What’s the first name that comes to your mind when you hear ‘discount retailer’? Chances are that the names Wal-Mart or Target pop up – and it’s not surprising because these are two of the most valuable retail brands in the world today. Just in Canada, for example, 70% of Canadians recognize the Target brand and 10% have shopped with the retailer. In the US, Wal-Mart caters to 180 million shoppers annually, and claims 1.7% of the US GDP. Their brand success stories – along with those like Walgreens, Macy’s and Best Buy – are well-known.
However, these brands have taken years to reach where they are today – don’t forget that Wal-Mart was founded nearly 50 years ago! So what are younger, newer retailers doing today to establish brand recall in the minds of their customers? How is the retail branding game changing?
All aboard! Communal is cool again
As technology invades our lives byte-by-byte every day, some new retailers have recognized the value of true human interaction and are tying it into their brand identity. Austin-based grocery retailer, in.gredients,(set up August 2012) has successfully built its brand by creating a buzz around the age old idea of a ‘market place.’
While the store is the first packaging-free, zero-waste, micro-grocer of its kind in the United States which requires customers to bring their own bottles and boxes, a large part of the store’s identity and branding is built around fostering a sense of community. “Austin, in particular, doesn’t have a lot of grocery stores that are walkable,” says founding team member Brian Nunnery. “We wanted to create not just a grocery store, but a place where people can hang out – a hub for the neighborhood.” The store has been designed to accommodate this:there’s a playground for kids, rocking chairs on the front porch, ample parking space and shopping carts, and regular music events like open mic nights and local band performances.
A whole new level of ‘reaching out’ to customers
Retailers are always on the lookout for more opportunities to increase footfalls. Branding plays an important role in driving customers into stores. How? Store branding rests on communication and giving the retailer an identity that is different from the competition. The overriding question for retailers is: how can I enhance my communication with customers so that they are drawn to my store?
The Melt, a chain of grilled cheese restaurants that combine fast food with high tech,(launched in August 2011) takes a different spin to bringing customers in – by going to them! Jonathan Kaplan, founder and CEO of ‘The MELT’, just announced the roll-out of a Melt Bus fleet of retrofitted yellow school buses. “We see a future of ‘wheels and walls,’ the convergence of brick-and-mortar retail and mobile food trucks,” said Kaplan. “Our new MELT Bus fleet now gives us the ability to bring happiness anywhere, from airports to zoos and everywhere in between.” The buses will carry The Melt branding, and will have designated bus stops across the Bay Area. Each of these bus stops will also feature potable patios complete with music, signature Melt orange umbrellas and schoolyard seating – all in sync with the traditional American childhood memory of lunch-time grilled cheese sandwiches.
Customer service gets a larger slice of the pie
Retail branding today doesn’t just need to factor in how a physical store looks – branding is an important factor of success for e-retailers as well. In this scenario, customer service is a factor that contributes to store branding. In fact, it makes an impact on the customer even if there is no direct face-to-face interaction – perhaps more so.
The best example that illustrates how important customer service is for a retailer’s image is Zappos.com. This online shoe and apparel shop was founded in 1999, and went from being a shoe retailer to a ‘service company that happens to sell shoes’. Today, the company has a clear goal of providing the best service in the industry, and focuses on this by offering free shipping both ways, a 365-day return policy and a 24/7 call center. At the end of the day, Zappos’ customer-centricity and grounded corporate culture is its brand: for example, Zappos responds to 100% of customer service questions on Twitter within 24 hours, with an average response time of 54 minutes (2012 STELLA Service Study). The superior service that the retailer provides customers is powerful – “Our customers do the marketing for us,” CEO Tony Hsieh says.
A brand with a conscience
A brand with a conscience
Environmental and other disasters that have occurred over the last few decades have caused many consumers to look closely at the choices they are making and their implications on the planet. Animal cruelty, global warming and the rapid decrease of natural resources are causes of concern for many, who may also be keeping a close eye on what their preferred retail brands are doing to help make the world the better place to live in. Many new-age retailers are aware of the choices their customers are making, and are shaping their brands around this universal need to lead responsible, compassionate and healthy lives.
One such upcoming retailer is Teavana, a specialty tea and tea accessory retailer based in Atlanta, Georgia. Teavana was founded in 1997, and this part retail shop and part tea emporium markets a selection of 100different types of loose-leaf tea from all over the world. The company infuses responsibility and compassion into its brand through an initiative called EquaTrade. Through this program, 1% of Teavana’s profits go to CARE (www.care.org), and the donations contribute to the funding of education programs, increased access to safe drinking water, and the creation of economic development opportunities in the world’s tea growing communities.
The EquaTrade program has so far made donations to CARE funded tea-related projects in South Africa, Sri Lanka, India as well as the Haiti Earthquake Relief efforts. in.gredientsalso set up in.volved, a community volunteer program driven by the in.gredients community. The purpose of this program is to‘mobilize friends of in.gredients and give back to the Austin community’. Volunteers help out at in.gredients as well as local non-profits and/or local schools that focus on strengthening the community and providing education on the importance of healthy, sustainable lifestyles. In return, they can accumulate points or rewards that can be redeemed at in.gredients.
Retail Analytics: Helping you build a successful brand
A strong, robust retail analytics solution can help you gather information about what your customers feel about your brand – through online, in-store, and mobile interactions. Data once collected and analyzed can give you insights on how strong or weak your brand is against the competition, and where your company strategy might be deviating from customer expectations.
