Liberty report

A report by

Featuring; Beth Hamblin-Warren - N0429794 Zoe Harrington - N0379671 Camilla Lewis - N0436588 Rebecca Pozzi - N0430140 Elizabeth Simpson - N023138

Nottingham Trent University Fashion Communication & Promotion Promotion and Context FASH201314

the Contents

the introduction - 6 Liberty of London - 10 the RESEARCH - 14 THE PRIMARY- 24 THE CONSUMER - 32 THE BIG IDEA - 44 THE LAUNCH 68 the conclusion - 72 THE REFERENCES - 76 THE IMAGE references - 80 THE APPENDIX - 84

introduction

ìLiberty has changed over the years but youíve got to adapt to survive.î

L iberty of London is a heritage store full of eclectic designs and luxury goods. Renowned for its British roots, and indulgent retail experience, consumers have increasingly high expectations and

its Liberty’s job is to make sure they fulfill them time and time again. Being a brand rich in history, it is important that it is always referenced; as this history connotes expertise, loyalty and a brand you can trust. Although all the above is important, there must be a balance between the old and the new as Liberty could be at risk of being left behind if not done so. Technology has evolved in society hugely over the past century and this has created a consumer who can access things faster, more efficiently and with ease. With this service now being the norm, it is important for brands to keep up with this evolving technology savvy consumer, in order to fulfill their now mandatory needs. Maintaining a healthy balance between these two selling points was a key aspect we have referred to throughout our research proposal. We believe we have created a forward thinking approach to the technological and experiential advancements needed to be made to Liberty’s in order to maintain its position on top.

(Liberty of London, 2013)

- Rebecca Pozzi -

The brand

‘L

iberty is more than just a department store, it is one of UK’s leading retail landmarks’ (Ruddick, 2010) being one of the most recognisable buildings in Central London with it’s Tudor facade exterior. It is renowned for combining new and contemporary styles of fashion and design, but still keeping in touch with their great British heritage and traditions. Sheldon Lazarus, Creative Director of Rize USA, stated Liberty as ‘an undisputed national treasure and one of Britain’s most trusted brands’. Liberty is recognised as an emporium full of innovative and eclectic designs with rich heritage juxtaposed with the contemporary, appealing to the creative individuals. The second floor is dedicated to modern designers demonstrating Liberty as a more forward thinking department store in comparison to similar stores within this category.

We began our preliminary research, by watching the Liberty of London observational documentary that was aired on Channel 4 in December 2013. This allowed us to gain a behind the scenes insight in to how Liberty runs on a daily basis, as well as the relationship the members of staff at Liberty’s share with their customers.

The members of staff at Liberty’s strive to deliver an excellent customer service experience; offering faultless knowledge to their consumer about the products they have on offer; ensuring the consumer has a seamless in store experience.

According to the documentary (Liberty of London 2013), Liberty has been struggling in recent years to keep the store cutting edge and to turn over a profit (See Perceptual Map, Appendix 1.5). Therefore, they hired Ed Burstell from iconic department store Bergadof Goodman in New York - renowned for it’s visionary in store designs, window displays and retail experience - to be the new managing director assisting with the amendments needed to make Liberty’s competitive again.

- Elizabeth Simpson -

Figure 1: Anon, Liberty Of London Staff (2014)

the research

Psychology of the consumer

F

ollowing on from this trend we are also seeing consumers look towards brands with authenticity and a back-story, something Liberty is all too familiar with. Embracing the new technology with the old traditions Liberty has in place, is essential for them to not only maintain their loyal consumer base but to also attract a younger consumer market.

Customers value ‘Timeliness over Trendiness’ (Solomon, 2012) and consumers want to be reminded of the heritage and authenticity behind a brand. However, for a brand to move forward they still need to remain contemporary and embrace new technologies that are appearing (Solomon, 2012). As Micah Solomon stated in his book ‘High Tech High Touch Customer Service’, customers want the 21st Century version of timeliness – on a timetable that matches the impatient standards of the Digital Generation.

T

he heritage behind Liberty’s is invaluable to their customers, the brands traditions have been passed down to create an impeccable customer service that Liberty is famous for. Trust is also a vital commodity to the consumer, one of which can only be gained by delivering the promises the brand has made. This relationship needs to be maintained and their traditional services need to be kept current in order to support their loyal customer base.

These traditions are being juxtaposed by the new trends we are seeing emerging through consumer purchasing habits. We are now finding that consumers prefer to look towards their smartphones for answers rather than a human clerk (Solomon, 2012). In Micah Solomon’s book he discusses this idea further, he speaks about how there now is a buying populace that is becoming more tech savvy and would rather do business with a machine than communicate face to face. This idea has spurred and driven the new self-service trend; the idea of an uninterrupted shopping experience.

By acknowledging this trend within technology and customer service, will enable Liberty to create a contemporary seamless shopping experience for their consumers. When looking towards the future of Liberty’s we need to ensure it maintains its traditional values whilst embracing new technologies; in order to compete with other brands that have already fully integrated technology as a way in which they communicate their brand message to their consumer.

Figure 2: Banksy Lovers Painting, (2014)

- Beth Hamblin-Warren & Rebecca Pozzi -

C

onnecting and maintaining a positive relationship with their consumers is something Liberty does extremely well. In place at the moment is a ‘Black Book’ System; they send out gift cards to their loyal consumers as well as collating their information and interests in order to get a more personal insight in to what makes each consumer tick in terms of their purchasing habits.

In the rise of the digital era we are seeing a distinct increase with brands using push notifications and targeting their consumers within a digital format. However, we understand that ‘Permission Marketing’ is a key aspect to consider when targeting the Liberty consumer. ‘You must know how the consumer wants to be reached and you must make it easy for them to switch communication channels’ (Solomon, 2012). Despite Liberty’s doing this well already, we believe the approach they use currently is out-dated, slow and inefficient.

By the use of technology we hope to increase consumer engagement with the brand, creating for a more efficient and two-way line of communication.

One area we cannot fault Liberty on is there attention to detail when serving their customers. Each staff member under go an extensive training program, to guarantee they are providing an excellent level of customer service to the Liberty customer. Which is something consumers can identify as the Liberty way and learn that they can receive this type of service every time they visit. It is essential for Liberty as a brand to ensure they deliver ‘Anticipatory Customer Service’, the idea that you know the needs of your customer before they enter the store, thus, in turn creating fierce customer loyalty (Solomon, 2012). Despite the procedures already in place the added benefit of using technology as a form of interaction will ensure a faster more efficient way of communication.

The idea of combining technology to boost efficiency and strengthen the relationship between the Liberty staff and the consumer will be a focal point when developing our idea.

Figure 3: Anon, Liberty Shopper (2014).

- Beth Hamblin-Warren & Rebecca Pozzi -

a new element The current retail market is now bigger than ever, providing products, which can be sourced from numerous locations. This makes it harder for a brand to ensure their consumers stay loyal due to choice trauma.

This new market has now produced a new consumer to be aware of, ‘The Butterfly Consumer’. This new type of consumer is not loyal at all. ‘They will go to the newest player, oldest player, the lowest price, the highest price and maybe even back to the original player.’ (O’Dell, 2000).

- Beth Hamblin-Warren & Rebecca Pozzi -

Various factors can affect this, whether it’s price, customer service or quality. The 1996 international data corporation report stated that, with the huge resource of the Internet consumers can now have instant friends offering their opinion at the click of a button. This has been proven to be remarkably influential and above all out of the control of the brand. (O’Dell, 2000). This enables people to be as truthful as they like. To gather information about a brand and the service they provide is becoming a common trait within consumer behaviour; therefore it is more crucial than ever for a brand like Liberty to maintain their high standards, as one wrong move can resort in a backlash of unhappy consumers. This would not only affect the reputation of the Liberty brand standards but can also result in the “butterfly effect”. A butterfly consumer is fully aware of the power and background information they now withhold over a brand and use this history to their advantage. (O’Dell, 2000).

Liberty has already implemented a loyalty card system, which involves the consumers being the first to know about any exclusive in store discounts and collection updates, rendering the ‘butterfly effect’ mute. There are benefits with this scheme, every time the consumer spends money in store this adds up to money off vouchers and discounts which can be redeemed in store and online, with an additional bonus of a surprise birthday gift to thank them for their loyalty. We believe the scheme they currently have in place is satisfactory in stopping the breed of butterfly consumer. However by implementing the loyalty card system digitally Liberty will be able to reach their consumer quicker creating a more effective process in order to stop the butterfly consumer assessing where the best offers are and fluttering between Liberty and their other competitors.

technology 2.0 T

he time consumers spend on their phone has grown by 237% since 2010 (The comScore Data Mine, 2014). This alarming number proves that the online platform is getting more and more relevant every day, most prominently for shopping. These statistics are proof that the way forward is technology, embracing it will then improve the bond between the brand and their consumer.

