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Customer
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A Millennial Perspective of
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Table of Content
07 What about
them?
success stories
08 Trends
in CX 18 Nike
10 Millennial X
Project 20 Apple
24 Personal
Opinion 22 Levi’s
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“There’s no such thing as bad weather just bad clothing”
Thomas Burberry
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What about them?
W hen we speak about
millennials, age is not
as important as behaviour. It
Social media platforms en-
able millennial consumers
to actively influence the rep-
American brewer decided to
start a 100% crowd-sourced
beer project using social
seems that no one can agree utation of a brand. media platforms where us-
on a specific age group for Nowadays, the generations Y ers could choose (by vote) all
millennials, but everyone and Z expect an omnichan- the different elements of the
seems to highlight specific nel communication path new beer from colour, body,
aspects when it comes to during their customer jour- malt, hops, yeast, to clarity.
their consumer behaviour ney. These consumers ex-
and how they reshape to- pect their brands to be easily The buzz created on social
day’s society. reachable – not only in their media was huge and the
brick & mortar stores, but campaign was a success.
We live in the Participation also in the online environ- The crowd-sourced beer was
economy – The millennial ment. launched at a music festival
generation wants to be a key in Austin, Texas and was on
player in the brand’s activi- Jacqueline Anderson (Prod- tap in select bars throughout
ty. From the product design uct Development at J.D. Austin and at the Samuel
to the customer journey, or Power and Associates) said Adams Boston Brewery.
the shopping experience, the “millennials are a very open
millennial consumer is pro- generation, and a great re- This shows brands that
actively willing to contribute source for brands, as co-cre- millennials can be a strong
to the process. ation is the second nature for asset within the product de-
them. If you’re facing a chal- velopment process if used
As pointed out by Jess and lenge as a brand, reach out.” wisely.
Christie Garton in “Marketing
to Millennials”, compared to Samuel Adams’ Beer
1980, the digital era allows
CrowdCraft Project
consumers to share their
impressions regarding an
The participation behaviour
interaction with a brand to
of millennials can be ob-
a much larger scale than
served in a marketing cam-
their close friends, work
paign launched by Samuel
colleagues or neighbours.
Adams’ Beer in 2012. The
7
Trends
U nilever CEO, Paul Polman, announced on his
first day of work in 2009 that benchmarks
should be made based on the customer experi-
ence and not on the stock market. Polman said
“Put your money elsewhere if you don’t “buy into
this long-term value-creation model, which is eq-
uitable, which is shared, which is sustainable.”
Investing in customer experi- Omnichannel Integration Let’s say that while commut-
ence is a challenge, which not ing, a potential customer sees
many companies seem to be The line between offline and on- a billboard informing him that
ready to take, as it represents line stores must become less his favourite brand of footwear
a long shot with not so many and less visible and brands offers a 25% discount for a spe-
short-term rewards. Investing should work on integrating their cific range of shoes if purchased
in customer experience requires mobile, online and in-store plat- online. Our consumer will im-
courage, vision and patience. forms to offer the consumers no mediately google the info he was
obstacles during their customer just exposed to. He or she will go
The list below will present the journey. The consumer must be to the website, choose the shoe
four trends I believe will make a targeted with a constant mes- colour and size and finalise the
difference in terms of customer sage across every touch point. purchase. During this customer
experience in the years to come. Companies usually forget how journey, the potential customer
easily a potential customer can encountered 3 touch points. If
be lost due to lack of consistency the company has a strong omni-
in the marketing campaign. channel integration, this journey
Artificial Intelligence and Cog- should not last more than 3 to 5
minutes. In order for this to hap-
nitive Capabilities
From feedback analysis to con-
tent management software or
real-time in-store footprint ana-
lytics, AI is the big star in today’s
world. In a highly competitive
environment, where it is no
longer just about the fittest, but
about the fastest, the capability
of analysing and adapting to the
latest business challenges is
imperious.
