Sophie Gould, Sian Edwards, Emily Jervis, Laura Bennetts, Chynna Davies & Tracey Kemp.
1 A visual proposal for Liberty of London which focuses on a new loyalty scheme using mobile technology to increase customer loyalty.
Fashion Communication & Promotion Second Year Nottingham Trent University FASH20032
T O T A L W O R D C O U N T 6,573
LAURA BENNETTS C H Y N N A D A V I E S E M I L Y J E R V I S S O P H I E G O U L D S I A N E D W A R D S T R A C E Y K E M P
N0433628 N0439882 N0420265 N0421241 N0422560 N0441475
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1,180 1,140 1,100 1,123 9,18 1,112
RETAIL EXPERIENCE and LOYALTY
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18 20 22 14 26 28 32
Loyalty Theories Liberty’s Online Presence & Current Loyalty Schemes SWOT Analysis PEST Analysis Perceptual Map Competitior Loyalty Schemes Retail Competitors
General Contextual Research
49 50 54 56 58 60 62
Big Idea Big Creative Idea How This Can Be Achieved Consumer Benefits Marketing Strategy The Launch Further Developments
CHAPTER FOUR
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Consumer
Concept
Consumer Analysis Consumer Profiles Digital Habits Within a Retail Enviroment
CHAPTER THREE -
CHAPTER TWO
Introductions
37 40 44
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10 Rationale 12 Critical Path 15 Introduction
CHAPTER ONE
CONTENTS
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66 The 5 “C”s 68 The Consumer Decision Journey 70 Conclusion
CHAPTER FIVE Theory
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Appendix
75 Team Manifesto 76 Team Minutes 78 Primary Research - Methodology 80 Loyalty Survey 81 Observational Research 82 Interview with Jenni Cumming 83 Transcript 87 Ethnographic Research 88 Interview with Marianne Summerfield 89 Interview with Vicky and Scott Exley 90 Exhibition Project RIOT 91 Press Release 92 Case Studies 94 Team Blog 96 References 97 Bibliography 99 List of Illustrations 101 Proof Reading
CHAPTER SIX
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chapter one INTRODUCTIONS
“The exceptional Tudorstyle building acts as the iconic brand home, a visible statement of the store’s point of difference” Liberty Regent Street, Anon, 2012
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Sophie Gould
RATIONALE
Brief: You will create a retail idea that engages the consumer before, during and after purchase. You will look at ways to increase loyalty and specifically look at how to integrate a loyalty scheme with smart phones. The brand you are creating the idea for is Liberty London.
Fig 5. Rationale, 2014.
INTERPRETATION
PURPOSE
To create an inventive and new way to increase customer loyalty at Liberty. We had to use smart phone technology within this brief and therefore took a keen interest into emerging technology. We had to produce a six thousand word visual report that includes: infographics, text, images and illustrations.
To use our own initiative to generate plausible ideas that Liberty would find effective to run alongside their current loyalty scheme.
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Fig 3. Liberty London Heritage Suite, 2012..
Fig 4. The Central Atrium, Liberty Of London. Year Unknown.
Fig 1. Estella AnnaBelle, Liberty Print, Date Unknown.
Fig 2. Mr and Mrs Liberty, Date Unknown.
HOW WE DID IT
WHAT WE LEARNT
We began by creating a team manifesto and critical path so we would have a clear notion of how we would carry out our research. Next, we generated some secondary research to understand Liberty as a business before we began collating ideas. After contacting the Managing Director of Liberty, we interviewed the Customer Relations Marketing Manager. She was able to give us some immediate and accurate information to work on. We carried out a wide range of primary research tasks, which included: observations, interviews and ethnographic research. We met nearly every day as a group to work on this report and created a team blog (www.libertyloyalty. wordpress.com) and team minutes so that we would keep track of how our work was progressing. We also created a critical path to organise our daily meetings and weekly objectives. We created lots of mood boards and brainstorms to create our big idea and creative idea. We designed the layout of the report as a team and used Pinterest as a visual bank for layout ideas and images to use in the report. We also used books from the library for secondary research, such as Martin Lindstrom’s Brand Sense.
We learnt that Liberty is already looking into the future of retail and has many plans to use technology as an effective means of increasing customer loyalty. We highlighted Liberty’s unique selling point as craftsmanship; a key descriptor that no other luxury stores in the UK can compete with. We learnt that Liberty is one of the only luxury retail stores in the UK already offering an effective loyalty scheme to their customer. We learnt that loyalty relies on many factors and not just great products. We learnt that working in teams to produce a report is a harder than expected but is extremely rewarding when is completed and we can see what we have accomplished together.
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Fig. 6 The Edenham Print, 1997.
WEEK1
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Sophie Gould
CRITICAL PATH
Create team manifesto. Understand each other’s working habits. Discuss initial thoughts and ideas. Set up team research blog.
WEEK2
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Going over the deadlines we set at our last meeting. Start to plan out our primary research.
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Proof read everyone’s first sections Get books from library on retail experience, point of sale, technology and retail.
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WEEK3
Delegate all remaining jobs. Ensure everyone is certain on final tasks.
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WEEK1
WEEK3
Finalising big idea Prepare for fashion history poster presentation tomorrow
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WEEK3 Primary Research- experiential retail and sensory experiences. Compile whole of report together ready for proof reading. Sort out any remaining problems or issues.
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WEEK2
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Collate information and images for the fashion history poster
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Going out and collating primary research – when people interact with their phones in store - Go to John Lewis.
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WEEK3
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Go over everyone’s notes from proof reading, sort out any changes etc. Figure references and appendix. Start to finalise InDesign layout. Complete all ethnical checklist tasks.
Finish all of the writing. Start putting the document into InDesign.
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WEEK3
Continue report building and making sure the visuals are cohesive.
Proof read each others work Create template for report
WEEK4
WEEK2
Comsumer research Emily + sophie – sainsburys Chynna + laura – tesco Tracey +sian – boots Phone call with ‘jenny’ Transcribe phone call
Finish fashion history poster. Discuss final ideas for smart phone/loyalty brief.
WEEK3
WEEK4
WEEK2
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WEEK 4
To finish the entire report.
Fig 7. Critical Path, 2014.
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Fig. 8. Liberty Print, Date Unknown
Sian Edwards
INTRODUCTION
Liberty is an independent department store in the capital city of London, and appeals to customers with its rich heritage and luxury produce. “The exceptional Tudorstyle building acts as the iconic brand home, a visible statement of the store’s point of difference” (Liberty Regent Street, 2012). It stands out from its competitors with astrong family history and experienced employees who make it a true experience when shopping in store. The busy store had a footfall of four and a half million in 2013, with an impressive total of one million transactions (Cumming, 2014). Global customers come to experience the British charm and to see the exceptional and traditional store. Liberty stocks the finest of goods from a large range of designers, artists and craftsmen. They have recently become involved with multiple collaborations with brands such as Vivienne Westwood and Nike.
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chapter two GENERAL CONTEXTUAL RESEARCH Fig. 9., The Old Shops of Liberty, 1910.
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“Customer loyalty can only be created in your customers’ minds, not in their wallets” (Butscher, 2002. p150).
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Chynna Davies
scheme.
fig 10. Purchase Funnel Diagram, 2014,
LOYALTY THEORIES
• There is great importance in creating positive relationships between brands and their consumer. This encourages brand loyalty. • A balance between hard and soft rewards is an essential attribute for any successful loyalty
With a general understand of the Liberty brand, we turned our attention to the importance and theory of loyalty in retail. Our secondary research was collected from multiple sources including journals, articles and intellectual reports. “Today’s customers appear to have a lower expectation for a ‘one and done’ transaction” (Egan, 2008 p.33), therefore, as fashion communicators we are constantly aware of the importance of creating positive relationships between brands and their consumer. During any purchasing experience, the customer will follow a decision journey; in 1898, St. Elmo Lewis illustrated this process with the purchase funnel (see fig 10). His theory suggested that consumers go through several stages between their initial awareness to purchase- gradually reducing the options available. In 2012, Harvard Business Review asked seven thousand consumers worldwide about their purchasing habits; they discovered that “the purchase funnel is no longer the most common purchase path” (Bird, 2012). In 2002, Jill Griffin used figure 11 within her book entitled Customer Loyalty: How to earn it, how to keep it. This diagram maps the customer decision journey and is arguably a reinvention of the out-dated purchase funnel (Griffin, 2002). A prominent feature of this new model is the loyalty loop, highlighting the importance and value of a loyal clientele- “The rule that 80% of a company’s business comes from 20% of its customers, demonstrates the power of repeat business and customer
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loyalty” (Linton, 1993. p8). Brand loyalty has been at the core of retail success throughout history; in the early twentieth century economist Theodore Levitt expressed how the “purpose of business is to get and keep customers” (in Lowenstein, 1997. p23). Theorists Alan Dick and KunalBasu (1994, in Egan) believe that loyalty is simply a state of mind. They conclude that brand loyalty “is emerging as the marketplace currency for the twenty first century” (1994). We found many opinions, including the work of James Heskett (1997), all suggesting that over time, it should cost less to target existing customersonce the expectations are established. Heskett describes the decreasing cost spent on “getting acquainted’ marketing” (Heskett, 1997) in correlation to the length of the loyalty period. The book Customer Loyalty Programmes and Clubs written by Stephan A. Butscher (2002) gives a particular focus towards the customer rewards of all loyalty schemes, describing them as the “heart and soul” (2002. p7) of
Fig 11. Customer Decision Journey, 2014.
loyalty programmes; they must perceive a high and desirable value. He believes that these loyal consumers are therefore more likely to demonstrate an attachment to the particular brand and products (2002. p11). Butscher highlights the importance of both hard and soft rewards; the balance of materialistic and emotional benefits for the consumer. He concludes that long-term loyalty is created as a result of establishing a true relationship with consumers, “based not on financial incentives, but on emotion, trust and partnership” (2002). Research into existing loyalty methods and theories has highlighted the timeliness and potential of our task. A loyal relationship with a brand can offer consumers a physical and psychological satisfaction, adding value to products and helping to differentiate a brand from its competitors (Linton, 1993). We must embed this research throughout our idea development to create a perfectly tailored and experiential loyalty scheme. “Customer loyalty can only be created in your customers’ minds, not in their wallets” (Butscher, 2002. p150).
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Sophie Gould
LIBERTY‘SONLINE PRESENCE &CURRENT LOYALTY SCHEMES
Fig 12. Edenham, 1997.
• Liberty successfully segments three loyal consumer tiers according to expenditure. • Each loyalty tier is rewarded with different levels of hard and soft benefits.
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Liberty have a strong online presence with a highly accessible website. Goods may be purchased online and loyalty cards can be used. They also have a blog, an online magazine and Liberty TV. Liberty reviewed their loyalty scheme in 2012, as they did not believe it was as engaging as it should be. Since, they have noticed a huge increase in participation and the number of loyalty vouchers sent out.Analysis by Libertyfound that customers redeeming their vouchers were more valuable to the company than those who did not. The Liberty database currently holds the information of six hundred thousand consumers but not all of these have a loyalty card. Two hundred thousand customers have shopped with Liberty in the last twelve months and approximately 65% of Liberty sales have used a loyalty card, suggesting the success of their loyalty scheme(Cumming, 2014). The current, most used, standard loyalty scheme at Liberty is a store loyalty card. Users can sign up in-store or online and spend on either platform. For every £1 the customer spends, they receive oneloyalty point. When a customer spends £150 they receive a £5
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voucher, when they spend £250 they receive a £10 voucher, when they spend £500 they receive a £25 voucher and a further £25 for every additional £500 they spend. Twice a year these consumers receive vouchers in the months of March and October. (Liberty, 2014). After speaking to Jenni Cumming, the Customer Relations Marketing Manager at Liberty, we learnt that there are further, exclusive loyalty schemes, which are not advertised. Near the top end of the Liberty loyalty scheme is a recognised VIP tier. In order to qualify for this recognition, a customer has to spend £5000 or more in a 6 month earns period(see appendix, transcript). These customers will be re-carded from a regular card to a VIP card and will receive some additional benefits.This small number of VIP customers do not have to constantly spend £5000 or more in the earns period to remain as a VIP. Once they are VIP consumers they will never be demoted and lose their VIP card, status or benefits. Liberty ensures that these customers are well looked after in terms of service (Cumming, 2014). The final and highest loyalty level is Liberty bespoke. This is an invitation only, inner circle for the top 50 customers, which is reconsidered every year. Should any client no longer fit the criteria, they will in effect lose membership. The aim of Liberty Bespoke is to ensure loyalty amongst the top spenders. As part of this loyalty scheme they have direct access to the head of VIP; they have access to the private suite, away from the shop floor; they receive luxurious gifting and exclusive benefits when booking one of their 15% off days (Cumming, 2014).
