When it comes to building a successful customer service organization, you always want to start with defining your business outcomes. So the first question becomes: what do you want to achieve? Is it increased customer loyalty? Increased revenue? Incremental customer growth? Without understanding your ultimate end goal, knowing a customer’s history may seem unnecessary. But as soon as you identify your goal, it’ll become clear that your organization won’t be successful without access to customer history, and you’ll instantly know what about the customer’s history is most valuable to understand.
Let’s think of customer relationships more broadly. What is the first thing that comes to mind when you think about building a relationship with a new friend or significant other? You’ll most likely want to learn about who that person is on a deeper level. This helps you understand why they make the decisions they make, what their habits are, and more generally, who they are as a person.
You should follow that same mindset when it comes to your relationships with customers. The way you approach a customer varies depending on the type of business you are in. Whether it’s B2C or B2B, both are equally as important. Your customer is purchasing from you for a reason, and it would be a missed opportunity to not understand why. An inadequate view into this information will disrupt your team’s ability to create more meaningful interactions that will leave a lasting impression and keep valued customers.
Customer History for B2B Organizations
If you are in the B2B space, you know how much of an investment, in both time and money, your customers are making by switching over to your business. Clearly, the previous provider didn’t work for them, and if you never bother to understand what their pain points were and why they have moved over to you, you’ll end up making the same mistakes, likely resulting in churn. It is incredibly important to always identify customer challenges, map out how to solve them and ensure that you are delivering value at every opportunity. At the end of the day, if your service still can’t solve some of the pain points they have presented, the relationship might not make sense and it’s better to set proper expectations right at the forefront. People yearn for trust and that goes hand-in-hand with powerful and effective business relationships built on a collaborative plan that sets out to overcome obstacles. This can only happen when you understand and have access to, your customer’s history.
Delivering on B2C Consumer Expectations
In the B2C space, younger generations are continuing to trend towards higher expectations from the brands that they engage with. They are looking for easy access, real-time information, and proactive approaches that make their day-to-day easier. Customer service in today’s digital world is what makes you stand out from your competitors. Knowing your customer’s purchase history, loyalty status, preferences, or even sentiment with your brand, allows you to treat them with higher levels of service, increasing customer loyalty. This, in turn, makes your own team’s lives easier and helps to prevent fatigue. Arming your team with such valuable information allows them to act quickly and spend less time tracking down information, which grants them more time to think creatively and respond more thoroughly.
Whether you are working with a business or you are engaging with individual customers, knowing a customer’s history will allow you to avoid the same mistakes or disruptive experiences they have been faced with in the past, and build long-lasting, lucrative relationships.
In this episode of the Customer Service Secrets Podcast, Gabe Larsen is joined by Steve Walker and Troy Powell from Walker to uncover the secrets of their newest research report focused on the differences between B2C and B2C customer experience. Learn how Steve and Troy are helping CX leaders make steady progress to achieve the next level of CX excellence for their companies by listening to the podcast below.
Humanizing the Customer Experience
Living in a digital world, almost anything can be found online. With the masses flocking to online business, especially in times of COVID-19, those involved with customer service and business-to-business companies have had to completely rethink the customer experience. All too often, companies find themselves having to solve more complicated issues in B2B communications, sometimes forgetting the human at the other end of the interaction. Steve Walker, CEO of Walker, believes that it is imperative for excellent customer service reps to remember the human on the other end of the line. He says:
We don’t think that we’re still dealing with human beings and human beings have these kind of very humanistic needs, but sometimes in B2B we make it too complicated. Also, you’re just dealing with way more people and more complicated solutions. But it really is. It’s about making it personal. It’s about, how would I like to be treated and what problem are we solving for the people that we’re working with?
Adding that humanizing element to every CX interaction has proven to be very effective in customer engagement and satisfaction. Showing a shred of empathy goes a long way when it comes to CX and brands would be wise to self reflect and find ways in which they can show more empathy in customer correspondence, further allowing the human side to peek through.
