Tag Archives: engagement

How to engage consumers?

Dealing with customer engagement has never been easy – especially today when customers are all inter-connected and receive all kind of information from all kind of media. This is why the rules that apply to old media such as TV and press can not work with nowadays  consumers.

CDJ by McKinsey

McKinsey devised a model, the Consumer Decision Journey (CDJ), whose simple four steps can be applied to companies belonging to different fields, retail too. Its implementation is not easy but as stressed by McKinsey, rewards can be worth the effort.

But let’s get into the four CDJ steps a little deeper, quoting the McKinsey study which can be fully downloaded on their website.

“Align: Invest marketing resources where consumers spend their time. In most cases, this will involve shifting resources from the “consider” and “buy” stages of the CDJ to the “evaluate” and “advocate” stages. Many companies will also have to shift their investments from paid media (channels owned by other companies, such as print or online newspapers) to self-owned media (such as the brand’s Web sites) and earned media (customer-created channels, such as communities of brand enthusiasts).

Link: Make sure that your messages reinforce each another. Given the proliferation of channels, this can be challenging and many companies have been disconcerted to discover that information about their products— including model numbers, descriptions, images, and promotions—isn’t the same across online channels and even within their stores. Coordinating your message might require new techniques. Apple, for example, took steps to eliminate jargon, align product descriptions, create a rich library of explanatory videos, and institute off-line Genius Bars to ensure consistency, accuracy, and integration across touchpoints.

Lock: Keeping your customers’ attention is key. To do so, companies need to develop direct, opt-in channels, such as e-mail promotions, Twitter and Facebook feeds, and apps. One good example comes from Nike, which progressed from simply exhorting consumers to “just do it” to helping them act on its motto. Nike+ gear records and transmits customer workout data, holds global fund-raising races, and provides customized online training programs. For its part, McDonald’s has enticed millions of Japan’s mobile-savvy consumers to sign up for mobile alerts with discount coupons, contest opportunities, special-event invitations, and other brand-specific content.

Loop: Mine content created by consumers and experts for insights into customers and the brand, and use data collected about customers to create content that will engage them. Consumer-generated content is particularly valuable because it reveals their wants and needs. A classic example comes from Amazon, which allows customers to rate products, and makes these ratings available to shoppers. Amazon doesn’t stop there, though; it also uses this data to decide how it presents its products. This creates an information-rich loop—from data to content and back to data—that strengthens Amazon’s value chain and contributes to product development and customer support. Data loops can also help companies personalize communications, thus deepening the customer relationship.”



New Terms of Engagement for Levi Strauss & Co. Global Supply Chain

Yesterday, Levi Strauss & Co.  announced a new Terms of Engagement for its global supply chain, moving beyond compliance to help improve the lives of workers in factories around the world. Under the new approach, LS&Co. will require contract factories to help make employees’ lives better by supporting programs for their workers that align with UN Millennium Development goals.

In a speech delivered today at the CERES annual conference, CEO and President John Anderson said: “We are proposing a new apparel industry standard of social, economic, and environmental sustainability that focuses on improving workers’ lives. If our ultimate goal is to improve not just factory conditions, but to make a material difference to the people and communities in our supply chain, then we need a more holistic approach and a more human perspective.”

The speech comes twenty years after Levi Strauss & Co. announced a Terms of Engagement that set a new standard of compliance for vendor factories in the apparel industry. The TOE required manufacturing factories to follow health, safety and environmental standards set by Levi Strauss & Co. This standard – considered pioneering at the time – rapidly became the norm for most companies with a global supply chain.

Anderson argued that companies need to do more to create progress and move the industry forward: “Compliance has us focused on two things: a legalistic standard of “do no harm” and factory-level monitoring and reporting,” said Anderson. “While we’ve made progress in a number of areas over twenty years, the hard truth is that we haven’t made enough progress on improving the everyday lives of the people who make our products.”

A New Terms of Engagement
The company’s new approach will focus on programs that align with the UN Millennium Development Goals http://www.un.org/millenniumgoals/ specifically: improving maternal and child health; combating HIV/AIDs, and other diseases; promoting gender equality and empowering women; eradicating extreme poverty and hunger; and ensuring environmental sustainability.

LS& Co. committed to a nine-month advisory process with NGOs, other brands, labor unions and suppliers around the world. At the end of the process, Levi Strauss & Co. will release a white paper for public comment and then will begin implementing the new terms of engagement with suppliers in May 2012.

The company argued that a new terms of engagement is not only the right thing to do, but is good for business: “We are sure that if companies focus not just on the minimum legal requirements, but on a broader vision of social, economic, and environmental sustainability, they will be rewarded,” said Anderson.

Levi Strauss & Co. is a participant in the CERES Investor Business Roundtable for a Sustainable Economy announced this morning. The company made the commitment as part of a keynote speech delivered at the 2011 CERES Conference. For more information about the Roundtable, visit: ceres.org.

For the full John Anderson speech and more background information, please visit:http://www.levistrauss.com/new-termsofengagement. (Source: CSRwire PR)