{"id":3521,"date":"2020-01-11T21:39:12","date_gmt":"2020-01-11T16:09:12","guid":{"rendered":"http:\/\/icaninfotech.com\/?p=3521"},"modified":"2024-07-16T10:52:17","modified_gmt":"2024-07-16T10:52:17","slug":"zara-makes-customer-experience-king","status":"publish","type":"post","link":"https:\/\/icaninfotech.com\/zara-makes-customer-experience-king\/","title":{"rendered":"Zara Makes Customer Experience King"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3521\" class=\"elementor elementor-3521\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-570c6255 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"570c6255\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-676f85cb\" data-id=\"676f85cb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\n\t\t<div class=\"elementor-element elementor-element-53b2b1a1 elementor-widget elementor-widget-text-editor\" data-id=\"53b2b1a1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 25-07-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p class=\"speakable-paragraph\">Spain-based\u00a0<a href=\"https:\/\/www.zara.com\/us\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.zara.com\/us\/\">Zara<\/a>, the world\u2019s largest clothing retailer and owned by Inditex, is introducing an\u00a0<a href=\"https:\/\/www.forbes.com\/sites\/emmasandler\/2018\/04\/16\/zara-stores-targets-millennials-with-augmented-reality-displays\/#4033fd532315\" target=\"_self\" rel=\"noopener noreferrer\" data-ga-track=\"InternalLink:https:\/\/www.forbes.com\/sites\/emmasandler\/2018\/04\/16\/zara-stores-targets-millennials-with-augmented-reality-displays\/#4033fd532315\">augmented reality experience<\/a>\u00a0in its stores. Shoppers can <strong>engage their mobile phones to see models wearing selected fashions<\/strong> when they click on sensors in the store or displayed on AR-enabled shop windows. Initially launched in 120 stores worldwide, such technology is irresistible digital-honey to draw millennials into the store and shop.<\/p><p>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&amp;M, which remains fixed on pushing its brand and product out to the customer.<\/p><p>In studying these two oft-compared brands, the essential differences revolve around their overall approach to marketing. H&amp;M still is fixed on the old 4Ps of marketing model\u2014Product, Price, Promotion and Place\u2014where the company and the brand is the focus.<\/p><p>By contrast\u00a0<span class=\"tweet_quote\"><a href=\"https:\/\/twitter.com\/intent\/tweet?url=http%3A%2F%2Fwww.forbes.com%2Fsites%2Fpamdanziger%2F2018%2F04%2F23%2Fzaras-difference-pull-people-in-not-push-product-out%2F&amp;text=Zara%20has%20evolved%20to%204Es%20of%20marketing%20%E2%80%93%20Experience%2C%20Exchange%2C%20Evangelism%2C%20Every%20Place%20--%20with%20customer%20at%20the%20center\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/twitter.com\/intent\/tweet?url=http%3A%2F%2Fwww.forbes.com%2Fsites%2Fpamdanziger%2F2018%2F04%2F23%2Fzaras-difference-pull-people-in-not-push-product-out%2F&amp;text=Zara%20has%20evolved%20to%204Es%20of%20marketing%20%E2%80%93%20Experience%2C%20Exchange%2C%20Evangelism%2C%20Every%20Place%20--%20with%20customer%20at%20the%20center\">Zara has evolved to the new 4Es of marketing strategy\u2014Experience replaces Product; Exchange is new Price; Evangelism is now Promotion; and Every Place is new Place\u2014that puts the customer at the center<\/a><\/span>\u00a0around which the company and brand revolve.<\/p><p>For Zara, it is all about the customer\u2014experiences for the customer, exchange with the customer, Evangelism through the customer, and being every place for the customer.\u00a0<a href=\"https:\/\/www.linkedin.com\/in\/shelley-e-kohan-310b9612\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.linkedin.com\/in\/shelley-e-kohan-310b9612\/\">Shelley E. Kohan,<\/a>\u00a0assistant professor Fashion Institute of Technology, recently shared an analysis of the Zara difference based upon the 4Es marketing concept.