How to Unite as a Brand
Customer service is essential to lasting brand success. VP of Strategy and Analytics at Walker, Troy Powell, knows that one of the most effective things a company can do to provide the best CX is to unite every department and to become more customer-centric across the board. When building a team of reps and vying for executive approval for CX changes, it is important to find those who strive to provide the highest quality customer support. This team can be assembled from any department. As long as all departments are on the same page about the brand’s core CX methodologies, the brand can find major success in a customer-centric model. To further explain this, Troy emphasizes, “So trying to build out this ally network and form some kind of a team, even if it’s slightly informal, is pretty critically important. And then as quickly as possible getting some kind of a win.” Having that initial win can help grab the attention of those at the top of the company. Something as simple as a survey making its rounds can shine some light on the progress and initiatives of the CX team.
Tips for Transforming a Customer-Centric Business
Creating a successful customer service team from the ground up can be extremely taxing and difficult to map out, especially for those newer to the process. Steven urges those who are searching to build a thriving team to start with the basics. He mentions some key takeaways, which are to talk to those who deal with customers daily to get a more well-rounded persona. Additionally, take a qualitative approach, speaking in a way in which executives will be more keen to listen to. Vernacular such as “revenue and margin and market share” are sure to catch their attention. Furthermore, find your first win and build upon it. Lastly, talk to people who know how to help and talk to those who fill similar shoes and can offer seasoned advice. As Steve mentions, “The ultimate outcome of being customer focused is to have a sustainable business. So, if you have a sustainable business, then you probably already have some things that you do really, really well.”
Creating a high-level customer experience and aligning with a customer-centric company culture will surely bring a more sustainable and successful business.
To learn more about the secrets to leveling up with extraordinary CX, check out the Customer Service Secrets podcast episode below, and be sure to subscribe for new episodes each Tuesday and Thursday.
You can also listen and subscribe to our podcast here:
Full Episode Transcript:
Next-Level CX for B2B Companies | Steve Walker and Troy Powell
Intro Voice: (00:04)
You’re listening to the Customer Service Secrets Podcast by Kustomer.
Gabe Larsen: (00:11)
All right. Welcome everybody to today’s show. Today, we’re going to be talking about next-level CX for B2B companies. The why. The what. The when and the how. And to do that we brought on two special guests, Dr. Troy Powell, currently the VP of Strategy and Analytics at Walker. And then you’ve got Steve Walker, currently CEO. Steve, Troy, thanks for joining. How are you?
Steve Walker: (00:33)
Doing good, Gabe. Thanks for having us on the podcast.
Gabe Larsen: (00:38)
Well it’s fun. We’ve got a fun research report that we’re going to dive into that I think will be really insightful for the guests. Appreciate you sharing with us some of these findings, but before we do that, can you tell us a little bit about Walker, some of the things you guys do over there? The podcast you guys do, give us a little more about your story.
Steve Walker: (00:57)
Yeah, I can kick it off and then let Troy jump in here. But, we are an 81 year-old family business. My grandmother did door-to-door surveys starting in 1939 and she was an entrepreneur and saw a business opportunity and actually didn’t go to college or anything. She just was trying to make a buck. And that was kind of the birth of market research. It’s about the same time Gallup was starting to do political polling and Nielsen was tracking the movement of stuff, but my grandmother was an entrepreneur. And so we grew up as a market research agency. Early on, we were into the customer satisfaction movement, Malcolm Baldrige, all of those factors that have moved us more and more towards a customer experience economy. And we bet a couple things early on, on the internet so we were pretty fast in technology. And then we really honed in on our focus on customer experience just in the last three or four years with our partnership with Qualtrics and their whole ecosystem around using insights to drive business success.
Gabe Larsen: (02:05)
Yes, yes. Kudos on that. I’m actually in Salt Lake City at the moment. So just a bones throw from the Qualtrics headquarters. What a great story and I know you guys have a strong partnership there. I actually also worked at Gallup. We have some common things in our lineage there. I spent some years at Gallup in those early companies, trying to kind of figure out how to survey real pioneers in the industry. Troy, anything you want to add to that? That’s a pretty good overview.