SWOT ANALYSIS
Tracey Kemp
• Quality customer service is a key strength to the Liberty brand. • There is an opportunity to use technological advancements to encourage customer loyalty. • It is essential that Liberty’s core values and aesthetic remains prominent throughout our idea development. We must not over-shadow or disguise the brand’s charm that it is renowned for.
Fig 13. SWOT Analysis, 2014.
STRENGTHS
WEAKNESSES
We found that the strengths of the Liberty loyalty scheme derive from their current success with accurate customer segmentation.
In order to benefit from the Liberty loyalty scheme and gain the rewards a customer is required to be spending considerable amount of money. This may cause some customers to be disinterested in the scheme.
Liberty effectively define each loyal customer into tiers, depending on their spending history at the department store. This being the standard loyal customer, the VIP customer and the Bespoke customer. This further creates a need for customer service to be individually tailored to each persons specific demands and spending habits. This means that anyone can benefit from the loyalty scheme, yet very exclusive treatment is given to their top fifty Bespoke customers. Liberty maintains strong relationships between top-end and existing loyal clientele. Strengths were also found in the ‘hard’ benefits of the Liberty loyalty scheme, with rewards being more desirable than some other brands.
After establishing the Liberty loyalty scheme as it currently stands, it was vital in the primary stages of our research to perform a SWOT analysis. This would look into areas in detail to highlight strengths, weaknesses, opportunities and threats when researching into Liberty’s current loyalty scheme:
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Other areas of weakness include the lack of connection between creating loyalty and purchasing. We also found that Liberty isn’t currently doing much Is behind in terms of technology. This may make changes quite difficult and further may not appeal to Liberty’s current loyal customer base.
OPPOTUNITIES
THREATS
We believe that there are many potential opportunities that could be brought to Liberty London. The current loyalty scheme already has an online platform. However, there is the opportunity for a stronger digital and technological presence. We believe there is room to further modernise, the values surrounding the history and heritage of Liberty’s into something to appeal to the ever-growing technologically invigorated consumer.
Obvious threats for Liberty would be competing brands and department stores loyalty schemes. We felt strongly that Liberty’s heritage and historical values were an integral part of the business and that creating a loyalty scheme that was too technologically advanced may take away from this. It would be a delicate balance of the new with the old.
Furthermore, a wide range of instore brands and products means that there is a huge potential to collaborate and create captivating in-store experiences. We found that although a large percentage of Liberty’s footfall may be from browsers and tourists, bespoke consumers or ‘large-spenders’ (that already receive a very personalised and special treatment): these customers are already loyal consumers of Liberty. We believe there are opportunities to further create loyalty for the in-between market.
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It is important that the digital habits of consumers being targeted are fully understood, as it must be accessible and well suited. It is also fundamental for the loyalty scheme to be easily accessible, by making the technology available to everyone. A further threat could be if this easy accessibility for all consumers prevents the current loyal customers to feel as privileged.
Emily Jervis
PEST ANALYSIS
• The divide between the fashion industry and technology is becoming blurred. Liberty is yet to publically acknowledge this. • The rise of self-quantifiers has increased the demand for the tracking of consumer behaviour and purchasing habits.
Fig. 14. PEST Analysis, 2014.
POLITICAL
ECONOMICAL
Political changes relate to changes in government influence. They can inform us of regulation and de-regulation trends, government stability as well as likely changes in the political environment. A Telegraph article, (Smith, 2014) stated the NHS could run out of money due to the inevitability of lack of funding. According to the Kings Funds, waiting times will rise, staff will have to be cut and quality of care will deteriorate, as a direct result of this. With more than a quarter of trusts already in deficit, the report warns that a financial crisis is now inevitable by 2015/16 and could arrive sooner. An abundance of articles discussing the Scottish referendum suggested its political prominence. One BBC article (2014) detailed the rise of pension funds, a further £450 a year, should Scotland become independent. Another 2014 BBC report (Anon) said how, according to the British Chambers of Commerce, most businesses outside Scotland want the nation to remain in the UK.
The economic environment has a direct influence on all businesses. By looking at economic developments in the world we could be more encouraged to expand and take risks when the economic conditions are right, e.g. low interest rates and rising demand. According to the April 2014 Trading Economics report, the inflation rate in the Euro Area was recorded at 0.70 per cent in April of 2014. Inflation Rate in the Euro Area averaged 2.21 per cent from 1991 until 2014, reaching an all time high of 5 per cent in July of 1991 and a record low of -0.70 per cent in July of 2009. In April, a Telegraph report stated the number of self-employed workers has risen by more than six hundred thousand since 2010, accounting for more than a third of the one and a half million new jobs created since then (Swinford, 2014).According to them, benefit cuts are pushing more people into self-employment and helping to create a new generation of entrepreneurs, the Bank of England has suggested. In other news, UKIP leader, Nigel Farage is said to be undergoing investigation as £60,000 of ‘missing’ European Union funds are paid into his personal bank account (Mostrous, 2014.)
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Through looking at the current Political, Economical, Social, and Technological factors of society, we gained a wider understanding across all contributing sectors, helping us to develop our strategic thinking and begin to identify current trends. The ability to understand all areas has made it possible to take advantage, maximize opportunities and minimalize threats.
SOCIAL
T E C H N O L OG Y
An understanding of social change creates a better understanding of future market situations; it refers to patterns of behaviour, tastes and lifestyles. Changes in consumer behaviour can be the result from any of the PEST categories, as well as age structure of the population and changes in fashion trends and styles. The rise of the self quantifiers is something at the forefront of social change. Selftrackers share a belief that gathering and analysing data about their everyday activities can help them improve their lives. Businesses, especially in the health and banking sectors, are using this idea to collate huge volumes of structured and unstructured data. It is important to both businesses and society as more data can lead to more accurate analyses as well as enabling cost reductions, time reductions, new product development and optimized offerings, and smarter business decision making.
In order to be able to keep up with the constant and advanced changes in technology, we need to have an understanding of the impact on society, businesses and consumer habits. In March 2014, Facebook reported a major improvement in face-processing software, stating that a face recognition challenge that a human would get right 97.53% of the time, this new software, named DeepFace, would score 97.25%, regardless of variations (Simonite, 2014). In the fashion industry, smartphone apps have been created, allowing shoppers to take a picture of clothing on their smartphone and then be linked to a retailer where they can buy that piece or something similar. The Snap Fashion app, uses image recognition technology to analyse a garment, looking at the colour, pattern and shape, then tries to find a match on an existing database of products from retailers such as New Look and Harrods.
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Laura Bennetts
PERCEPTUAL MAP
We chose to devise a perceptual map (see Fig.15) as a way to place Liberty of London against other brands that also used loyalty card schemes. We decided that we wanted to compare the ease of accessibility against the benefits that the consumer would be able to receive. As our map shows, we placed Liberty as being relatively accessible, although, placed further down in terms of regularly benefiting the consumer as the points take time to save. Subway’s loyalty card was placed significantly lower on the chart as it fails to provide clear instructions of use, with its terms and conditions consisting of eighty-three separate points, yet, lacking information about how to redeem points. The money spent to point conversion rate is high, meaning that the effort required does not outweigh the potential benefits.
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Fig 16. Floribunda, 1997.
From our map, we concluded that conducting further research into Tesco Clubcard, Boots and Sainsbury’s Nectar points would gather beneficial evidence into the popularity of loyalty cards amongst the consumers and the benefits that other brands offer. Fig 15. Perceptual Map, 2014.
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and consistent experience.
BOOTS Fig. 17. Primary Research on Current Loyalty Schemes, 2014.
Laura Bennetts
COMPETITOR LOYALTY SCHEMES
• Discovered that 70% and above of consumers with a loyalty card will use them every time they shop with the corresponding brand. • Highlighted the importance and success of sensory experiences within retail. Omni channel retail provides the consumer with a sleek
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After creating a perceptual map on competitor loyalty schemes we concluded that Tesco, Boots and Sainsbury’s currently have successful loyalty schemes (see appendix Case Studies) and this is something we want to emulate within Liberty’s loyalty scheme. Therefore, we conducted primary research in Nottingham at Boots, Sainsbury’s and Tesco where we gathered evidence that their current loyalty schemes are still relevant and successful. We conducted this by asking one hundred people at random, whether or not they owned a loyalty card for that retailer and if so, how often they used it.
As fig 17 shows, the ownership of loyalty cards is significantly higher than those who do not own one in both Sainsbury’s and Boots, with Tesco having the lowest percentage of consumers using a loyalty card. The percentage of those who use their loyalty card every time they shop at all three stores is 70% and above which means that consumers understand and can see the value in the benefits returned. Sainsbury’s received the most successful data in that 90% of their customers used their nectar card during each transaction. This could be a result of the large expansion of shops and brands that now offer Nectar Points to their consumers including Apple, EasyJet and ASOS. Nectar has a mobile app in order to make this information easy to digest for its consumers. This includes sending offers directly to their mobiles, offering a store locator so that the consumer can keep track of the stores offering Nectar points as well as allowing the consumer to manage and view their current balance of Nectar Points.
TESCO
SAINSBURY‘S
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Despite this promising data, a review on ThisIsMoney showed that Tesco’s Clubcard system was able to benefit the consumer more than Sainsbury’s Nectar card system with each point being worth 4 pence in comparisons to a Sainsbury’s point being only worth 0.5 pence (ANDREW, 2014). This opens itself to questions of whether the consumers themselves are actively aware of the benefits or simply collect the points just because they know they can. Of course loyalty is not just created through the use of a loyalty card, but sensory experiences are another relevant factor in making customers
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return. Omnichannel retail provides the consumer with a sleek and consistent experience that can be integrated alongside sensory branding in order to create a shopping experience that is engaging to the consumer. (Rossi, 2014) Research collected by the Centre for Experimental Consumer Psychology at Bangor University suggested that tangible advertising engaged more senses than the intangible and produced a deeper engagement between the consumer and the brand (Brown,2009). Brands that have successfully been able to seamlessly blend both sensory experiences and consumer loyalty includes Starbucks (see appendix Case
Fig 18. Liberty Print. Date Unknown.
Studies). They are a brand that uses all five senses to engage the consumer from the moment they enter the retail space. From their considered furniture choices complete with homely scuffs, to the alluring smells of freshly ground coffee and ambient lighting, Starbucks ensure that their customers will choose toreturn by enabling them to feel satisfied and relaxed with every visit (Lindstorm, 2009, p.158). Utilising the direct contact time a consumer will spend with a brand is essential. Air France (see appendix Case Studies) is another brand who manages to successfully use this within their
retail experience using sight, smell, taste, touch and sound.They provide original and exclusive music for their customers to listen to as well as using menus created by top Michelin star chefs to ensure that consumers feel appreciated(Hellman, 2007, p.30), Their head of brand management, Elisabeth Ouillie showed an understanding of this process by stating that “The more a brand is present on all possible points of contact with a consumer, the stronger the brand is and the more the consumer retains a brand image� (Lindstorm, 2009, p.130).
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Sophie Gould
RETAIL COMPETITORS
• Liberty must continue to differentiate from their competitors, in an effort to ensure customer loyalty. • It is essential to find the unique selling points of the Liberty brand and maintain these at the core of developments.
Fig. 19. Retail Competitors 2014.
COMPETITOR
LOCATION
HISTORY
Harrods
Kensington
It was opened in 1849 by Charles Harrods. It is one of the world’s most famous stores due to the wide array of products, incredible food hall and beautiful in-store environment.