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pen, the company should have Top Management Approach Move from consumer behaviour
done the following: the message
on the billboard was a response
of masses to consumer be-
Management should increase
to the lack of sales of that spe- their attention to the importance haviour of the individual
cific range of shoes in the stores of the customer experience,
from that specific area; when the which should no longer be seen This evolution started already
consumer googled the informa- as a secondary pillar of the mar- and if in the past it was hard to
tion, the company’s strong SEO keting department or the oper- have a personal description of
& SEM will prompt the results in ational department. Many com- each of your consumers, now-
the hot area of the Google heat panies have had a head start adays AI and automation tools
map; the landing page should because they understood this make it easy for a retailer to
not take the potential consumer and decided to bring along the offer super-targeted marketing
to the home page or to the prod- CMO, the COO and the CCO (Chief content to its consumers. Fur-
uct list section of the website but Customer Officer). thermore, this complex data
to the filtered list of the discount- should not be limited to the on-
ed shoes. line environment, but applied to
the real world as well.
It is more like when you drive
on a highway and you pass by
multiple direction signs…. Lon-
don: 20 miles left…. London: 15
miles left…. Northampton: 10
miles left. As soon as the signs
become inconsistent, your first
reaction will be to either stop or
turn left to exit the highway as
you might think that this will not
get you to London anymore.
9
Millennial X
The stores included in the study: Nike, Apple, Tommy
Hilfiger, Levi’s, Hollister, Zara, H&M, Bershka, JD Sports,
Guess, GAP and Top Shop.
Market Research
Yes
Bershka
analysing the customer ex- TopShop
JD Sports
perience from the millennial Hollister
Tommy Hilfiger
perspective and highlighting Nike
the pros and cons of each GAP
Branding
Ambience/Vibe
Store Navigation
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Omnichannel Integration of Retailers
During the study, we anal- customer and sales assis- We asked sales assistants
ysed the omnichannel inte- tant perspective. The aspect and store managers the fol-
gration of the brick & mortar we focused on were the sup- lowing questions:
stores our respondents visit- ply chain capabilities, as they
ed. Representing a complex represent a strong pillar of a Can you check the product
sector by itself, the study successful customer experi- availability in-store?
analysed the omnichannel ence.
integration from both the
Sales Assistant
is able to:
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Can you have the product Is there a Click & Collect op- and prestigious experience,
delivered to the customer’s tion? while Guess proved to be
preferred location? more of a mass, fash-fash-
Our biggest winners were ion retailer.
Can you check the product Levi’s and TopShop and we
availability in another store? were unpleasantly surprised
by the low level of omni-
Can you reserve the product channel integration offered
in another store? by Guess.
By comparing two afford-
Can you have the product able-luxury brands, we con-
delivered from one store to cluded that Tommy Hilfiger
another? offered a more authentic
Customer is
able to:
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As mentioned before, the sources in their store design experience. It is reasonably
study confirmed that there in order to offer a great to conclude that millennials
is a visible link between the journey to their customers. expect to find a minimalist
product arrangement, the At the other end of the top, and simple store design
store navigation and the TopShop, a brand which goal which offers them enough
ambience. It is reasonable to is to appeal to millennials, personal space and the
conclude that the following failed to impress our mil- ability to move and explore
brands, Nike, Apple, Tommy, lennials respondents with the products without feeling
and Levi’s, invested visible its crowded sections and constrained by the crowd.
financial and human re- confusing store navigation
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Key Findings
Last but not least, our findings highlighted the following:
• No store allows the customer to have the product delivered from one
store to another.
• No store offers the option to pay for items you selected in the store
and have them delivered at home. Only 3 stores have the option to order
online in the store, with the help of a sales assistant.
• 17% of the stores included in the survey did not offer a Mobile App for
their customers while 71% of in-store shoppers who use smartphones for
research say their device has become more important for their in-store
experience. (source: Google via DialogTech.com)
• 81.4% of our respondents would shop online after visiting the store.