Troy Powell: (02:34)
Yeah, no. That’s great. Steve definitely has the background on this company to share.
Gabe Larsen: (02:40)
You’ve been saying third generation, is that what you said? Third generation, is that right now?
Steve Walker: (02:45)
Yeah, and I’m in the fourth quarter of my career too. So we actually have a fourth generation in the business. So, if we’re lucky we might make it another one.
Gabe Larsen: (02:54)
Yeah, beautiful. Not many family businesses make it that long. Sometimes they find a way to unravel but kudos. Sounds like you guys would beat the odds. One other thing I’d love to get into, love to just kind of humanize you before we get into some of these best practices on CX by asking you maybe something a little more personal. Troy, maybe we can start with you. Outside of work, I mean, we know you’re a, maybe it’s the Duke thing. It is a doctor of Duke. And did you play bask- I heard you were a good basketball player. Is that what I’ve been hearing?
Troy Powell: (03:27)
I played high school. We were state champions in Alaska. I grew up in Alaska, so –
Gabe Larsen: (03:37)
That doesn’t count. That doesn’t count. You have to come up with something,
Troy Powell: (03:39)
But with the other Duke connection, I actually played on a youth team of Trajan Langdon who played at Duke for four years. And now he’s director of operations, I think Houston, anyway some NBA team. But so, yeah, so there’s some connections basketball wise. I do still enjoy watching basketball, not playing much. And then watching my son play basketball. So spend a good amount of time with him. Youth sports, trying to be a good youth sport dad.
Gabe Larsen: (04:06)
Yeah. Yeah. Well, hey man. Welcome to the club. I’ve got a couple boys that I’m trying to get into that as we speak. What did you, what was the doctorate in?
Troy Powell: (04:15)
It was actually in sociology and then it was a very quantitative program and looking to make a little bit more of a practical impact. I transitioned into this world of doing survey research for businesses, right? Customer research in that manner, that’s kind of what got me in at Walker for 15 years ago now.
Gabe Larsen: (04:39)
Oh my good- yeah. 15. Well, congratulations. All right. Steve, over to you. Outside of work, any hobbies, any fun, embarrassing moments you want to share?
Steve Walker: (04:46)
Yeah. Gabe, you know, I would make a great full-time recreater. I have lots of interests and very few of them I’m really proficient at, but I actually like to play golf, but I’m an 18 handicap. I like to fish, but I really don’t know that much about fishing. I just think it’s fun. I love sports. I love to read. I got family, I got friends, I like wine. I like fine dining. So, work just gets in the way of having a good time sometimes for me.
Gabe Larsen: (05:17)
Well, I can appreciate the 18 handicap. That sounds like you and I should go hang out sometime. Well, all right. Let’s jump into the topic at hand. Big picture, maybe Steve, you can talk about this, just set the stage for this report. You guys obviously have a research-based approach. At Walker, you guys do a lot of this stuff. But, why this report? Give us kind of the why and the what of this?
Steve Walker: (05:42)
Yes. Some of it came kind of from our business focus as we emerged in kind of the customer satisfaction, customer loyalty measurement industries from the research perspective. We just found we had a niche with B2B companies and it was because B2B is different and it was complex. And maybe back ten years ago, you’d go to a conference and they’d say that they had stuff for B2B, but then the case studies would be Ritz-Carlton and Southwest Airlines and you know, all these great companies. But they really didn’t understand B2B. And you’re going to allow us, I think, to promote our report, which is really a nice deal. It’s kind of a playbook for a B2B marketer, but in the report we discuss some of the basic differences between B2B and B2C. And just to highlight a couple for you.