Selfridges
Oxford Street
Selfridges was founded by Harry Gordon Selfridge. The flagship store on London’s Oxford Street is the second largest shop in the UK (after Harrods) and opened 15 March 1909. In the past twenty years they have also opened three other Selfridges stores in the Trafford Centre (1998); Exchange Square (2002) in Manchester; and in the Bullring, Birmingham (2003
Harvey Nichols
Kensington
In 1831 Benjamin Harvey opened a linen shop and in 1835 the shop expanded to number 8 next door, and continued to expand into successive properties over the following years. In 1841 Benjamin employed James Nichols. Benjamin Harvey died in 1850, leaving the business in the care of his wife Anne, who went into partnership with James Nichols to form Harvey Nichols & Co.
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The retail industry is renowned for being one of the most competitive industries to operate in due to fluctuating consumer demands, seasonal trends and the sheer number of competitors. Direct competition for Liberty is Selfridges, Harrods, Harvey Nicholas, John Lewis and Dover St Market.
After this detailed overview of the efforts of Liberty’s competitors, we must consider how to best to maximise the potential of consumer loyalty for Liberty. Later, we must find the unique selling points behind the Liberty brand and use this as the pushing force behind our ideas (see Big Idea).
CUSTOMER BASE POINT SYSTEM The majority of Harrods customers live in Central London, however, they also have a high percentage of international clients from across the country and across the globe. Chinese visitors constitute a wellestablished proportion of Harrods international customer base.
Harrods currently have a loyalty scheme called the Harrods Reward card, which anyone can sign up to, and you earn points for every pound spent in-store or online. For every five hudred points earned, consumers receive a £5 gift voucher to spend on anything in store
COMPARISON WITH LIBERTY Harrods and Liberty both cater to a similar clientele – however, Harrods lacks the personal and intimate connection with their consumers. Liberty is an iconic British store whereas Harrods is of Middle Eastern design.
(Harrods, 2014). Selfridges is a largely technology focused store that targets a wide audience with their prime location and appealing merchandise. The stock, store design and atmosphere are predominantly aimed at a younger, more fashion conscious market. This market can be divided into two groups: locals and tourists. (Hines and Bruce, 2001).
Selfridges does not currently have a loyalty card scheme that people can sign up to when they purchase goods in exchange for rewards. In small print on their website people can sign up for a Selfridges card to enjoy “VIP treatment – from event invitations and latest news to extra discounts on sale days” (Selfridges, 2014). This however, is not as exclusive as the title suggests and anyone can apply for an account card at the services lounge in-store.
Harvey Nichols has traditionally targeted affluent shoppers aged between 25 and 45.
The store has a rewards programme for customers who use a Harvey Nichols Mastercard. It is a credit card that can be used to purchase anything in-store or outside of the store e.g. filling up with petrol. When consumers use their Harvey Nichols Mastercard, they earn points that will be converted into rewards vouchers to use in-store, at the OXO tower or at PRISM restaurants every three months. Customers earn a point for every £1 they spend in Harvey Nichols stores and restaurants and earn 1 point for every £2 they spend outside the store. For every 500 points they earn, consumers are rewarded with a £5 Harvey Nichols rewards voucher. (Harvey Nichols, 2014).
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They both exist in a close external environment and therefore both stores work around these factors to compete more specifically through their positioning. Selfridges appeals to a wide range of consumers, but Liberty positions itself to the more premium of clientele, and its merchandise is mostly high-end to attract the smart ambitions, empty nesters and highly affluent following. Harvey Nichols is a chain store which retails throughout the UK but Liberty, is an independent retailer. Harvey Nichols is considered to be glamorous, trendy and expensive but Liberty is far more tailored, exclusive and personal. Harvey Nichols focuses their merchandise on fashion and beauty but Liberty focuses their merchandise on their iconic prints and high quality products.
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chapter three CONSUMER
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CONSUMER ANALYSIS
Sian Edwards
• Liberty has a large spectrum of consumers- tourists, couples, families etc. • Highlighted our target market- The Auspicious Duo and The Prosperous Progenitors. • All of Liberty’s existing consumer groups are digitally connected.
We visited Liberty London on the 4th May 2014 to photograph and talk to people who had purchased from Liberty. (Fig 20 to Fig 27)This helped inform our research, giving a good overview of the types of consumersshopping at Liberty. Along with the information provided to us by the Liberty Customer Relation’s Marketing Manager-Jenni Cumming, group primary research has allowed us to identify Liberty’s main loyal consumer bases. Consumers using the current Liberty loyalty card are “predominantly female… around 75% female” (Cumming, 2014). The primary consumers are intelligent and financially comfortable females, aged between thirty and forty-five, followed by the highly affluent fifty five year old pluses. Other customers include younger, successful and professional couples and families. All of the consumer bases are digitally connected.
Fig. 20, Consumer One Purchasing from Liberty, 2014.
We have highlighted that Liberty have a large spectrum of consumers- from those discussed by Jenni Cumming and others noted in primary research. Global tourists
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are likely consumers, wanting to purchase a piece of iconic British heritage. It was essential to refine our target market. We selected two consumer groups, which alongside Jenni Cumming, we believed could be most receptive to an improved loyalty scheme. Many of these consumers will have already signed up for a Liberty loyalty card; and the others must be encouraged. These consumers have been segmented into two consumer groups would be Prosperous Progenitors and the Auspicious Duo.
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Fig. 24, Consumer Five Purchasing at Liberty, 2014.
Fig. 22, Consumer Three Purchasing at Liberty, 2014.
Fig. 21 Consumer Two Purchasing at
Liberty, 2014.
Fig. 23, Consumer Four Purchasing at Liberty, 2014.
Fig. 25 Consumer Five Purchasing at Liberty, 2014.
Fig. 26 Consumer Six Purchasing at Liberty, 2014.
Fig. 27 Consumer Seven Purchasing at Liberty, 2014.
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Emily Jervis
CONSUMER PROFILES
Fig 28. Couple Consumer Profile, 2014.
• Awareness of the differences between these consumer groups are essential. Must be considered throughout idea development and marketing.
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Fig 29. Couple Consumer Profile, Info 2014.
Name: Age: Occupation:
Vicky 35 Lawyer
Scott 34 RAF officer
Stores:
Oasis, All Saints, Cos, Rag & Bone, Acne Visits department stores once every three to four months
John Lewis, Apple
Brands: Purchases:
Mulberry, All Saints, ugg Handbags and Shoes Iphone most used for: Making calls,Taking photos, Internet looks at phone an average of 30 times a day Macbook Pro most used for: Internet shopping, Work, Face Time owns Ipad
Apple, Barbour, Calvin Klein Macbook Pro and technology
Resturants:
Nice Bistros, independents rather than chains
No preference
Supermarket:
Waitrose
Waitrose
Drink:
Dark Rum and Diet Coke
Coffee
Music:
Indie/Pop
Phone: Laptop:
Hobbies: Newspaper: Magazine: Holiday:
Fitness Classes Telegraph Grazia Asia/USA Skiing Resorts Travel with Virgin Loyalty schemes: Virgin Flying Club, Nectar Car, Tesco Club Card
Iphone most used for: Internet, Clock, Texts looks at phone an average of 30 times a day Macbook Pro most used for: Internet shopping, Word Processing, Storing Photos owns Ipad
Hand-gliding and Skiing Telegraph GQ Caribbean/USA Waitroise Card, Virgin Flying Club only use Waitrose card regularly
How important is good customer service to you? Would you return to a store with poor customer service? Very important/ I would prefer not to if there were similar stores available. How important is the sale assistant’s product knowledge? It depends on the type of shop or department of shop. I would like someone working within an Electrical Goods department to have product knowledge. Which brands are you a loyal customer to and why? Waitrose as the quality of food and service is always good.
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Fig 31. Couple Consumer Profile Info 2, 2014.
Name: Age: Occupation: Marital status: Children: Grandchildren:
Marianne 75 owned schools in the Hamstead area Married to Peter 2 (3 Stepchildren) 12
Stores:
John Lewis, Selfridges and liberty visit them every 2/3 months. Bassleur, Robina,Avril in Temple Fortune Costume jewellery
Brands: Purchases: Phone: Laptop: Resturants: Supermarket:
Nokia Checks around 8 times a day Used for emailing, food shopping and browsing Local restaurants in Hampstead: The Wells, Bradleys, Caprizio in Temple Fortune, Ledbury’s in Notting hill Waitrose and Marks & Spencer’s online: Ocado
Drink:
Herbal Teas, fresh lemon with hot water, tonic water, fizzy water. alcohol: Dubonnet, Limoncello, Zinfandel, and sweet red martini.
Music:
Neil Diamond, Jazz music, country music, classical music and Operatic music
Hobbies:
Going to the theatre, walking - belong to a group called ‘Exploring London & Beyond’ and visiting exhibitions/ galleries
Cosmetics: Perfume:
Bobbi Brown, Estee Lauder. Clarins if there is an offer Estee Lauder, Christian Dior and Clarins.
Newspaper: Magazine: Books:
Daily Mail/ The Times. Dont usually buy magazines Read a Kindle
Holiday:
Florida, Australia once a year to visit children
Loyalty schemes: Loyalty with local health shop in Temple Fortune/ hairdresser in Temple Fortune– five blow-dries and the sixth one is free.
Would you be more inclined to shop somewhere if they had a loyalty scheme? Yes, I would be providing it is convenient. Provided the goods were good. Ocado goods are very expensive but the quality is much better than elsewhere. How important is good customer service to you? if the service were terrible I would not return if it were a small shop I would not go back. If I needed something desperately I would return reluctantly. But for a department store I would return and consider it a one off. Always ask for a discount in a local store – or buy more than one thing. Would you use of Loyalty app? Yes I would be inclined to use a loyalty scheme app if I knew how to work the app – if in conjunction with a store I liked.
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Fig 30. Consumer Profile , 2014.
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Chynna Davies
DIGITAL HABITS WITHIN A RETAIL ENVIROMENT
Fig 32. John Lewis. Floor Plan Ground Floor, 2014.
Fig 33. John Lewis. Floor Plan First Floor, 2014.
• Discovered a connection between the high levels of mobile device use and unenticing, non-tactile areas within a retail environment. • To be considered when marketing and targeting our consumers.
After focusing our attention on two particular consumer groups, we have highlighted a need to understand the digital habits of the market. Our loyalty scheme must incorporate the use of a mobile device. Therefore becoming familiar with the most appropriate methods of technology is essential. After analysing all consumer research, we can conclude that a common factor of both consumer groups is how they are “all connected on the digital perspective” (Cumming, 2014). Our primary research confirmed the accuracy of the market analysis completed by Liberty (see appendix Jenni Cumming Transcript). Next, we considered how retail environments affect or encourage the use of mobile devices. ___ Without physical access to the Liberty store, we were resourceful when conducting this research. We selected the local John Lewis store as an appropriate location. Similar to
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Fig 34. John Lewis. Floor Plan Second Floor, 2014.
Fig 35. John Lewis. Floor Plan Third Floor, 2014.
Liberty, John Lewis is a department store situated in a busy city centre, stocking a large range of brands and products. They both attract a very different consumer to the other department stores located in NottinghamHouse of Fraser and Debenhams. For one hour, we observed how and where mobile phones were being used. A high level of mobile phone use was recorded near the entrances and exits of the store, on the stairs and escalators and surrounding the store lifts. This suggests that there are certain locations within this store where the brand fail to fully entice the consumer with their retail experience. Logically, there was a noticeable level of mobile usage around the customer order collection point (see fig. 35), as customers were accessing order confirmation emails. During analysis, we made a connection between higher levels of mobile use in the less tactile departments such as lighting and crockery. (Customers are politely reminded to not touch the products in these departments.)
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In comparison, there was a significantly lower level of mobile device use in the furniture department (see fig.34); here, customers are encouraged to browse material samples and try out the products. This task has given us an essential insight into digital habits within a retail space. We have highlighted several reoccurring locations, where customers are more likely to reach for their mobile. We must apply this research to our proposal; ensuring that promotion and interactivity occurs at these spots, where the correct consumers would actively consider connecting digitally. Although useful, we could improve the accuracy of this research method. We could have gained a more thorough and reliable result if we completed several observations on various times and days. In addition, multiple researchers on every floor would resolve any biased or missed recordings.
