Saturday, October 9, 2010

How well do you know your customer?

How well do you know your customer?  

Do you know them as well as you know your best friend?  You should.  

You should understand their aspirations, their dreams, their fears & deepest desires.  And you should absolutely understand where you create value in their life and why they love you for it.

Take Anthropologie as a great example.  During the economic downturn, while retailers such as Gap struggled, Anthro, and therefore its parent company, thrived.

Why?

Because they continued to deliver what their core customer values about them, and nothing else.   And I'm not talking about just merchandise, but the entire shopping experience is built around her.  That has created extremely passionate customers who don't fade away when economic troubles arise.  

How did they do that?  And, how can you do that?

By knowing the core customer intimately:

 Ask anyone at Anthropologie who that customer is, and they can rattle off a demographic profile:  30 to 45 years old, college or post-graduate education, married with kids or in a committed relationship, professional or ex-professional, annual household income of $150,000 to $200,000. But those dry matters of fact don't suffice to flesh out the living, breathing woman most Anthropologists call "our friend." They can go deeper and describer her in psychographic terms: She's well-read and well-traveled. She is very aware -- she gets our references, whether it's to a town in Europe or to a book or a movie. She's urban minded. She's into cooking, gardening, and wine. She has a natural curiosity about the world. She's relatively fit.

These insights infuse everything Antrhropologie does, from designing its stores to be "a world of discovery, as if she (the core customer) is on a journey or trip."  Stores are designed using local artists that also understand the overall Antrho brand to create a consistent, yet unique & local feel to each store.  Catalogs are shot in different countries all of the world to appeal to "her".  Merchandise sets trends, just like "she" does.  

You can create passionate customers too, but you have to take the time to get to know them first.  Then, you have to build everything around them - from your messages to packaging to the way your customer service reps answer the phone.  

You can read more about Anthro's approach here.

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