Friday, March 7, 2008

Consumer Experience Marketing- Engaging the consumer through interactions

Consumer Experience Marketing is often considered as an extension of the Consumer Relationship Marketing (CRM). However, is that what defines consumer experience? CRM today is synonymous with a software application which large corporate deploy, and believe that since they now know every thing about the consumer's engagement with the company, they would be able to provide a better service and keep him/ her engaged. In my view, CRM is just a tool towards a total CEM, and companies are focusing a lot on the online channels. There exits a need to continuously engage the consumer and expand on his/ her experience in-store. In traditional retail, the idea of appealing to the natural sense of a human being was the focus. (E.g. Have you ever walked passed a bakery and the smell of freshly baked bread has tempted you to walk in and so a spontaneous purchase). Traditional architectural technique like - color, music, lighting, look and feel have been used by retailers timelessly. The trend today is to find ways to engage the in-store consumer through a number of interactive mediums. Some of the examples and usage of in-store technology in recent times have been: Aimed at communicating with consumers - A push system
TESCO aisle side targeted advertising using LCD screen, which change
2007- HBO store in New York, called the best store of the year by VMSD, uses both digital media and traditional media to communicate with the consumer
Aimed at bringing in operational efficiency- self check outs etc.
1995- Smart- Self Check out scanners launched at Sainsbury in UK link
2006-Ralph Lauren 24/7 touch screen window shopping, launched in US in 2006 and UK in 2007 link
Aimed at building consumer relationships by letting them experience products-An interactive system.
2002 Prada's project with IDEO, using RFID technology to link inventory information to loyal customer data base. This allowed not only check the stocks for the choicest products by also get inspired through fashion show images / clips viewed on a simple hand held device. link
2007-In-store theatrics to build a customized Barbie at FAO Schwartz link
ING DIRECT, has no bank branches, at it’s an online banking model. However, the few brick and mortar locations they have double as cafe's storing all the financial information and people often are seen discussing the investment related issues. At the ING CAFE, they also sell coffee!!
2008- AT&T store, like the Apple store allow consumers to play with the products, experience the environment, even before they make a buying decision.
2008-Barilla's launch of the Alixir brand - at its store in Milan. They are using the user interaction platforms to conduct market research and provide a customized offering to the consumer. Link
UWINK allows for a table side ordering through electronic ordering system Link
As the brick and mortar stores are trying to get digital, the online store and trying to become more real. link
This is not new, and companies have experimented with this for some time. But, they still generate a lot of interest and noise, when ever and who ever builds them. It’s surprising; these concepts have not taken off beyond pilot stages. Is it they are too expensive to implement or is it that it’s tough to define the ROI? link
Well, on a related tangent - Wonder why food service players like Starbucks and McD for PrĂȘt a Manger or Hale and Hearty are not using self - check outs. These can not only help these companies improve experience marketing but also push the consumer loyalty.
Launch of American Living

American Living is a brand launched by Ralph Lauren at the JC Penny's stores. It is the first big expected success of the global concepts group at Ralph Lauren. Some interesting observations about the brand are- No where the consumer gets to know that the brand is associated with Ralph Lauren. However, the brand still seems to have the classic RL touch.

As RL has always done, built a lifestyle positioning, built the brand / products around it and then continuously reinforce the positioning - through images, advertisements, events and provide a complete integrated look.

The American Living brand does not have any visible association with the brand, however, the industry guru's would be able to identify the style and the execution as a classic RL style.

Strong Image, Consistency and Constancy while not letting it become stale seem to be the mantra. And you, can extent into multiple segments and categories.