Gabe Larsen: (06:38)
Steve Walker: (06:38)
Most B2C is pretty transactional. It’s one person buying it. It tends to be a product or service you consume and you might consume it, but there really isn’t an ongoing relationship. A B2B tends to be an ongoing relationship with both products and services, right? Typically the sales cycle is much longer and it’s more complex. There’s usually multiple people involved in making the decision. And then in the company that’s providing the value, there tends to be multiple people who deliver to the customer. Think about a global partnership between, say a big automaker and an IT supplier. They’re trying to provide service to an organization across hundreds, if not thousands of customers. And then on the opposite side, maybe tens, if not hundreds of people that are delivering the value to those customers. And then just the whole kind of aspect of how you do the metrics. Things like NPS work really good in the consumer space or JD Power, kind of like ratings work good in the consumer space, but they’re not really diagnostic or prescriptive enough for a B2B. So, we’ve always had an interest in B2B. Our partners at Qualtrics did a huge study sort of on the whole state of customer experience today. And so we went with them with Troy’s expertise and say, “Hey, we’d like to dataset and tease out some of the information and kind of compare and contrast B2B and B2C,” and what resulted is a really, I think a compelling case for the B2B marketers to step up their game.
Gabe Larsen: (08:11)
I love that.
Steve Walker: (08:11)
Just real quickly. Like in 2013, you could call an Uber and you could order from Amazon and those technologies that we sort of as consumers expect from a digital experience, B2B still doesn’t have some of that. I mean, if I ordered something for my business that’s coming via truck, I don’t have an Uber app to tell me where that package is right now. And so that, kind of with COVID and all that, this whole acceleration towards the digital economy, it’s really calling the B2B guys to step up the game on a customer experience.
Gabe Larsen: (08:47)
Yeah and it’s true. It’s like the, I had one person say the consumerization of the B2B buyer, all of this stuff we do as a consumer, it’s now translated into the B2B world and we kind of expect, we believe it’s not there, I think to your point, but we’re pushing it because it certainly needs to be there. So Troy, maybe you could walk us through, that’s a great foundation. What were some of the findings, as you think about companies trying to take it to the next level, what were some of those findings that allowed companies to kind of separate themselves from the pack?
Troy Powell: (09:27)
Yeah. One of the things we did find is B2B, there’s a slightly different path in how they develop CX maturity, which a lot of this report is very focused on this customer experience as a function within an organization, or it’s a skill within an organization. How do you develop that? How do you flex that muscle better? And so we defined the path was slightly different for B2B companies in that the companies who really made that transition from just starting out to being kind of at a second level of maturity, they really had to go through this activation process within the organization of getting the organization to think about the customer more, to be more customer-centric. And that’s because in a B2B org, everybody’s owning the customer. There’s different functions, there’s different business units, all of these different people are having a role and you kind of need them all on board in order to understand the customer better and deliver an experience. So whereas in B2C, there’s a little bit more centralization and we’re broad brush strokes here. Not every company is the same, but they definitely have that tendency. So that was an interesting finding that, really there is, and we see that a lot. There’s this push up front of, “Well, all right. I can’t do this alone as an individual or a small team that’s trying to get the company to be more customer-centric.” You’ve got to have leaders on board, you’ve got to have a cross-functional team and all these things to really expand it out of just one little starting point.
Gabe Larsen: (11:07)
Yeah, we hear that all the time, but I’d love your quick take on it. I mean, getting the CX leader, B2B, B2C, they often are trying to run it on their team or sometimes siloed and they’re trying to push it up to the executive team. And sometimes it’s falling on deaf ears. Any quick tips or advice for people who are struggling to kind of get that up to, it seems like it should be obvious, I realize that, but sometimes –
Troy Powell: (11:34)
It’s not. And I think we did point out there’s kind of a couple of different ways that CX often starts. And sometimes it is top-down driven. A new leader comes in, a new CEO or somebody on the team and says, “We’re going to do this.” In that case, it’s a little bit easier. It’s still, there’s a lot that needs to be done to really make it effective, but to your point, it often starts in smaller areas. A customer service call center might be a place where they start to do surveys and really think about the customer. And then, all right. Now how do we expand that out? I think it’s very important to early on be identifying who are those people who are kind of allies? And saying, “Hey, there’s people over here in the sales department that are interested in what we’re doing and they’re kind of willing to partner.” So trying to build out this ally network and form some kind of a team, even if it’s slightly informal, is pretty critically important. And then as quickly as possible getting some kind of a win. So saying, “Hey, we’ve got this little survey going somewhere in one part of the business, let’s show how taking that feedback has helped us to be more efficient or to get more revenue,” or something. And then just blasting that message out and getting the attention of leadership. That way is really important.