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chapter four THE BIG IDEA
“Relationships are built on knowledge. So when a customer tells a company something about themselves then it is the responsibility of the company to customise its offerings to the consumer. From that point the relationship is started�
(Egan, 2008).
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Fig 36. Team Excercise, 2014.
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BIG IDEA
Sophie Gould
• CRAFTSMANSHIP- Ideas of craftsmanship must be delivered beyond the products and echoed with a nurtured relationship between the consumer, staff and the brand. • Must increaseloyalty with the use of mobile technology. Our concept must enhance the consumer experience and encourage return visits.
Fig 37. Craftsmanship Brainstorm. 2014.
Fig 38. Liberty Brainstorm. 2014.
This task (SEE fIG.38) allowed us to highlight the unique selling points and individual qualities of Liberty in comparison with their competitors that were earlier established. Our big idea is surrounding CRAFTSMANSHIP. As a key component of the Liberty in-store experience and products, we want to incorporate this unique value into our idea development and marketing. We are aware of the sales assistants knowledge and expertise and these qualities are an integral part of the Liberty experience and we want to use this as the focal point of enhancing loyalty. Some of the most successful sales assistants have worked in-store for a significant amount of time and are often recognisable to frequent customers by their comprehension of the store and proficiency of consumer service. Creating true craftsmanship is not just in the retail items but also in the relationship between consumer and the sales assistant, we feel that this can be enhanced by utilising new technology. Ideas of craftsmanship must be delivered beyond the products and echoed with a nurtured relationship between the consumer, staff and the brand. “Relationships are built on knowledge. So when a customer tells a company something about themselves then it is the responsibility of the company to customise its offerings to the consumer. From that point the relationship is started” (Egan, 2008). We aim to achieve this improved, personal relationship and increase loyalty with the use of mobile technology. Our concept must enhance the consumer experience and encourage return visits.
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BIG CREATIVE IDEA
Tracey Kemp • Our app will be a complimentary partner to the existing loyalty card. • This app makes it possible to further improve the already exceptional customer service at Liberty. • Consumers get thorough and immediate control over their loyalty account.
We are designing a smart phone app that will allow the consumer to become immersed in a highly tailored and seamless experience at Liberty. In our early stages of research, we conducted an interview with Jenni Cumming, Customer Relations Marketing Manager at Liberty. We discovered Liberty’s current interest in incorporating technology to improve in-store experiences. Jenni stated, “I absolutely do think there is a role for technology, within loyalty” (Cumming, 2014). However, she informed us how Liberty is developing a loyalty app; they are planning to market this app to the users of the in-store Wi-Fi. This was encouraging to discover and reassured us that we were on the correct routes of development. On the other hand, we were certain that this method of mobile device technology was best suited to the brand and consumer; we were resistant to totally dismiss this concept. Instead, we considered how this app could be more than just a digital account or virtual loyalty card. We were keen to re-enforce the idea of craftsmanship and enhance the emotional attachment between the consumer and the brand. We looked at immerging technology to maximise the potential of our concept and highlight methods to enhance Liberty’s existing plans regarding mobile technology. Any new and digital establishments aim to keep the store experience interesting, stimulating and exploratory: key components of the “attention cluster of emotions” (Shaw, 2007). In Shaw’s book of How Emotions Drive Value he states “if you evoke these emotions in your
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Fig 39. Kaylie Sunshine, 2014.
customers they will spend more money with you” and over time, Shaw believes this will lead to increase loyalty (2007). People crave the ‘new’ in all aspects of their lives, predominantly with new gadgets and technologies. For example with a mobile phone: an older phone may work for its primary function - yet that is irrelevant. The new phone is more exciting; it has more features to “explore” (Shaw, 2007).We have established that users of the existing loyalty card scheme are digitally connected and therefore a combination of pioneering and clever technology should further arouse this “cluster of emotions” to galvanize people into action, purchase and loyalty. Our app must stimulate the current and future digitally attentive markets - it is something that is becoming imperatively exigent. Our app will be a complimentary partner to the existing loyalty card. Customers will still be given the option to own a physical loyalty card when joining this scheme. We believe that in today’s fast society, the physical and tactile connection with a brand is highly valuable. This is another method to reiterate the value of craftsmanship; as members can carry their own, small piece of Liberty in their purses and wallets. This app makes it possible to further improve the already exceptional customer service at Liberty. In addition, consumers get thorough and immediate control over their loyalty account.
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Fig 40. Thorpe, 1979.
Fig 41. The App, 2014.
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Our app proposal has the following features (see Fig.41): • A digital overview of a customer’s loyalty account- expenditure and points balance. • A visual diary of the consumer’s purchase history. • Digital coupons and vouchers. • VIP extras- information on any relevant events or Liberty updates. Encourages the use of the Liberty Blog and online magazine. • Today’s store- information on department specialists, the knowledgeable and recognisable members of staff that are available in store; to encourage customers to visit the store as apposed to shopping online or in other stores. • In-store, customer-tracking system- an unobtrusive method to secure sales and provide the best quality service at the best possible time. To ensure a seamless purchase experience is had. Accessed by a single or few (as necessary) sales assistants in participating departments via a portable, digital tablet. They can discover which loyalty app users are in their department, their loyalty account information and how long they have been around a particular item. With the use of this data, sales assistants can be prompted when is the optimum time to approach, providing relevant brand or product knowledge. This should help to eliminate any of the consumer’s doubts or questions regarding a purchase.
This app shall run alongside several elements of the existing loyalty card scheme… • Loyalty cards- all users of this loyalty scheme have the option to still own a physical card along side the use of the app. If preferred, loyalty cards can be used at the till points to receive points. We have discovered the importance of the tangible sphere within retail to keep consumers enticed and connected. In addition, people relate the idea of ownership with physical items, this may enhance the personal and emotional attachment between the consumer and Liberty which results in increased loyalty. • Physical interaction- A balance between digital rewards and physical interaction. Consumers should receive push notifications about their latest digital vouchers as frequently as they receive printed updates. This echoes the ideals surrounding craftsmanship. • Hard benefits-The current pounds to points conversion rate will remain.
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Emily Jervis
HOW CAN THIS BE ACHIEVED ?
• The app will use with Bluetooth Low Energy (BLE) and IBeacon technology. • BLE can locate near-by users of the app and push information directly to their customer’s smartphones. • BLE will also allow the use of the in store consumer tracking. • To enhance the customer’s shopping experience with a seamless and efficient customer service.
Our app can be downloaded and used on all compatible smart phones and is free of charge. It is simple and easy to navigate. After every visit, rewards and recommendations will become increasing tailored for individual consumers. Currently, points can be monitored through the Liberty website. According to the Adobe Mobile Shopping report (2013) 49% of shoppers were interested in using apps instead of the browser, whilst 42% also said use of an app strengthens brand connection.
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The app would be use with Bluetooth Low Energy (BLE) and IBeacon technology. BLE is a low-powered and low-cost indoor-positioning system(see Fig.42) that could be installed discreetly around the store. The app does not need to be active to provide offers and notifications. It can run in the background effectively, pushing offers suited to their purchase history. The use of BLE technology has many benefits, it would allow Liberty to locate nearby users of the app and push information directly to their customer’s smartphones. This information could be anything
from time sensitive offers, (something that would pull traffic into the store) to rich media content.
are in a “hot state” and could be psychologically inclined to purchase. The sales assistant could provide assistance to this particular consumer, providing BLE will also allow the use of expertise on the product or the in store tracking device as brand; also giving them a mentioned earlier. Sales staff chance to push the sale of other could see ‘Mrs. Smith’ was products. We aim to give each stood in the queue, acknowledge customer a tailored and seamless her, by name, and suggest service, catering independently she come to a quieter till. to each individual; using the Reducing her wait time and basic information sent from interacting on a personal level the stores BLE system. We to provide a more gratifying hope that this process shall feel experience. Another feature very natural- it is essential to of this would mean sales staff recognise that the consumer’s would be alerted once a loyalty mobile device can remain in cardholder had been stood next the shopper’s pocket or bag to to a product for longer than receive this exclusive service. three minutes, suggesting they
Similarly to the apps benefits for loyal consumers, sales staff could be made to feel more appreciated and respected as they are showcased as valued members of the team and department experts. Personal profiles of the staff stating how long they have worked at Liberty as well as their name can be accessed through the app’s “Today’s Store” section. In conjunction to this, if sales staff are busy with another customer at that optimum moment, consumers will be sent a push notification to inform them of the best sales assistant to help them. We hope that these friendly profiles will increase the
Fig 42. App on Ipad, 2014.
approachability of the staff for this group of consumers. An example being if they have shown interest in a scarf, the details of the sales assistant who generally works at the scarf concession will be given. We believe that our target consumer groups have the best interests to purchase from Liberty, they can also afford to do so, however, they lack the brand commitment; consequently, they may consider to visit other department stores and brand flagships is their needs are not fully met. With this app we aim to enhance the customers shopping experience, creating a seamless and efficient service, which should in term, show appreciation to both staff and consumer, easily adding desirability and exclusivity to the basic loyalty card tier.
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CONSUMER BENEFITS Sophie Gould
• App aims to offer the soft benefits that are currently missing from the existing loyalty card scheme. • These benefits are an extension of the current loyalty card scheme. • These benefits contribute to the careful crafting of loyal and lasting relationships between consumers and Liberty.
Fig 43. Loyalty cards, 2014.
As previously highlighted in our ‘Loyalty Theories’ chapter, brands reward loyalty with a range of hard and soft benefits. In the book Customer Loyalty Programmes and Clubs written by Stephan A. Butscher (2002), he highlights the importance of both hard and soft rewards; the balance of materialistic and emotional benefits for the consumer. He concludes that longterm loyalty is created as a result of establishing a true relationship with consumers, “based not on financial incentives, but on emotion, trust and partnership” (2002). The existing Liberty loyalty card offers exclusive hard benefits, such as discounted items or vouchers.
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Our app aims to offer soft benefits that are currently missing from the existing loyalty card scheme. The use of this digital application will offer the customer: • Seamless in store experience – App users will receive an improved shopping experience through personal and specific interaction with brand staff in a natural manner. This secures the loyalty loop of the consumer decision journey. • Immediate control over their loyalty account – Customers can check their point’s balance and can also look at past purchases. This can be done whenever convenient to the consumer. • Improved customer relations – Brand staff will be able to communicate directly with customer with the aid of the consumer tracking system. Staff and consumers will have improved personal relations, as staff are able to see consumers past purchase history, and can also locate consumers position within the store through the traffic light system so customers are not left unattended for long periods of time. This allows staff to approach customers and give them personal, tailored advice. • A visual diary of the consumers purchase history – Consumers are able to see their past purchases and the app offers tailored suggestions on similar items in store. • A more personal connection with Liberty through the VIP extras section. This enables consumers to see the latest news and updates on Liberty. It gives them exclusive insight to make customers feel emotionally attached and part of the Liberty brand.
Fig 44. Loyalty card, 2014.
All of these benefits are an extension of the current loyalty card scheme and offers soft benefits to enhance the relationship between Liberty and consumer. This links back to our big idea on craftsmanship and creating personalised benefits. All of these benefits contribute to the careful crafting of loyal and lasting relationships between consumers and Liberty. Theory suggests that the best way to create loyalty is to have a balance of the hard and soft benefits, which our app aims to seamlessly offer (Butscher, 2002).
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MARKETING STRATEGY
Tracey Kemp
Fig 45. Poster in lift, 2014.