This is done through multi-channel retailing, expanding the online space, the consumer then interacts with the brand through a chosen platform which enables the interaction to happen on their terms, in this case, a smartphone (Future of Retail, 2013). A smartphone is no longer there to communicate via phone calls or text, they are so much more than that. They are your computer, your purse, camera and map that fits into the palm of your hand. Giving you access to the endless amount of apps the Internet could provide. As technology advances, the way we shop also moves forward.

As brands get more familiar with this idea, a new approach to the conventional shopping experience is being launched into the 21st Century in a way that is changing the future of retail. This new way of shopping is to ensure that the quick demands of the consumer are met, without any set backs getting in the way.

Figure 4: Anon, Genes @ CO-OP café, Barney’s New York (2014)

Barney’s New York (see case study) is a prime example.

Tom Tamulewicz, the president of micros-retail, believes that if staff are connected to the online data of the store via iPads that it will increase the opportunity of upselling to the consumer as it provides the relevant information they need at the time (Luxury Daily, 2011).

Consumers today are not so quick at buying; they like to do their research around the subject, ensuring they are making a more informed decision.

Stores need to be able to adapt to the customers buying preferences across all channels. By doing this they are increasing the purchasing journey for the consumer, making the in-store experience as memorable to encourage the shopper back to the store in the future. Micros-retail do this by installing their products in stores (Barney’s case study), with staff having access to Apple products at all times. This helps because they are constantly connected, allowing themselves to hold more information around the subject, which then helps the consumer on a deeper level. Making the experience quick and seamless.From this research, we were able to determine the trends going on with technology in stores. This led us to our general idea to increase the loyalty of the Liberty consumers (See Critical Path, Appendix 1.1). The next step for us was to go London as we thought it was vital to see what other stores are doing.

- Camilla Lewis -

Case Study: Barney’s New York What: -Embracing micros-retail products which are used for; POS, loss prevention, order management, deliver products from other stores and check customers out using mobile phones.

-Staff have iPod touches with store inventory on -mobile checkouts to save space on shop floor Why: -The use of micros-retail increase selling space, allowing for more stock on the shop floor as till points are removed. They wanted the retail space to be driven by the shopping experience and not the physical constraints of the bulky tills.

-Cost effective way to handle peak changes in volume -Staff can help customers in all areas of the store -Maximize staff time on the shop floor as they don’t have to go to stockroom to check stock.

How: -Staff are able to increase time with the loyal consumers, making them feel more valued in store.

the primary

the investigation W

Figure 5: Burberry, Regent Street Store Digital Space (2014)

Case Study: Burberry What - New store on Regent’s Street known as ‘where the digital world meets the physical’.

- 22ft high screen (largest retails screen in the world), showing most recent catwalk show, 500 hidden speakers and hydraulic stage.

- Introduction of ‘Magic Mirrors’. Radio-frequency identification (RFID microchips) means that shoppers can approach a mirror which will be transformed into a film of how it was made and what it looked like on the catwalk.

- Each member of staff has an ipad. to check the website with customers and check current levels of stock.

hilst conducting some Primary Research in London, we visited the Burberry Flagship store on Regent’s Street where they have pioneered the market in terms of technology within retail (See Case Study). From this we were able to see how technology could be used to increase the amount of time staff were on the shop floor, and therefore, create a stronger bond between customers and staff.

We concluded that the use of iPad’s with staff is important to Burberry because it means that they are not leaving the floor to check for stock.

When they do have to leave, customers are able to use the iPad to browse other products and other collections that are not on the shop floor.

A member of staff told us how vital she felt the introduction of the new technology is; “it means I am able to stay with the customer for the majority of their time in the store, we also have so much stock in this store we cannot have it all on display so having the iPad gives me

the chance to show all varieties of colours and style.”(Elaine, Burberry, See Conversation). This reaffirmed our idea that introducing a way of having the technology on the shop floor in Liberty was important and something that had to be introduced quickly if we wanted to keep them up to date with their competitors. Whilst we were in the store we were able to use their ‘magic mirrors’ to get an idea of how they work. We were disappointed as we felt that the mirrors lacked purpose as they just gave an overview of the product the customer. This made us realize that if we were to introduce our own magic mirrors into Liberty they would have to be exciting and beneficial. Burberry is a traditional British brand and has managed to keep their Flagship store classic yet up to date with retail technology, and therefore, we believe this is something we can do to increase customers experience in Liberty.

Why - To increase time that staff are on the shop floor, and increase the staff/customer relationship.

- Already pioneers in the fashion industry, but want to be pioneering the retail industry too, keeping them innovative and creative.

- Detail that they put into their manufacturing vital, and important to consumers as a traditional, British brand that is still manufactured in Britain.

How - Enhances experience in-store because consumer can interact with the technology.

- Consumer can take charge of the store environment, feels more personal.

- Burberry has huge Asian market consumers, therefore this new technology is something they will use.

- Zoe Harrington-

ëM&S mobile app has been downloaded over 580,000 times since the launch.í

Figure 6: Harrington, Z. (2014) M&S Digital Window Display, Oxford Street.

(Annual Report m&s, 20140)

M

arks & Spencer’s (M&S) have an interactive window display that means the customers can browse the M&S website, along with their products before entering the store. Seeing that brands such as M&S have been able to introduce technology into their visual merchandising and window displays, demonstrates that the brand have embraced the digital age to move forward with their customer service. On the M&S annual report it’s instantly visible that they have introduced multi-channel shopping for their consumer, to make their shopping experience easier and smoother.

Figures on their annual report demonstrate how the new service had grown in popularity, ‘over 54% of M&S orders being placed online and collected in store’ (Annualreport. marksandspencer.com, 2014).

After seeing their interactive windows in Oxford Street, we decided that we needed to look at M&S as another brand that is introducing innovative technology. With customers of a similar age group, we wanted to investigate how increasing the customers experience and loyalty, was an important change that Liberty needed to make. With Liberty London claiming to be ‘cutting edge and showcasing innovative designs’ it was clear how they had not kept this promise and had in fact been beaten by M&S with their interactive window displays, compared to Liberty’s ‘interactive window’ that was merely just stick on information that passers by could take.

Figure 7: Harrington, Z. (2014) M&S Digital Window Display, Oxford Street.

A

t Liberty, a comfortable waiting time to queue at a till point is two to three minutes (Liberty of London, 2013). A time that isn’t so quickly achievable during the busy holiday periods, for example Christmas. A way to avoid interrupting the consumer decision journey with queues is through mobile checkouts. From speaking to Anya, a Womenswear Sales Assistant at Liberty, she explained that the one till point in her section wasn’t enough during the Nike x Liberty collaboration launch a couple of months ago, leading to customer’s having to leave and find a different till. (See Appendix 2.4) This disruption of the consumer decision journey was something we thought may need changing.

Wanting to investigate this further, we conducted an observational study to distinguish the tills on the shop floor. As this was unclear we asked a Sales Assistant how many till points do they have in store? The answer was quite vague with a rough estimate of 40 tills. This might sound like a vast amount, however, they are spread around the shop floors and hidden discretely to not distract the eyes away from the limited stock displayed. From finding this out about the tills in-store, we were able to establish whether something needed to be done to enhance the experience of paying more efficient.

Combining the information we found whilst conducting our primary and secondary research, we were then at a point where we could establish an initial idea for our loyalty scheme. We knew we wanted to create an app for smartphone users to help increase the relationship between the staff and the consumer. This app would increase efficiency for the consumer, ensuring their time is valued when shopping in the store. This would work by adopting the micros-retail brand strategy of paying on your phone. Another element for our idea is to introduce ‘Magic Mirrors’ in-store. This would help the consumer save time, as they wouldn’t have to worry about having to try on garments.

Figure 8: Anon, Liberty of London In Store (2014)

- Camilla Lewis -

the target

ëconsumers wonít consumer unless it is designed well.í

A

fter gathering a basic idea of where we saw the future of Liberty heading in terms of technology. We decided to test this idea on its current consumers, to firstly see if they understood the concept and how as a consumer they would accept our idea once it has been integrated in to the Liberty store environment. Another point we wanted to make sure we covered whilst conducting our primary research; was whether the consumer could see our concept working within Liberty and above all if the consumers themselves believed it was coherent with the Liberty brand. To conduct our primary research we used a stratified sample, targeting consumers leaving the store holding a Liberty’s bag.

By only targeting people leaving the store with bags we were able to ensure they were a consumer of the brand.

We found this sampling method worked well, as when we spoke to consumers we found they truly understood the brand and the customer service you received when you purchased from Liberty. This helped us gain a crucial insight into how the consumers engage with the brand, their employees, the efficiency of their service and whether or not it could be improved.

(daniel H. pink, 2006)

- Beth Hamblin-Warren & Rebecca Pozzi -

46 y, he rt

Figure 9: Hamblin-Warren, B. Consumer, Faye Johnson (2014)

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Figure 10: Hamblin-Warren, B. Consumer, Sam McCarthy (2014)

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Faye Johnson, 25

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W

hen conducting our research we found that Liberty has two very different, yet loyal consumer bases. We identified two distinct consumer tribes, the first being ‘The New Age Collective’. We found with this consumer tribe, the typical consumer was within their mid 20’s – 30’s; a possible recent graduate who has attained a typical 9-5 career. They are beginning to stand on their own two feet and starting to develop a distinctive style. With this consumer being younger and brought up within the digital age, they seemed a lot more interested and accepting of the new technology being integrated in to Liberty. Seeing this as something exciting and beneficial to the development of the brand.

