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For many, this time of year represents a time to shop for friends, family and ourselves. For the world’s top companies, this also represents a time to differentiate their brands to attract and win customers. But, not all selling is equal. There are definitely strategies that make both good business sense and are sure to deliver a great customer experience (CX). Here are three CX lessons that companies of all shapes and sizes should consider if they want to win the hearts, minds and wallets of customers this holiday shopping season. 1) Know thy customers – and appreciate that understanding consumer behavior is a blend of art and science Example: JCPenney One of the largest department stores—JCPenney—look, feels and operates very different from what the brand was known for a few years ago. And there is no doubt that a laser focus on what the company’s customers care about is what has fueled this transformation as demonstrated in a recent podcast interview with the CEO, Marvin Ellison. If you listen to the interview, you will surely be impressed by Ellison’s cool and collected demeanor—he knows his facts, values his employees and offers a refreshingly honest perspective on some of the serious challenges the company has faced in recent years.  JCPenney CEO, Marvin Ellison, shares in a recent podcast interview how the company has transformed to better align with its customers (Image Source: NPR, Marketplace). Ellison shares a few examples that have led to the company’s turnaround:
Example: Dell Consumer technology products are featured as some of the biggest “deals” on Black Friday and Cyber Monday. And as a leading tech company, Dell is definitely in the middle of the fierce competition to win over customers who are looking for quality products at an affordable price. In a recent video interview, Dell CX leaders note how this year’s customer experience reflects changes based on last year’s feedback—customers expressed a desire for more deals, more inventory and better shipping choices (especially for those holiday gift procrastinators…I can definitely relate to this group!). As a result, Dell had 190% more door-buster and high velocity items available over the Black Friday-Cyber Monday weekend and increased shipping options to both reward those who plan early (with lower or free shipping options) and allow those who wait until the last minute (to pay a premium) and still have the chance to get that precious gift to their loved ones in time. Interestingly, the company’s improvements have not just benefited individual consumers. Customer feedback indicated that small business customers also want to participate in the “buying season”—not to buy for individuals but rather enhance their operations. To address this, Dell has created “year-end buys” to help these customers use up their IT budgets and invest in technologies that will help them better run their businesses, such as entry level servers and work stations. Dell CX leaders—Marc Stein, Carolyn Muise and Karen Quintos—share how customer feedback drives the company’s innovation at all levels—from the individual consumer to the largest enterprise customers. 2. Find ways to surprise and excite your customers to create a more personalized experience Example: Alibaba It is easy to focus on the US shopping festivities around Black Friday and Cyber Monday. But the truth is that the American market does not even compare to the retail extravaganza that took the Chinese (and international) market by storm on November 11 for “Singles’ Day”, created by tech giant Alibaba and generated $17B+ in revenue this year.  Alibaba’s Singles’ Day outperforms the combined US Sales for Black Friday and Cyber Monday. So what is Alibaba’s secret to consumer engagement when some US reports suggest that the once undeniable appeal of the November Thanksgiving shopping weekend is beginning to fade? Well, Alibaba definitely spared no expense to impress, delight and excite customers. This year’s pre-event show included appearances from international celebrities Katy Perry, David & Victoria Beckham and Kobe Bryant and the day featured virtual reality (VR) shopping through the company’s “Buy+” experience, which allows consumers to use their smartphone and a VR headset to “browse products from handbags to shoes to lingerie, and even have virtual models showcase the apparel and accessories on a catwalk” (Source: Forbes) from global brands such as Macy’s and Target. By strategically rolling out new content and interactive games throughout the day, the company was able to keep shoppers engaged via mobile devices and interested to buy more.
 Consumers explore products from top brands as part of Alibaba’s Singles’ Day virtual shopping experience, including a tour of the iconic Macy’s store in New York City featured on CNN (Image Credits: China Post and CNN ) But Alibaba’s success is about more than sizzle and flare—the company has differentiated itself through its big data application—“by mining the data of its e-commerce, social sharing, payments and location based services, Alibaba can help retailers create a personalized experience for each individual consumer… this creates new opportunities for brands to engage with their customers. Retailers can customize their storefronts, product selections, and marketing materials so that every consumer sees personalized search results and recommendations” (Source: Forbes). It has also demonstrated its operational excellence through its ability to deliver some orders on Singles’ Day in as little as two hours. 3. Stay true to your core values (even if that means telling customers NOT to shop) Yes, you read that correctly. Despite the barrage of advertisements to “save big”, there are actually companies out there who don’t want you to shop! And when you take a look at their reasoning for doing so, it really makes you respect and appreciate these well-known brands even more. Example: TJX The popular clothing and home décor stores under the TJX brand stand proudly to say that Thanksgiving should be about family through their “Bring Back the Holidays” campaign. And because of this belief, they stand firm in their decision to close their stores all day on Thanksgiving. Not only does this position send a message to consumers, but it also shows respect and appreciation for its employees—encouraging them to spend time with their families is a testament to the company’s focus on their people’s long-term happiness rather than short-term profits. The TJX 2016 “Bring Back the Holidays” commercial articulates why the company is focused on celebrating “home” and “families first” (Image Credit: TJX) Example: REI REI’s #OptOutside campaign encourages people to spend time outdoors engaging in a physical activity rather than shopping on Black Friday. What’s even more noteworthy is that the company has closed its stores both for Thanksgiving AND the Black Friday. The REI website notes that more than 6 million people chose to “Opt Outside” this year and offers an extremely easy-to-navigate way to find outdoor activities in your local community during the holidays (and year-round).
 REI’s #OptOutside campaign encourages people to spend more time outdoors instead of waiting in store lines (Image Credits: REI)
Example: Patagonia Although Patagonia did not close its doors (or website) on Black Friday, it did use the day to generate a great deal of good for the world. Rose Marcario, President and CEO, writes in her blog: “This year Patagonia will donate 100 percent of global Black Friday sales in our stores and on our website to grassroots organizations working in local communities to protect our air, water and soil for future generations. These are small groups, often underfunded and under the radar, who work on the front lines. The support we can give is more important now than ever” (Source: Patagonia). Not only is the concept admirable, but the results are too—the company exceeded is $2M goal and generated $10M for charitable causes and was able to connect with customers who care deeply about the environment and want to support a company who shows its commitment through its actions, not just words. Summary For many, the holiday season has become synonymous with shopping. Selling is important, but not all sales strategies are equal. Top global companies can teach us a lot about how to win customer minds, hearts and wallets by combining good business practices with a relentless focus on the customer experience. JCPenney and Dell show us why we must use data and intuition to deeply understand customer needs. Alibaba proves how innovative marketing, personalized experiences and operational excellence can lead to incredible customer engagement and financial returns. And brands such as TJX, REI and Patagonia illustrate what the holiday season really should be about—spending time with family, enjoying the natural beauty that surrounds us and giving back to our communities—and how an altruistic approach can actually have tangible impact to the bottom line. Please share your thoughts on how your company or those you admire are exceeding customer expectations this holiday season—comment below! The post 3 Customer Experience Lessons Companies Should Consider this Holiday Shopping Season appeared first on InFocus Blog | Dell EMC Services. |
