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Posts from the ‘brand loyalty’ Category

Will Jet compete with Amazon?

July 31, 2015

jessonline

Jet.comJet.com makes a serious play to compete with Amazon

The approach is based on a lower pricing strategy, combined with fast delivery. It’s a major, gutsy play for Jet.com’s founder and CEO, Marc Lore. No one has seriously tried to beat Amazon on price – until now. But if anyone can do it, the founder of Diapers.com, Wag.com and Soap.com can. After successfully building these powerful brands, defined by amazing branding, customer experience and convenience (personalization- reminding me that it’s time to reorder, and making it easy to do so; free 2 day shipping, even on a 40lb bag of dogfood), Lore sold Quidsi brands to Amazon for over $500 million.

So it’s just a little bit epic that he’s going after Amazon now.

Jet.com launches with a strong brand image and point of viewThe key differentiator for Jet.com is that Lore creates beautiful and engaging customer experiences that create a devoted customer base with loyalty and an emotional connection to his brands. And from that perspective, Jet doesn’t disappoint. The site has a powerful brand identity and a great customer experience. The search is powerful, the sort features are what’s needed, and the selection seems robust. The homepage promises ‘club price savings’, which alludes to Costco as well as Amazon’s prime pantry. Jet is going directly after Amazon on price, showing comparative pricing against Amazon on every item, to demonstrate the savings.

How is Jet.com doing it? They’re sourcing wide and far- and instantly serving up the prices that are lowest based on your location and things that are cheaper to ship together. Jet will show ‘smart savings’ on items that work well together. every time you add to cart, an animated calculator comes up to show you how many items are now cheaper on the site- it has a little bit of a slot machine effect, of making you feel like there’s a reward with every transaction.

There’s a ways to go- Jet is operating at a huge loss currently, as it gets the infrastructure in place to do this efficiently. From a customer perspective, there’s work yet to be done- product descriptions at the thumbnail level don’t always make it clear what the quantity is for the price, so it can be a little confusing. In the shopping cart, I see how much I’ve saved per item, but no subtotal for line items I’ve ordered in multiples. They need to add a quick-view feature to the search display- something Amazon doesn’t have, so could be yet another differentiator.

Jet.com's smart cart savingsIn the shopping cart, you can save even more if you select certain payment methods, or to waive the ability to have free return shipping. More incentive to checkout. On my $50 purchase, I saved over $9- not bad.

The biggest obstacle for Jet in driving repeat purchases, is that their creative sourcing means that an order ends up shipping in many multiple packages: My order of 8 items will arrive in 5 separate shipments. I’m not paying the added cost- Jet is absorbing that. But as a customer, I don’t like the inconvenience and waste associated with receiving that many packages and keeping track of whether everything has arrived.

Will Jet give Amazon and Walmart a serious run for their money? Maybe. I hope so, because the competition is good- and I  love a site that takes the time and effort to make the customer experience feel like a wonderful place to be. It’s a differentiator that matters- Amazon has never tried to go there, and Walmart failed when they tried- their customer associates a certain over-crowded messiness with savings. It could be the differentiator, combined with price- that makes Jet.com a serious contender.

Great customer service: an oxymoron?

April 24, 2015

jessonline

Is your customer service an oxymoron? Is it geared towards helping your customers, or avoiding them? Here’s what great customer experience looks like to me:

1. Customer calls company “A” and wants to speak to a customer service agent.

2. Customer is able reach a human agent within 30-60 seconds (and without a gauntlet of CG voice options and having to punch in excessive numbers). 

3. Agent actually has the information the customer has punched in (account number, issue type, etc) and greets customer by name.

4. Agent resolves problem fairly and quickly, and life is good.

This seems like a very simple interaction. But recently, when I had one like this, I found myself overflowing with gratitude. I steel myself for these calls- expecting the worst, because I’ve been conditioned to expect the worst, through endless frustrating calls that went more like this:

 1. Customer calls company- get electronic message asking customer to select one of 5 choices. Customer doesn’t want any of these choices- customer wants to talk to a human.

2. Electronic voice says that she understands that I’d like to speak to an agent, but to help, she’ll need the following information entered.

3. Customer enters information, gets a new menu of options. None apply. Customer wants a human. Customer presses “0”. Machine says “this is not a valid response”. Customer says, “I WANT A HUMAN”. Machine says, “that is not a valid response. To repeat the menu, press 1.” Menu repeats. There’s no option for a human.

4. Customer implodes.

5. Customer starts over, process begins anew. Eventually reaches human. By this time, customer is hostile, frustrated and exhausted. Agent asks for all of the same account information customer has already entered.

6. Customer implodes.

You get the idea.

It shouldn’t have to be like this.

I really wonder how much actual revenue it costs companies in the long term- do companies actually quantify the time wasted dealing with hostile customers, and look at how that could be prevented? What’s the lost revenue by attrition when the customer decides not to deal with them anymore? If they really did the math, they would see that it’s much less expensive in the long run to provide good, or even great service. Think retention, appreciation, brand loyalty. That’s revenue. Many retailers get it. Especially online retailers. And granted, that process is simpler- and faster. But when it comes to customer support for longer term products like computers, or printers, health insurance or banks- not so much.

Why do CEO’s allow this kind of experience to persist?

Almost certainly because they don’t experience it for themselves. This is the advice I’d give- and it’s same advice I give top leaders and CEO’s for their websites: experience it for yourself. Frequently.

Give yourself a scenario (my product arrived damaged, never arrived, stopped working, or I’m calling to understand why my claim was denied, and so on). Call your own Customer Service number and see you how feel when you’re done. And then ask yourself, “Is our customer service an oxymoron?” Answer the question.

You’ll know what you need to do.

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