The experience economy: Building customer experience through brands and digital technologies

by charlene_voisin | December 1, 2014 9:00 am

By Jeffrey Ross and Patti Moloney

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For jewellery retailers across Canada and the United States, price comparisons by savvy consumers has created a race to the bottom for non-branded products like chains, diamond stud earrings, or garden-variety wedding bands. With seemingly limitless information at their fingertips, consumers can quickly pinpoint which retailer sells a desired item for the lowest price, effectively commoditizing generic jewellery. Whoever offers the largest discount gets the sale, thus eating up the retailer’s margins and any chance of making a profit. The danger with slim margins is that the slightest dip in the economy could force many of these retailers out of business.

Shop-in-shop displays can help retailers to enhance the customer experience even more and for brands to have a greater presence.

To safeguard against bargain-basement pricing, Canadian jewellery retailers must look to branded items. While it’s true many will need to continue offering generic pieces for the convenience of customers, this type of jewellery cannot be the focus of the business. Consider instead emphasizing branded items, which are more stable in price. Instead of competitive discounting to secure a sale, brands hold their value and are priced comparatively from retailer to retailer. Business owners can rest easy knowing they won’t be undersold by a competitor down the street, says Niraj Dawar, an author and professor in marketing at Western University’s Ivey Business School. “Brands create platforms for transactions with customers, thus contributing to the experience of how a customer purchases and what a person is willing to pay for a product. This downstream activity is where competitive advantage is built,” Dawar tells Jewellery Business.

An added benefit to carrying respected brands is the customer experience they help create. As we move toward a more experience-based economy, consumers are placing lesser value in the product itself. Consumers want to feel appreciated and special; brands can help achieve both. Brands work hard to maintain consistency across retail outlets by providing retailers with marketing tools, display cases, and other materials to assist with advertising and sales measures. All these help create an experience consumers are looking for. According to Dawar, “People don’t buy what you sell; they buy the entire experience, including the purchase experience.”

‘A whole new level’

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The fashion industry is a great example of how brands can help build the customer experience. Brands in this market are creating apps to better inform retail employees and help them sell their products. This type of assisted selling can be accomplished through digital catalogues, product guides, and brand history, connecting employees with brand-related expertise that translates into higher customer satisfaction and larger sales. Stores are still the heart of brands and this information-spreading strategy is a positive move for both brands and retailers.

Taking this notion one step further is the shop-in-shop retail concept, which is well-established in the fashion arena and increasingly popular in the jewellery industry. It’s a way for retailers to enhance the customer experience even more and for brands to have a greater presence.

Add emerging digital technologies into the equation and the customer experience is taken to a whole new level. Jewellery retailers must be prepared to embrace new technologies offering interactive experiences, such as in-store touchscreens and interactive kiosks that consumers can use to find exactly what they’re looking for. In fact, many clothing stores have already taken the digital leap and are reaping the benefits. A great example is Boston Proper, a U.S. women’s clothing store that has transcended the customer experience through digital technologies. In operation for more than 25 years and with 12 locations, the company dedicates one quarter of its store space to fitting and consultations. Complete with tech tables where customers can browse styles, as well as design and build outfits with the help of knowledgeable staff, the entire experience is dedicated to assisting the customer in finding exactly what she desires. Getting staff on-board with this type of digital experience is a crucial component to enhanced customer service, as they must be able to effectively and efficiently assist customers. With properly trained staff members who are technologically savvy and personable, the client experience can surpass all expectations.

Striking a balance

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Through these multi-channel strategies, retailers can discover another added benefit: increased sales with less inventory. The days of buying hundreds of thousands of dollars’ worth of jewellery to fill display cases are numbered. Through digital technologies like kiosks and touchscreens, retailers can offer hundreds of options at the client’s fingertips while carrying less inventory in the store, virtually eliminating the risk of surplus products that sit on the shelf tying up capital. “Retailers need to ask themselves, ‘How can we sell products better?'” Dawar says. Embracing digital tools offers an answer, allowing retailers to give the customer exactly what he or she desires, rather than trying to find the perfect gift from a limited in-store selection.

Delivery can also be tailored to the customer’s wishes, with hand-selected pieces being shipped to the store for pick up or sent directly to the customer. It’s the perfect balance between shopping online and shopping in-store. Since more than 90 per cent of jewellery purchases still occur the old-fashioned way for the ‘touch and feel’ experience, a brick-and-mortar location with digital technologies can strike a harmonious balance.

Consumer attitudes have been forever changed by the Internet and the retail setting must revolutionize its processes to meet evolving consumer demands. Embracing and partnering with respected brands and providing digital tools for consumer use can give jewellery retailers a competitive advantage. The result can be an enhanced customer experience, increased sales, and repeat clientele.

Jeffrey Ross and Patti Moloney are a husband-and-wife duo that has used innovative thinking and technology to develop and expand their line of Dimples charms across Canada. They are also owners of Jeffrey Ross Jewellery, a retail store in Uxbridge, Ont.

Source URL: https://www.jewellerybusiness.com/features/the-experience-economy-building-customer-experience-through-brands-and-digital-technologies/

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