‘I think it’s a great idea! As long as it works and can fit in accordingly with the stores strong identity, it’d definitely be something I’d like’. – Faye Johnson 25

- Beth Hamblin-Warren & Rebecca Pozzi -

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the new age collective

Our second consumer tribe, ‘The Cultivated Classics’ were less impressed by this kind of investment. Being pretty content with life and the service they receive from the loyal brand. We identified that this consumer enjoyed coming in to the store fairly frequently and appreciated the smiles and conversations they shared with their favourite members of staff. Not wanting to be fussed over, these consumers like to be left to their own devices whilst observing all Liberty has to offer. However, if they ever needed assistance or required a word of advice, they know that the Liberty team will be there immediately to help them with their choice trauma.

After explaining our initial concept to introduce technology within Liberty, they saw this as something ‘unnecessary’ and appreciated the valuable face-to-face advice they received from the Liberty floor staff. Unlike the ‘New Age Collective’ this consumer has had to learn to adopt new technologies into their lives and slowly develop their knowledge around it. This is a key area to consider that at first ‘The Cultivated Classics’ consumer might seem alien to the idea of new technology, but by slowly integrating it within the store environment it will appear less unusual and become a normal part of their day-to-day consumer decision journey.

the cultivated classics

W A

nother point to consider is despite one type of consumer dismissing the idea of integrating technology within Liberty, does not necessarily mean that once it is fully incorporated into the brand, they will not interact with it. This idea has been discussed about in Daniel HPS book ‘A Whole New Mind’ where he discusses the idea that “Consumers won’t consume unless it is designed well – so it’s easy to dismiss”. This characteristic is often seen within the Butterfly Consumer, because they have already experienced failure from brands they are ready to enforce these pessimistic views on the products they are offered. To gain the loyalty of the butterfly consumer, Liberty as a brand need to restore the faith their consumers may have against new technological changes. This is something we predicted before visiting the store and soon realised it was hugely important to recognize the difference between these two tribes in order to communicate our idea and appeal to Liberty’s two very different consumer types.

Our research trip to London, gave us a valuable insight into how Liberty’s consumers would respond to our initial idea. By visiting some other retail stores who are already integrating technology within their in store environment, this helped us to analyse a potential gap in the market for our app and how it will benefit the Liberty consumers.

Stores such as Burberry and M&S have already started incorporating technologies within their retail spaces through interactive window displays and “magic mirrors”. However, not wanting to imitate what these stores have already done, we wanted to develop on these to create our own modern approach to in store technology, saving the consumer time providing a seamless and efficient in store.

- Beth Hamblin-Warren & Rebecca Pozzi -

hilst inside Liberty, we spoke to Ellie and Caroline (See Appendix 2.2) who we identified to be representative of the two consumer tribes - The New Age Collective and The Cultivated Classics. They were both happy for us to have a follow up conversation with them, explaining our idea to them in more detail.

Their responses helped us to confirm our idea and develop it further in order to benefit these two consumer tribes, considering their different needs involving technology.

Figure 11: Simpson, E. Consumer Profile, Caroline Jenkins. (2014)

Figure 12: Simpson, E. Consumer Profile, Ellie Chapman. (2014)

jenkins

ëThe rate of diffusion is defined as the speed that the new idea spreads from one consumer to the nextí (Brannon, 2005)

the diffusion of innovation

Figure 13: Rogers (1962) Diffusion of Innovation. (2014).

I

n order to communicate our idea to the Liberty consumer, it is essential that Liberty can identify their consumers within the diffusion of innovation curve (Rogers, 1962) to see who would best respond to the new technology in store. With this method working successfully, this can enhance the loyalty and relationship Liberty has with its existing consumers, as well as appeal to their new consumers who have been bought up surrounded by the technological age.

As The New Age Collectives are Early Majority, they are able to articulate their ideas and opinions in such a way that makes sense to other consumer tribes. They are evolving fast due to the increased technological advancements emerging within society with smart phones being their default platform. Their positive, optimistic and co-operative attitudes make them a fundamental group for Liberty to aim their consumer loyalty scheme at, as they are a more receptive generation to buy into and capture experiences.

The later trend followers: Late Majority are more representative of Liberty’s older consumer, ‘The Cultivated Classics’, fitting into the generation cohort of Generation Jones and the Baby Boomers. Both of these groups are more wary of ideas that change the status quo and cling onto familiar settings, with the constant need for reassurance in response to a new trend.

It may initially be difficult to target these consumer groups because they have only recently been introduced to our new technological society. However, Fogg (2003) states that within Persuasive technology, when people are confronted with a new behaviour that they aren’t used to or not routine, they may find it harder to adapt. New and foreword technologies within the store, should be introduced at a gradual pace in order for consumers to become accustomed to them, with staff constantly being at hand to offer assistance and reassurance with using the new technology.

- Elizabeth Simpson-

the big idea

ëconsumers are 29% more likely to buy from a brand they have a relationship with.í (Luxury Daily, 2011)

the mobile platform A

s mobile phones influence 4/5 in-store sales (L2thinktank. com, 2014), with the key word being influence, it’s incredibly important to give consumers a reason to come back into the store physically. A need to merge both the physical and the digital worlds together, creating the phygital (LSN Global, 2014).

Taking inspiration from Barney’s New York, Liberty is currently a department store that isn’t only suitable for the traditional, older generation but the younger contemporary artist’s and the fashion forward Asian market, and therefore a store that everyone feels comfortable in. For Liberty, this is done through friendship.

- Camilla Lewis-

Before

the journey

It is essential to consider the consumer’s behaviour before, during and after the in store experience. The before aspect is the consumer initially downloading the Liberty app. The app has a series of questions in place in order to get to know the consumer on a personal basis.

This includes their favourite department and Liberty print with notifications being sent to them according to their needs and desires. All of this can be adjusted at the click of a button if their preferences change . The consumer will receive alerts of any upcoming events that are happening within Liberty to entice them to come to the store. With these being exclusive events to all Liberty loyalty app holders, the incentives of getting to know the new in store technology as well as private invitations to any launch events that Liberty host is enough to make any consumer feel wanted and appreciated.

During

Once the consumer enters Liberty, they will receive an alert welcoming them to the store, enhancing the bond they already have with the shop itself. This alert will also notify the consumer of any new collections that they have previously preference. This reinforces further that the Liberty consumer is a valued one and Liberty strives to provide all their consumers needs. To keep the experience consistent whilst the consumer is in store, the loyalty app allows the consumer to scan items as they browse with the aim to save them time at the till point as their items will be ready packaged, and they can pay on the app. The Magic Mirrors are also another aspect of the new technology that will be integrated into Liberty. With the intention for the consumer to save time during their shopping experience, eliminating the factor of having to try on clothing before their purchase.

After

Even once the consumer has left the store, the experience of Liberty will still be coherent.

Both the consumer and members of staff have access to a “Black Book” on the app where members of staff can follow up with consumers purchases after they’ve left the store, ensuring they were satisfied with the service they received. This aspect of the app reminds the consumer of Liberty and their exceptional service, therefore making the consumer more inclined to come back to the store - working as an advantage to Liberty as this strengthens the bond they have with their consumer.

- Elizabeth Simpson -

T

he Liberty Loyalty Scheme is built on a mobile platform to help save the consumers time, which will then secure the bond between the staff and the consumer. This is done through the Liberty app which the consumer will download once they have their loyalty card number. This new loyalty app will improve the consumer loyalty to the store as all of their details are recorded digitally to guarantee no details are lost. Having this in place ensures only the best, personalised service will be provided to them.

A main feature for this mobile platform is to ‘scan as you go’. This will help the consumer save time whilst shopping as they scan each item they want to buy on their phone, which they then pay for on their smartphone. This will increase efficiency as it avoids the consumer having to wait in line to pay. The items they have scanned are then taken by a staff member to be neatly wrapped up in a classic purple Liberty bag which will be waiting for them on their way out, after providing proof of purchase of an online receipt.

Floor space is a big problem at Liberty’s, in the past couple of years they have increased the floor space by 10% which means having to remove stock rooms and decreasing the size of the loading bay. (Liberty of London, 2013). Our idea will help solve this problem as we propose the store removes 50% of till points, keeping the main ones in place, allowing this extra space for more stock on the shop floor.

The Tiffany app has a very important feature, which allows the consumer to contact an actual human; this gives the brand more of a personal touch (Luxury Daily, 2011). Our loyalty app will hold a similar feature. The consumer will have a ‘Black book’ section on the app, which allows the consumer to collate the information of each staff member that has served them. This will show the consumer whether the member of staff is available to message or call if they have a query about the sale. This will help increase the bond between the two. To maintain this relationship we will introduce a staff app.