<\/p><p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignleft wp-image-3628 size-full\" src=\"https:\/\/icaninfotech.com\/wp-content\/uploads\/2020\/01\/Zara-exchanges-with-customers-for-value.jpg\" alt=\"Zara exchanges with customers for value\" width=\"720\" height=\"720\" srcset=\"https:\/\/icaninfotech.com\/wp-content\/uploads\/2020\/01\/Zara-exchanges-with-customers-for-value.jpg 720w, https:\/\/icaninfotech.com\/wp-content\/uploads\/2020\/01\/Zara-exchanges-with-customers-for-value-300x300.jpg 300w, https:\/\/icaninfotech.com\/wp-content\/uploads\/2020\/01\/Zara-exchanges-with-customers-for-value-150x150.jpg 150w, https:\/\/icaninfotech.com\/wp-content\/uploads\/2020\/01\/Zara-exchanges-with-customers-for-value-535x535.jpg 535w, https:\/\/icaninfotech.com\/wp-content\/uploads\/2020\/01\/Zara-exchanges-with-customers-for-value-100x100.jpg 100w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/p><p>Product used to be king, but not anymore. In the new retail economy, experience matters more than product in the mind of the shopper. Zara understands this.<\/p><p>\u201cWhile Zara is an excellent purveyor of product, it also<strong> capitalizes on the store experience by continuously offering reasons for customers to visit the stores<\/strong> and catch the hottest trends at affordable prices,\u201d Kohan explains, noting that Zara has cultivated a loyal customer who visits about\u00a0six times per year, as compared to other retailers in the contemporary market where\u00a0two to three visits per year are the norm.<\/p><p>The fast-fashion experience formula for success combines frictionless shopping in a highly curated product environment offering scarce supply and new styles that rotate rapidly. \u201cThe more quickly and efficiently a customer can navigate through the store to explore and find hidden gems, the better the experience,\u201d she says. \u201cZara nails that.\u201d<\/p><p>Zara has also been working to improve the in-store experience for customers. The brand has revamped its stores, with more modern and visually appealing designs. Zara has also implemented new technologies in its physical stores, such as self-checkout machines and RFID (radio-frequency identification) tags on clothing that allow customers to see more information about a product by scanning it with their smartphone.<\/p><h2>\u00a0<\/h2><h2><strong>Zara Exchanges with Customers for Value<\/strong><\/h2><p>The old pricing formula\u2014Pile it high, sell it cheap\u2014worked well through the 20th century, but in the new experience economy, it has been replaced by the concept of exchange.<\/p><blockquote><p>\u201cExchanging dollars for product is no longer meeting the needs of today\u2019s shopper as they strive for<strong> deeper connections with the brand<\/strong>,\u201d Kohan states. \u201cRetailers must adapt to the changing consumer where the top characteristic is value. Today, value is measured beyond price, but also in time and convenience.\u201d<\/p><\/blockquote><p>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.<\/p><blockquote><p>\u201cBranded value aligns customer\u2019s needs with a brand deliverable,\u201d Kohan stresses.<\/p><\/blockquote><p>For example, the most <strong>loyal customers for retailers<\/strong> typically account for <strong>80% of the sales<\/strong>. These brand loyalists are also less price sensitive. \u201cAppealing to the loyal segment of the target market, like Zara does, allows for higher profit margins and caters to customers who seek out branded value,\u201d she emphasizes.<\/p><p>Zara masters the concept of exchange as it is not the cheapest in the fast-fashion arena, but it consistently delivers branded value of trend-right product at appealing prices.<\/p><h2><strong>Zara Creates Brand Evangelists<\/strong><\/h2><figure style=\"width: 320px\" class=\"wp-caption alignright\"><img decoding=\"async\" class=\"size-medium\" src=\"https:\/\/image.isu.pub\/191024122124-4c81f212f139c75e001e12435e055177\/jpg\/page_1_thumb_large.jpg\" alt=\"Zara creates brand evangelists\" width=\"320\" height=\"179\" loading=\"lazy\" \/><figcaption class=\"wp-caption-text\">Image Source : ISU<\/figcaption><\/figure><p>By making the brand experience meaningful and the exchange valuable, Zara taps the potential of its customers to evangelize the brand. Rather than push marketing out, Zara pulls customers in, cultivates them as <strong>brand influencers to improve operations<\/strong>, services and products and stimulates them to spread the word.<\/p><blockquote><p>\u201cShopper frequency at <strong>Zara is 2x to 3x higher than traditional women\u2019s apparel<\/strong>, which indicates super loyalty to the brand,\u201d Kohan says.