What a Lack of Consistency is Costing Your Brand from DRS, 7.27.14

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© 2014 StellaService. Proprietary and Confidential www.stellaservice.co m Brand Damage What a Lack of Consistency Is Costing Your Brand July 27 th , 2014 Presenter: Kevon Hills | Vice President, Research | StellaService www.stellaservice. com

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Kevon Hills from StellaService presentation deck from Digiday Retail Summit, 7.27.14

Transcript of What a Lack of Consistency is Costing Your Brand from DRS, 7.27.14

Page 1: What a Lack of Consistency is Costing Your Brand from DRS, 7.27.14

© 2014 StellaService. Proprietary and Confidential www.stellaservice.com

Brand DamageWhat a Lack of Consistency Is Costing Your Brand

July 27th, 2014

Presenter: Kevon Hills | Vice President, Research | StellaService

www.stellaservice.com

Page 2: What a Lack of Consistency is Costing Your Brand from DRS, 7.27.14

© 2014 StellaService. Proprietary and Confidential www.stellaservice.com 2

Why We ExistTo Promote and Foster a World of Great Customer Service

For ConsumersTo provide reliable, unbiased retailer information and ratings to help shoppers make better decisions

For RetailersProvide unprecedented data and insight on competitor to help measure, benchmark and improve operations

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© 2014 StellaService. Proprietary and Confidential www.stellaservice.com 3

Customer Care Fulfillment• Daily customer service interactions • ~50 orders and returns per year

Stella Metrics Service AreasMeasuring Speed and Quality Across Key Service Areas

Phone Email Chat Shipping Refunds

Consistency Performance

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© 2014 StellaService. Proprietary and Confidential www.stellaservice.com 4

Department Stores

Brand Manufacturers

Brand Consistency: Parameters and MethodologySame question asked to four different dept. store agents simultaneously

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© 2014 StellaService. Proprietary and Confidential www.stellaservice.com 5

“There is no information on how Ralph Lauren and Lacoste polos vary.”

“No major difference between the Ralph Lauren and Lacoste polo shirts. Lacoste

has a different feel than the Ralph Lauren polo since it’s 100 percent cotton.”

“The Lacoste polo is made of lightweight, breathable 100 percent cotton. Ralph

Lauren polos have a custom or classic fit and is a short sleeve interlock with soft

cotton.”

“Ralph Lauren is an overall better brand. Ralph Lauren polos have a better design, are higher end, exclusive, upscale, have better thread and don't shrink. Lacoste polos shrink, lose their shape, and will

fade after washing.”

What We Learned: Department StoresAgents are Giving Inconsistent Information About Products

Are there any major differences between RL Classic Polo and the Lacoste Classic Pique Polo?

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Can you explain what accounts for the $100 difference between the white and black Gucci

Sport XL watches?

“People do not generally wear white after Labor Day so that’s why the white once is

cheaper.”

“The white is water resistant up to 50 meters and the black is water resistant up

to 100 meters.”

“Price difference is the strap width. Black has a strap width of 7/8 inch and the white

has a width of 3/4 inch.”

“Specs on both watches are the same so not sure why there is a difference.”

“The watch costs more in black because it has a black PVD coating to give the watch a black finish. The white watch has a steel

case.”

What We Learned: BrandsBrand Erosion Being Caused by Fragmented Messaging

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• Saks Fifth Avenue was the best performer

• Lacoste represented the best; Estée Lauder the worst

Online Consistency

Results

Results of MeasurementInconsistent messaging across major department stores

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© 2014 StellaService. Proprietary and Confidential www.stellaservice.com 8

DEPARTMENT STORES

• Brands rely on your agents to be the voice of the brand

• Opportunity to improve training programs around product knowledge

• Inconsistency negatively impacts customer trust and loyalty

• Increased contacts and higher return rates drive up operational costs

BRANDS

• Consider the brand dilution and lost sales created by misrepresentation

• Ensure product guides and materials and always up to date

• Keep the line of communication open with retail partners

• Deliver above and beyond service through own ecommerce support

Key TakeawaysRetail CSRs Are Doing Customers a Disservice

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© 2014 StellaService. Proprietary and Confidential www.stellaservice.com 9

Contact:

Kevon Hills | VP [email protected]

Questions?