Marketing Personal Service, DigitallyPrepared By: Charlie Heldman

Introduction• Chico’s is known for their “Most Amazing Personal Service” • Why is service important to Chico’s? • How do they market this digitally?• Why should they market this digitally?• What are others doing?• Suggestions• Questions

Chicos.com

Chico’s Prides Itself on Service

What did I look for?• Financials:

▫ Net Revenues▫ Customer/Employee Satisfaction Ratings▫ Online/In-Store Sales▫ Company Size

• On Website:▫ Shipping policy▫ Customer Engagement methods ▫ How Philanthropy is expressed ▫ If a “Customer Service” explanation is written out: where

is it, what does it look like ▫ Ability to track orders? ▫ Company Credit-Card?

(Examples on Slide 14)

Chico’s• Customer Satisfaction Rating: 4.6/5.0 (4.4 Avg.)• Employee Satisfaction Rating: *3.1 (FAS); (3.3

Avg.)• Net Revenue % Change ’14-’15: -1.45%

▫ Net Revenue 2014: $1.38B▫ Net Revenue 2015: $1.36B

• What we are doing:

https://www.chicos.com/store/Chico's FAS Inc. 2015 Annual Report

https://www.google.com/shopping/seller?q=chicos.com&hl=en&sa=X&ved=0ahUKEwin7L76uaDOAhXFph4KHXBjDOA4ChDBBggf

Ann Taylor• Customer Satisfaction Rating: 4.5/5.0 (4.4 Avg.)• Employee Satisfaction Rating: 3.5 (3.3 Avg.)• *Net Revenue % Change ’14-’15 (Bought in 2015): N/A

▫ Net Revenue 2014 (Ann, Inc.): $952.8M▫ Net Revenue Q1 2015: $211.3M (-3.91% from 2014)

• Examples of what they’re doing:▫ Have a live-chat option▫ You can track your order

Shipping info. is wordy, but it explains the prices

Shipping/Return Policy on top of home-page

Customer Engagement: Ability to upload own photo

Philanthropy section is hidden at the bottom, but it takes you to a personal website

They have their own credit card

www.anntaylor.com

https://www.google.com/shopping/seller?q=anntaylor.com&mrqs=1&hl=en&sa=X&ved=0ahUKEwij4vfFwqDOAhWGKh4KHd-OD6U4ChDBBghi

http://investor.anntaylor.com/mobile.view?c=78167&v=203&d=1&id=2025520http://investor.anntaylor.com/mobile.view?c=78167&v=203&d=1&id=2052745http://www.poandpo.com/earnings/ann-q1-total-net-sales-were-5977-million-23-5-2015/

What are others doing?•businessinsider.com: “25 Retailers with the best customer service (2015)”

http://www.businessinsider.com/retail-brands-best-customer-service-2015-11

L.L. Bean (#1)• Customer Satisfaction Rating: 4.8/5.0 (4.4 Avg.)• Employee Satisfaction Rating: 3.7 (3.3 Avg.)• Net Revenue % Change Over ’14-’15: -.63%

▫Net Revenue 2014: $1.61B▫Net Revenue 2015: $1.6B

• What are they doing digitally:

http://www.llbean.com/

http://www.llbean.com/customerService/aboutLLBean/newsroom/stories/150311_LLBean_Fiscal_2014_Results.htmlhttp://www.llbean.com/customerService/aboutLLBean/newsroom/stories/160324_LLBean_Reports_2015_Net_Revenue_Results.htmlhttps://www.google.com/shopping/seller?q=llbean.com&mrqs=1&hl=en&sa=X&ved=0ahUKEwjqhrfi5P3NAhUJ1B4KHY3UBHkQwQYIHw

Shipping policy denoted at top of home-page

A statement of what Customer Service means to them (bottom of home-page)

Customer Service options found on the top of the home-page

A video of customers saying why they appreciate L.L. Bean’s service

Glassdoor.com

Eddie Bauer (L.L. Bean Competitor)• Customer Satisfaction Rating: 4.6/5.0 (4.4 Avg.)• Employee Satisfaction Rating: 2.8 (3.3 Avg.)• *Net Revenue % Change ’13-’14 (Bought in