<\/p><\/blockquote><p>These loyalitsts become brand evangelists who share excitement about the brand with their networks. Zara, for example, has over 25 million Facebook followers, 16 million on Instagram and over one million in Twitter.<\/p><p>Zara has a highly evolved data infrastructure, Kohan also notes, that allows for super-efficient analysis of what\u2019s selling and being said on social media platforms. This data is used to improve various aspects of the business from product offerings to service enhancements.<\/p><blockquote><p>\u201cThe two-way communication between the customer and Zara allows for continual improvement of product and services,\u201d she says.<\/p><\/blockquote><p>Personal commerce is the every place where the customers are, rather than only in the physical place the brand is present. This is the new distribution model for retailers today: Delivering the brand experience and products when and where the customer demands it.<\/p><p>Zara does that for them. \u201cZara has devoted significant time, money and resources to develop a synchronized strategy between online and offline commerce,\u201d Kohan explains. Through this technology and mobile connectivity, it links a customer\u2019s shopping visit and provides <strong>access to inventory<\/strong> not present in the specific location. \u201cIt is a big win for both the customer and the company,\u201d she says. And the company\u2019s store location strategy is another aspect of its every place factor. It currently operates in 2,213 stores across<strong> 93 markets and 39 online markets<\/strong>. The flagship locations are located in the most critical markets that appeal to their most loyal shopper.<\/p><blockquote><p>\u201cZara has the courage to continually strengthen their portfolio of stores by closing unprofitable ones, opening new markets, and expanding sister brands in existing markets (Zara Home, Massimo Dutti),\u201d Kohan says.<\/p><\/blockquote><p><a href=\"https:\/\/www.forbes.com\/sites\/pamdanziger\/2018\/04\/23\/zaras-difference-pull-people-in-not-push-product-out\/#18d45b0523cb\">Source<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-82a0bd5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"82a0bd5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5d7ec3a\" data-id=\"5d7ec3a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2059898 elementor-widget elementor-widget-image\" data-id=\"2059898\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 25-07-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"400\" src=\"https:\/\/icaninfotech.com\/wp-content\/uploads\/2023\/05\/Transforming-ideas-into-.png\" class=\"attachment-large size-large wp-image-48561\" alt=\"Transforming ideas into\" srcset=\"https:\/\/icaninfotech.com\/wp-content\/uploads\/2023\/05\/Transforming-ideas-into-.png 800w, https:\/\/icaninfotech.com\/wp-content\/uploads\/2023\/05\/Transforming-ideas-into--300x150.png 300w, https:\/\/icaninfotech.com\/wp-content\/uploads\/2023\/05\/Transforming-ideas-into--768x384.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Spain-based\u00a0Zara, the world\u2019s largest clothing retailer and owned by Inditex, is introducing an\u00a0augmented reality experience\u00a0in its stores. Shoppers can engage their mobile phones to see models wearing selected fashions when they click on sensors in the store or displayed on AR-enabled shop windows. Initially launched in 120 stores worldwide, such technology is irresistible digital-honey to<\/p>\n","protected":false},"author":1,"featured_media":3627,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/icaninfotech.com\/wp-content\/uploads\/2020\/01\/Zara-makes-customer-experience-king-I-Can-Infotech.jpeg","_links":{"self":[{"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/posts\/3521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/comments?post=3521"}],"version-history":[{"count":0,"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/posts\/3521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/media\/3627"}],"wp:attachment":[{"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/media?parent=3521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/categories?post=3521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icaninfotech.com\/wp-json\/wp\/v2\/tags?post=3521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}