Kate Fannin: “We Should Measure ROE — Return on Experience”
Nov 29, 2024
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Kate Fannin, a retail and customer experience expert with a rich history at brands like Gap and Estée Lauder, emphasizes the crucial need for meaningful customer connections in commerce. She argues that while technology has advanced, real human engagement remains essential. Fannin highlights the concept of Return on Experience (ROE), asserting that people don’t just buy products; they invest in experiences. The conversation also addresses the challenges of digital luxury marketing and the importance of integrating online and offline interactions for richer shopping experiences.
Human connection remains essential in retail, urging brands to foster immersive experiences that blend online convenience with in-store engagement.
The importance of emotional connections highlights that successful retailers create memorable experiences, prompting customers to pay more for delightful interactions.
As digital transformation progresses, brands must integrate technology that enhances human engagement rather than replacing authentic customer relationships.
Deep dives
The Evolution of Retail Experience
The discussion emphasizes the significant evolution in the retail experience over the years, particularly the shift from in-store contexts to online experiences. Initially, physical stores thrived on creating an intense contextual engagement, but the rise of e-commerce has shifted the focus towards content delivery and consumer convenience. This evolution led to a critical need for brands to maintain consistency between online and in-store experiences, with recognition that context is becoming increasingly important again as consumers seek more immersive interactions. Brands are now being challenged to balance the convenience of online shopping with the tactile, experiential benefits of the physical retail environment.
The Role of Experience in Consumer Loyalty
Building a strong emotional connection through unique experiences is vital for brand loyalty. The conversation highlights the importance of understanding customer needs and preferences, stating that successful retailers not only sell products but also create memorable experiences that resonate with shoppers. Examples from luxury brands illustrate how tailored services, like personal attention from sales staff, contribute to customer loyalty and continued patronage. This insight drives home the message that consumers are willing to pay more for a delightful shopping experience, which significantly impacts their buying decisions.
Challenges of Digital Transformation
The discourse points out the complexity and challenges businesses face during digital transformation, where traditional retail models are intertwined with emerging technologies. It notes the risk of treating digital channels merely as revenue streams instead of integrated aspects of the overall retail experience. The integration of technology should enhance, not overshadow, the human interactions critical to successful retail encounters. As businesses navigate these transformations, there's a growing recognition of the need to customize the online customer journey while ensuring a seamless and engaging experience across all touchpoints.
The Importance of Authentic Engagement
Authenticity in customer engagement is emphasized as crucial for fostering lasting connections between brands and consumers. The conversation discusses the need for genuine interactions in both physical and digital spaces, warning against overly automated or insincere approaches that may alienate customers. Examples include how smaller brands excel by leveraging personal touch and community connections, allowing customers to feel valued and understood. The call for a shift back to meaningful human experiences in retail encourages brands to prioritize authentic relationships over mass automated solutions.
Navigating the Future of Retail
Insights into the future of retail suggest that small independent retailers and community-centric approaches hold significant potential as consumer preferences shift. Smaller towns and personalized service are highlighted as areas ripe for investment, with a call for brands to leverage these local dynamics. Retailers are encouraged to develop strategies that acknowledge and harness consumer trends, ensuring their offerings are relevant and resonate with target audiences. With the recognition that true value lies in the experience rather than just the transaction, the future of retail will rely on flexibility, creativity, and a return to meaningful consumer interactions.
Retail and customer experience expert Kate Fannin brings brands down to earth for a living, driven by her consulting mantra, “People buy things; they pay for experiences.” Drawing from her career journey across iconic brands like Gap, Nordstrom, and Estée Lauder, Kate offers insightful strategies for curating meaningful customer connections that make even online shopping feel like window shopping in your favorite small town.
“The Invitation to Come and Stay Awhile”
Key takeaways:
Human connection never went out of style, even as digital capabilities flourish.
If a brand’s technology isn’t solving a pain point, they should ask: is that technology enhancing customer experience or force-following a trend?
[00:11:00] "What we’ve lost in digital is the invitation to come and stay awhile." – Phillip Jackson
[00:14:00] "There’s no such thing as drive-through luxury." – Brian Lange
[00:17:00] "Every brand needs to ask: What does it take to bring the customer back?" – Kate Fannin
[00:40:00] "Can you have human engagement at scale? Not the same as me shopping with Jackie in Cold Spring…So AI has its place, but you can’t just peanut butter it across everything." – Kate Fannin
[00:42:00] "People buy things, but they pay for experiences." – Kate Fannin
Kate is a "consummate consumer" and channel-agnostic "Retail Realist" -For over two decades, she has worked in marketing, retail, and IT, including 15+ years in luxury fashion, and beauty. She has held various leadership roles at Estee Lauder Companies, Nordstrom, Neiman Marcus, and Gap, Inc.
Her passion is evaluating the consumer experience, from product and packaging to elevated, immersive "phygital" engagement programs to ensure that the customer is the top priority!
Kate has an MBA from the University of Illinois, and a BBA from St. Mary's University in San Antonio, TX, both in Marketing.
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