Figure 14 – 24: Lewis, C. App Mock Ups. (2014)

- Camilla Lewis -

staff involvement S

taff gaining a relationship with the customer is incredibly valuable to Liberty’s, this is the main reason why the customer comes back. The quality of the sale is always more important over quantity, (Liberty of London, 2013). Our app will create a more efficient black book system. Instead of flicking through loose receipts of past purchases and having to endlessly search through their contacts to find the customer they are looking for. With this digital modification to a somewhat archaic approach, this can now be done with ease.

Once a relationship with a client is gained, it is important to keep it consistent with excellent service.

Our app does the hard work for the staff, working as a personal black book for each staff member. Tracking each of their clients, to allow them to give the best service working from the personalised information given from the customer on their app, which will sync for both parties.

This service works by the staff having access to their details, being able to see their past purchases which then leads to them being able to see their preferences - giving them the opportunity to upsell. The time staff spend on the shop floor will be maximised as there will be no need to run off to the stock room to check if an item is in stock or in a different size, as they will be able to see at the touch of a button. Their full attention can be focused on helping the customer get what they want, therefore increasing efficiency.

Regular calls are made as follow-ups to see how things are with their new purchases or to inform them that new stock has dropped on the shop floor, a scheme to increase sales. It’s difficult to know the right time to call someone, with clients not wanting to be disturbed. The way to get around this issue, is by push notifications on the app. Today we see a 540% increase of app opening by using push notifications (Luxury Daily, 2014). Push notifications are so successful due to them targeting the consumer in their hot state, which leads to them wanting to find out more.

- Camilla Lewis-

ìWelcome backî a sweet greeting from magic mirror, makes your shopping experiences feel like returning homeí

mirror mirror A

s well as the introduction of the ‘app’ we felt that Liberty’s could improve their efficiency when serving customers by changing their in store experience.

Therefore we looked at introducing ‘Magic Mirrors’ into Liberty. ‘Magic Mirrors’ are a way of virtually trying on garments rather than having to go into the changing room, thus being able to speed up customers shopping time and take away the hassle of physically trying the clothes on. The introduction of ‘Magic Mirrors’ into Liberty’s would mean that they fulfil their reputation of being innovative and cutting edge, and therefore, would bring it to the forefront of experiential retail.

(Magicmirror.me,2014)

- Zoe Harrington-

W Figure 25: Harrington, Z. In store Mock Up. (2014)

Case Study: Bodymetrics What - Allow people to get their body-scanned, in-stores or at home, and access their Bodymetrics Account to shop for clothes that fit their size, shape and style.

- Focus around ‘jeans’ and making sure they fit.

- Uses ‘kinect’ for windows sensored technology to recognise movement, gesture and voice to control the scanner.≠

e will introduce a ‘Bodymetrics’ pod into the store, so that the customers can have a full body scan to determine their body type and therefore would be able to use the ‘Magic Mirrors’ that will be located throughout the store. Having a body scan by Bodymetrics (see case study) will mean that the mirrors will be able to create a more accurate visualisation of our customers shape and size. These magic mirrors will not be placed in the changing rooms, as we do not want to eliminate those traditions completely. However, the mirrors will be placed in specific areas throughout the store so that those customers who want to try on but simply do not have the time can use them. ‘Only 11% of people buy clothes on-line $30B market (US), total clothing market $380B (US). Primary reason for the small percentage is lack of confidence as you cannot try on garments for fit.’ (Goonatilake, 2014). This demonstrates how in the modern day customers want efficiency but they also want proof of the quality and fit of a garment.

Although, some people may feel like the introduction of these mirrors will mean that customer and staff relationships are weakened, we feel that the mirrors could in fact increase the rapport between the two. When speaking to a member of staff about the current changing rooms she told us a few

problems with them being in the main rooms of the store “some customers don’t like coming out because they get embarrassed, so at least we would be able to help them.” (See Appendix 2.4). This reaffirmed that the changing rooms would also be an asset to both parties, as staff could give recommendations about other items for their customers.

The introduction to these mirrors will give Liberty’s the edge over their competitors as brands such as Burberry have introduced interactive mirrors. However they do not let customers try the products on, just give them a better view of the products. We feel that although Liberty’s consumers are traditional, it’s a store that is creative and carries innovative designers such as Vivienne Westwood and Helmut Lang. Therefore, means that the store can mirror this by keeping themselves ahead of the times. It will give Liberty the advantage over other department stores, as it will mean their loyal customers relationships with staff will strengthen and will also mean that customers can efficiently shop with confidence. The ‘Magic Mirrors’ will add a ‘fun’ element to the store, which is vital when creating a memorable shopping experience.

Why - People are notoriously bad at measuring themselves.

- No sizing standards among brands and within countries.

- ‘Vanity Sizing’ How - By scanning people in a ‘Bodymetrics’ pod they can determine the best size for their body shape.

- Can keep information digitally and then use when needing it.

- Zoe Harrington -

W

e can see this kind of technology being used in Asia mainly and slowly being introduced into the UK. Brands such as New Look in China have started using the new virtual changing rooms to make it easy for their customers when choosing size and fits of garments.

Features of the new service include, intelligent stock check, customer relationship management, interactive control and snap, share and like (Magicmirror.me, 2014).

The ‘Magic Mirrors’ use ‘Kinect’ technology, the same equipment used in the Bodymetrics pod to recognise the consumers and create a more accurate representation of the clothes. We felt that it was important to take this into consideration when looking at introducing the new technology into Liberty because of the influx of Asian customers that Liberty now have; a manager at Liberty’s told us “It might be something that our Asian customers would enjoy though as I know that in places like Japan they have really advanced shopping technology.” (Anna, Liberty London, See Appendix 2.4). In 2013 at InfoComm, Sharp unveiled the ‘Sharp Electronic Boutique’ where customers could virtually try clothes on using a screen, which was displayed on a mirror (Humansinvent.com, 2014). This is the technology that John Lewis used when they introduced their ‘Magic Mirrors’.

Department store John Lewis attempted to introduce interactive mirrors into their Oxford street store in 2011

called the ‘StyleMe’. The pilot was set to run for six weeks and was meant to ‘simulate the in store experience of ladies fashion’, (See Appendix 3.0) however , the new technology failed to make John Lewis any money, and therefore they pulled the ‘StyleMe’ mirrors from the store. The mirrors in store were of poor quality and didn’t represent the clothes on the customer in a way that would sell them. Although this didn’t work for John Lewis, we feel that because some of the Liberty’s customers are within the early majority category they would embrace the new innovative technology in the same way that they embrace Liberty’s cutting edge designers. In comparison to the John Lewis customers who are seen as the late majority and therefore not so welcoming to the new technology. We feel that by combining these technologies, with Bodymetrics we can produce a more effective and realistic view of the clothes, than John Lewis, and therefore our new mirrors should be a success.

We understand the importance of Liberty’s visual merchandising, and in particular, their window displays. We want to link the introduction of new technology in-store to the visual displays outside. We have taken inspiration from Marks and Spencer’s interactive window display and the new technology in Asia and feel that we could create a window display that mirrors the introduction of the new ‘Magic Mirrors’. With window displays often emulating what a store is doing; we believe that creating interactive window displays will represent the new services in store.

Figure 26: Harrington, Z. Window store Mock Up. (2014)

Figure 27: Harrington, Z. Window store Mock Up. (2014)

- Zoe Harrington-

consumer decision journey

Figure 28: Hamblin-Warren, B. Consumer Decision Journey. (2014).

the launch

We musnít fear technology, we have to embrace it to make it stronger

I

dentifying that Liberty has a broad range of clientele is essential to introduce these digital elements of the store at a gradual pace. This is so we don’t upset the traditional consumers of Liberty who appreciate the heritage of the brand and more conventional way of shopping. However, for the consumers who are interested in knowing more about the new Liberty shopping experience, we will hold taster evenings where they have the chance to go through the app and all of it’s features. These sessions will be by exclusive invitation for the Liberty loyalty app holders to be introduced to this innovative way of shopping using the scan as you go feature and ‘Magic Mirrors’. These events are important for Liberty as the consumer can learn how to use the interactive technologies properly, with a personal tutorial before they next return to the store. The reasoning behind these taster sessions are so the consumer can get to grips with the new technology without having the worry that the products are too futuristic and can quickly use the app as a normal part shopping experience. These events will benefit both of the consumer tribes: New Age Collectives and Cultivated Classics, as the modern consumer can interact with the in store technologies whilst the more traditional consumer can still carry on with their preferred shopping experience, engaging with the technology if they desire.