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When marketing our new loyalty scheme we must propose a strategy that is well suited and tailored to each one of our specific consumer types; the young and aspiring, Auspicious Duo and the slightly older, Prosperous Progenitors. Forms of advertising will communicate to their separate needs and preferences. For example, we hope that physical invitations and rewards, tactile visual merchandising and in-store visuals shall be of greater appeal to the Prosperous Progenitors; yet new technologies and online platforms will be directed more towards the younger and already digitally immersed Auspicious Duo. We hope that this range of marketing methods will appeal to both consumer groups in different yet cohesive ways. These forms of advertising will not only showcase the sales assistants tailored service and expertise, yet maintain the core value of Liberty- craftsmanship. These methods shall carefully aid the crafting of the personal relationship between the brand and current partially loyal users of the loyalty card. The app will be advertised and marketed through a variety of platforms, as shown below: Press release – Our press release will be sent to current industry professionals, brands and suppliers Liberty stock in store (See Appendix, Press Release). Launch - The launch event will be a sophisticated and cultural evening in celebration of the enhanced Liberty experience. The double points evening, complemented with music, champagne and canapés shall further promote the benefits of the app. It will give current Liberty card users exclusive access for to the new technological developments using BLE, face detection and augmented reality. In recognition of Liberty’s excellent customer service and craftsmanship, these features are to be intimately highlighted to consumers first through this launch event. VM - The window displays and visual merchandising ideology will originally exhibit at the exclusive launch event for loyal consumers. It will feature a large photograph of a factory workforce in the 1900’s, when independent craftsmanship values were extensively present. The photograph will feature the current Liberty staff through this aesthetic. Consumers can use the camera feature on the app, hold it up to the face of the photograph to further find out information on that staff member. In-Store – Through observational primary research into a consumer’s digital habits within a retail environment (see Digital Habits in Retail Environments chapter), highlighted the times of increased mobile device use: when there were no brand staff nearby to talk or help; no tactile interact with products and in times of choice trauma (Group Observational Research, 2014). We concluded that these were the times and locations that a brand had failed to entice the consumer into the any sort of experiential retail.Thus, in-store advertising will be in places we found high digital engagement, this being Liberty lifts and stairwells See Fig.45). Blog – An engaging post illustrating Liberty’s new technological developments and strengthened relationship values will be featured on the Liberty blog. Liberty TV – Liberty TV is a broadcast of thousands of short-film documentaries, that relate or promote Liberty as a brand. Furthermore, a short film will be posted on this platform featuring the use of the app through the consumer’s eyes. It will give the viewer a preview of the changes in-store and the enhanced digital experience. Magazine - Liberty magazine also will feature the new improvements to the Liberty experience, presented through an energetic article and photography.
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LAUNCH
Emily Jervis
In order to promote the new Liberty loyalty app, Liberty will host an event at the store as a celebration of craftsmanship. Existing loyalty card members will receive personal invitations to this exclusive event (see Fig.46), hosted at the store.We realise that Liberty currently have a large number of existing loyalty card users; and therefore the launch will run over 5 days. Spreading the dates would mean a smaller attendance on each night and a more personal experience for the attendees, which is in keeping with the customer relationship values of Liberty and aiding the crafting of relationships. Paying homage to the heritage of Liberty, the night will be traditional and elegant. Live classical music will be played and champagne and canapĂŠs served. Low-key lighting will create an ambiance in contrast from the stores everyday lighting, highlighting the intimate, exclusive event. Attendees will be encouraged to download the app during Fig 46. Invitation, 2014.
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the event and will be given a code to enter upon downloading, to ensurethat only loyalty card owners have access to the app and its exclusive benefits. As an incentive and reward for attending the event, double points would be given with all purchases on the evening. Receiving points at the event would give consumers a chance to see how the app works. Knowledgeable staff will also be on hand to demonstrate the app and show how to use it effectively.They will also be able to provide information on products in their sections of the store, allowing them to demonstrate their knowledge and answer any consumer queries. This interaction provides the foundations for attendees and sales assistants to craft personal and informal relationships, something that could enhance an overall shopping experience. Staff would be encouraged to offer their business card to customers, to enhance the approachability of Liberty staff. Including their name, picture and small specialist department, this business card should encourage the consumer to personally interact with the sales assistant on their next visit. We deem this to be an act of appreciation for the Liberty staff, acknowledging them as members of a family. The night will be a chance for craftsmen to demonstrate their skills: workshops and stalls will be a feature in areas of the store so a Gaunter, for example, could exhibit how the finest of gloves are made. This sensory experience, a reference to the origins of Liberty, will allow attendees to first hand see how some products were, or still are, made. Alongside this, attendees can learn about the history of Liberty, immersing them into the brand and its values. We hope that this event will create an emotional connection between consumers and Liberty. These are all small elements that we believe will contribute to the careful crafting of a valuable consumer relationship.
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FURTHER DEVELOPMENTS
Laura Bennetts
As a group we decided to visit Riot 1831 (see appendix, Riot Exhibition Case Study), an exhibition at Nottingham Castle that used iPads as an integral part of the way they delivered their information to visitor (see Fig.47-49). This worked by iPads being hung by three wires from the ceiling that created a surprisingly sturdy structure. The visitor would then hold up the tablet to view a painting or a model structure through the camera, this would then become animated through augmented reality. It would deliver a video or narrative around the painting or structure, which we found was an extremely effective way to help the visitors to remember and connect the information from visuals that may have seemed boring and banal to begin with. The key points that we took from this experiential exhibition were that the use of tangible technology allowed the visitor to
feel as though the information was more accessible to them. Martin Lindstrom, an expert on sensory branding, further confirmed that appealing to the consumer through the use of a wide range of senses can influence a consumer’s emotional connection to a brand in his book, Brand Sense: Sensory Secrets Behind the Stuff We Buy (Linstrom, 2010). We developed our findings into a potential launch display that would be able to work alongside our apps celebration of Liberty’s dedicated sales assistants, using augmented reality. Our launch display would use a large photograph to mimic the aesthetic of a group photo taken of a factory workforce in the 1900’s (see Fig.50), when products were more commonly made by hand. This would be taken of Liberty’s employees and would further reinforce our core values of crafting a relationship and family. The consumer could use a feature within the
VIP Extras section on the app to use their mobile and transform the image. Holding the device up towards the image will reveal key information about the featured staff, such as their department and time working for Liberty. where they worked and how long for. This would remind the consumer that Liberty not only cares about their relationship between themselves and the customer, but also between themselves and their employees. This encapsulates the ideas of mutual trust and helps the formation of an emotional connection with everyone that engages with the brand.
Fig 47. Riot Exhibition 1 2014.
Fig 48. Riot Exhibition 2 2014.
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Fig 49. Riot Exhibition 3 2014.
Fig 50. Window display, 2014.
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chapter five THEORY
With technological advancements, Liberty must keep evolving online and in store to retain customer interests and differentiate from competitors.
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T H E 5 C’S
Sian Edwards
We have used The 5 C’s of Marketing model to evaluate how efficient and successful our app proposal could be with Liberty today.
CONTENT
CONTEXT
COMMUNITY
The app has features that are best suited to our targeted consumer groups, the apps is designed for the use of existing Liberty customers that our research proved could be most receptive. Our target consumers may already own a loyalty card; our app is an extension to make the scheme more accessible and digitally connected with the brand.
With technology advancements, Liberty must keep evolving online and in store to retain customer interests and differentiate from competitors. Liberty consumers are “digitally connected at home and on the move” (Cumming, 2014). Studies into GPS and BLE created a link between the potential of retail spaces and mobile devices.
This app will help consumers create relationships with members of staff in store, tailoring to their needs within store. This will make customers feel emotionally connected to the brand. Overall, the app will be more personal and tailored to each customer so that they feel important to Liberty and get an improved and enhanced experience when shopping at Liberty.
“About a decade ago, regulators such as the FCC began requiring all new mobile phones to have built in location technology such as GPS to find emergency callers” (Digital innovation gazette.com, 2014). “Most smartphones have full GPS capability on-board and there are many options for all smartphone platforms available both on iOS and Android” (Kendrick, 2011).
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CONTINUITY
COHESION
For our advertising we plan to use different platforms alongside one another so it appeals to the correct Liberty consumers. We will advertise the app in the Liberty Magazine, the Liberty blog, website and around the store. Long-term benefits will include offers through the post every now and again so people are reminded of their loyalty accounts through physical prompts alongside digital communication. This improved loyalty scheme shall continue to benefit the consumer over their whole time with Liberty; our app is not a promotion or short-term scheme.
All marketing and visuals shall be in keeping with existing Liberty promotions. The same visual aesthetic will be use throughout the loyalty card and the loyalty app. We have chosen to use four different patterns, to replicate the physical Liberty loyalty card- this creates a multi-platform visual signature. As with the current loyalty card, consumers can select their preferred design across both platforms. A cohesive theme throughout our whole proposal is craftsmanship. We have tried to showcase and execute this wherever possible .
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CONSUMER DECISION JOURNEY Chynna Davies
• Carefully considered the before, during and after stages of the purchasingjourney. • Our chosen methods of digital communication, perfectly connects the in-store environment with physical experiences.
Fig.
INTERACT
EVALUATE
PURCHASE
Immediately after joining the loyalty scheme, there will be regular physical (promotions/ invitations via post) and digital interaction. This shall continue throughout the customer’s lifetime with Libertybecoming increasingly tailored after every visit.
After establishing the correct moment, a sales assistant can aid the consumer whilst in a “hot” state. Good brand knowledge, some guidance on product care and customer understanding should help to eliminate any of the customer’s doubts. Perfect timing, consumer data and an attentive member of staff could secure many purchases.
The purchasing process will also be personalised for members of the loyalty scheme- to ensure a very rounded experience. Staff will know the exact position and basic information (name, loyalty card balance/offers and purchase history) of these loyal customers whilst in the store. At the cash desk, loyalty points can be added digitally or physically -via the loyalty card if preferred.
Fig 11. Customer Decision Journey, 2014.
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With a finalised proposal and marketing plan, we have taken this opportunity to refer back to one of our first theoretical chapters. The consumer decision journey underpins all purchases including those at Liberty; therefore it is a trusted model that we can evaluate our work against. Our loyalty scheme allows Liberty to have control and maximise the potential of every stage of this model. We have carefully considered the before, during and after stages of purchasing, to ensure a shopping experience that showcases the unique selling points of Liberty.
ADVOCATE
BOND& ENGAGE
PURCHASE
Seasonal offers and product recommendations are exclusive and tailored for every consumer. These “hard benefits” (Kumar, 2012) will add an exciting element to discuss between colleagues, friends and those of similar consumer habits.
The app can generate product recommendations to encourage a store visit. Likewise, it can update a customer on the arrival of new lines from their favourite labels. After certain purchases, a follow-up call or message may be required from a member of staff, this would be an individual the customer is familiar with and recognises as a department specialist and ambassador for Liberty.
A previous good experience + a personalised and informative service + positive post-purchase interaction with the brand = repeated visits, increased loyalty and a reason for word-of-mouth recommendations.
The Chief Executive of Spencer’s Retail, explained how 2014 retail must revolve around omni-channel communication. He believes that successful brands will make “shopping experiences seamless across mediums” (in Dalal, 2014). We believe that our methods of digital communication perfectly connect with the in-store environment and physical experiences. A member of this scheme does not need to touch their mobile device before they receive “soft benefits” (Kumar, 2012), such as extra assistance and service.
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We do believe that our report plan to increase loyalty at Liberty is an achievable answer to increasing brand loyalty amongst the correct consumers. In fact, we wanted to ensure that our suggestion was in perfect keeping with the brand’s values and image. We highlighted the unique selling points of Liberty as craftsmanship, heritage and charm; it is essential that these remain at the heart of every brand decision.
CONCLUSION
Sian Edwards
In an overall appraisal of our developments for Liberty of London, we created an app. The app aims to craft a strengthened relationship with the consumer, which we believe effectively benefits both the customer and the Liberty store by encouraging loyalty. We identified four target market segments of current consumers at Liberty, to further highlight two customer market groups to focus on - The Auspicious Duo and the Prosperous Progenitor. This allowed us to effectively target each segment’s specific needs and preferences, which holistically created a strengthened and complete quality service. Focusing on Liberty’s unique selling points, we recognised excellent customer service and craftsmanship as areas to highlight and develop. Through doing this we not only kept the core values of Liberty at heart, but also understood the consumer and their needs by making the app usable for them so they can stay connected online and not just in store. By using new technologies such as BLE and augmented reality incorporated into our app technology, we aimed to tastefully, discreetly and appropriately modernise the Liberty experience to keep with the times of our increasingly digital world. “My interests in the future because I am going to spend the rest of my life there” (Kettering, 1922). Overall, we hope that out proposal can help Liberty define an appropriate method for showcasing an intelligent use of technology, alongside increasing customer loyalty.
