Customer Relations at Mode

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(No Transcript)
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Our Team
Kyle Bender, Senior University of Wisconsin,
Madison Information Technology
Alex West, Senior University of Michigan Customer
Relations
Samantha Weaver, Senior University of
Florida Marketing/Branding
Ashley Cline, Senior Florida State
University Store/Catalog Operations
Sarah Losse, Senior University of Arizona Project
Manager, Community
Vikram Madan, Senior University of Pennsylvania,
Wharton School of Business E-Commerce
Melinda Burke University of Arizona Faculty
advisor
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Agenda

• Overview of Mode Department Store and future
  opportunities
• Strategy, implementation, and promotion of Web
  2.0 and social media tools for Mode retail
  operations.
• Specific social tools that can improve Modes
  customer service, while maintaining consistency
  with brand message.
• ITs recommendations for implementation of these
  tools so as not a strain financial resources.   
• Marketing plan around rolling out and promoting
  these tools and educating our existing customer
  base of the changes, as well as attracting new
  customers with these innovative improvements
• Coordination within each channel to make sure
  that Web 2.0 tools can help the stores and
  catalog as well as the Web.

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• Overview of Mode Department Store
• and Future Opportunities

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Mode Department Store
Great style and quality at prices youll love!

• 2007 Financial Highlights
• (in millions)
• Total net sales 19,860
• Total net sales (0.2)
• Comparable stores inc 0.0
• Number of stores 1067

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Mode Mission Statement

• To sell a complete lifestyle revolving around the
  freshest fashions and trends but steeped in
  fundamental price viability.
• Customers ultimately should buy into the
  lifestyle concept, i.e. they are not only buying
  certain products but are buying Mode.
• Moreover, for future sustainability, customers
  should feel that they are getting a good deal
  when they buy Mode.

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Demographics Now

• Adults 35-60
• Majority of most loyal customers have at least a
  college degree, 12 report advanced degree
• Annual Income 50,000 100,000
• Older Working Adults and Retirees
• Established Homeowners
• Current Market Share 24

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Current Story

• Price
• Moderate everyday fair pricing
• Will have special low priced benchmark items we
  are known for

• Store Location
• Currently located in regional shopping malls
• Moving toward lifestyle centers

• Retail Communication
• National TV ads
• Print ads in top magazines
• Newspaper inserts locally
• Direct emails

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SWOT Analysis
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Looking Forward

• Demographics
• Adults 18-30
• High school, in college or recently graduated
• Income 30,000 - 80,000
• Trendy lifestyle, more design conscious
• Just establishing homes
• Current market share 5

• Opportunities
• Using the web more effectively by leveraging Web
  2.0 tools in order to
• Get existing consumers to buy into the Mode
  lifestyle on line
• Build a following in the younger consumer segment

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• Strategy, Implementation, and Promotion of Web
  2.0 and social media tools for
• Mode Retail Operations
• Specific social tools that can improve
• Modes customer service, while maintaining Consist
  ency with Brand Message

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Why Web 2.0?

• At its core, Web 2.0 facilitates the transfer of
  information between businesses and consumers
• Businesses can learn who their consumers are and
  what they want (i.e. a research function)
• Consumers can learn about the product offering to
  make a more informed decision (i.e. a marketing
  function)

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What role should Web 2.0 play?

• Focusing on the informational exchange aspect has
  worked tremendously for certain businesses.
• It has allowed them to mold the product
  attributes in a way that directly caters to
  consumer needs
• It has opened a platform for the consumers to
  establish a more complete understanding regarding
  the product
• But, is such a focus appropriate for a department
  store?

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Web 2.0 for Department Stores

• Traditionally department stores sell on service
  and on price product offerings tend to be quite
  similar within a certain price tier of department
  stores
• For example, Macys and Parisians have a similar
  price point and thus offer very similar product
  lines
• Plus, there is inherent variety in department
  stores, so there is not much room to
  differentiate the product offering based on
  insights gained from Web 2.0 tools.
• Hence, Web 2.0 will prove most effective in
  enhancing the customers shopping experience
  online and in the store

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The Web An Open and Distant Medium

• The costs of switching from one online retailer
  to another online retailer are essentially zero,
  so price plays a big factor in influencing
  customer decisions.
• Moreover, only so much can be expected from
  enhancing the customer shopping experience
  online by its very nature, a certain distance
  will remain.
• Focusing only on improving the customers
  shopping experience, hence, is not enough to
  drive sales and growth, especially online.

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Overall Strategy Driving a Mentality Shift

• Our overall aim is to improve our web presence by
  utilizing Web 2.0 tools.
• A significant investment will be made to enhance
  the customer shopping experience.
• However, the critical element is engendering a
  fundamental loyalty to the brand by the use of
  these tools.

