FFA 5: Strengthening LS Brand Equity and Loyalty

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Strengthening LS Brand equity and LoyaLty

This area of focus had to come into play after the earlier aspects of planning were already underway and showing results. For instance, FFA 4 (Fresh Fashion and Availability) had to be ensured before any activation could be done to strengthen brand equity or boost loyalty. But once all else was on track, the matter of strengthening brand equity and loyalty became critical to ensure consolidating the gains of the FFA system.

CASE FOR CHANGE

1.1 Pain points needed to be identified:

The overall Net Promoter Score (NPS) score across stores was plummeting. The NPS of each store is the comparative percentage of benefactors against detractors and is a clear indicator of the equity and loyalty enjoyed by a brand.

1.2 Loss of differentiator edge

Into the 3rd quarter of 2018, it was observed that the increasing clutter in the market was taking away from the brand’s differentiator edge. For example, if a consumer were to shop at Lifestyle vis a vis another department store, 70-80% of the merchandize would overlap. Lifestyle and the other department store were also likely to be similar in general layout and size. There was hardly any novelty in shopping in a Lifestyle store.

1.2 Lack of regional connect

In a competitive environment with the increasing entry of global players, as well as aggressive competition from local players, the brand needed to relook strategy.

1.3 Poor in-store customer engagement

There was no hands-on customer engagement in stores – the point of interaction happened only at the end of the customer visit when he or she was paying for goods selected for purchase.

1.4 Lack of fresh fashion

A customer walking in frequently would invariably see the same displays and stock 3-4 times - this hit brand loyalty severely.

PLAN AND IMPLEMENTATION

Pushing up the Net Promoter score:

An analysis was undertaken to identify the areas which had the maximum detractors, and aggressive customer service enhancement and systematic fresh fashion communication plans were set in motion. The initiatives caused the NPS score to rise from 32 in September 2019 to 51 by January 2020 and 53 by February.

Quick movement at cash counters: One of the key problems was the long

wait-times at cash counters during high footfall time between 5-8 PM. To rectify the situation, more personnel were assigned to cash counters during the time. A concept called the ‘All-cashiering model’ too was introduced. This meant, there were to be no ‘dedicated cashiers’ anymore. All store personnel were to be enabled to work at the billing counter as and when required. This helped remove bottlenecks at the counters.

Uniformity of promotions: Another area where the NPS score took a beating was in the perceived complexity of promotions. Often, a customer would arrive at the billing counter with what he or she had assumed was a discounted product only to be informed he/she had misinterpreted the promo. This resulted in longer queues and customer disgruntlement. Promos were simplified and made uniform. This simple step helped smoothen out things considerably.

Real-time visibility of detractions: The brand moved to a platform called ‘One Direct’ that enabled real-time feedback. All store managers were provided with the app which enabled them to easily access and process feedback for the day and the week more efficiently.

empowering the business manager:

Earlier, the buying teams would decide what products to push to stores, even though the business manager, by virtue of managing operations on ground locally, would have more insight into what product mixes work better in his store. The managers were in a position to improve performance of the store and brand/s – provided the needs of the local customer and market could be formally assessed, and merchandize allocation influenced by them. As part of the FFA 5 approach, various initiatives were put in place to improve the empowerment of the business managers.

soft skills of business managers:

Detractor issues were usually processed through a call centre but from October 2019, under the FFA 5 plan, the store business managers began calling the customers themselves, understanding pain-points and ensuring that grievances were taken care of in a far more qualitative way. An initiative called Vision Smiles helped document and develop a culture of such narratives. For example, a customer in Hyderabad gave Lifestyle a rating of 2 on the NPS scale because the lipstick she had purchased was chipped. In response to this, the store manager procured her address and sent her a replacement that assured her loyalty. In Delhi, a customer wanted to replace a product but she lived

the Loyal Customer

Brand loyalty is not built up overnight but is a critical aspect that a brand needs to focus on to ensure sustainable profitability. This was the key realisation that the FFA 5 hinged on. The policies of FFA 5 continue to bring in dividends.

too far away from the store. The store manager delivered the product to her on the same day through an employee who lived in the area.

CRM Ls eDGe programme: An incentivebased programme for consumers, LS EDGE, was introduced as a differentiator with far-reaching consequences. Under LS EDGE, a host of privileges was provided to consumers for just Rs. 499 a year.

These benefits included a 15-20% discount during birthday-months sponsored by brands; free parking; and home-delivery of altered garments (waiting time being a sore point with customers). The programme became a runaway success: From quarter 1 to 3, enrolments to the programme shot up from 10,000 to 75,000.

As a fall out, the MVC (Most Valuable Customer) turnover reduced. While the total customer enrolments reduced, the MVC segment increased.

Building a regional connect: A regionbased customer service and connect

Performing brands were given higher in-store visibility

plan was implemented. An LS instore app was also made possible to connect with customers on a regional basis.

enhanced customer engagement: This was addressed internally and externally. From an organizational standpoint, the focus was to have adequate systems and processes to monitor customer feedback and sync it to an upgraded MPS. From a consumer viewpoint, the focus was on better engagement, how to increase footfall and revive old customers and attract peripheral customers.

Internally, a system that involved everyone at all levels in the Integrated Go-To Market (IGTM) approach was created. This was also to ensure process-driven discipline.

Other measures that were taken under this scheme was to own categories with specific approaches. For example, for Valentine’s Day an occasion was created called ‘Dress for a Date’ that created a focus point of engagement for customers. The Buddy app, a virtual shopping assistant, helped consumers navigate, choose and

redeem rewards. Downloading of the app was incentivised with offers. The app also helped connect with the customer on a regional basis.

Changing from M.G.D tO G.e.t: The philosophy of M.G.D (Meet. Greet. Direct) was replaced by G.E.T (Greet. Engage. Transact). Instead of greeting the customers and directing them only when requested for help, the new system had the floor personnel engaging with the customer to gauge his/her tastes and accompany him/her on the shopping journey to the point of transaction.

freshness in fashion: One of the key parameters addressed was freshness in fashion not just in stock availability but also in the look and feel of the store to encourage repeat visits and prevent the tendency of consumers waiting for end of season sales where they know they would get the same merchandize discounted. Store windows and other displays were changed weekly and communication was disseminated to the consumer base more effectively. This also helped offset the issue of online companies being able to change their displays with rapid frequency.

instagram to Planogram: One of the ways this was achieved was through the Buddy app. When a customer keen to purchase an outfit as shown in instagram, opens the Buddy app in the store, the Style Bot, on it, through AI, recommends the complete look put together from different brands. The customer can simply pick up what she wants without having to wade through a lot of merchandize she may not be interested in. Also part of the system was to enable the checking for availability of products in the store at the time of shopping. In case the product was unavailable, the app facilitated online viewing of the same at the online store where it was likely to be available.

The next step was to enable seamless tech enabled Omni channel shopping through Whatsapp, Search and Social Media with collaborations on and off line – to address safety and delivery concerns of the customer in the post-Covid environment.