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APPENDIX
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TEAM MANIFESTO
We will strive to use Facebook as a means for communication amongst team members. We we strive to use a team blog for sharing ideas and research regularly. Dropbox shall be used as a means for cataloguing individual and team progress. We will try to give as much notice to other team members for absence as possible, via text message. It is a team preference to start team work at an earlier partin the day. We will try to give every team member a chance to showcase their strengths and challenge their boundaries. We will respect every team members ideas and suggestions. We we will strive to distribute work evening to ensure the final outcome is evenly spread. We will aim to take minutes for every time we meet to be uploaded immediately to drop box.
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TEAM MINUTES
TIME & DATE
PRESENT
1
29.4.2014 @ 1PM (SU Lounge)
Emily, Chynna, Laura, Sian, Tracey and Sophie
N/A
01.05.2014 @2PM (SU Lounge)
Sophie, Emily, Chynna, Sian & Tracey
N/A
2
Emily, Chynna, Laura, Sian, Tracey and Sophie
N/A
Emily, Chynna, Laura, Sian, Tracey and Sophie
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Emily, Chynna, Laura, Sian, Tracey and Sophie
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Emily, Chynna, Laura, Tracey and Sophie
Sian – Home for the weekend
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6.5.2014 @ 2PM SU 7.5.2014 @ 10AM SU 8.5.2014 @ 10.30am Sophie’s House
EXCUSED
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9.5.2014 @ 2:30PM SU
Emily, Laura, Sian, Tracey and Sophie
Chynna – Cheerleading
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10.5.2014 @ 11AM SU
Emily, Chynna, Laura, Sian, Tracey and Sophie
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12.5.2014 @ 1PM SU
Emily, Chynna, Laura, Sian, Tracey and Sophie
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13.5.2014 @ 10AM SU
Emily, Chynna, Laura, Sian, Tracey and Sophie
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14.5.2014 @ 10AM SU
Emily, Chynna, Laura, Sian, Tracey and Sophie
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15.5.2014 @ 10AM SU
Chynna, Laura and Sophie
Sian, Emily and Tracey at home Emily at home
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16.5.2014 @ SU 10AM
Chynna, Laura, Sian, Tracey and Sophie
Emily at home
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19.5.2014 @ 10AM SU
Chynna, Tracey, Sophie and Sian
Emily and Laura at home
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20.5.2014 @ 10AM – 6PM SU
Chynna, Tracey, Sophie, Laura, Sian and Emily
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21.5.2014 @ 10AM – 6PM SU
Chynna, Tracey, Sophie, Laura, Sian
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22.5.2014 @ 10AM SU
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MEETING OBJECTIVES TOPICS DISCUSSED
TASKS SET
1 Create team manifesto. Understand each Our team deadline. Team manifesto. Ensure other’s working habits. Discuss initial thoughts we all have access to blog/drop box/ and ideas. Set up team research blog. Facebook. Contents of our report.
Begin secondary/ general research. Get loyalty theory books Post all info gathered on blog
2 Going over the deadlines we set at our last meeting. Start the ball rolling on primary research.
Email sent to Liberty- reply received. Going over loyalty findings and general research
All to upload book references. SWOT. PESTE.
3 Collating information and images for the fashion history poster.
Fashion history poster. Potential phone call with liberties staff/managers
Finish individual paragraphs for poster. Look at current smartphone technology
4 Finish fashion history poster. Discuss final ideas for smart phone/loyalty brief.
Questions to ask users of loyalty cards. Questions to ask during the phone call.
P.O.A for tomorrows primary research Further prepare for tomorrows phonecall
5 Comsumer research – Tracey + Sophie – sainsburys Chynna + Laura – tesco Emily + Sian – boots Phone call with Jenni (CRM at Liberty) Transcribe phone call
Findings from primary research – collate information.
Everyone write first 200 words for report on assigned sections for Saturday Put the phone call transcription together
6 Proof read everyone’s first sections. Get books Planning next sections of writing. Proof read from library on retail experience, point of sale, and finalise art history poster technology and retail
Finalise big idea. Think of loyalty and retail experience examples in Nottingham.
7 Finalising big idea. Prepare for fashion history Going into Nottingham for more primary poster presentation tomorrow. research tomorrow. Who is going to write about the big idea.
Sophie write about first consumer profile. Emily and Tracey write about the idea.
8 Doing and collating primary research – when people interact with their phones in store.
Continuing work on our individual sections – see how everyone’s getting done Proof read finished work
Tomorrow start layout of report. Finish consumer profiles.
9 Proof read each others work Create template for report.
Consumer tribe names for our two main consumers
10 Continue report building.
Proof read and compiled first section, started InDesign template, designated final sections to be completed.
Laura to write accompanying paragraph to perceptual map, begin design for document Tracey mock up floor plan, finish creative idea, Emily complete consumer profiles Chynna write about digital habits, Sian go over notes for intro and current consumer.
11 Delegate all remaining jobs. Ensure everyone is certain on final tasks
Jobs were all confirmed, a few extra added. Set deadline for all writing to be completed.
12 Primary Research- experiential retail and sensory experiences.
All tasks achieved. Photographs and short films taken.
13 Compile whole of report together ready for proof reading. Sort out any remaining problems or issues.
Put together text body of report, established a few missing/uncompleted parts. Collated a list of essential pieces that we must check are clear and included in report. Created a proof reading checklist.
14 Go over everyone’s notes from proof reading, sort out any changes etc. Figure references and appendix. Start to finalise InDesign layout. Complete all ethnical checklist tasks.
How we can bullet point each section and summarise it to make it concise and clear for whoever reads or marks our work. Need to create visuals for models we reference in our work.
Finish all of the writing. Start putting the 15 document into InDesign.
How we can improve the 5 C’s section. What visuals we want to include in the report.
16 To finish the entire report.
Concluding and creating a perfect copy of the report so that we can email it to Jenni Cumming and also send it to the printers.
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Emily- event launch write-up, consumer profiles, Chynna- Digital habits, invitation design, Laura- InDesign layout, exhibition write-up, Sian- 5 C’s, finish the app visualisations, mock-up write ups, Traceyadvertising, conclusion to SWOT, Sophie rationale. Chynna- finalise consumer decision journey and digital habits. Sophie- critical path Tracey- complete marketing and advertising All three - start bullet point summaries Case study to be completed and used within report. All mock-ups and visualisations to be completed. All - to proof read.Sophie – Write out the benefits of our app. Sian – Finish creating the app. Tracey – Make bullet points on each section. Chynna – proof read. Finish all of our sections. N/A
PRIMARY RESEARCH methodology
WHAT
WHY
WHO
1 Boots, Sainsbury’s and Tesco To find out that in a quota of 100 Random participants shopping loyalty survey. people, how many people use a in each store. loyalty card in store and how often they use their store. 2 Observational research in John Lewis.
To find out where people use their Random participants shopping phones in store. in John Lewis Nottingham.
3 Interview with Jenni Cumming (CRM Manager of Liberty).
To find out whom the main consumer groups of Liberty are.
Jenni Cumming (CRM Manager at Liberty)
4 Approaching customers shopping in Liberty.
To take photos of people who have purchased from the store to get an idea of whom the Liberty consumer is.
Random participants shopping at Liberty on Sunday 04/05/14.
5 Interview with a Post warcohort female to create a consumer profile on the Liberty consumer.
To gain an understanding of the Marianne Summerfield, Age 75, empty nester generation and how Female. to attract this generation into shopping more frequently at Liberty.
6 Interview with an Auspicious Duo.
To develop a consumer profile of Scott and Vicky Exley. an existing target market of Liberty.
7 Riot 1831 Exhibition at Nottingham Castle.
To see how technology affects experiences.
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Sophie, Chynna and Laura
HOW We asked 100 people in each store whether they had a loyalty card for the store and whether they used it all the time, sometimes or never.
BENEFITS
WEAKNESSES
To see if using a loyalty card is effective and Some people just said no because they did not then project this onto our Liberty loyalty work. want to be hassled so results may be biased.
By ethnographically observing people using To see where it is best to target people in an their phones inside the John Lewis store in in-store environment when they are in a ‘hotNottingham. We took some photos of people state’ using their mobiles. if possible.
People may just be using their phone to answer a call or text and not to look something up.
We contacted Jenni via email and arranged to have an interview over the phone on (08.05.2014). We recorded her speaking and typed up a transcript after. She also signed a consent form.
To find out whom the main consumers groups are who shop in Liberty and how best to make them become loyal consumers. We also wanted to find out how to attract a similar clientele and build a loyal relationship between the store and consumer.
Answers may be biased, as the store might want us to think that they only appeal to highly affluent consumers so we try and create a strategy to attract high spenders.
We approached consumers and asked if we could take a picture of them holding their Liberty bags. They all gave written consent.
From taking pictures of consumers we were able to gage what age range and type of consumers shop in-store.
We only managed to take photos of a small number of consumers and this may not be an accurate representation of the stores customers.
We carried out a phone interview where we asked her pre-planned questions and recorded the interview. She signed written consent to take part in the interview.
She is an accurate representation of the type She felt that Liberty was quite an out-dated of consumer who could shop in Liberty. She is store and would prefer to shop at Selfridges so highly affluent, is retired and has money spare. it may be difficult to change her views on this. She is the type of person Liberty needs to target to enhance their loyalty scheme.
We sent them a questionnaire via email. This was divided into a grid format so they could answer our questions clearly.
Their answers were an accurate response as they had time to think about what they were writing and gave us good representation of them as a couple.
They had time to think about a written response, as it was a questionnaire over email. To improve we could have called them and recorded the interview to get an immediate response.
We walked around the exhibition interacting We were able to apply the use of technology in Not all of the volunteers knew about how the with the Ipads that create an experience using the exhibition to using technology to increase augmented reality worked so they couldn’t give augmented reality. We asked volunteers how loyalty at Liberty. us an accurate explanation. they created the application.
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Boots, Tesco, Sainsburys
LOYALTY SURVEY
OBSERVATIONAL RESEARCH John Lewis, Nottingham
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Jenni Cumming, Customer Relations Marketing Manager at Liberty
INTERVIEW
TRANSCRIPT
08.05.2014 10:30am – 10:48am Sophie Gould interviews Liberty’s Head Executive, Jenny Cummings. Sophie:
Hello Jenny, it’s Sophie from Nottingham Trent. I’m going to be speaking on behalf of all of the girls in our team.
Jenny:
Hello Sophie, how’re you?
Sophie:
I’m great thank you Jenny, thank you so much for taking the time to talk to us.
Jenny:
That’s okay!
Sophie:
Is it okay if I put you on to loud speaker so that the other girls can listen in and also record the conversation?
Jenny:
Yes, that’s fine Sophie!
Sophie:
Okay, thank you so much, hold on one second… Okay Jenny, we have a few questions to ask you about Liberty er, I don’t know how long it’ll take probably about ten minutes. Is that alright?
Jenny:
Absolutely!
Sophie:
Okay, great! … Okay so the first question,
Jenny:
So why did you choose Liberty?
Sophie: We just thought it was a really iconic store to look at and we were really interested in your company and improving your erm loyalty scheme. [pause] Okay so our first question is, how does Liberty describe their consumers that receive a very VIP or personal service. So what, what erm, are the areas that require someone to be a VIP? So is it expenditure, social status, have a minimum spend or be a celebrity? Jenny: Okay so erm, in terms of the loyalty program, we do have a recognized VIP tier and in order to qualify for that, you need to spend £5,000 or more in the 6 month earns period. So our year is split up into two 6 month earn periods, erm the first starts on the 1st of March and it runs through the 31st of August and then the second runs from the 1st of September through to the 28th of February. So within any one of those periods if you spend £5,000 or more you will be invited into the VIP tier and that’s where we will re-card you, so you will move from a regular card to a VIP card and you also erm receive some additional benefits. Now, what we also do is within that VIP tier, because it is still quite, it, it it’s relatively small okay?... Sophie:
Mmmhmm.
Jenny:
… erm within that, we do look at erm who our more regular and even more valuable customers are.
Sophie:
Yep.