Data collected on 30/11/2017 based on a sample of 4 contributors, age 20-22 years old. Data was collected during the off-peak time in stores located on Oxford Street
and Regent Street, London, UK. Scores were given based on the contributor’s personal experience and information provided by stores assistants/stores managers.
All information presented in the study may not reflect the real picture of the market and it was not conducted by a professional team of researchers. Content is subject
to copyright and must not be used for commercial purpose.
15
Success Stories
Recognizing how important it is to offer a great customer
experience and, in the same time, how difficult it may seem
to be above the benchmark, I decided to present three use
cases of three different companies which created impres-
sive positive results for both customers and brands in terms
of customer experience. I believe that in a world where the
digital element strengthens more than ever the competition
between brands, the ability to actively attract the millennial
customers is an ace in the hole.
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Nike is using loyalty programme to
enhance the customer experience
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Nike
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affect the company’s sales. a hotel programme, and 40% are going to consider pur-
Nike knew what it was doing are part of an airline pro- chasing.
when it decided to bet on a gramme.
customer-focused loyalty Considering all these facts, it
programme. The following It is five times more expen- is worth asking why approx-
statistics should highlight sive to attract a new custom- imately 80% of companies
why a B2C company should er than it is to retain an ex- spend less than 30% of their
build their customer experi- isting customer. Also, loyal time and budget on custom-
ence strategy with a loyalty customers spend statistical- er retention-focused mes-
programme in mind: ly 67% more than new ones. saging and content.
Last but not least, a study by
According to Accenture, Wunderman discovered that
loyalty programmes are 79% of consumers agreed
soaring: 77% of consumers that brands should show
participate in a retail loyalty that they understand and
programme, 46% have joined care about them before they
19
Apple
W hen it comes to
obsessed customer
experience advocates, Steve
customer experience
must be on high standards
throughout the whole cus-
there are some interesting
facts hidden behind all that
aluminium, glass and wood
Jobs was definitely one of tomer journey. Every touch in their stores.
them. His philosophy was point is carefully polished
easy to understand and it and prepared to interact The iconic store experience
was shared with his people with Apple customers - es- was designed by Eight
all the time: “You’ve got to pecially during the in-store Inc, a design studio Steve
start with the customer experience. Jobs approached with the
experience and work back mission to create a new
toward the technology - not shop experience. Wilhelm
the other way around.”
Apple heads the world’s Oekl, the person who led the
most valuable brands of team, said that his goal was
While most of tech com- 2017 at $170 billion to make people feel a sense
panies were designing prod- of connection when they get
ucts to offer great perfor- into the store.
mance for their end-clients, There should be no surprise
Apple decided to design when we say that Apple has In San Francisco for exam-
products to offer a great one of the most impressive ple, Apple even removed the
customer experience for its brick & mortar stores and word “store” from its retail
end-clients. its minimalistic design location calling it simply
is now a signature of the “Apple Union Square”. Ev-
In order to reflect their Steve Jobs’ baby. However, erything is done on behalf of
products reputation, Apple’s a more personal and unique
customer experience.
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The product display area will welcome you, help you feating the brick and mortar
brings some innovations as to choose the right prod- stores, the industry should
well. The Apple products are uct, and to complete the accept that only by fully un-
displayed across minimalist payment for the product. In derstanding the nowadays
large wood tables with no this way, Apple offers better customer behaviour and by
signage between them. The personal experience for its designing the stores with
store is designed as much customers and it eliminates the customer experience in
for browsing and watching, the danger of a customer mind, they will keep a high
as it is for trying and buying in-store footprint. Further-
the products. Companies with extremely more, the brands started to
realize that the omnichannel
Apple understood that a
strong omnichannel integration is the future of
long queue in front of a customer engagement retail. This is observed when
checkout counter is very score a 9.5% year-over-year we look at the numbers
dangerous for the customer - companies with extreme-
experience and their sales.
