quarter since 2005 – with a 2.3% year-on-year same store sales decline. Even the McDonald’s ‘I’m lovin’ it’ juggernaut stumbled to a 0.7% same store sales decrease this January. Does the rest of 2010 provide any hope for recovery? And if so, can retailers take advantage of it? Read More »

I’m no wine connoisseur, so the marketer in me kicked in on a recent trip to my local liquor store.  I considered the attributes I wanted – under $15, preferably red, not too sweet or fruity, a familiar brand name and something that connotes a fun experience. Faced with an array of wines from California to Chile, from Merlot to Bordeaux, I was struck by the enormous difficulty marketers face in differentiating their brands and creating a connection with consumers in the moment.

Granted, I was probably a little outside of the target segment for most wine makers, but what would have altered my decision? A catchy label or even a suggestion from one of the sales people could have nudged me in a different direction. The lesson for me here: while there is immense opportunity to influence a brand decision before a consumer goes shopping, the importance of the in-store experience—whether through product placement, point of purchase signage or a well trained store employee—cannot be minimized. Read More »