Jenny:
So because you don’t have to constantly spend £5,000 pounds or more in the earns period to stay as a VIP, we will never demote you,
Sophie:
Right.
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Jenny: So you will never, lose your, your VIP card, your VIP status or your VIP benefits. Erm, so But what we do do, is through our analysis, identify you know, within that we have you know, specific segments and I think it’s just it’s just tracking those who are more regular, those who are more frequent and we have someone that looks after them, so in terms of service as well we can step it up a notch and erm you know we can start to get to really know these customers, we know what they like, Sophie:
Yes.
Jenny: so, quite often we will look at surprise gifting which also helps you know thank them for their loyalty to Liberty but then on top of that we do have [long pause] ...a slightly covert but it was… um… it was in the TV programme… Sophie:
Yeah
Jenny:
… but we do have something for our top 50 customers, which is called Liberty Bespoke, that is by invitation only.
Sophie:
oh wow
Jenny: loose membership.
This is only for 12 months, um and if you don’t, I guess erm meet the criteria (which could change every year), if you don’t meet the criteria, then um you will in effect
Sophie:
So what would the criteria be to get in that top 50?
Jenny:
There is no real set criteria but it literally is our top, most valuable, top customers…
Sophie:
Right.
Jenny:
… that we need to recognise. You know, to think Liberty is one store in London, um, we have Harvey Nichols, Harrods and Selfridges as direct competitors…
Sophie:
yes
Jenny:
but erm you also have the individual stores of the brands that’s we sell.
Sophie:
Yeah, of course.
Jenny:
So it is very important to us that they will continue to shop at Liberty, so you know we have established this new programme we launched it last year ***
Sophie:
Oh right and within that top fifty, what would you do to make it even more personal than your other VIP erm members?
Jenny: Well, they have direct access to our head of VIPs and private relations, she is almost like their personal or private shopper. They have access to our private suite which is away from the shop floor…. Sophie:
Oh wow
Jenny: with some third parties.
… you know, they have um a complimentary lunch when they book one of their 15% days and they have the you know exclusive benefits not only within Liberty but also
Sophie: Right, ok, that’s brilliant! So, our next question is about the, a, your consumer profile of just your standard loyalty card users. What are the key attributes or these, um, the consumers that use the loyalty card and what kind of consumers are signing up for the loyalty card online- are they male, female? What type of professions are they?
Jenny: ok, so in terms of um, our store customer, erm or our generic customer, um, I mean I would say that they are generally aged between 30 to 45 but we do also have um a high penetration of 55 pluses, and to be honest it does… um… span from families, yeah, people with families… um, young (***) adults, through to the older sort of generation. So, we have …um worked… um we’ve got a life stage profile we used called (pasonics? 5:56) and with our top customers fall into four key segments, um…and they are um… Smart Ambitions- they would be the young adults, high affluence and from the digital perspective, fully connected. Though you know… the financially comfortable couple, good professionals… Sophie:
…. Yeah, yep
Jenny:
…and rent flats (****) and areas… predominantly, you know the majority of our consumers you know are in the South East…
6:20 minutes Jenny: Erm but, Digitally their online at home and on the move you know, they are erm most likely to read broadsheets, possibly online or in magazines, and something like premium online and very active in terms of sports etc. and high but I mean but the one thing that is most consistent through all of our key segments is that there is very high affluent. Sophie:
Right I see
Jenny:
But you know we do have, it does stretch to erm erm lets see, so we also have families
Sophie:
ahumm
Jenny: as well so again quite young around 25-45 but you know with families very high affluent and always very switched on for the digital perspective, erm you know they erm again you know are in good prime locations because you know good schools is necessary and also obviously have got very good jobs Sophie:
Yep
Jenny: and they have an expensive financial portfolio, erm and they will have luxury cars, the latest gadgets, erm again they are always erm staying up to date by sort of reading broadsheets and magazines, using social like twitter and LinkedIn erm and then again they like to play sports, go the gym and and skiing is particularly is something they enjoy and then socially it is always around food, wine and erm kind of culture. Erm we do have the old slightly older generation Sophie:
Yes
Jenny:
so you know you do have your empty nesters again highly affluent
Sophie:
Right
Jenny:
Erm and probably connected as well erm and then we do have, yes so, so pretty much, yeah pretty much it
Sophie:
Yeah that’s great would you say its more males or femalesthat erm use your loyalty card?
Jenny:
Oh our loyalty card…
Sophie:
Or is it pretty much even?
Jenny:
No it’s pretty much, it’s predominately female,
Sophie:
oh ok
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Jenny:
around 75% female
Sophie: Right Ok. So erm moving on to the importance of customer service at liberty, do you differentiation, well you have already spoken about differentiation between erm consumers, but what about tourists and erm consumers that use your loyalty card. Erm we notice that your VIP’s receive a really personal service and aftercare, but when consumers are shopping in your store would you erm differentiate erm between the two, between tourists and just erm consumers? Jenny:
I think one of our USP’s is obviously our service
9:00 minutes Sophie:
yes definitely
Jenny: you, you know we look to provide excellent service regardless of the customer, but by having different coloured loyalty cards, that helps the service staff recognize perhaps somebody who is, you know, spending more in the store than not Sophie:
yes
Jenny: erm, but essentially, you know, erm, when your in the store shopping and you’re anonymous then erm, you know, we like to provide an equal level of service. Something moving forward, with digital technology then there will be more subtle ways of alerting sales associates as to when or if valued customers are in, so that they can potentially be a bit more proactive. Sophie: loyalty scheme?
yes definitely. Um, so the next question is about the success of the loyalty schemes at Liberty have you noticed an increase in profit um, from introducing and having a
Jenny: yes definitely erm, and you know in 2012 we reviewed the loyalty scheme cus we didn’t actually feel that they were perhaps as engaging as it should be so since we did review the loyalty scheme we have seen an increase in participation and increase in the number of loyalty vouchers that we sent out and, and when we did some analysis we did see that those customers that were redeeming their vouchers they are more valuable to us than those that do not Sophie:
do you have any statistics on that for example, how many of signed up for a loyalty card versus how many people that actually use them?
Jenny:
erm, in terms of our data base its whats we call the single customer view so we know that we have over erm, I cant be too specific with figures
Sophie:
yeah I understand
Jenny:
but we know that we have over you know 600,000 people that are on our database. Know some of those do not have a loyalty card
Sophie:
right
Jenny: erm, so in terms of one of my reports unfortunately on the dashboard isn’t working erm but we do know that you know over 200,000 people have shopped with us over the last 12 months and I would say you know we have er, approximately 65% of our sales on a loyalty card so Sophie:
oh wow
Jenny:
we have a high penetration
Sophie: yes, for sure. Okay, so erm, our next question is about mobile technology and your opinion on it, on using mobile technology in the future for an increase in loyalty erm do you think it will be an effective erm use of money and of your time to develop your mobile erm app or piece of technology to increase loyalty within consumers?
Jenny: I mean absolutely I mean I’ve just read you know I’ve just read out to you about our sort of top key segments and regardless of age they’re all connected on the digital perspective you know were all aware of the arise of erm smart phones.. Sophie:
yes exactly
Jenny: So I absolutely do think it’s the way to go. We are developing a loyalty app, erm, we are about to change our er wifi provider in store which also comes with erm, a-a marketing campaign module which will allow us to target customers when they are in store using wifi. Sophie: Yes Jenny: So I absolutely do think that, erm, you know, I absolutely do think there is a role for technology, in in, within loyalty. Sophie: Yeah that’s great. That’s great, that’s great. Erm, do you have any statistics on your footfall; so how many people come through the door each day errm, vs how many people that buy? (3 second pause) Jenny: Errrm Sophie: On average (pause whilst Jenny shuffles through papers on other line) Jenny: I think on average its four million a year, but just let bear with me a second (11 second pause) Sorry I just, somebody gave me the list of transactions yesterday. That we had in 2013, and, I haven’t kept it, and I’m just trying to find the email Sophie: If you don’t manage to find it, if you want you can erm, give us an email later Jenny: Yes I’ll come back to you on that Sophie: Okay sure sure. So erm, the next question, as in, erm our ideJenny: -Sorry just before that, could I just, sorry what was the question again Sophie: So your basic statistics, your footfall vs, erm, how many people erm buy, so how many people that come through the door vs how many people that buy… a day - or a year (short pause) Jenny: Yes okay Sophie: So, our idea is really in the early stages but it uses an advanced form of Bluetooth technology um, called Bluetooth low energy and it will create an innovative retail environment improving the customer’s retail experience as well as incorporating the loyalty scheme. So the Bluetooth technology um, it scales in with multiple point of sale terminals, and sales staff can see where is customer is standing in line, and approach them, knowing their name and information is incorporated in the loyalty scheme. So hopefully people would appreciate being treated as a valued customer and it would be part of an app, um, on smartphones. It would work in the background so consumers don’t have to actually have to be using their phone for the service to work and um with this app it would find out where consumers spend most of their time in store and then the service is catered to them. Um, and then we would also use IBeacons and they’d range in 50m, um, so you wouldn’t need to have too many in store, it would also have GPS signal so it could see when a consumer is approaching the store and perhaps send them a message or a text to entice them in. Another idea of ours… Jenny:
I mean that is something that we are doing.
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Sophie:
Right
Jenny:
So, just, I don’t know if that affects.
Sophie:
Is that something…
Jenny:
How would/ Sorry
Jenny:
I wanted to ask how would the sales associate know that the customer was in.
Sophie:
Um, on an Ipad.
Jenny:
Ok.
Sophie:
So, do you currently have this/ all these things with BLE?
Jenny:
It’s being developed were currently looking for anOrbus Launch.
Sophie:
Ah right, okay, so we will have to think about something else then if that’s something you’re already developing. Okay. Um.
Jenny: So basically what were looking to develop is using the Ibeacons we’ll know where customers are walking throughout the store were linking it to their social graph as well as our CRM data, so we’ll know what they like vs. also what they are buying in-store and essentially on the app they will have their loyalty card, they’ll have their points balance, they’ll have any loyalty vouchers which haven’t been used and then we will offer more vouchers based on what we know about them. Sophie:
Ok, right. Right ok, Um, and also …
Jenny:
A Piece we have not developed is the whole the linking to the sales associates.
Sophie: Right ok, that’s fine, also would it be possible to um email you across a consent form so that um you can just fill it in and scan/ send it back to us. It’s just your um signature and the date if we were to quote you in our um,project. Jenny:
Yes, absolutely.
Sophie:
Ok, um, one second. Do you have any more questions?
Everyone:
No thanks
Sophie:
I think we are done with the questions but I cannot thank you enough for taking the time to speak to us. We really appreciate it.
Jenny:
That’s okay. Well best of luck. What time is/ what is the um deadline for your project submissions?
Sophie:
The 23rd of May.
Jenny:
Ok well let me know if you need any help as well in the meantime and it would be great to get a copy.
Sophie:
Yeah, that would be great.
Jenny:
And I’d love to know how you do as well.
Sophie:
Thank you so much.
Jenny:
Um okay,
Sophie: Ok well have a great day. We’ll email you over the consumer, I mean the consent forms. And if you could let us know about the basic statistics with the footfall and conversion rate that would be great. Jenny:
Yep, no problem.
Sophie:
Alright, thanks so much.
Jenny:
That’s alright girls. No problem buh-bye.
