2. • TODAY’S AGENDA: Jacob’s history• Target segments• Competition• Primary research• Current positioning• Training and programs
3. On site visitsAnalysis of on site customer serviceAnalysis of competitorsResults from visitsCourse conceptsRecommendations
4. JACOB IN A FEW WORDS:• Created in 1977• 200 stores across• Canada and the USA• 5 branches:• Jacob• Jacob Connexion• Jacob Lingerie• Josef• Danz
5. TARGET SEGMENTS:
6. JACOB Image• Aim: accompany women in the progress of their lives.• Specific targets for each brands, but some common elements: – sensitive to feminine messages – more concerned about environmental issues – trend to look for « real women » in advertising
7. Position Map
8. Primary Research• Conducted a manager interview• Onsite-Questionnaire-Mystery Client
9. One on One Interview • What is the Current Level of Customer Service? • Current Rating of customer service 8/10 • How do Customers feel about it? • How does the Organization feel about it? • What consists of a excellent customer service?
10. Current System of Excellent Customer Service• Hiring Process• STAR Program• RPM Program
11. Hiring Process• Candidate must meet JACOB Image• Once hired placed on 3 month probation• Six steps of the JACOB team profile of competencies – Sales and Customer Service Excellent – Impact of Communication – Energy – Team Work – Quality and Detail-Oriented – Adaptability• Awarded increase of hourly salary
12. STAR ProgramSituation, Task, Action, ResultNomination from any employee Indirect way to give feedback
13. Must reflect the four JACOB Norms Random individual will receive $25 JACOB gift certificate
14. RPM Program• Remuneration Per Month• A motivational program• Reward: An extra $ on average hours work that week
15. Analysis of Results 5 parts to our questionnaire: •Greeting •Transition •Fitting Room •Completion of transaction •Return Transaction
16. The Big Question!Did Customer Service Meet Jacob Standards???
17. • Sales staff performed poorly• Stores were organized• 3 out of 4 would NOT shop at JACOB again• For a store where the merchandise is pricey, the service component is missing
18. Important Results• 75% received a welcome greeting within the 10 seconds they entered the store• 75% of sales representatives this not try to discover our needs nor offered to help satisfy them• 75% did not find sales representatives available when in need• No sales representative followed up with the customers
19. • 75% of the sales representative were not willing to explore options to solve any of the clients’ problems• Was JACOB staff courteous and professional? – 50% neutral – 50% disagree• Was the JACOB staff knowledgeable of their products and helpful? – 50% neutral – 50% disagree
20. ConclusionDid you find your shopping experience at JACOB enjoyable? 75% strongly disagree, 25% neutral
21. Course ConceptsJACOB-Analysis
22. • Jacob seems to place much emphasis on customer satisfaction primary concern.• JACOB has made itself a source of expectation levels for its customers .• Actual performance does not truly match the expectations that JACOB seems to want its customers to develop.• The retail chain may presently or eventually incur difficulties in terms of customer satisfaction.• Customer dissatisfaction: Discrepancy between customers’ expectations and the actual performance
23. • JACOB may be conditioning its customers to perceive this service level as being acceptable and normal for JACOB stores • Associate the company with unsatisfactory service • Negative word-of-mouth • Implications for profitability and credibility• Customer service variability (one of the four service characteristics) is a major concern for this company – Service is not uniform across all stores – Reduce service variability in JACOB Boutiques• Specific, tactical actions and recommendations need to be implemented in order for JACOB to remediate this discrepancy
24. • Customer Loyalty: • Only approximately 10% of their customers are customers who return to JACOB every season • Approximately 20% return every month • Tactical actions to ensure that a higher percentage of its customers return every season • Create a sense of attachment, higher degree of loyalty (latent or premium)
25. Service quality experienced by JACOBcustomers in the stores’ fitting roomsis less than desirable- “Moment of Truth’’- Approximately 25% may be satisfied- Damaging to the company’s overall profitability- Focus on improving the fitting room experience- Demonstrate responsiveness to customers (SERVQUAL dimensions of service quality)
26. • The Gaps Model: – Customer gap: Discrepancy between customer expectations and customers’ perceptions of JACOB’s service performance – Communication gap: Inconsistency between JACOB’s external communications to customers of what to expect in terms of service quality, and customers’ actual perception of the service quality offered to them. – Delivery gap: Discrepancy between the standards developed and the actual service delivery • Service standards are identified and documented but not being respected.
27. JACOB Manager Interview:‘‘In theory, if employees did exactly what they weresupposed to, followed the manuals and did what they weretaught in training, I believe our overall service grade wouldbe approximately 90%. However, that is not actually thecase in practice, and stores are performing below thatlevel’’.