(The independent, 2013)

-Camilla Lewis & Elizabeth Simpson-

the conclusion

O

ur report is an exploration of how Liberty can gain loyalty to their consumer through technology. Through various research and theoretical analysis, our proposal tailors to all of Liberty’s diverse consumer groups ensuring our new concept will benefit all. We’ve insured technology is not imposing; yet an option for our consumers to engage with. Creating a new and stimulating in store experience, ensuring all the benefits of Liberty’s previous customer service approach is not lost. Examining other brands who have previously used technology within their in store experience, helped us generate a basic start up platform to which we eventually developed in order to offer a more seamless in store experience. Building on Liberty’s already loyal consumer base, we have looked at consumer behaviour theories and proposed our idea around the way they assess their loyalty to a brand. This will illustrate to the consumer that Liberty as a brand has a lot more to offer to their retail experience and care about creating a relationship with their consumers that can last; therefore, generating their loyalty.

- Beth Hamblin-Warren-

the references

Websites 7thingsmedia, (2014). Liberty London retail affiliate marketing campaign. [online] Available at: http:// www.7thingsmedia.com/case-studies/liberty-london-affiliate-marketing/ [Accessed 6 May. 2014].

Annualreport.marksandspencer.com, (2014). Multi-channel - Our plan in action | Marks & Spencer Annual Report 2013. [online] Available at: http://annualreport.marksandspencer.com/strategic-review/our-plan-in-action/multichannel/ [Accessed 30 April. 2014] Bizreport.com, (2010). Women dominate mobile social networking scene - Mobile Marketing - BizReport. [online] Available at http://www.bizreport.com/2010/03/women_dominate_mobile_social_networking_scene.html [Accessed 30 April. 2014].

Humansinvent.com, (2014). Sharps. [online] Available at: http://www.humansinvent.com/#!/14243/fits-me-thevirtual-fitting-room/ [Accessed 1 May. 2014].

Mycustomer.com, (2013). Why the customer loyalty landscape has changed | MyCustomer. [online] Available at: http:// www.mycustomer.com/feature/experience/customer-loyalty-and-changing-consumer-attitudes/165309 [Accessed 1 May. 2014].

Retail-systems.com, (2014). Japanese retailer introduces virtual fitting room. [online] Available at: http://www.retailsystems.com/rs/Megaseek_Virtusize.php [Accessed 12 May. 2014].

The comScore Data Mine, (2014). The comScore Data Mine. [online] Available at: http://www.comscoredatamine.com/ [Accessed 30 April 2014].

Wollaston, S. (2013). Liberty of London – TV review. [online] the Guardian. Available at: http://www.theguardian.com/ tv-and-radio/2013/dec/03/liberty-of-london-tv-review [Accessed 5 May. 2014].

Books -

Ruddick, G. (2010). London’s landmark Liberty building on sale for £40m - Telegraph. [online] Telegraph.co.uk.

Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7327636/Londons-landmarkLiberty-building-on-sale-for-40m.html [Accessed 24 April. 2014].

Brannon, E. (2005) Fashion forecasting. 1st ed. New York, NY: Fairchild Publications. [Accessed 23 April 2014]

Retail-innovation.com, (2014). John Lewis’ Magic Mirror Trial « Retail Innovation. [online] Available at: http:// retail-innovation.com/john-lewis-magic-mirror-trial/ [Accessed 23 April. 2014].

Hulte´n, B., Broweus, N. and Dijk, M. (2009). Sensory marketing. 1st ed. Basingstoke: Palgrave Macmillan. [Accessed 20th May 2014]

L2thinktank.com, (2014). Mobile & Tablet 2014 | L2: Business Intelligence for Digital. [online] Available at: http:// www.l2thinktank.com/research/mobile-tablet-2014 [Accessed 23 April. 2014].

Pink, D. (2006). A whole new mind. 1st ed. New York: Riverhead Books [Accessed 23 April2014]

Lamb, R. (2014). Barneys shifts in-store strategy with mobile connectivity - Luxury Daily - Mobile. [online] Luxurydaily.com. Available at: http://www.luxurydaily.com/barneys-shifts-in-store-strategy-with-mobileconnectivity/ [Accessed 23 April. 2014].

Lamb, R. (2014). Why mobile is important for both consumers and sales reps - Luxury Daily - Mobile. [online] Luxurydaily.com. Available at: http://www.luxurydaily.com/why-mobile-is-important-for-customers-and-salesrepresentatives/ [Accessed 23 April. 2014].

Magicmirror.me, (2014). Magic Mirror- Product Catalog, Photo Booth, Social Media. [online] Available at: http:// www.magicmirror.me/Features [Accessed 2 Jun. 2014].

Marketingsociety.com, (2014). John Lewis, E-Commerce | Marketing Excellence Award - Case Studies. [online] Available at: https://www.marketingsociety.com/the-library/2012-winner-john-lewis-e-commerce-case-study [Accessed 12 May. 2014] McCarthy, J. (2014). 12pc of brands enable consumers to view store inventory via mobile: L2 - Luxury Daily Research. [online] Luxurydaily.com. Available at: http://www.luxurydaily.com/12pc-of-brands-enable-consumersto-view-store-inventory-via-mobile-l2/ [Accessed24 April. 2014].

Mycustomer.com, (2013). John Lewis: How a 150 year-old retailer became an omnichannel champion | MyCustomer. [online] Available at: http://www.mycustomer.com/feature/experience/john-lewis-how-160-year-oldretailer-became-omnichannel-champion/164763 [Accessed 30 April. 2014].

Fogg, B. (2003). Persuasive technology. 1st ed. Amsterdam: Morgan Kaufmann Publishers. [Accessed 23 April 2014]

Solomon, M. (2012). High-tech, high-touch customer service. 1st ed. New York: American Management Association.

[7th May 2014] Solomon, M. and Rabolt, N. (2009). Consumer behaviour. 1st ed. Upper Saddle River, N.J.: Pearson/Prentice Hall. (Page 31) [23 April 2014] Yurchisin, J. and Johnson, K. (2010). Fashion and the consumer. 1st ed. Oxford: Berg.

TelevisionLiberty of London, (2013). [TV programme] 4: Channel 4 LecturesLSN Global Trend Brief, (2014).

Denton, S. (2014). Macro-Trends Goonatilake, S. (2014). Body-scans, ‘virtual try on, and Fashion Retail (Bodymetrics).

the image refernces

Figure 1: Anon, Liberty Of London Staff (2014). [image] Available at: http://i2.birminghammail.co.uk/ whats-on/tv/article6360980.ece/alternates/s2197/ZZ_mmr_scu_291113libertyoflondontwo.jpg [Accessed 30 May. 2014].

Figure 2: Banksy Lovers Painting, (2014). [image] Available at: http://www.telegraph.co.uk/culture/ culturenews/10768697/Banksys-boost-for-Bristol-youth-club.html [Accessed 30 May. 2014].

Figure 3: Anon, Liberty Shopper (2014). [image] Available at: http://4.bp.blogspot.com/-_uZ9Kn0Sk4E/ Tsv0VjaeBzI/AAAAAAAADEE/nQ5nZQDEzOE/s1600/IMG_3158.jpg [Accessed 30 May. 2014].

Figure 4: Anon, Genes @ CO-OP café, Barney’s New York (2014). [image] Available at: http://2.bp.blogspot. com/-wSDinjgracI/T-tvNrBOB3I/AAAAAAAAAPY/kEHphJ-b-sA/s1600/DSC05232.jpeg [Accessed 2 Jun. 2014].

Figure 5: Burberry, Regent Street Store Digital Space (2014). [image] Available at: http://uk.burberry.com/ store-locator/regent-street-store/ [Accessed 29 May. 2014].

Figure 6: Harrington, Z. (2014) M&S Digital Window Display, Oxford Street. [image] Available at: Own Image [Accessed 15 May 2014] Figure 7: Harrington, Z. (2014) M&S Digital Window Display, Oxford Street. [image] Available at: Own Image [Accessed 15 May 2014] Figure 8: Anon, Liberty of London In Store (2014). [image] Available at: http://www.youropi.com/nl/londen/ winkelen/warenhuis-liberty-6960 [Accessed 29 May. 2014].

Figure 9: Hamblin-Warren, B. Consumer, Faye Johnson (2014) [image] Available at: Own Image [Accessed 15 May. 2014].

Figure 10: Hamblin-Warren, B. Consumer, Sam McCarthy (2014) [image] Available at: Own Image [Accessed 15 May. 2014].

Figure 11: Simpson, E Consumer Profile, Caroline Jenkins. (2014) [image] Available at: Own Image [Accessed 10 May 2014.]

Figure 12: Simpson, E. Consumer Profile, Ellie Chapman. (2014) [image] Available at: Own Image [Accessed 28 May 2014.]

Figure 13: Rogers (1962) Diffusion of Innovation. (2014). [image] Available at: http://sphweb.bumc.bu.edu/ otlt/MPH-Modules/SB/SB721-Models/SB721-Models4.html [Accessed 30 May. 2014].