increase in annual revenue. ly strong omnichannel
By perfecting the mobile customer engagement
checkout experience, the changing his mind between score a 9.5% year-over-year
customer can pay anywhere the moment he picks the increase in annual revenue,
in an Apple store, without product and the moment he compared with the 3.4% of
having to go to the checkout finalises the purchase at the companies which have weak
counter. There are no shop checkout counter. omnichannel customer
assistants or cashiers any- engagement.
more, but Apple Specialists In a time where the eCom-
and Apple Experts, who merce is systematically de-
21
Levi’s
A
they are back on the track
s soon as you get into a
with a very positive answer
Levi’s store you see that
from the current genera-
the authenticity and the cul-
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ture of the Levi’s are present
in every inch square of the
store. The brand engage-
ment, both in the online and
brick & mortar stores, is on
high levels because Levi’s
understood that millennials
are willing to get close to a
brand which shows authen-
ticity and an active interest
in enhancing their customer
experience.
23
Personal Opinion
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expecting the companies to around the store. However, it
replicate this experience in In a consumer survey con- seems to me that the retail-
the brick and mortar world. ducted by Retail Dive on 1010 ers fail to see the opportunity
Also, they foresee to proper US respondents, the results of having a Pick in Store &
integration between the on- concluded, as expected, Deliver Home. Most of them
line and offline world where that consumers are prefer- do not have such an option
the barrier between these ring the online environment available for the customers
two becomes less visible day mainly because of the ease and the few ones who have
after day. it, do not promote it to their
customers. As I said before,
After analysing the customer According to a PWC I believe that approaching
behaviour and the industry study, 51% of consumers this opportunity with a wise
capabilities, I found a gap strategy will not only result
in the customer experience prefer to shop in store in a better customer experi-
cycle which I believe it can ence but also it will increase
increase both — client sat- and effectiveness of online the footprint and the sales of
isfaction and revenue if ap- shopping. the store.
plied correctly.
There are two main pain
Most of the brands offer now points which do not exist in
the famous Click & Collect the online world but custom-
option. However, few to none ers who prefer brick & mor-
have tried the other way tar stores experience them:
around. In a world where the the long and never-ending
consumers want to have as queues as well as the fact
much freedom and flexibility that they have to carry all
as possible, Pick in store & the purchased clothes home
Deliver home has big chanc- and, most of the time, to re-
es in increasing the footprint serve the rest of the day for
of the store and their sales. doing this. When planning a
shopping day, the consumer
According to a PWC study, in usually expects to end up
2017 the majority of custom- with lots of bags which might
ers (51%) still preferred to become an obstacle if the in-
buy clothing and footwear in dividual would like to start
the store while 40% preferred any other activity - having a
to shop online. It seems that walk in the park, dinner and
the shoppers still prefer to so on.
touch and feel when it comes
to finalising the purchase re- The queue issue was already
garding their outfit, however, approached by Apple, which
we do have to consider that eliminated the checkout
40% represents a big seg- counters and replaced them Alexandru Ibi Andrei
ment of consumers. with mobile cashiers all alexandru.ibi@gmail.com
25
Sources
Abramovich, G., 2017. 15 Mind-Blowing Stats About Loyalty. [Online]
Available at: http://www.cmo.com/features/articles/2017/3/3/loyalty-mind-blowing-stats-tlp.html#gs.=n6FnPs
[Accessed 08 March 2018].v
Baerk, W.-Y., Byon, K. K., Choi, Y.-H. & Park, C.-W., 2017. MILLENNIAL CONSUMERS’ PERCEPTION OF SPORTSWEAR
BRAND GLOBALNESS IMPACTS PURCHASE INTENTION IN CAUSE-RELATED PRODUCT MARKETING. Social Behavior
& Personality, 45(8), pp. 1319-1336.
comScore, 2018. Global Digital Future in Focus, New York: comScore.
DATA, V., 2018. 25 Amazing Omnichannel Statistics Every Marketer Should Know. [Online]
Available at: http://www.v12data.com/blog/25-amazing-omnichannel-statistics-every-marketer-should-know/
[Accessed 09 March 2018].
