With all the changes flying around the brick-and-mortar channel of retail commerce, it can be very difficult to organize what we're learning and figure out how to apply it. A professor at the Fashion Institute of Technology, Shelley Kohan, offers an excellent way to organize a strategy, based on her study of Zara. And consultant Pamela Danziger paints a great picture of how it plays out on the store floor.
The 4 E's describe how Zara has put the customer in charge... For a company to do that, it has to be organized to learn from the customer and keep up with them in its operations. Are you interested in more loyal retail customers? Then consider:
Forbes contributor: Why Zara Succeeds, 2018-Apr-23 by Pamela N. Danziger
Creating customer curiosity is a most powerful pull marketing strategy. Every human being is innately programmed to satisfy it. With this new AR application and in so many other ways, Zara excels by pulling customers into the brand, unlike its closest competitor H&M, which remains fixed on pushing its brand and product out to the customer.
In studying these two oft-compared brands, the essential differences revolve around their overall approach to marketing. H&M still is fixed on the old 4Ps of marketing model—Product, Price, Promotion and Place—where the company and the brand is the focus.
By contrast Zara has evolved to the new 4Es of marketing strategy—Experience replaces Product; Exchange is new Price; Evangelism is now Promotion; and Every Place is new Place—that puts the customer at the center around which the company and brand revolve....
Shelley E. Kohan, assistant professor Fashion Institute of Technology, recently shared an analysis of the Zara difference based upon the 4Es marketing concept....
Zara has a deep understanding of the entire value proposition it exchanges with the customers. Its fast-fashion deliverable is available in the quantity, format and time in which the customer needs the product. That translates into great value.
In planning a loyalty program, we need to keep our eye on the "exchange" of value. Most customers join a loyalty program because they do plan to spend with a retailer, and the program will help them maximize the value they realize in that exchange.