Kevon Hills from StellaService presentation deck from Digiday Retail Summit, 7.27.14

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Brand Damage
What a Lack of Consistency Is Costing Your Brand
July 27th, 2014
Presenter: Kevon Hills | Vice President, Research | StellaService
www.stellaservice.com

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Why We Exist
To Promote and Foster a World of Great Customer Service
For Consumers
To provide reliable, unbiased retailer
information and ratings to help shoppers
make better decisions
For Retailers
Provide unprecedented data and insight on
competitor to help measure, benchmark and
improve operations

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Customer Care Fulfillment
• Daily customer service interactions • ~50 orders and returns per year
Stella Metrics Service Areas
Measuring Speed and Quality Across Key Service Areas
Phone Email Chat Shipping Refunds
Consistency Performance

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Department
Stores
Brand
Manufacturers
Brand Consistency: Parameters and Methodology
Same question asked to four different dept. store agents simultaneously

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“There is no information on how Ralph Lauren
and Lacoste polos vary.”
“No major difference between the Ralph Lauren
and Lacoste polo shirts. Lacoste has a different
feel than the Ralph Lauren polo since it’s 100
percent cotton.”
“The Lacoste polo is made of lightweight,
breathable 100 percent cotton. Ralph Lauren
polos have a custom or classic fit and is a short
sleeve interlock with soft cotton.”
“Ralph Lauren is an overall better brand. Ralph
Lauren polos have a better design, are higher
end, exclusive, upscale, have better thread and
don't shrink. Lacoste polos shrink, lose their
shape, and will fade after washing.”
What We Learned: Department Stores
Agents are Giving Inconsistent Information About Products
Are there any major differences between RL Classic Polo
and the Lacoste Classic Pique Polo?

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Can you explain what accounts for the $100 difference
between the white and black Gucci Sport XL watches?
“People do not generally wear white after Labor
Day so that’s why the white once is cheaper.”
“The white is water resistant up to 50 meters and
the black is water resistant up to 100 meters.”
“Price difference is the strap width. Black has a
strap width of 7/8 inch and the white has a width
of 3/4 inch.”
“Specs on both watches are the same so not
sure why there is a difference.”
“The watch costs more in black because it has a
black PVD coating to give the watch a black
finish. The white watch has a steel case.”
What We Learned: Brands
Brand Erosion Being Caused by Fragmented Messaging

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• Saks Fifth Avenue was the best performer
• Lacoste represented the best; Estée Lauder the worst
Online
Consistency
Results
Results of Measurement
Inconsistent messaging across major department stores

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DEPARTMENT STORES
• Brands rely on your agents to be the voice of the brand
• Opportunity to improve training programs around product knowledge
• Inconsistency negatively impacts customer trust and loyalty
• Increased contacts and higher return rates drive up operational costs
BRANDS
• Consider the brand dilution and lost sales created by misrepresentation
• Ensure product guides and materials and always up to date
• Keep the line of communication open with retail partners
• Deliver above and beyond service through own ecommerce support
Key Takeaways
Retail CSRs Are Doing Customers a Disservice

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Contact:
Kevon Hills | VP Research
Kevon.Hills@StellaService.com
646.218.9646
Questions?