I think it is really interesting to see all the innovations that have been made to create a better shopping experience for the customer. The retail store has, in many circumstances, become like the hospitality industry in making sure that guests are completely satisfied. I have noticed this on my own, and the article “Prada Gets Personal” in Business Week makes it even more evident.
First of all, Prada has taken the initiative to make their store aesthetically pleasing. The first step in the retail experience is what meets the eye. If you can attract customers visually to your store, you can bring them inside, where the spending begins. Prada has commissioned Dutch architect Rem Koolhaas to design the retail space. The store features walls of glass, stadium-style bleachers to display shoes, and a 30-foot wooden "wave" that doubles as a stage. It also presents beautiful marble, zebrawood, and exposed brick.
Beyond the visual experience, Prada presents impressive technological advancements that allow employees to find a wealth of information on the Internet. Having the opportunity to find what is in stock, different fabrics, matching accessories, and even offering a virtual dressing room creates a total shopping experience.
In the current state of our economy, it is important for retailers to understand what keeps customers coming in. I think that Prada has really enhanced the customer experience, so that even in a down economy, customers are flocking into the store and most likely spending money. Even though Prada is an extremely high-end retailer, they are still seeing customer traffic because of the experience they offer.
Other retailers, especially lower-end stores, should take direction from Prada in creating a total shopping experience. These retailers would be able to truly capitalize on the experience aspect of shopping and increase sales. There are just a few things that encourage spending in a poor economy and experience is a primary factor. If Prada, being a very high-end retailer, is seeing an increase or even constant sales, then lower-end retailers would really see an increase in sales. It is important to not only feature sales and promotions, but to ultimately create an experience and make people want to come into your store!
Tuesday, March 31, 2009
Tuesday, March 24, 2009
The Persuaders
I think that The Persuaders was a rather interesting video. After watching it, I became more aware than ever of all the efforts and thought that goes into understanding the consumer and how he or she thinks. It is also really crazy to see just how much we are in contact with advertisements, even when we do not even notice it. Advertising agencies go to great lengths to have their products featured in so many ways.
An extremely fascinating aspect of the video was of course the findings of the brilliant Dr. Rapaille. Dr. Rapaille, a former autistic psychiatrist, has been labeled a market research guru. He has developed a 3-stage technique to understand why consumers behave the way that they do. The object is to take the subjects through a journey moving from reason to emotion to the primal core, where Rapaille believes the decisions are actually made. The technique involves a series of focus groups and activities to analyze customers’ attitudes toward a particular topic.
The first stage, reason, simply involves asking the subjects what comes to mind when they think of the topic, in this case luxury. The subjects of course state things like well-made, money, etc. This stage is just to have the subjects begin to think and feel that they have done a good job. Rapaille states that there are never any new findings at this stage, but it gives the respondents time to feel intelligent. Then they all take a break before continuing with the next section.
The next stage involves capturing their emotions. The subjects are asked to create a story that they would tell a five year-old from another planet that would explain luxury. This allows Rapaille to bring out the emotional attachments that the subjects have to the topic. It also allows them to be very creative, not so logical, and simple, since they are dealing with a young child. Then the subjects all take another break.
Finally, the third stage, getting to the primal core, involves reminiscing. This stage is extremely confusing for the subjects, especially since there are no chairs and they have to lie on the floor. Rapaille asks them to imagine the first time that they experienced luxury. The atmosphere is very relaxing and leads to very deep thought. This triggers what he calls the “reptilial hot buttons” that make them act. This truly shows what drives them to behave as they do.
Another interesting topic that Rapaille speaks about is the fact that each word has a mental meaning. This assigned meaning is what Rapaille refers to as the unconscious code in the brain. I think that this is very true. There are definitely certain words in particular that I feel I have attached a meaning to. For example, the word mother, an obvious example, but nonetheless a good one. To me mother is compassionate, enduring, powerful, attentive, and beautiful. Some people may have attached different meaning to that word, but I definitely have that unconscious code for mother. A consumer product word example, hoodie. When I hear the word hoodie, I think soft, comfortable, and warm. If a company is selling a hoodie that is thin and itchy, it is not going to appeal to me as a consumer. I believe that Rapaille is right that people attach a mental meaning to every word and I really liked that finding.
