Service Innova,on in Luxury Retail
SONALI GOGIA
Prepared by Sonali Gogia [email protected], @sonali_gogia
June 2013, Mumbai
© 2013 Sonali Gogia
GLOBAL BRAND CHALLENGES
Adap@ng or crea@ng new services in emerging markets can be challenging as:
─ Global brands need to strike a balance between adapta,on and brand heritage
─ The global team needs to work in collobora,on with the local Brand team
─ The talent gap in Luxury segments effects service nega,vely
─ Customer understanding and mapping is low
─ Customer evolu,on is rapid and loyaly is low
─ Compe,tors are adop,ng new innova,ve routes
─ Coordina,ng across func,ons and countries can be complex
─ Usually in new markets Brands lack scale and resources to make huge investments
© 2013 Sonali Gogia
INDIAN LUXURY CUSTOMER
Highlight key features of the Indian Luxury Customer and their buying behaviour in the Beauty Segment ─ Prefer shopping in Bou$ques versus departments stores
─ Need orienta$on to evolved beauty products and usage
─ Take $me to adopt sophis,cated regimes like serums and eye creams
─ Have low brand awareness and loyalty and use a mix basket of brands
─ Service differen$a$on plays a larger role in a rela,onship driven Culture
─ Luxury Customers usually indulge in weekday ladies lunches and social events
─ View make up as occasional wear versus daily wear
─ Culturally, in big ci,es having everything delivered home is a norm
─ Preference for tradi,onal, natural and at home beauty remedies
─ Have beau$cians come home to provide rou,ne services
─ Appreciate and expect massages and pampering
INNOVATIVE LUXURY SERVICES
Lack of scale, @me and resources can oNen limit a Brand’s ability to develop India specific products, so Brands can turn to small scale and local Service innova@on
Beauty Workshop Interac$ve Educa$on Luxury Bride
Beauty Party Facial at home
© 2013 Sonali Gogia
ACTOR MAPS These are the usual set of stakeholders in the back and front end that are involved in the retail service design process
Marketing
Service Experience
Retail Team
Training
Supply Chain
Brand Zone
Customers
Retail
Partners
Finance
Legal
IT
Merchandiser
© 2013 Sonali Gogia
CODESIGN FOR SUCCESS
The process of design in a retail enviornment requires all actors to work together
© 2013 Sonali Gogia
SERVICE DELIVERY APPROACH
In a new and complex Retail environment, test innova@on before inves@ng in full service rollout
1. Service Design & Tools are ready
2. Pilot test – in one store or a
city
3. Measure results and
KPIs
4. Staff and Customer Feedback
5. Adapt Service and full roll out
© 2013 Sonali Gogia
INNOVATION EXAMPLE 1 : BEAUTY WORKSHOP
To build brand awareness and provide educa@on conduct Luxurious beauty workshops
Customer recruitment Poten,al Customers had low beauty knowledge They felt in,mated to enter the Luxury stores Low awareness of complimentrary services we offered
CHALLENGE APPROACH NEW SERVICE
Collobora$ve design Brainstorming with retail team on Customer needs Compe,,on benchmarking Codesign with other stakeholders – Retail partners and women’s publica,ons
A pilot workshop Developed a beauty workshop partnering with a women’s publica,on customer base Offered a express version of our instore experience to service 200 women a day Completed the experience with a luxury venue, educa,on, sensorial pleasures
© 2013 Sonali Gogia
CHALLENGE APPROACH NEW SERVICE
INNOVATION EXAMPLE 2 : INTERACTIVE EDUCATION
Increase engagement by using Ipad’s to consult and educate Customers
Customer engagement Customer’s are unaware of high tech skincare like serums and make up applica,on techniques Beauty advsiors find it difficut to engage customers for long and explain complex scien,fic terms
Observa$on for insight Observed different Customer scenarios in store Used mystery audits for insights Involved beauty advisors in brainstorming Selected one bou,que for pilot
Technology for educa$on Use an ipad at every point of sale as a tool of engagement and educa,on Revise service protocol to integrated new tool Train the Retail team on usage, care
© 2013 Sonali Gogia
CHALLENGE APPROACH NEW SERVICE
INNOVATION EXAMPLE 3 : BEAUTY PARTY
Taking the Brand experience home with a personal touch in low season
The low season Every monsoon Luxury Customer fooaalls drop Beauty Advisors complain Customer’s don’t turn up for events or replenishments, and sales are low
BoMom up design The instore staff suggested an at home service Marke,ng team created a mobile beauty party concept Conducted role palys and dry runs to create a smooth professional event concept
The beauty tea party Beauty Advisors (BAs) deliver products to Customers. They provide beauty services, take testers and samples for trial Plan Brand style tea par,es at Customer’s homes, offering complimentary beauty services and trials
© 2013 Sonali Gogia
CHALLENGE APPROACH NEW SERVICE
INNOVATION EXAMPLE 4 : FACIAL AT HOME
Start Luxury home facial service to cater to the cultural beauty trends
At home culture Doing beauty rituals at home and long massages are part of Indian culture The global 15 minute in store massage was too quick for customers
Colloborate across con$nents Research if the brand had similar trend in other countries Set up a cross country team to develop a solu,on Created customer journey maps to simulate a new at home flow Involve user in developing and do actually dry runs in their homes
Home beauty service We launched a mobile facial service offering longer facial. Adapted several instore touchpoints to recreate the experience at home Set up a separate team who were trained by interna,onal brand experts
© 2013 Sonali Gogia
CHALLENGE APPROACH NEW SERVICE
INNOVATION EXAMPLE 5 : LUXURY BRIDE
Create a Luxurious and pampering Bridal Service to tap the great Indian wedding season
Missing Bride An Industry es,mated at over 20$ billion, the Indian bride will spend anything to look her best Brides don’t associate with the Brand – we need to bridge the gap
Wedding ecosystem Included more stakeholders in the development process – beauty stylists, make up ar,sts, fashion designers to understand the full Bridal ecosystem of needs Compe,,on benchmarking Brainstorming with internal team across func,ons
The wedding collec$on We put together a signature wedding collec,on based on India Bridal shades Designed a trousseau vanity box as a touchpoint Offered exclusive Bridal make up services that included offers for other family members