Figure 14 – 24: Lewis, C. App Mock Ups. (2014) [image] Available at: Own Image [Accessed 27 May 2014] Figure 25: Harrington, Z. In store Mock Up. (2014) [image] Available at: Own Image [Accessed 28 May 2014] Figure 26: Harrington, Z. Window store Mock Up. (2014) [image] Available at: Own Image [Accessed 28 May 2014] Figure 27: Harrington, Z. Window store Mock Up. (2014) [image] Available at: Own Image [Accessed 28 May 2014] Figure 28: Hamblin-Warren, B. Consumer Decision Journey. (2014). [image] Available at: Own Image [Accessed 28 May. 2014].

the appendix

Edited by: Beth Hamblin-Warren & Rebecca Pozzi Layout: Camilla Lewis

Word Count : 6,882 Word Count without references: 6,067 Beth Hamblin-Warrin: 1,067 Zoe Harrington: 1,339 Camilla Lewis: 1,507 Rebecca Pozzi: 1,101 Elizabeth Simpson: 1,182 Team Blog: teamequation.blogspot.com

Project Overview 1.0 - Team Manifesto

Critical Path 1.1

Who

In depth Interview with To get a more indepth detail of how our our two different consumer interacts with Liberty's staff and how consumer tribes influential technology is in their life.

To see how their consumers benefit from technogology

Observe what competitors are doing in terms of technology and brand loyalty.

Benefits

Weaknesses

What we would do differently

Result

Visiting the stores in London observing consumer interaction

Observational: Observing consumers

Observational: Through visiting the sore to observe main tills used how many are needed

Asked the staff how many there are, this gave us a rough answer

Stores were quite empty

Spend longer in London have more time to visit more places.

Helped us to see how the different tribes would respond to the changes within Liberty's

It backed up our initial research behind the two different consumer tribe groups

Ipads heavily used. To show customers available stock that doesn’t all fit on the shop foor. Showing all the different colours.

Customers then allowed to look at other stock on Ipad

Nothing was that advanced so the consumer wasn’t frightened to use it.

60% of consumers went in came out with bags but not that many actually went into Not strong to see what people Not to go at lunch time. Thought it the store. Footfall wasn’t that great. bought. (could have just bought would be a prime time however it was A lot of people were looking in the window stationery) actually quite empty. but not going instore. Also were taking pictures of outside.

Having more of a conversation so we werent writing down, recording Staff willing to tell us what the stores would have helped. are doing.

Helped us see how innovative other stores are being

No Benefits.

No Benefits.

Wasn’t successful as it wasn’t clear where the tills were. As there are Book a meeting in advanced with head so many counters it was hard to office to gain a deeper understanding. differentiate what were tills and what werent.

Observational: View how Go at a busier time, again go over two certain satff interact and Helped us to see how the staff work The shop was very quiet so difficult Positive staff relationship with consumer. days, on a tourist day and none tourist communicate with consumers. around and the relationship they to hover around without looking Staff are not too intrusive, comfortable day to see how different the have with their consumer. suspicious. environment for consumers to shop Track the way they act and engagement is. respond to one another.

Consumers: Received a detailed answer to each As it wasn’t face to face it was hard Interview questions sent over Ask more detailed questions regarding Eleanor Louise Chapman 25 question and more willing to go to expand on the answers they via email. their opinion on the app.

Caroline Jenkins 56 indepth with their answers. gave.

Ourselves

Ourselves

Find out the reasons why they do or don’t buy

Ourselves

Monitoring how many consumers come out with shopping bags.

Show us if our app idea / technology will help and benefit the consumer and building loyalty.

This will show us how important staff and consumer relationships are for Liberty's

Ourselves

1.3

How

Received a good response from the It was hard to engage with Come up with a creative way to ask We found out whether they would think our consumers on how the app would consumers, people were often in a the cosnumer. Something that is more app would work. work within store rush and were not willing to talk. exciting and more engaging.

Found out from the consumer how Looking at the average responses we To save time we would perhaps record important the staff relationship is when they found the older consumer wasn’t the answers given by the consumer. go shopping.

To understandthe consumer decision journey of Approaching consumers (with fond of the introduction of Which would also ensure that we had people who shop in Liberty's. This will give us a libertys bags) after their Consumers: Faye Johnson, 25 technology into the store. However all the correct information. deeper insight into the the reason why they shopping experience to Marion Boorm 43 Sam Mc the younger consumer welcomed shop there or enter. The shop if they have have understand why they are loyal The time of day (lunchtime) a lot of Discovered that the older consumer would Carthy 47 the idea aslong as it made for a more Was difficult to write down a plan whether our idea will benefit their to the store and what keeps people were in a rush. Maybe pick an have difficulty with the new technology if seamless shopping experience everything they were saying. shopping experience them returning to liberty's. evening instead. you introduced it straight the way and After speaking to several consumers instead would need to give them chance Do the consumer research over a and failing to engage with them we learn how to use it before fully intergrating couple of days, maybe go Friday to learnt to adapt and change our into the store environment.

Saturday, as the consumer changes on response and how we approached the weekends to tourists. them.

Why

This will help us see whether the store can get Count number of tills in rid of tills and have a few set main till points to store maximise space

Tracking Staff and Consumer Engagement

Offline Questionnaire

What

Methodology 1.2

1.5

1.4

1.7 visual inspiRATION

1.6 Liberty SWOT

STRENGHTS

WEAKNESSES

OPPORTUNITIES

THREATS

- BRAND NAME AND GOOD WILL. - LIBERTY LONDON ‘ICONIC’ FABRIC. - TRADITIONAL BRITISH STORE. - CALM ENVIRONMENT. - GOOD CUSTOMER/STAFF RELATIONSHIP (FIRST NAME BASIS) - INNOVATIVE DESIGNER BRANDS. - COLLABORATIONS WITH DESIGNERS AND LIBERTY FABRIC.

- ONLINE SHOPPING APP. - NEW TECHNOLOGY INTRODUCED INTO STORE ENVIRONMENT. - CREATING A MORE SEAMLESS ONLINE TO OFFLINE SHOPPING EXPERIENCE. - KEEPING LOYAL CUSTOMERS

- ONLINE SHOPPING WEBSTIE BUT CANNOT PURCHASE EVERYTHING. - NOT TECHNOLOGICALLY ADVANCED. - ONLINE AND OFFLINE NOT COHERENT. - TOO MUCH CHOICE CREATING CHOICE TRAUMA.

- CONSUMERS NOT ADAPTING TO NEW CHANGES E.G NEW TECHNOLOGY. - ECONOMY. - COMPETITORS BECOMING MORE TECHNOLOGICALLY ADVANCED AND MORE INNOVATIVE.

1.8 visual explanation

Our design for the report stemmed from an idea to create an equation, to help simplify our idea as we have lots of small elements to make one big idea. Our key points are; increasing the consumers time/efficiency, increasing the relationship between the staff and the consumer to then increase loyalty of the consumer. Helping the consumer find the shortcut when shopping will increase the efficiency. Taking inspiration from science, we decided to look at short circuits linked to physics. Electrical circuits are used to serve a useful function, to be able to work they need an electrical device to charge the battery and a wire with a positive or negative charge. A light bulb or beeper is needed which then spark a high rate of charge flow. In our case with Liberty, our Loyalty app is the electrical device. This is needed to spark a relationship with the consumer and the staff (the battery being the consumer and the wire being the staff). In order for them both to work, the app is needed, which will then increase efficiency. “Equations are important to me, because politics is for the present, but an equation is for eternity� (Albert Einstein) like an equation our new idea is built up key components and analytical research and will stand the test of time.

=

=

=

Primary Research 2.0 Primary Consumer Research To conduct our primary research we stood outside Liberty's using the stratified sampling method by interviewing people coming out of the store with a Liberty's bags instigating that they had purchased something. We wanted to target consumers of different ages and gender to get an idea of the varying people who shop at Liberty's and their reasons behind their loyalty to the store. We also asked each person about how they would feel about bringing technology into the store and how they would respond to our potential idea. It was interesting to see how the consumer of different ages responded to the idea of technology in store to speed up the purchasing process to enhance their shopping experience.

Consumer 1: Faye Johnson, Age 25 Interviewer 1: Hi, we’re conducting some primary research about Liberty and their consumer loyalty would you mind if we asked you a few questions?

Consumer 1: No, not at all Interviewer 1: How were you initially introduced to Liberty’s?

Consumer 1: My mum used to work at Selfridges, so I was introduced to it through her as she used to come in all the time. I can’t really afford anything in here if I’m honest! But it’s nice to come in for a treat when I’m around this area.

Interviewer 1: What makes you choose Liberty over its competitors? For example, Selfridges, Harrods, Harvey Nichols etc.

Consumer 1: The building itself is really beautiful and the window displays always look inviting. The in store environment is really spacious so it’s a nice experience to walk around even if you don’t purchase anything. The shop assistants are also really helpful. I like that they are not too invasive and leave you to browse the store freely yet are always willing to help when you require any assistance.

Interviewer 1: On top of the schemes that Liberty currently have in place, what else can they do to make you feel like a valued customer?

Consumer 1: Well I own a Liberty’s loyalty card so I receive the odd discount every now and again, so maybe some more incentives like these? And maybe if Liberty did a launch event or had a new collection drop, Loyalty card members getting an exclusive invitation? I don’t really know, but something along those lines.