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Case-Study Delta Airlines Blog

• Frequent fliers are a small but extremely loyal
  consumer segment
• Deltas blog caters to this group to engender
  amongst them a sense excitement around Delta
• Post-merger status is a very exciting time for
  Delta
• The Blog has helped to proliferate this
  excitement especially amongst frequent fliers.

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Persona-Based Marketing

• Objective Creating a fictitious personality that
  maps on to a target demographic (i.e. Cindy, who
  is interested in the newest fashion)
• The primary medium would be a blog that is a mix
  between Deltas Blog and Leveraged Sell-out
• The key element is that the personality should be
  authentic

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The Mode Blog

• The ultimate aim of this persona-based marketing
  is to engender loyalty within a certain base of
  the target demographic. They are meant to adhere
  to the ways and lifestyle of the fictitious
  personality. This will create a tangible loyalty
  that will make sure that they buy from Mode when
  they are online.
• The entire marketing campaign will revolve around
  this persona, branching out to tools like
  Facebook and Myspace.
• Moreover, Mode can leverage the blog to showcase
  new online customer service improvements.

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• ITs recommendations for implementation of these
  tools so as not to strain financial resources  

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IT Background

• 20 person team
• ITs role
• Design, code, develop, maintain
• Challenge limited time, limited resources
• Cost of labor hours
• Solution Third party outsourcing

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Third Party Advantages

• Time
• Limited development
• 24/7 support
• 6 month development
• Experience
• Proven platforms
• Technical Knowledge
• Does not limit creativity
• Security

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Agile Development

• 3 stages implementation
• 6 month developmental time
• Slow months
• First stage June 2009
• Product review and rating system
• Blog
• Second stage Late January 2010
• User profile
• Third stage July 2010
• Avatar

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Stage 1Product review, ratings, blog

• June 2009

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Search and Refine

• Endeca
• Experience
• 42 of top 100 online retailers
• Wal-Mart, The Home Depot, Barnes Noble
• Offerings
• Search and refine
• Complex formulas to make recommendations for
  shoppers
• Product review
• Statistical feedback that defines our customers
  online activity

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Search and Refine Sample
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Product Recommendations
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Blog
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Stage 2User profile

• January 2010

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User Profile

• Small World Labs
• Customizable communities
• Multiple application integration
• Blogs
• Reviews
• Ratings
• Recommendations

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User Profile Sample
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User Profile (continued)

• Customizable
• Widgets
• Product category updates
• Sales
• Company news
• Top ranked items
• Lists

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Stage 3Avatar

• July 2010

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Avatar

• Linden Labs
• Video and computer games
• Second Life
• Challenges
• Costly
• Impact on bottom line

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•  
• Marketing Plan
• How to roll out and promote these tools and
  educate our existing customer base of the
  changes, as well as attract new customers with
  these innovative improvements?

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The Youth Movement

• Trendy, fickle, tech savy, care about friends
  opinions.
• Focus on the social aspect
• Reached through
• Advertising on blogs
• Ads on social shopping sites
• Create secret buzz group to get our items
  tagged on sites
• Our community My Mode
• Facebook fan page with special offers discounts
• Utilize Facebook Connect to work with My Mode
• Ads on magazine websites (i.e.. Glamour, Cosmo,
  In style, Vogue)

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Customer Relations at Mode
Through Mode Online, customers should

• Feel unique and important
• Feel that their freedom is not limited
• Feel at ease in their shopping experience
• Feel that Mode is working for them at all times

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Profile

• Customers and employees can create their own
  profiles and add their interests
• Compare products with other customers with
  similar interests
• Join fan club groups (fan of this product,
  designer, etc)

Feel unique and important
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Communication

• Post reviews for products, services
• Post and read blogs from customers
• Talk to customer service representatives directly

Feel unique, freedom is not limited
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Communication

• Employee Profiles will be created on MyMode which
  will serve as an e-mail as well.
• E-newsletters sent out once a week to MyMode
• Manager meetings will be held every week in
  store.
• Collaboration between associates and customers
• Store Associates can send suggestions to
  customers via MyMode.

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Ask Amy and Eric
Mode is working for you at all times

• Customer service representatives on hand at all
  time
• Experts in fashion, and knows all about different
  products
• Contact them through phone, instant message,
  e-mail
• Give specific advice based on customers unique
  needs

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Customize to Customer

• Web tools allow customers to customize certain
  products
• Mode fashion expert is on call and can provide
  advice

Feel unique and important
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Customize to Customer

• Mode also will ask customers if they want and/or
  are satisfied with products

Yes
No
Feel important, Mode is working for you always
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Applications

• Sticky notes customer can post notes on items
• Bumper stickers
• Add images and pictures customers can add
  pictures of how they wore certain outfits, etc..