Deloitte, 2017. Deloitte Global Mobile Consumer Survey, London: Deloitte.
Duffy, C., 2018. Here’s how NikePlus has spawned more customer loyalty. [Online]
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tomer.html
[Accessed 08 March 2018].
Fromm, J. & Garton, C., 2013. Marketing to Millennials: Reach the LArget and Most Influential Generation of Consumers
Ever. 1st ed. New York: AMACOM.
Lawson, A. & Fieweger, J., 2017. Video Gaming: U.S Data Insights , New York: ComScore.
Levi’s, 1853. HISTORY & HERITAGE. [Online]
Available at: http://www.levi.com/US/en_US/about/history-heritage
[Accessed 09 March 2018].
Motti, J., 2018. Why Levi’s isn’t acting its age when it comes to retail customer experience. [Online]
Available at: https://www.retailcustomerexperience.com/articles/why-levis-isnt-acting-its-age-when-it-comes-to-re-
tail-customer-experience/
[Accessed 09 March 2018].
pwc, 2017. How do consumers shop?. [Online]
Available at: https://www.pwc.com/gx/en/industries/retail-consumer/total-retail/total-retail-categories.html#topkeys
[Accessed 09 March 2018].
Skrovan, S., 2017. Why consumers prefer to shop for nearly all products online. [Online]
Available at: https://www.retaildive.com/news/why-consumers-prefer-to-shop-for-nearly-all-products-online/437886/
[Accessed 09 March 2018].
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Available at: https://www.thememo.com/2017/01/23/apple-store-talking-shop-mac-shop-retail-steve-jobs-eight-inc-
wilhelm-oehl-inside-the-design-of-apples-store/
[Accessed 08 March 2018].
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Available at: https://www.inc.com/micah-solomon/here-s-how-steve-jobs-would-improve-your-customer-experience.
html
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es-brand-agency-melbourne/
[Accessed 09 March 2018].
unsplash.com
ibm.com
levi.com
nike.com
interiordesignshop.net
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Alexandru Ibi Andrei alexandru.ibi@gmail.com
March 2018
You must not rely on the information in this white paper as an alternative to business/market research advice from an appropriately qualified professional. If you have
any specific questions about any business/market research matter you should consult an appropriately qualified professional. We accept no responsibility for the
content or accuracy of such content nor do we make any representations by virtue of the contents as available herein. This white paper is created solely for non-com-
mercial and informational purposes and the access is granted strictly for personal use. Contents included in this page, such as text, graphics, logos, icons, images,
data compilations, information and such othe materials constitute the property of the author or third parties. All content on this page is protected under applicable
copyright laws.
All rights reserved. This white paper or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the
publisher except for the use of brief quotations in a book review.
This white paper was created to present the opinion of a future marketer and
actual consumer regarding the importance of the customer experience factor
within the strategy of a brand. Recognizing that this topic is a complex one,
I tried (I hope decently) to summarize the characteristics of the millennial gen-
eration, the trends of the industry and to present three successful use cases of
brands which were well inspired to invest in their customer experience area.
Finally, I concluded the white paper with a personal opinion which is meant
to summarise the importance of the customer experience in a digital world.
This project was never meant to be a scientific piece of work but a subjective
opinion from a millennial perspective.
You must not rely on the information in this white paper as an alternative to business/market research advice from an appropriately qualified professional. If you have any specific questions about any
business/market research matter you should consult an appropriately qualified professional. We accept no responsibility for the content or accuracy of such content nor do we make any representations by
virtue of the contents as available herein. This white paper is created solely for non-commercial and informational purposes and the access is granted strictly for personal use. Contents included in this page,
such as text, graphics, logos, icons, images, data compilations, information and such othe materials constitutes the property of the author or third parties. All content on this page is protected under applicable
copyright laws.
All rights reserved. This white paper or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief
quotations in a book review.