High Growth Retailer
When your customers expect you to provide a return policy like Nordstrom and fashions that rival Dick Hayne’s brands (Free People, Anthropologie, Urban Outfitters), you have your job cut out for you. When you grow despite a down economy and despite your competitors’ greater size, then management can sometimes develop overconfidence in execution. Our client approached us as it experienced a downward trend in revenue for two consecutive quarters, something the company had never experienced before.
Challenges and Opportunities
Most of our clients approach us when they have experienced a downward revenue trend, increased customer attrition, or have recently emerged from a reorganization. Our job is to provide a customer intelligence platform that can help guide a turn-around. Our client’s management team realized that to reverse the trend, they would first have to identify the root causes that were turning customers away. They put on hold discounting campaigns and across the board price cuts for just a few weeks to collect and assess initial findings.
AffinityAnalytics Value Framework
AffinityAnalytics platform works in three dimensions–operations, marketing and sales. In operations, AffinityAnalytics identifies inefficiencies from the client perspective as well as from the employee perspective. From the marketing view, we enable strategic measurement of corporate value drivers, enhance the social media image of the company by sharing the brand’s strengths and well as customer experiences at individual branches. For sales teams, we outline what specific customers prefer, create automated up-sell opportunities, referrals and in the event of unsatisfactory customer experience we activate customer recovery procedures.
Closing The Loop
AffinityAnalytics quickly integrated with the client’s point-of-sale and CRM systems and in less than 4 weeks customer insights started flowing in. While protecting customer identity, our platform began publishing to social media channels positive, authentic feedback with end-customer permission. Automated, triggered email campaigns began to recall customers back to the branch stores based on their experience feedback.
The retail industry is under tremendous pressure. While online channels give retailers opportunities to expand, the margins online are lower and the threat of substitutes higher. For all retailers who have brick’n mortar locations, keeping those locations profitable is crucial. Our job at AffinityAnalytics remains to bring the technology available to online channels into the physical brick’n mortar sales channel. Our client’s transformation began with these steps:
Operations: Changes in the in-store customer experience began to roll back lost sales with sales increasing by 15% in a single quarter (even with seasonal adjustment). What did we find? Everything from dirty floors, broken dressing rooms to rude staff.
Sales: For every 1,000 customers who completed our customer experience survey, AffinityAnalytics generates 160 new leads and 160 returning up-sell opportunities.
Marketing: With feedback from customers and AffinityAnalytics’ positioning maps, the client launches a new private label product line to increase margin. Social media feedback continues to attract the type of customer who values premium service.
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