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ETHNOGRAPHIC RESEARCH Liberty Consumer Watch
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Marianne Summerfield, Prosperous Progenitor Consumer Group
INTERVIEW
INTERVIEW Vicky and Scott Exley, Auspicious Duo Consumer Group
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Project: Riot 1831, Nottingham Castle
EXHIBITION
PRESS RELEASE
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Sensory Experiences, Loyalty Schemes
CASE STUDIES
STARBUCKS
AIR FRANCE
•First Starbucks store opened in 1971, in Seattle’s historic Pike Place Market. •Howard Schultz (Starbucks chairman, president and chief executive officer) had a vision to bring the Italian coffee house tradition back to the United States. •Our mission is to inspire and nurture the human spirit – “one person, one cup, and one neighbourhood at a time.” •Starbucks CEO Howard Schultz says, “Starbucks is the quintessential experiential brand”. •“First thing you will notice is the aroma of freshly ground coffee to awaken your sense of smell. You’ll also notice the decor is designed in a way that makes you feel at home. If you linger long enough you’ll hear the sweet tunes from an up and coming band.” •This is one of the reasons that Starbucks does very little traditional advertising. They don’t need to because brands that can make a connection with their customers on an emotional level tend to have customers that stick around and spread the
•Martin Lindstrom writes about Air France and sensory experiences in his book – Brand Sense. •Air France use sensory experiences to reinforce their corporate identity. •They recently underwent a massive refurbishing of their airline and image. •Part of this overhaul involved a conscious effort to sensory brand the airline. •Elisabeth Ouillie, the brand manager for Air France, noted that, “The more a brand is present on all possible points of contact with a consumer, the stronger the brand is and the more the consumer retains a brand image” (Lindstrom, 2005).
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TESCO
SAINSBURYS
•After reaching 150 points, Clubcard owners will receive vouchers every 3 months to spend in store, online, on fuel or can exchange for use at participating companies. •Offers sent 4 times a year: February, May, August and November •In store and online 1 point gained for every pound spent •Introduced in 1995 by Sir Terry Leahy and Tim Mason •16.5million active Clubcard members •Members are entitled free access to the Clubcard clubs which include: wine, baby and toddler, healthy food, food and Christmas club. •The Dunnhumby database behind the card provided Tesco with an unprecedented level of detail into who their shoppers were and how they shopped. •Requires a 500million investment by Tesco each year •More than 27million people outside the UK have a Tesco Clubcard •Tesco started in 1919 •Tesco has ‘Loyal Customer Mailing’ – offers sent to brands best customers
•You can collect 2 points per £1 spent in Sainsbury’s stores, 1 point per litre of fuel and 1 point per 1 bag reused in store. •If you forget your Nectar card we will credit points from up to two receipts if you return to the store within 14 days. •You can collect points at Sainsbury’s, Sainsbury’s Bank, Homebase, BP, British Gas, Expedia and Ford as well as many other retailers. •You can also collect points online with hundreds of retailers when you shop through nectar.com including eBay, Amazon, and play.com. •You can spend straight from your card by swiping it at Sainsbury’s, Homebase, Vue Cinemas and Café Rouge, or you can spend them online at nectar.com on great things like holidays, hotels and days out. Visit nectar.com for details. •It takes 24 hours before you can use your nectar card when you register online and up to two weeks if you’ve sent your form by post. Once this is complete, you’re ready to start claiming rewards.
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BOOTS
•Boots commenced their advantage card scheme in 1997 •It allows customers to earn points every time they purchase products from Boots •They can then use those points for purchases in store and online •There is currently 17.8 million active card holders •One of the largest and most valuable loyalty schemes in the UK •90% of active members of female •Card hold members get four points for every pound they spend in store or online at Boots •Offers are sent either through email or mail including invitations to events and promotions
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http://libertyloyalty.wordpress.com
TEAM BLOG
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SHAW, C. (2007). The DNA of Customer Experience, How Emotions Drive Value. 1st ed. Basingstoke: Palgrave Macmillan.
BIRD, A, FREEMAN, K., SPENNER, P, (2012).What Do Consumers Really Want? Simplicity [online].Harvard Business Review. Available at: <URL:blogs.hbr.org/2012/05/ what-do-consumer-really-want-s/> [Accessed 14 May 2014]
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BUTSCHER, S. A, (2002). Customer Loyalty Programmes and Clubs. 2nd ed. Aldershot : Gower Publishing Limited CUMMING, J, Customer Relations Manager. (Personal communication: 8TH May 2014)
BIBLIOGRAPHY
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LINTON, I., (1993). Building consumer loyalty. First ed. London: Pitman LIMITED, S. (2014). Services S - Selfridges | Shop Online. [online] Selfridges.com. Available at: http://www.selfridges. com/en/StaticPage/Services_S/?msg= [Accessed 14 May. 2014].
SHAW, C. (2007). The DNA of Customer Experience, How Emotions Drive Value. 1st ed. Basingstoke: Palgrave Macmillan.
LIMITED, H. (2014). Harrods - Your luxury destination for beauty and fragrance, fashion accessories, and gifts. [online] Harrods. Available at: http://www.harrods.com/rewards [Accessed 14 May. 2014].
SIMONITE, T, (2014) Facebook Creates Software That Matches Faces Almost as Well as You Do MIT technology review [online] available at: http://www.technologyreview. com/news/525586/facebook-creates-software-that-matchesfaces-almost-as-well-as-you-do/ [accessed 8 May 2014]
LTD, S. (2014). Rewards. [online] Harveynicholscard. com. Available at: http://harveynicholscard.com/cards/en/
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SMITH, R, (2014) NHS is running out of money claims Kings Fund. The Telegraph [online] available at: http:// www.telegraph.co.uk/health/healthnews/10798243/NHS-isrunning-out-money-claims-Kings-Fund.html [accessed 8 May 2014]
Fig 7. GOULD. S.,2014. Critical Path. [Table]
SUBWAY. (2014). Subcard it’s a no brainer. Subway. Available at:< https://subcard.subway.co.uk/cardholder/tnc. html> [accessed on: 15th May 2014]
Fig 9. LIBERTY, 1910., The Old Shops of Liberty. [Photograph] Available at: http://spitalfieldslife. com/2012/11/17/the-shops-of-old-london/
SWINFORD, S, (2014) Benefit cuts creating new generation of entrepreneurs, Bank of England suggests The Telegraph [online] available at: http://www.telegraph.co.uk/news/ politics/conservative/10783556/Benefit-cuts-creating-newgeneration-of-entrepreneurs-Bank-of-England-suggests. html [accessed 8 May 2014]
Fig 10. BENNETTS. L,. 2014. Purchase Tunnel Design. [Model]
Fig 8. LIBERTY., Date Unknown. [Fabric Print] Available at: http://www.liberty.co.uk/fcp/categorylist/dept/fabrics_newseason
Fig 11. BENNETTS. L., 2014. Customer Decision Journey. [Model] Fig 12., LIBERTY, 1997. Edenham. [Fabric Print] Available at: http://www.liberty.co.uk/fcp/categorylist/dept/fabrics_ new-season
Thevillagecommunications.co.uk, (2014). [online] Available at: http://www.thevillagecommunications.co.uk/sites/ default/files/Liberty%20-%20DEP.jpg.jpg [Accessed 22 May. 2014].
Fig 13. KEMP, T., 2014. SWOT Analysis. [Table]
TRADING ECONOMICS, (2014) Euro Area Inflation Rate Trading Economics website [online] available at: http://www.tradingeconomics.com/euro-area/inflation-cpi [accessed 8 May 2014]
Fig 14. JERVIS. E., 2014. PEST Anal ysis. [Table]
Wgsn.com.ezproxy.ntu.ac.uk, (2014). CAS – Central Authentication Service. [online] Available at: http://www. wgsn.com.ezproxy.ntu.ac.uk/content/report/Trend_ Analysis/Materials/Inspiration/2014/February/gesturecontrol--materials-innovation.html [Accessed 22 May. 2014].
Fig 16. LIBERTY, 1997. Floribunda. [Fabric Print] Available at: http://www.liberty.co.uk/fcp/categorylist/dept/fabrics_ new-season
Fig 15. BENNETTS. L., 2014. Perceptual Map. [Table]
Fig 17. BENNETTS. L., 2014. Primary Research of Current Loyalty Schemes. [Model] Fig 18. LIBERTY. Date Unknown. Print Name Unknown. [Fabric Print] Available at: https://img1.etsystatic. com/000/0/6309928/il_fullxfull.281862807.jpg
LIST OF ILLUSTRATIONS
Fig 19. GOULD. S., 2014. Retail Competitors [Table] Fig 20. GOULD. S., 2014. Consumer One Purchasing at Liberty. [Photograph] Fig 21. GOULD. S., 2014. Consumer Two Purchasing at Liberty. [Photograph] Fig 22. GOULD. S., 2014. Consumer Three Purchasing at Liberty. [Photograph] Fig 23. GOULD. S., 2014. Consumer Four Purchasing at Liberty. [Photograph] Fig 24. GOULD. S., 2014. Consumer Five Purchasing at Liberty. [Photograph] Fig 25. GOULD. S., 2014. Consumer Six Purchasing at Liberty. [Photograph] Fig 26. GOULD. S., 2014. Consumer Seven Purchasing at Liberty. [Photograph] Fig 27. GOULD. S., 2014. Consumer Eight Purchasing at
Fig 1. LIBERTY., Date Unknown. Estella Annabelle, Liberty Print. [Fabric Print] Available at: Fig 2. UNKNOWN., Date Unknown. Mr and Mrs Liberty, [Photograph.] Available at: http:// media-cache-ec0.pinimg.com/originals/ab/6c/93/ ab6c9301968975080e764cf255f194a7.jpg Fig 3. UNKNOWN., 2012. Liberty London Heritage Suite, [Photograph. ] Available at: http://www.travelettes.net/wpcontent/uploads/2014/02/liberty-london-hertiage-suite-12. jpg Fig 4.UNKNOWN., Date Unknown. The Central Atrium, Liberty Of London. [Photograph] Available at: http://media-cache-ec0.pinimg.com/ originals/22/25/14/22251452a85e4cae28f3591450c6ed93.jpg Fig 5. GOULD. S., 2014. Rationale [Table] Fig 6. LIBERTY, 1997. The Edenham Print. [Fabric Print] Available at: http://www.liberty.co.uk/fcp/categorylist/dept/ fabrics_new-season
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Liberty. [Photograph] Fig 28. GOULD. S., 2014. Couple Consumer Profile. [Photograph] Fig 29. GOULD. S., 2014. Couple Consumer Profile Info. [Table] Fig 30. GOULD. S., 2014. Consumer Profile. [Photograph] Fig 31. GOULD. S., 2014. Consumer Profile Info 2. [Table] Fig 32. OWN IMAGE. 2014. Team Exercise. [Scan] Fig 32.OWN IMAGE, 2014. John Lewis Floor Plans Ground Floor [Illustration] Fig 33. OWN IMAGE, 2014. John Lewis Floor Plans First Floor [Illustration] Fig 34. OWN IMAGE, 2014. John Lewis Floor Plan Second Floor [Illustration] Fig 35. OWN IMAGE, 2014. John Lewis Floor Plan Third Floor [Illustration] Fig. 36. OWN IMAGE, 2014. Team Exercise [Scan] Fig 37. OWN IMAGE, 2014. Craftsmanship Brainstorm. [Scan] Fig 38. OWN IMAGE, 2014. Liberty Brainstorm [Scan] Fig 39. LIBERTY, 2014. Kaylie Sunshine [Photograph] Available at: http://www.liberty.co.uk/fcp/categorylist/dept/ fabrics_new-season Fig 40. LIBERTY, 1979. Thorpe [photograph] available at: http://www.liberty.co.uk/fcp/categorylist/dept/fabrics_newseason Fig 41. OWN IMAGE, 2014. The App [Illustration] Fig 42. OWN IMAGE, 2014. App on Ipad [Illustration] Fig 43. LIBERTY, 2014. Loyalty cards [photograph] Fig 44. LIBERTY, 2014. Loyalty card [photograph] Fig 45. OWN IMAGE, 2014. Poster in lift [photograph] Fig 46. OWN IMAGE, 2014. Invitation [photograph] Fig 47. OWN IMAGE, 2014. Riot exhibition 1 [photograph] Fig 48. OWN IMAGE, 2014. Riot exhibition 2 [photograph] Fig 49. OWN IMAGE, 2014. Riot exhibition 3 [photograph] Fig 50. OWN IMAGE, 2014. Window display [photograph]
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PROOF READING Chapter Rationale Brand Insight Loyalty Theories Current Loyalty Schemes SWOT PEST Perceptual Map Competitor Loyalty Schemes Retail Competitors Consumer Analysis Consumer Profiles Digital Habits within a Retail Environment Big Idea Big Creative Idea How this can be Achieved Consumer Benefits Marketing Strategy Launch Further Developments 5 C’s Consumer Decision Journey Conclusion
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