29. 12 RECOMMENDATIONS:1) VIP night / cocktail night, view collection in advance for best clients2) Waiting Room3) Emails4) Speak to customers using their first names5) Physical Service Environment6) Fitting Room Lights7) Waiting lines8) Loyalty Program (benefits/loyalty card)9) Monthly visit by a fashion stylist10) More extensive employee training11) Customer complaints12) Website
30. 1. VIP COCKTAIL NIGHT• Bi-yearly basis (at the beginning of every season, i.e. fall/winter and spring/summer).• A chance to view a fashion show of the new clothing of the upcoming season• Recommendation in line with the concepts discussed in the article, ‘‘Why Service Stinks’’: – Company’s most profitable customers receive the ‘‘royal treatment’’• Send out special invitations addressed to its best customers• Encourage customers to keep purchasing regularly
31. 2. WAITING ROOMS• Setting up a lounge-style waiting area• Install flat screen TV’s and display magazines to occupy those waiting• Customers will feels comfortable and not rushed – One or two flat screen televisions – A couple of lounge chairs – Magazine subscriptions (car, fitness, gossip, women’s magazines)• Advantage to sales and improving profitability
32. 3. EMAILS• Send emails to both non-purchasing customers and current customers• Send information pertaining to special offers or events• Addressed to her using her name, so that she can feel personally contacted• Result in stores visits, can lead to in profitability
33. 4. PERSONALIZATION• Speak to customers using their first names• Giving them a feeling of attachment to the retail chain, and making them feel valued as a customer.• Ask the customer her name when the articles of clothing are picked up from the customer and put into a fitting room.
34. 5. PHYSICAL SERVICE ENVIRONMENT• Enhance a few ambience conditions: 1. Ambience fragrance (wearable perfume) • Regularly spray the fragrance into the air, the smell permeates the store. • Customers greeted with the pleasant smell as soon as they enter the store • Association of the fragrance with JACOB Boutiques. • Could potentially create positive affect among customers, thus enhancing the overall shopping experience. 2. Music: • Music that appeals to its 20 to 40-year old target market • Slow tempo to encourage customers stay inside the store as long as possible so as to increase sales.
35. 6. FITTING ROOM LIGHTS• Hanging a light outside of each fitting room – Each customer can turn on from inside her fitting room as soon as she needs assistance from a sales representative (different size, color, advice, etc). – Demonstrate responsiveness on behalf of the sales reps and of the overall company (SERVQUAL dimension). – Customers will feel catered to, as though their needs are important, and that they are valuable as an individual customer.
36. 7. WAITING LINES• Install a flat screen television for its customers to look at while they wait.• Display: – JACOB articles of clothing / new collection – JACOB advertisements – Videos of fashion shows that will have taken place – Other videos related to fashion and the company
37. 8. LOYALTY PROGRAMS• To the number of customers who shop in its stores per month (currently 10%) – to increase the firm’s profitability.• Record every purchase above $20 that each customer makes,• Customers who have purchased a min 12 times in one year can: – benefit from special advantages – Exclusively get invited to the yearly JACOB blowout sale – Seasonal JACOB fashion show which would display each season’s new clothing line.• Fashion show could provide the incentive to JACOB customers to purchase regularly, which would increase customer lifetime value
38. 9. FASHIONISTA ON BOARD!• Fashion stylist can be available at predetermined date and time every month• Assemble outfits for customers – Could result in higher total purchases than if he/she was not on-site – Potential to improve the company’s bottom line• Most profitable customers could have a free half-hour session with the stylist – Higher overall customer loyalty – Creating a sense of attachment to the company
39. 10. EXTENSIVE EMPLOYEE TRAINING• Follow-up training with employees six months after being hired• Make the employees feel engaged in the company• Within one month of being hired, all employees should have an individual, preliminary evaluation with their managers.• Manager to use this opportunity to: – Give tips and advice to employees on how to develop customer relationships in more depth – Give tricks and methods to deal with demanding and difficult customers.
40. • Strict service standards for employees to respect in different areas of their customer service – Would result in more tangible customer service that would also be easier for managers to evaluate.• For example: – Every customer has to be greeted within ten seconds after entry – When in the fitting room, they must be asked within two minutes whether they need another size or color of the clothing article, or whether they need any other kind of help.• Managers must not tolerate service that is not courteous and exemplary• Mystery shopper
41. 11. CUSTOMER COMPLAINTS• JACOB must identify a method to encourage their customers to share their comments with the company – come visit our website; we want to hear from you! Your comments are valuable to us’’. – Contest, $500 certificate at JACOB stores or a trip – Provide opportunities for service recovery when an undesirable service encounter occurs.• Failing to complain can result in lost clients, along with their lifetime values.• Customers must feel as though their comments: – valuable – will receive distributive, procedural, and interactional justice.
42. 12. WEBSITE: www.jacob.ca• New collections• Return policy• Photo galleries• Store locations and more!• Join Facebook group!
43. New Website Opportunity• New website opportunity: – Could enable customers to become even more engaged and attached while shopping on the company’s website.• Develop an online program on its website, whereby customers could view: – New collections, but also – A virtual model/mannequin that customers could dress themselves and put together outfits on. – Visualize potential outfits – Play with different items and try to match them together
44. THANK YOU!
45. GIVEAWAY!• Question 1-What are the five branches of JACOB?• Question 2- Recap one of our Recommendations.