Gabe Larsen: (12:56)
Yeah. This is mature, yeah. The maturity. Being able to get those, get the executive people behind these transformational programs seems to be a mix, I think, in multiple organizations. So, the maturity model that you guys kind of discovered, that really was the foundation, a lot of the reports. Sounds like there were some other key findings. Do you want to hit on that, Steve? You mind hitting number two on your list? Surprises from the report or things that kind of popped out?
Steve Walker: (13:24)
Well, yeah. The maturity model is, actually we adopted the Qualtrics maturity model just because they’re a 900 pound gorilla in the world, but we actually were on the same track in our own business. But again, with our partnership, we just kind of got in their wake there. But one of the things we found out is that B2B really, truly is behind when you just look at B2B versus B2C, there’s great room for all organizations to enhance their customer focus. But in particular, the B2B folks tend to be behind, I’m searching for the number right now. Is it like –
Troy Powell: (14:07)
Yeah, I think around 60 or so. Over 60% of B2B companies are just at that lowest level of maturity still.
Gabe Larsen: (14:15)
Steve Walker: (14:15)
Yeah. And I think like 80% are at the bottom too. So there’s a lot of work to do in that respect. Again, like I think there’s even a significant number, like more than half the firms in the entire study said they’re just at the first stage. So, we really are talking about there’s a lot of room for growth. One of the things I like to say is it’s a great time to be a CX pro.
Gabe Larsen: (14:44)
Troy Powell: (14:50)
Yeah. Well, there’s so much more to focus, I think a lot of the reason why it’s low is because there are so many more companies getting into it. Maybe five years ago, maturity was probably higher for those who were doing it. And now we’re just seeing a lot of companies recognizing the importance of that CX, customer experience, focus. And so a lot of them are starting out trying to figure out, “Okay, how do we do this? How do we scale this?”
Steve Walker: (15:19)
Yeah. And actually something you said, Gabe, kind of sparked a thought I had, but you kind of said that our B2B expectations are informed of our B2C experiences. It’s so true. And I think that’s one of the problems is in B2B, we sometimes don’t think that we’re still dealing with human beings and human beings have these kinds of very humanistic needs, but sometimes in B2B we make it too complicated. Also, you’re just dealing with way more people and more complicated solutions. But it really is. It’s about making it personal. It’s about, how would I like to be treated and what problem are we solving for the people that we’re working with?
Gabe Larsen: (16:11)
Yeah, it does. So I’d like some of those people using the, there’s no B2B, B2C. It’s just being a human or is it a person? And, because he arrived somewhere along the lines we in B2B have missed that a little bit. We started to look at them, not as people, but something a little bit different. One of the things that jumped out to me, you guys, on the report was this over-reliance on frontline employees. Maybe, Troy, could you touch on that? What was the finding there and how are people overcoming that?
Troy Powell: (16:37)
Yeah. And it partially goes back to the CEO, who owns the customer and who owns different parts of the interaction. That can be a complex thing with a lack of great coordination for that within B2B. And so what often happens is because you do have, I feel like there’s more human interaction still within a B2B relationship. Things are more complex. You need salespeople, you need implementation people involved to help scope out these bigger things. We sometimes, as B2B companies, sometimes just let the people figure out what our broken processes are. And be like, “All right, well we’ll just get good account people. We’ll get good customer service people and they’ll figure out how to make the customer happy.” And so there’s not as much time spent on building out processes that are more efficient, more consistent, omnichannel. We just say, “The people will figure that out.” And so you get these account reps who are helping solve issues, track down lost deliveries, all these things besides trying to build more business and relationship. So I think that’s a big issue. And we talked about a couple solutions or obstacles there, one being this human-digital balance that I think you have to strike at a much more intricate balance within B2B and saying, “Yeah, we still need humans involved, but how do we get more digital? And then how do we get better enablement of those humans with the right data and information so that they can more effectively do their jobs and therefore deliver a better, more consistent experience?”