Freedom is not limited
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Convenience

• Mode will provide links to informational websites
  (containing product reviews, news articles..) so
  that a customer can be completely educated before
  making his/her purchase.

www.epinions.com www.google.com
www.consumerreports.com www.cnet.com
Be at ease in your shopping experience
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Convenience

• Check progress of order and how much time it will
  take to deliver
• Option between shipping or pick up at store

Shipped Today at 1200 pm
Arrived in Battle Creek, MI at 217pm
Arriving today!
Be at ease in your shopping experience
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Alerts

• Customer Representatives will get immediate
  alerts sent to them of urgent customer issues

Mode is always working for you
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Feedback

• Customer surveys online instead of through mail,
  Going Green! Customers will receive coupons for
  completing
• Applications like post its, thumbs up or down

Feel unique and important, Mode works for you
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Sales Specials

• Online web-only sales will increase our traffic
  to the website.
• Online coupons to use in-store will help bring
  customers to the store.
• ModeRewards for completing Feedback.

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• Coordination within each channel to make sure
  that Web 2.0 tools can help the stores and
  catalog as well as the Web.

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Store Operations

• Web 2.0 tools will help not only online sales,
  but also sales in-store.
• Special training for employees
• Installation of an in store Kiosk
• Collaboration between all store employees
• All aspects will be discussed in store operations
  with the implementation of web 2.0 tactics.

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Training

• Employee training of web 2.0 services will be
  coordinated with orientation.
• State of the art Web-Based POS system.
• Store associates will be able to access Mode
  online and familiarize themselves with
  merchandise online.
• Classes will be offered for already hired store
  associates to get acquainted with web 2.0.

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Kiosk

• A Kiosk will be placed in the store.
• Store associates will be able to assist customers
  in making customized purchases.
• The online website on the Kiosk will be the exact
  web 2.0 website online.
• This will help any customers that are unfamiliar
  with web 2.0.
• Creating avatars in store with the store
  associate will immediately connect customers with
  a friend.

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Collaboration

• Sharing feedback from store associates to upper
  management is key.
• Meetings will be held to make sure all tools are
  being utilized in store and online
• Everyone will work together in implementing the
  new initiative.
• Everyone must believe it and understand the
  impact of web 2.0.

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Community Involvement

• Employees can create online groups for community
  involvement
• Members can support and donate to the cause.
• This will help Mode become active in the
  community as well as getting our name out on the
  web as well.

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Primary Focusin Store

• Service is Selling
• Store associates will be trained to sell in all
  departments
• Store associates will receive updated information
  about new and hot sellers in weekly newsletters.
  

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Customization

• Embroidery shop will be online.
• Customers can submit custom requests such as
  shortening, lengthening, etc.
• By using customization, our catalog will be
  filled with new customized items available online
  for customers to create.

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Recognition

• Employee recognition is key
• Happy sales associates happy customers!
• Rewards for sales associates who get the highest
  number of customers to sign up profiles with
  MyMode.
• Commission benefits
• Recognition in weekly newsletter along with MyMode

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Merchandising

• Online website will coordinate with in-store
  merchandising.
• Departments will be arranged according to
  lifestyle.
• Customers will essentially be able to merchandise
  their own avatar online with clothing and
  accessories.

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Second Life

• Mode will also be available in Second Life.
• Users will be able to purchase clothing for their
  avatar.
• This will continue the use of marketing Mode in
  the virtual world.

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Thank you, Judges!
Alex West, Senior, University of
Michigan Customer Relations
Kyle Bender, Senior, University of Wisconsin,
Madison Information Technology
Samantha Weaver, Senior, University of
Florida Marketing/Branding
Ashley Cline, Senior, Florida State
University Store/Catalog Operations
Sarah Losse, Senior, University of
Arizona Project Manager, Community
Vikram Madan, Senior, University of Pennsylvania,
Wharton School of Business E-Commerce
Melinda Burke University of Arizona Faculty
advisor
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Lessons Learned Ashley ClineStore/Catalog
Operations

• Web 2.0 and consumer communications in the 21st
  century
• Making sure that Web 2.0 tools will collaborate
  with in-store operations.
• Social networking and creating a unique customer
  database and keeping/managing customer
  relationships.
• Making sure that store associates are happy so
  that we will have successful selling!
• Communication and Collaboration are Key!

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Lessons Learned Kyle BenderInformation
Technology

• The importance of clear communication
• Web 2.0 and its impact on the business
• Challenges of ecommerce and IT in a changing
  business environment

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Lessons LearnedSarah LosseProject
Manager/Community

• Successful team member organization involves
  collaboration, effective communication, and
  strong problem-solving skills
• Make sure to establish a blended team environment
• Test your mindset beyond measures
• Think Big
• Start Small
• Leverage Fast
• Be flexible in decision making
• Be successful financially
• Be comfortable in an unstructured environment

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Lessons LearnedSamantha WeaverMarketing/Branding

• How closely E-Commerce and Marketing are related
• How important Marketing is for a competitive
  retail company in the industry
• To think outside of the box instead of the
  traditional media