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Continued
Emotional Connection With Customers
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| Old model |
New model ©2006
Retail Forward, Inc.
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Uniqueness is no longer enough to keep a retailer
at the head of the pack. Retail Forward's Consumer
Value
Proposition Model shows that consumers want more
for less—more quality, consistency, selection,
and service for less money, time, effort, and risk.
Retailers
have been offering this, and now, the focus is morphing
from products to intangible emotional benefits. Now
expecting more for less, consumers also want what
products do for them as individuals and as part of
a social
group. To deliver emotional benefits, retailers must
be:
• Unique
• Aspirational
• Participatory
• Communal
Uniqueness is inherent in the individual for Jones
Soda. The niche soft drinks brand creates product labels
from customer photos, with the best of the lot chosen
through online voting. The firm receives more than
a million daily photo submissions without ever advertising.
The formula has taken Jones Soda from $2.4 million
in 1997 to $20 million in 2003.
Aspiration is the byword
of Coach, whose designs, styles, and luxury are barely
within reach, but within
reach nonetheless. Coach customers indulge in the store's
merchandise to feel good, to stand out in social circles.
The iconic brand logo “C” is coveted. Evidence
of the brand’s reputation in the marketplace
is repetitive strong quarterly comps.
Participatory environments are epitomized by Nintendo
World's 10,000-sq.-ft. Manhattan store, where consumers
can play with all the products. A gaming wall encourages
consumers to battle it out with others in the store,
and consumers can bring Game Boy units into the store
to download content. The shopping experience is about
more than simply making a purchase. At Zumiez, an interactive
feel is enhanced by customers' ability to design their
own skateboards on the firm's web site. The concept
is catching, with overall sales growth in 2005 of 33
percent.
The communal element, involvement in consumer social
circles, is illustrated by Studio D, a Best Buy retail
experiment. Geared for women, the 6,000-sq.-ft. technology
store has a residential design sensibility. Since technology
can intimidate the target demographic, Studio D offers
classes, affording opportunities to engage in communal
learning.
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©2006
Retail Forward, Inc.
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