Gabe Larsen: (18:29)
Yeah. It still feels like it’s so disparate. And I know you highlighted that term, kind of silo, within the report multiple times. It still feels like we’re doing one thing. It’s not being passed around. We’ve got to find a way to enable, but not over-rely. I think that’s a great takeaway. Steve, as we look to wrap, I’d love to, all of our listeners, we do have oftentimes people saying, “I’m trying to just get going. I’m trying to get started on the journey of the CX transformation.” And I don’t know where they’d fall in the maturity model. That may be something they need to come talk to you guys about. But if for those people who are just starting and really wanting to get that transformation going and moving, what would be having gone through this report, maybe some of your other research studies, et cetera, what would be your advice to those CX leaders wanting to start and really nail the CX transformation?
Steve Walker: (19:21)
Well, I think getting the, downloading the report would be a great start because it really is kind of a seminal piece I think on no matter where you are in the journey. I think the other thing I would say is that any business that’s successful probably has already figured out a little bit of this already. The ultimate outcome of being customer focused is to have a sustainable business. So, if you have a sustainable business, then you probably already have some things that you do really, really well. At the risk of sounding really self-serving, I think way too often, we jump into surveys. And I think that probably if you’re just starting out, it’d probably be best to go talk to some of the other key executives in your company. Talk to those people that interact with customers on a day-to-day basis and take more of a qualitative approach to begin because the business people don’t really talk survey data and they don’t really talk about rating scales. The business people talk about revenue and margin and market share. And I think if you, and I give credit to this a lot to Troy, he can do a better job of articulating this, but as opposed to starting with the X data, kind of talk to the business leaders about what they’re trying to drive, and then bring some insights from your customer base that can help them make those decisions better or with a more complete set of information.
Gabe Larsen: (20:57)
Yeah, I like that. I do. I think that’s a, it’s just a disconnect. I’ve heard it in our dealings. It’s like two different languages. I’m talking CX, you’re talking top line, bottom line and where the two don’t, I mean, they connect, but obviously they’re not the exact same thing. We’ve got, I think that’s a great place to start. Troy, if someone wants to learn a little bit more about you guys, maybe even download this report, we can put it in the show notes, but what any quick advice or thoughts on learning more about kind of Walker and some of the cool things you guys are doing?
Troy Powell: (21:28)
Yeah. So if you go to our website, so walkerinfo.com, you’ll be able to download this most recent report, next-level CX for B2B companies. We also have a report out there that gets a little bit to what Steve was talking about. Combining experienced data and operational data, which is really critical, kind of talking about that along with a lot of other content we’ve created in the past. And that’s a great way to connect with us. You can also look Steve or I up. So, Steve Walker or Troy Powell on LinkedIn, connect with us that way and start a conversation. Really, there’s a lot of great resources out there now for CX pros, but sometimes there’s too much. So, sometimes just talking a little bit to somebody can help.
Gabe Larsen: (22:15)
I love it. Alrighty. Troy, Steve, really appreciate you joining. Looking forward to learning a little more about Walker and how we can partner potentially at Kustomer in the future. So, thanks for your time. Thanks for the talk track and for the audience, have a fantastic day.
Steve Walker: (22:29)
Appreciate it, Gabe. Thanks for having us on.
Exit Voice: (22:36)
Thank you for listening. Make sure you’re subscribed to hear more Customer Service Secrets.
Kustomer’s Future of Retail event brought together business leaders from leading modern B2C and direct-to-consumer (DTC) brands, featuring a majority of female founders and executives across the agenda. Together, they discussed the trends that are shaping the retail and DTC landscape today, and what it takes to compete and thrive in this world.
We covered a range of topics, from understanding the customer to creating a consistent experience in-store and online and growing a business. However, four main threads emerged from all the conversations at the event:
1) Experience is the differentiator for modern brands
Now every retail brand, digital-first or established legacy, is in competition with Amazon. It’s unlikely that most will be able to compete on choice, ease of use, or connectivity of their product ecosystem. The only sure way to win is on experience—curation, community, and content is where you’ll be able to stand out.
