Blog

UX university: 4 retailers getting the user experience right

Customer loyalty requires more than offering a customer a free coffee every time they buy 10. There’s no middle ground any longer as user experience is key for retailers wanting to win the battle.

Photo source: istock.com

January 13, 2017

By Glenn Shoosmith, CEO, BookingBug

Customer loyalty is far more than getting a free coffee every time you buy 10; nowadays it's the difference between becoming a regular visitor or stopping shopping somewhere entirely. There's no middle ground and user experience is key for retailers who want to win this battle.

The user experience (UX) is being tapped by an increasing amount of global brands hoping to foster genuine long-term loyalty far more effectively than discounts and traditional offers ever could.

Now we're able to request a taxi and pay for it with our fingerprint and control our central heating from the other side of the world — the bar has never been higher to impress customers.

In the attempt to do battle with the likes of Amazon — which will now deliver in an hour — many brands forget simplicity, such as ensuring the website is mobile responsive. But that is just a small step. To understand what needs to happen I'm sharing five examples of brands that are digitally engaging with customers and using technology to simplify the shopping experience.

1. Under Armour

In early 2015, Under Armour spent nearly $600 million purchasing fitness apps MyFitnessPal and Endomondo. The U.S. athletic retailer already owned MapMyFitness so they were suddenly within easy reach of 165 million fitness fanatics with a high propensity to purchase sportswear.

Instead of using the apps and associated customer data as a sales tool, the retailer decided to use the platforms to promote the brand experience using content.

Under Armour allows users to book fitness classes through the app and access yoga instruction videos. While this does not directly lead to conversion, Under Armour knows the more people exercise, the more likely they will buy new workout gear.

Elsewhere Under Armour has launched a pair of smart running shoes, which tracks workouts faster than 11 minutes per mile using accelerometers in the sole. This connects to the MapMyRun app which shows patterns, speed, personal bests and informs the wearer when they need to buy a new pair of shoes. In-store, interactive window displays encourage customers to download the apps through QR codes completing the digital circle.

Ultimately, the efforts paid off, with the retailer seeing revenues increase 28 percent year-on-year.

2. Mothercare

In the U.K. retailer Mothercare doesn't tick the 'customer experience box' by simply offering a car seat fitting service, or speedy ecommerce delivery options — although it already has those covered.

Instead the retailer is trying to build a community among its customers with the launch of a new brand proposition, highlighted by the slogan "Welcome to the Club." Yet the initiative goes beyond just a new strapline, serving as a catalyst for change throughout the entire business.

Welcome to the Club will capitalize on Mothercare's in-store events, including new mother meet-ups, sessions for expectant parents and a personal shopping service, which can be booked online.

A new digital employee handbook and freshly refurbished stores support the community Mothercare is trying to create. Meanwhile online, blogs and online communities will post digital content and information for parents.

Mothercare also launched an award-winning mobile app four years ago which provides access to the Mothercare blog, video advice and a baby namer, as well as a playlist of sing-a-long songs and white noise.

Check out this video.

All the app's features mean parents are less likely to delete the app because it provides value. And when they need to buy merchandise, the app is safely installed on their smartphones ready to turn into a sales channel.

3. Starbucks

While the coffee may be better at your independent coffee shop, Starbucks treats customer experience like an art form. 

In the U.K. four years ago, the coffee giant began to write customers' names on their coffee cups  in a bid to seem more personable. Despite extensive posts online about hilarious 'Starbucks name fails', it hasn't detracted from the brand — with a store even opening in Milan, the birthplace of the espresso, early this year.

Starbucks wants to make the experience as easy and comfortable as possible. From installing LCD screens informing customers of the song currently playing in store, to providing wireless charging rings built into tables and a dedicated feedback portal, MyStarbucksIdea.com, where customers can post improvement suggestions.

But what Starbucks is arguably most admired for is its loyalty program. My Starbucks Rewards is a pioneer of mobile payments. Not only can customers collect loyalty 'stars' and top up their card balance, they could pay for their coffee using their iPhone — three years before Apple launched its mobile payments solution.

In addition customers can now use GPS on their phone to find a nearby shop, order and pay for their drink so it is ready and waiting when they arrive

4. Disney World Hotels

While hotel brands including Hilton and Starwood have launched technology which enables a guest's smartphone to double up as their room key, three years ago, the introduction of Disney World in Florida’s contactless wristband blew all smart key efforts out of the water.

The MagicBands provide far more than hotel room access. The radio-frequency identification wristbands also replace the need for park tickets, providing guests both entry into the theme parks and their fastpasses. Visitors can also use their MagicBands as a credit card to buy food and souvenirs and to save professional photos to their online account.

Parents can choose whether to allow the MagicBands to share their child's name. Apart from being able to reunite children with their parents after they run excitedly toward Mickey Mouse the bands also provide information to the Disney characters roaming the park so they can make the experience even more magical by using the children's names or wishing them a happy birthday.

Most recently, the technology is being tapped to digitally enhance rides by using the information on the MagicBands to personally say goodbye to named guests on screens as the rides come to an end.

And, importantly, Disney ties this magical offline experience back to its website, with a planning portal, called 'My Disney Experience,' where visitors can plan their trip, before sharing that data with their individual MagicBand.

Just check out this video.