Lastly, I would like to just mention the efforts of Song Airlines that were presented in the film. I feel that it was a very appealing approach to the airline industry. I liked the aesthetic that the kiosk, the retail store, the plane itself, and the commercials all provided. I felt that Song was definitely appealing to a market that was underrepresented in the airline industry. Personally, I would have definitely been a Song customer!
An extremely fascinating aspect of the video was of course the findings of the brilliant Dr. Rapaille. Dr. Rapaille, a former autistic psychiatrist, has been labeled a market research guru. He has developed a 3-stage technique to understand why consumers behave the way that they do. The object is to take the subjects through a journey moving from reason to emotion to the primal core, where Rapaille believes the decisions are actually made. The technique involves a series of focus groups and activities to analyze customers’ attitudes toward a particular topic.
The first stage, reason, simply involves asking the subjects what comes to mind when they think of the topic, in this case luxury. The subjects of course state things like well-made, money, etc. This stage is just to have the subjects begin to think and feel that they have done a good job. Rapaille states that there are never any new findings at this stage, but it gives the respondents time to feel intelligent. Then they all take a break before continuing with the next section.
The next stage involves capturing their emotions. The subjects are asked to create a story that they would tell a five year-old from another planet that would explain luxury. This allows Rapaille to bring out the emotional attachments that the subjects have to the topic. It also allows them to be very creative, not so logical, and simple, since they are dealing with a young child. Then the subjects all take another break.
Finally, the third stage, getting to the primal core, involves reminiscing. This stage is extremely confusing for the subjects, especially since there are no chairs and they have to lie on the floor. Rapaille asks them to imagine the first time that they experienced luxury. The atmosphere is very relaxing and leads to very deep thought. This triggers what he calls the “reptilial hot buttons” that make them act. This truly shows what drives them to behave as they do.
Another interesting topic that Rapaille speaks about is the fact that each word has a mental meaning. This assigned meaning is what Rapaille refers to as the unconscious code in the brain. I think that this is very true. There are definitely certain words in particular that I feel I have attached a meaning to. For example, the word mother, an obvious example, but nonetheless a good one. To me mother is compassionate, enduring, powerful, attentive, and beautiful. Some people may have attached different meaning to that word, but I definitely have that unconscious code for mother. A consumer product word example, hoodie. When I hear the word hoodie, I think soft, comfortable, and warm. If a company is selling a hoodie that is thin and itchy, it is not going to appeal to me as a consumer. I believe that Rapaille is right that people attach a mental meaning to every word and I really liked that finding.
Lastly, I would like to just mention the efforts of Song Airlines that were presented in the film. I feel that it was a very appealing approach to the airline industry. I liked the aesthetic that the kiosk, the retail store, the plane itself, and the commercials all provided. I felt that Song was definitely appealing to a market that was underrepresented in the airline industry. Personally, I would have definitely been a Song customer!
Sunday, March 8, 2009
Lessons in Gaining Customer Insights: Pros and Cons
There are many different attempts at gaining customer insight. Many marketers use the term so loosely that they may not even realize what exactly they are aiming to gain. It is important to determine customer insights in marketing because it is the process of learning why customers are behaving as they are. However, it seems that customer insight is, to some, such a vague subject and that being able to accurately gain the necessary insight may be a tricky thing.
In the “Kenna’s Dilemma” chapter from Malcolm Gladwell’s Blink, Gladwell points out several important lessons that marketers should follow to actually have measurable customer insight. There were many tests that different companies tried out, but these tests did not yield representative conclusions. This proves that there is more than just simply asking customer if they like or dislike something. One must carefully choose how to formulate surveys, tests, etc. to determine how customers truly feel on the inside about a product. Nevertheless, I still feel that no matter how perfect a marketer is at gaining insight, all methods have their pros and cons.
In my opinion, a beneficial way to determine customer insight would be to actually observe how people react to your product in a natural setting. As Gladwell mentions with the Coke vs. Pepsi example, people were given a taste test and not actually given the entire product in a natural setting. This test returned false results. However, if the customer would have been observed drinking an entire Pepsi while watching TV or having dinner, etc., the marketers would have understood their true feelings.