2014): -6.78%▫Net Revenue 2013: $885M▫Bought out for: $825M

• What are they doing digitally?: Shipping policy denoted at top of home-page

Have a free return policy, but it’s hard to find (they don’t market it well)

Customer Service options found on the bottom of the home-page

A unique way to approach Customer Engagement

http://www.eddiebauer.com/

http://www.seattletimes.com/business/eddie-bauer-sees-profit-on-the-horizon/https://www.google.com/shopping/seller?q=eddiebauer.com&mrqs=1&hl=en&sa=X&ved=0ahUKEwjnpqzB6v3NAhUFFx4KHT5sBew4ChDBBghg

Glassdoor.com

COACH (#8)• Customer Satisfaction Rating: 4.6/5.0 (4.4 Avg.)• Employee Satisfaction Rating: 3.5 (3.3 Avg.)• *Net Revenue % Change ’14-’15: N/A (‘16 report on

8/9/16)▫Net Revenue 2014: $4.19B▫Net Revenue Q1-Q3 2015: $3.34B (4.71% from

2014)• What are they doing digitally?:This tab explores

more about the company (history, their products, etc.) (Top of Home-Page)

Free Returns and Shipping—mentioned at top of home-page

Customer Service options neatly organized (clicked bottom of home-page)

Customer Engagement: allowing customers to upload own photos

Pictures of celebrities wearing the product

http://www.coach.com/

http://www.marketwatch.com/investing/stock/coh/financialshttp://www.google.com/shopping/seller?q=coach.com&mrqs=1

Glassdoor.com

Michael Kors (COACH Competitor)• Customer Satisfaction Rating: 4.3/5.0 (4.4 Avg.)• Employee Satisfaction Rating: 3.4 (3.3 Avg.)• Net Revenue % Change ’14-’15: 2.63%

▫Net Revenue 2014: $3.42B▫Net Revenue 2015: $3.51B

• What are they doing digitally?:▫ No advertisement of their free standard ground shipping▫ Ability to track your order

Under “Customer Service,” nothing states why it’s importantEasily able to find how they give

back to the community

Pictures of celebrities wearing the product

http://www.michaelkors.com/

Michael Kors 2015 Annual Reporthttps://www.google.com/shopping/seller?q=michaelkors.com&mrqs=1&hl=en&sa=X&ved=0ahUKEwi5r87-6v3NAhVJJR4KHQGwCkA4HhDBBggf

Glassdoor.com

Barneys (#13)• Customer Satisfaction Rating: 4.8/5.0 (4.4 Avg.)• Employee Satisfaction Rating: 3.5 (3.3 Avg.) • Net Revenue % Change ‘14-’15: -10.00%

▫ Net Revenue 2014: $1B▫ Net Revenue 2015: $900M

• What are they doing digitally?:▫ No real explanation of what customer service means to them▫ No option to live-chat with customer service▫ You can track your order▫ They have their own credit card▫ Do not speak to charity giving

“Customer Service” on bottom of home-page; seeks feedback

Shipping/Return Policy on top of home-pageglassdoor.com

Celebrity Advertisementhttp://www.barneys.com/

http://fortune.com/2015/03/03/barneys-new-york-e-commerce/https://www.businessoffashion.com/articles/intelligence/inside-the-business-of-barneys-new-yorkhttps://www.google.com/shopping/seller?q=barneys.com&mrqs=1&hl=en&sa=X&ved=0ahUKEwin5q3m6f3NAhXElh4KHeDzDe4QwQYIHw

Bloomingdales (Barneys Comp.)• Customer Satisfaction Rating: 4.2/5.0 (4.4 Avg.)• Employee Satisfaction Rating: 2.9 (3.3 Avg.) • *Net Revenue % Change: Unavailable (No Info.