Interviewer 1: How would you feel about virtual changing rooms, rather than physically trying on items?

Consumer 1: That’s such a good idea. Perfect for when you’re in a rush and haven’t got the time to try on.

Interviewer 1: Where do you hold your phone when you shop?

Consumer 1: In my handbag usually. I like to feel and interact with things around the store.

Interviewer 1: How would you feel about having technology within the store environment? Would you be more inclined to use technology to speed up the purchasing process?

Consumer 1: I think it’s a great idea! As long as it works and can fit in accordingly with the stores strong identity, it’d definitely be something I’d like. Everyone always seems to be a rush nowadays so something like I think would be beneficial to everyone.

Interviewer 1: How valued is your relationship with members of staff in creating a positive shopping experience?

Consumer 1: It’s really important. I like that they are non-judging, as they don’t pressure you to buy something if you just want to browse the store, compared to other department stores where you feel intimated by the members of staff and inclined to purchase something. It’s clear that Liberty really value their customers as they are always willing to help you out with anything, regardless of how expensive or cheap the item is you want to buy.

Interviewer 1: Thank you so much for you time, you’ve been really helpful.

Consumer 2: Marion Boorm, Aged 42 Interviewer 2: Hi there, we’re conducting some primary research about Liberty’s and their consumers.

Would you mind sparring a few minutes of your time?

Consumer 2: No of course not.

Interviewer 2: So how were you initially introduced to Liberty’s?

Consumer 2: Through my daughter who live in London, I’m not actually from around here I’m just visiting her for a few days.

Interviewer 2: What makes you choose Liberty over its competitors? Such as Selfridges, Harrods etc.

Consumer 2: It’s the members of staff really, you can really tell they value their customers just by the way that they treat you. They aren’t too invasive and let you browse freely around the store, yet they give you a lot of assistance when you need it and are always attentive to each customer’s needs.

Interview 2: How would you feel about virtual changing rooms, rather than physically trying on items?

Consumer 2: That’s a good idea, sometimes I don’t have the time to try things on, although I feel like this easy scheme would make it so much easier for people to spend much more money in Liberty!

Interviewer 2: How would you feel about having technology within the store environment? Would you be more inclined to use technology to speed up the purchasing process?

Consumer 2: I’m not sure. I think it would be quite hard to incorporate technology into Liberty as it’s well known for being such a heritage store. Also, they are competing against brands like Apple who are always so ahead of the game with their in store technology.

Interviewer 2: Where do you put your phone when you’re in store?

Consumer 2: In my pocket so my hands are free to engage with the store.

Interviewer 2: On top of the schemes they currently have in place, what else can Liberty do to make you feel like a valued customer?

Consumer 2: I like to loyalty scheme that they have, I own one of their loyalty cards so I like receiving discounts and promotions as you are likely to spend more money when you next visit anyway so these sort of discounts are always beneficial.

Interviewer 2: Thank you so much for you time, that’s great.

Consumer 3: Sam McCarthy, Aged 46 Interviewer 1: Hello, we’re conducting some primary research about Liberty and the loyalty schemes they currently have in place, would you mind sparing a few minutes?

Consumer 3: No, not at all happy to help Interviewer 1: How were you initially introduced to Liberty?

Consumer 3: I have no idea, the store has been around for so long!

Interviewer 1: What makes you choose Liberty over its other competitors?

Consumer 3: The members of staff! I can’t get over how helpful they are. They are very good at tailoring their service to the customer’s needs – whether they want help or not. One member of staff was really good at assisting me choose a bag, it wasn’t for me but I still wasn’t really sure what I was looking for so they were very helpful, giving me lots of different options until I was satisfied with my purchase.

Interviewer 1: How would you feel about having technology within the store environment? Would you be more inclined to use technology to speed up the purchasing process?

Consumer 3: Definitely not, I think something like that is unnecessary. I always appreciate the face to face service from the members of staff in store, I always find it really valuable.

Interviewer 1: That’s great thank you so much for your time.

2.1 Consent Forms

2.2 Consumer indepth Interview

Consumer Questions: Ellie Chapman (24) 1) How were you first introduced to Liberty’s?

- I first visited Liberty’s as a child (5/6 years old with my mum) 2) What makes you choose Liberty’s over their competitors’?

- I like the experience of visiting Liberty’s – from the layout of the store to the range of products.

3) How would you describe your relationship with the Liberty’s staff?

- Staff are friendly, helpful and stylish.

4) How do you think Liberty’s could improve their loyalty scheme?

- Although I am not actually signed up to the scheme (my sister is) I think it is a brilliant loyalty scheme. I would be inclined to sign up to it in the future, as I don’t live too far away from the store. I would possibly recommend a unique open evening for loyalty card owners with say 20% off with canapés and drinks.

5) What do you like about the Liberty’s store environment?

- It’s an experience going to Liberty’s. The visual design of the store is like no other department store and makes for a creative and stylish visit. The building itself is beautiful and it’s a peaceful experience going into the store – a contrast to the area it is situated within.

1) What percentage would you say you’re on your mobile phone throughout the day?

- 60% 2) What are your most visited apps on your phone?

-Instagram, twitter, citymapper, and facebook 3) Do you respond to brand discounts when sent to your phone?

- Occasionally, it definitely depends on which brand. If it is FCUK, Whistles or Zara I usually go to the website with the desire to purchase something.

4) Do you like to be left to your own devices when shopping or do you prefer interaction with staff?

- Left to my own devices, but it’s handy when staff are loitering incase you need them.

5) Would you benefit from technology being introduced into Liberty’s store environment if it was to speed up your purchasing process?

- Yes definitely. If the technology was efficient and effective then I would be intrigued.

Our idea: Our idea involves an app that will enhance your retail experience by the involvement of a contactless payment system and interactive mirrors.

Our app will allow you to scan items around the store, which you would like to purchase, once you’ve decided if these items are for you, the app then sends these requests to the stock room. Eliminating the inconvenience of having to carry around the products, you can simply pick up your desired products at the end of your shopping experience packaged beautifully in Liberty’s packaging.

With the interactive mirrors located around the store, you hold your phone up to the mirror, which downloads which items you have scanned throughout your shop and project them onto the mirror. The mirror will then show you how the items look on you and will recommend other items to go with that product.

We believe this app can enhance your consumer experience in store, save them time and make there retail experience a more pleasurable one so that they return in the future. Could you see this in the future store environment of Liberty?

-Yes definitely.

With the introduction of this new technology we wanted to introduce it slowly, through a PR event especially for loyalty cardholders.

2.3 Consent Forms indepth interview Consumer Questions: Caroline Jenkins (54) 1) How were you first introduced to Liberty’s?

-I was introduced to Liberty’s in 1979 as a student nurse in London – it was very chic!

2) What makes you choose Liberty’s over their competitors’?

-Due to their unique products and style.

3) How would you describe your relationship with the Liberty’s staff?

-Extremely helpful and treat each customer in a respectful manner.

4) How do you think Liberty’s could improve their loyalty scheme?

-There are not many ways that you could improve the scheme – it is similar to that of John Lewis. I particularly like that you receive ‘cash back’ in vouchers rather than coupons for money off items.

5) What do you like about the Liberty’s store environment?

-It is very artistic and calming for a department store – it is an experience to go to Liberty’s, not just a quick dash in and out.

1) What percentage would you say you’re on your mobile phone throughout the day?

-5% 2) What are your most visited apps on your phone?

- I have no apps.

3) Do you respond to brand discounts when sent to your phone?

-Occasionally, I have dabbled in groupon and when I am notified of sales.

4) Do you like to be left to your own devices when shopping or do you prefer interaction with staff?

-Own devices – interaction when required.

5) Would you benefit from technology being introduced into Liberty’s store environment if it was to speed up your purchasing process.

- I am not that fussed.

Our idea: Our idea involves an app that will enhance your retail experience by the involvement of a contactless payment system and interactive mirrors.

Our app will allow you to scan items around the store, which you would like to purchase, once you’ve decided if these items are for you, the app then sends these requests to the stock room. Eliminating the inconvenience of having to carry around the products, you can simply pick up your desired products at the end of your shopping experience packaged beautifully in Liberty’s packaging.

With the interactive mirrors located around the store, you hold your phone up to the mirror, which downloads which items you have scanned throughout your shop and project them onto the mirror. The mirror will then show you how the items look on you and will recommend other items to go with that product.

We believe this app can enhance your consumer experience in store, save them time and make there retail experience a more pleasurable one so that they return in the future. Could you see this in the future store environment of Liberty?

-Yes definitely - I would be open to trying this! I think a lot of people would like it!

With the introduction of this new technology we wanted to introduce it slowly, through a PR event especially for loyalty cardholders.

2.4 Conversation with Libertyís Sales Associates Interviewer; Hi, I was wondering if it would be possible to ask you some questions regarding Liberty’s. We are from Nottingham Trent University and are currently working on a project focusing around Liberty’s and yours customer’s loyalty. Firstly, can I ask how many people currently work at Liberty’s?