Although this method would be ideal, it poses tremendous obstacles. The fact that it is extremely difficult to have the ability to observe customers in a natural setting is the most obvious threat. If marketers were able to offer products as samples to try out or in a store, or restaurant, etc. and could just watch the customers and their reactions they may be able to gain actual insight. On the other hand, it is very difficult to judge what exactly their reactions are relating to and what they liked or disliked. But, a marketer could use initial reactions to a product in a natural setting as a preliminary test of many in gaining customer insights.
Another lesson that I think is important to note is that of timing. I think it is very important to gain insights soon after customers have encountered the product. Reducing the time in gaining insight is crucial because customers are so fickle and quick to change. Sometimes, consumers will think one way about their experience with a specific product right after use, and then later when questioned about their experience may second-guess those initial feelings. People’s ideas change as time progresses, so it is especially critical to get feedback almost immediately.
On the other hand, immediate feedback on customer’s feelings can be challenging. It also limits the methods of testing that can be used. For example, if customers are sent a survey to fill out regarding their feelings about a product, they may return their results weeks later. This may lead to non-representative answers.
Overall, I believe Malcolm Gladwell does a very good job of addressing what concerns there are in gaining customer insight and the right and wrong ways to go about it. He cites specific examples that the reader can relate to in why certain methods may not have been ideal and vice versa. I understand why you are so interested in Gladwell, Professor Walls. He is a pretty smart guy!
FINALLY, IT IS MOST IMPORTANT TO NOTE THAT NEXT WEEK IS SPRING BREAK!!! WOOOOOOHOOOOOOO
In the “Kenna’s Dilemma” chapter from Malcolm Gladwell’s Blink, Gladwell points out several important lessons that marketers should follow to actually have measurable customer insight. There were many tests that different companies tried out, but these tests did not yield representative conclusions. This proves that there is more than just simply asking customer if they like or dislike something. One must carefully choose how to formulate surveys, tests, etc. to determine how customers truly feel on the inside about a product. Nevertheless, I still feel that no matter how perfect a marketer is at gaining insight, all methods have their pros and cons.
In my opinion, a beneficial way to determine customer insight would be to actually observe how people react to your product in a natural setting. As Gladwell mentions with the Coke vs. Pepsi example, people were given a taste test and not actually given the entire product in a natural setting. This test returned false results. However, if the customer would have been observed drinking an entire Pepsi while watching TV or having dinner, etc., the marketers would have understood their true feelings.
Although this method would be ideal, it poses tremendous obstacles. The fact that it is extremely difficult to have the ability to observe customers in a natural setting is the most obvious threat. If marketers were able to offer products as samples to try out or in a store, or restaurant, etc. and could just watch the customers and their reactions they may be able to gain actual insight. On the other hand, it is very difficult to judge what exactly their reactions are relating to and what they liked or disliked. But, a marketer could use initial reactions to a product in a natural setting as a preliminary test of many in gaining customer insights.
Another lesson that I think is important to note is that of timing. I think it is very important to gain insights soon after customers have encountered the product. Reducing the time in gaining insight is crucial because customers are so fickle and quick to change. Sometimes, consumers will think one way about their experience with a specific product right after use, and then later when questioned about their experience may second-guess those initial feelings. People’s ideas change as time progresses, so it is especially critical to get feedback almost immediately.
On the other hand, immediate feedback on customer’s feelings can be challenging. It also limits the methods of testing that can be used. For example, if customers are sent a survey to fill out regarding their feelings about a product, they may return their results weeks later. This may lead to non-representative answers.
Overall, I believe Malcolm Gladwell does a very good job of addressing what concerns there are in gaining customer insight and the right and wrong ways to go about it. He cites specific examples that the reader can relate to in why certain methods may not have been ideal and vice versa. I understand why you are so interested in Gladwell, Professor Walls. He is a pretty smart guy!
FINALLY, IT IS MOST IMPORTANT TO NOTE THAT NEXT WEEK IS SPRING BREAK!!! WOOOOOOHOOOOOOO
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