On 2014)▫ A Macy’s brand▫ Net Revenue 2015: $1.07B

• What are they doing digitally?:

Though somewhat hidden, their philanthropy is spoken to well

After searching the site, they seek out feedback

“Customer Service” tab is neatly organized once clicked into

Shipping/Return Policy on top and bottom of home-page

glassdoor.com

Different services that Bloomingdale’s offers are listed at the bottom of the home-pagehttp://www1.bloomingdales.com/

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=Bloomingdales+revenue&start=0https://www.google.com/shopping/seller?q=bloomingdales.com&mrqs=1&hl=en&sa=X&ved=0ahUKEwiQz5uF7v3NAhUEXR4KHXvvDHYQwQYIaQ

Examples from Other CompaniesBanana Republic

PVH Corp - Calvin Klein Express, Inc

Nordstrom

Brooks Brothers

TalbotsSaks Fifth Avenue

Soma

White House Black Market

Conclusions• Marketing personal service doesn’t correlate with a boost in net revenue--

Not enough value in Marketing Personal Service for a positive ROI

• If your company stands for something, you should advertise that; especially service (Regardless if there is potential ROI)• “Win From Within”—Chico’s needs to start improving Employee Satisfaction

▫ Kristin Oliver, EVP & Chief HR Officer: “Our values start with personal service, so people here, first, have to value that.”• Chico’s can learn from others, and implement something small about service on the site as a test run

    L.L. Bean Coach J. Crew Ralph Lauren Express Barneys Nordstrom Brooks Brothers Chico's  Customer Satisfaction Rating 4.8 4.6 4.4 4.7 4.0 4.8 4.6 4.6 4.6

Higher Employee Satisfaction Rating 3.7 3.5 3.8 3.3 3.2 3.5 3.5 2.9 3.1Lower   Eddie Bauer Michael Kors Banana Republic PVH Corp. Urban Outfitters, Inc. Bloomingdales Hudson's Bay Company Neiman Marcus Ann TaylorEven Customer Satisfaction Rating 4.6 4.3 4.5 4.0 4.0 4.2 3.5 4.3 4.5

  Employee Satisfaction Rating 2.8 3.4 3.5 3.4 3.3 2.9 3.1 3.0 3.5

    L.L. Bean Coach J. Crew Ralph Lauren Express Barneys Nordstrom Brooks Brothers Chico's  2014 Net Revenue $1.61B $4.19B $2.29B $7.4B $2.17B $1.00B $13.51B $1.20B $1.38B

  2015 Net Revenue $1.60B *$3.34B $2.15B $7.6B $2.35B $900M $14.45B N/A $1.36B  2016 Net Revenue - - - - - - - - -  2017 Net Revenue - - - - - - - - -

Positive % Change -0.63% N/A -6.11% 2.70% 8.29% -10.00% 6.96% N/A -1.45%

Negative   Eddie Bauer Michael Kors Banana Republic PVH Corp. Urban Outfitters, Inc. Bloomingdales Hudson's Bay Company Neiman Marcus Ann Taylor

2014 Net Revenue*$885M ('13) $3.42B $2.41B $8.24B $3.32B N/A $6.25B $4.84B $952.8M

  2015 Net Revenue *$825M $3.51B $2.21B $8.02B $3.45B $1.07B $8.53B $5.10B *$211.3M  2016 Net Revenue - - - - - - - - -  2017 Net Revenue - - - - - - - - -  % Change -6.78% 2.63% -8.29% -2.67% 3.92% N/A 36.48% 5.37% N/A

*Bought out *Q1-Q3 Data *Q1 Data

Suggestions

Shipping and Return Policy

How we give back

Check our sizing chart

Suggestions (Cont.)• Instead of “Support,” have the words “Customer Service” or “Customer Care”• Create more customer engagement: maybe through social media or a neat

campaign like Eddie Bauer’s “50 Peaks Challenge.”• Better outline: shipping policy (w/ prices), charity, “Style By Appointment”• Look into lessening the amount of bombardment of sales• “Chicumentary:” Going behind the scenes of an in-store shopping experience

▫ Could be of an everyday customer

▫ Could be on an "Undercover Boss" of sorts

• Talk to the associates in the store to see what feedback they've been given/what personal service works the best

• Pictures of actual associates and/or the inside of boutiques• A video of associates at all areas (HQ, stores, DC) answering the question:

“What service means to us”• Get a tennis player to help market--assuming Chico's demographic watches

tennis. The Professional can say: "Just like me, Chico's knows service"

Questions?