A simple, clear business model means you can set yourself apart with your experience and service. Lola does more than deliver all-natural feminine hygiene products, their intuitive subscription service and direct-to-consumer prices, plus their commitment to a personal and engaging experience, makes them much more appealing than mass-market brands.
Fast delivery and a good website is not enough, instead customers crave a community and a genuine experience. Women’s workwear brand Argent even calls their pop-up stores “Community Centers”, where they host events themselves and from members of the community—with the end-goal of adding value to customers’ lives. You can learn more about using pop-ups as part of your retail strategy in our report here: Digital First, Store Next.
Similarly, cycling brand Rapha received a shout out for their innovative Club Houses. Instead of traditional brick-and-mortar retail, they’re a hub for Rapha customers, where they host events, local artists, athletes, and speakers, plus organize daily rides.
As Aniza Lall, Chief Merchandising Officer at Bluefly, summarized: “Commerce, content, and community: the brands that can monetize those channels are going to succeed.”
2) You need an omnichannel approach to connect every touchpoint
From first touch and acquisition to the post-purchase experience, you need to be able to trace a solid line following your customer along each.
More brands are getting their start on Instagram like AYR, or as a source of content like Glossier, and scaling from their with a handful of products. It’s crucial to be able to capture all the information about those early fans that you can, because they will form the core of your audience and define your brand experience.
Eleanor Turner, Co-Founder and Chief Creative Officer of Argent, described the importance of connecting these dots: “Experience is such a buzzword today, but it’s really all about creating an experience that’s unique to your brand, personal, and streamlined end-to-end.”
3) Subscription is the future of customer loyalty
New, digital-first brands are shifting their business model to become part of life and rhythm of the customer. For these businesses, profit comes from retention and lifetime value, and you need to know whether or not customers are happy based on their actions, not their words. Doing so can drastically raise their lifetime value.
Men’s subscription box Sprezzabox uses a loyalty program to reward customers based on how long they’ve been a subscriber, giving them access to higher-quality items and delighting them with special offers.
Feminine hygiene brand Lola partners with other brands like Cuyana, Warby Parker, Equinox, and Harry’s to extend their value proposition and reach new audiences.
Material World has shifted their focus from being a marketplace for secondhand luxury items, to building an ongoing relationship by having customers exchange their old clothing and other items for a new pre-owned set each month. As Rie Yano, the company’s Co-Founder and CEO described, “People used to use the brands they shop for as their identity, but now identity is about how you spend your money, not what you spend it on.”
Brands like Rent the Runway and Material World provide more value for customers with a service that replaces ownership with an ongoing relationship with a brand.
4) Stay laser-focused on what your customers love.
Even as you grow, you need to keep the core facets of your brand and experience that your customers love at the forefront.
Women’s clothing brand AYR launched on Instagram and social 3 months before their product lineup fully launched, just to communicate with their customer and get feedback. It’s remained a huge driver for their business: “Our biggest win has been having a direct line to the customer. We launched our t-shirts, plus-size jeans, and eco-friendly products based solely on customer feedback.” Co-Founder Max Bonbrest also gave a big shout out to Glossier for the same reason, “Having an engaged community before you start selling a product is a huge benefit. The best example of this is Glossier, obviously.”
Similarly, Lola’s brand is built on what real women have to say about feminine hygiene. After having a number of conversations while coming up with Lola’s brand direction, founder Alex Friedman had an epiphany: “I realized that there are all these moments where stigma leads to a lack of discussion. I see our job as contributing to the conversation in those areas and extending the brand in those directions.”
Whether your brand is just getting started or has established itself over decades, the discussions at Future of Retail reiterated that success in the modern retail landscape is grounded firmly in gaining better customer understanding, and delivering a powerful, connected experience.
Thanks to everyone who helped make this event possible, we’ll have even more awesome events and informative conversations like this one coming soon!