Ben Woolnough; Oh a couple of hundred? There’s a lot of us.

Interviewer; Do you generally have assigned positions within store, or do you move around depending on your shift?

Ben Woolnough; Well, there is two type of employees, the staff who are employed by Liberty’s and the agency staff.

Us full time Liberty’s staff are assigned a room which we work in, we get to know the customers who regularly come in-store and can help them by letting them know about new stock etc, however, the agency staff get moved around as they are only called in when we need extra staff.

Interviewer; Okay, so would you say you have a good relationship with your regular customers?

Ben Woolnough; Well, I’m fairly new, but I can say that I have already started to build a relationship with customers.

Some staff that have been here years know the customers by first name basis which I think is vital because its makes us more personable.

Interviewer; Would you say Liberty’s has a new, younger consumer coming in?

Ben Woolnough; Liberty’s has always been a creative store, we have people from all ages and sex’s coming in to buy the fabric. Whether that’s to buy it to decorate their homes, or whether it’s to make their own clothes. I’d say we attract very traditional but creative people, no matter what age.

Interviewer; But would you say you have seen an influx of younger customers shopping here?

Ben Woolnough; Erm, possibly, we have some very fashion forward contemporary designers like Helmut Lang and Rick Owens, so I would say that we definitely attract a young consumer. I’d say I’ve noticed an increase in the amount of Asian customers in Liberty’s, I guess its because there very fashion forward and exciting with their fashion.

Interviewer; Fantastic, Thanks a lot for your time you’ve been a massive help!

Ben Woolnough; No problem, don’t forget to check out the crafts section and speak to the women there about the fabric, its amazing!

Interviewer; Hi, I was wondering if it would be possible to ask you some questions regarding Liberty’s. We are from Nottingham Trent University and are currently working on a project focusing around Liberty’s and your customer’s loyalty. Firstly, can I ask how many till points do you have in Liberty’s?

Anya Stanovska; I couldn’t say exactly roughly 40, but we have at least one in every room, it depends on the size of the room and how busy it gets. For example, in here we have only one till, but in the next room there are two – that’s because it’s the denim room, so gets really busy.

Interviewer; Do you think you have enough till points? Is there any time when there is a queue?

Anya Stanovska; We definitely have enough, I can’t think of a time when there has been as massive queue at the till point. Maybe at Christmas time, or during sales period but there are a lot, for example, as there is only one till in this room, as it’s a small room, however when we first launched the collaboration with Nike this room was packed. There’s only one till in here, so that is a problem. I’d say overall there wasn’t a massive problem with the tills as the staff can take a customer to a till in the next room.

Interviewer; Okay, would you say the collaboration with Nike has been a massive success?

Anya Stanovska; Of course, any collaboration with Liberty’s is always a massive success, no matter what brand.

It’s because the fabric is so iconic that people want it. We have a Liberty’s print collection downstairs or bags and accessories which retail for £100 upwards, and it sells because people love the print!

Interviewer: Would you say the collaborations attract a new consumer?

Anya Stanovska: Definitely, my friends, aged 25-30 all have a pair of the new Nike trainers, it’s something that attracts a new crowd.

Interviewer; Thanks you’ve been really helpful!

2.5 Consent Forms Liberty Associates

Interviewer; Hi, I was wondering if it would be possible to ask you some questions regarding Liberty’s. We are from Nottingham Trent University and are currently working on a project focusing around Liberty’s and yours customer’s loyalty. Firstly, can I ask what your role is at Liberty’s?

Elaine Joy; I’m an assistant manager of Womenswear.

Interviewer; Okay, would you say that as a manager you are able to build a strong staff/customer relationship?

Elaine Joy; Erm, yes, when I’m not too busy. If a customer looks like they need help I’m always around to help.

You have to drop what you’re doing to help customers because at the end of the day they are what is most important to Liberty’s.

Interviewer; Okay, our assignment focuses around your customer’s loyalty, and how technology could be used to increase this. Our idea is to have an app that can be accessed on their phones. The app will allow customers to scan products as they go to increase efficiency, and as staff will also have the app, will allow staff to check stock via their apps, so that they are consistently with customers instead of having to check in the stock room. The app will also send targeting promotional offers to your loyal customers, so that they get the offer at the appropriate time instead of it hitting them like ‘spam’ mail. What is your view on this? Do you think this would work in Liberty’s?

Elaine Joy; Yes I think an app could absolutely work. I’m not too sure about the scan as you go just because our customers may not fully understand the app, however if we could teach them that could work! I love the idea of being able to check stock, I hate having to leave customers to go to the stock room, because if we don’t have it it’s a wasted journey, and my time with the customer will have decreased!

Interviewer; Okay, we are also thinking about increasing customers experience in-store, we have been looking into new technology, and think that the use f ‘magic mirrors’ in-store would be an exciting new feature to your store. These work by working out the customers body shape so that they can ‘virtually’ try things on. These would maybe replace changing rooms as it takes a while to change and try things on. What would you think about this?

Elaine Joy; Oh I have never heard of those before, they sound interesting however I don’t know how our customers would react to them, I think they would need normal changing rooms too… they sound really interesting though, they might be something that our Asian customers would enjoy though as I know that in places like Japan they have really advanced shopping technology. Our consumers come here as they like the traditional aspects to our department store, that would work in newer modern stores but not for us I don’t think.

Interviewer: Ok thank you so much for you help.

Elaine Joy: No problem.

secondary research 3.0 Case Study

Burberry: What -New store on Regent’s Street known as ‘where the digital world meets the physical’.

-22ft high screen (largest retails screen in the world), showing most recent catwalk show, 500 hidden speakers and hydraulic stage.

-Introduction of ‘Magic Mirrors’. Radio-frequency identification (RFID microchips) means that shoppers can approach a mirror which will be transformed into a film of how it was made and what it looked like on the catwalk.

-Each member of staff has an ipad. to check the website with customers and check current levels of stock.

Why -To increase time that staff are on the shop floor, and increase the staff/customer relationship.

-Already pioneers in the fashion industry, but want to be pioneering the retail industry too, keeping them innovative and creative.

-Detail that they put into their manufacturing vital, and important to consumers as a traditional, British brand that is still manufactured in Britain.

How -Enhances experience in-store because consumer can interact with the technology.

-Consumer can take charge of the store environment, feels more personal.

-Burberry has huge Asian market consumers, therefore this new technology is something they will use.

John Lewis: What -John Lewis trust their customers, they have the most generous returns policy on the high street with a two year guarantee.

-“Never Knowingly Undersold” – their promise to their customers, creating brand loyalty.

-Employee Ownership Scheme – Employees at John Lewis are shareholders in the companies profit.

-Seamless customer experience across in-store and omni channels, consumers can research and buy in different places, and can buy in one store but pick up in another.

-‘Click and Collect’ service introduced in 2009 in 5,000 locations in the UK. -‘My John Lewis’ – consumer recognized as an individual, staff know their purchase history and make suggestions on what they might like based on their previous purchases.

-Introduction of virtual mirror technology in Oxford Street Flagship store – letting shoppers try on up to 500 different garments in super imposing the outfits onto the shoppers image.

-Adapting the changing rooms and technological environment.

-iPhone app enables consumer to scan barcodes of products in store.

-Free Wifi in stores – makes the John Lewis app accessible all times within the store.

-Increasing integrated technology into print campaigns and catalogues to ensure bridge between physical and digital world is small.

Why -To keep their customers loyal because they trust John Lewis, and enjoy shopping there as they know they are getting the cheapest price and the best guarantee with it incase anything goes wrong.

-Employees feel part of the company, makes them work harder to achieve goals and larger profit so that they get more back.

-Makes life easier for the customers because they know even if they cant get something in a store near them, John Lewis will make sure they get the product in for them.

Bodymetrics: What -Allow people to get their body-scanned, in-stores or at home, and access their Bodymetrics Account to shop for clothes that fit their size, shape and style.

-Focus around ‘jeans’ and making sure they fit.

Why -People are notoriously bad at measuring themselves.

-No sizing standards among brands and within countries.

-‘Vanity Sizing’

How -By keeping their customers loyal they can guarantee that they will return to buy other products.

How -By scanning people in a ‘Bodymetrics’ pod they can determine the best size for their body shape.

-Can keep information digitally and then use when needing it.

Why: -The use of micros-retail increase selling space, allowing for more stock on the shop floor as till points are removed.

They wanted the retail space to be driven by the shopping experience and not the physical constraints of the bulky tills.

-Cost effective way to handle peak changes in volume -Staff can help customers in all areas of the store -Maximize staff time on the shop floor as they don’t have to go to stockroom to check stock.

Barney’s New York What: -Embracing micros-retail products which are used for; POS, loss prevention, order management, deliver products from other stores and check customers out using mobile phones.

-Staff have iPod touches with store inventory on -mobile checkouts to save space on shop floor

How: -Staff are able to increase time with the loyal consumers, making them feel more valued in store.