by Tiffani Bova
brands that create personalized experiences: Mark Abraham, Steve Mitchelmore, Sean Collins, Jeff Maness, Mark Kistulinec, Shervin Khodabandeh, Daniel Hoenig, and Jody Visser, “Profiting from Personalization,” BCG.com, Boston Consulting Group, May 8, 2017, www.bcg.com/publications/2017/retail-marketing-sales-profiting-personalization.aspx.
Sailthru first annual Retail Personalization Index: “Sailthru Ranks Top Retail Brands with First Annual Personalization Index,” PR Newswire, Cision, September 14, 2017, www.prnewswire.com/news-releases/sailthru-ranks-top-retail-brands-with-first-annual-personalization-index-300519303.html.
“We constantly challenge”: “Viva Technology: Innovation at the Heart of Sephora,” LVMH.com, June 24, 2016, www.lvmh.com/news-documents/news/viva-technology-innovation-at-the-heart-of-sephora/.
“We’re not in the hamburger business”: “The Rise of a Fast Food Empire,” Pressreader, The Week, February 18, 2017, www.pressreader.com/uk/the-week/20170218/281487866108533.
“You may think”: “The Secret Ingredients of Hospitality—as Told by Danny Meyer,” Maines.net, Fresh Ideas, http://freshideas.maines.net/secret-ingredients-hospitality-told-danny-meyer/, accessed April 6, 2018.
“which is more or less”: Carolyn Cutrone, “Danny Meyer to ’Treps: Put Your Employees First, Customers Will Follow,” Inc., Know How, January 28, 2014, www.inc.com/carolyn-cutrone/danny-meyer-speaks-at-inc-business-owners-council.html.
“Put us out of business”: Rob Brunner, “How Shake Shack Leads the Better Burger Revolution,” Fast Company, Innovation Agents, June 22, 2015, www.fastcompany.com/3046753/shake-shack-leads-the-better-burger-revolution.
“The damage was slow”: Kate Taylor, “Here’s What Happened the Last Time Howard Schultz Stepped Down as Starbucks CEO,” Business Insider, www.businessinsider.com/last-time-schultz-stepped-down-as-starbucks-ceo-2016-12.
an industry-leading Net Promoter Score: Net Promoter Score (NPS) is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? It is a customer loyalty metric developed by Fred Reichheld, Bain & Company, and Satmetrix that can be used to gauge the loyalty of a firm’s customer relationships. NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.
77 against an industry average: “Starbucks Net Promoter Score 2018 Benchmarks,” Customer Guru, https://customer.guru/net-promoter-score/starbucks.
“The most serious challenge”: Nichola Groom, “Schultz Back as Starbucks CEO,” Reuters, January 7, 2008, https://www.reuters.com/article/us-starbucks/schultz-back-as-starbucks-ceo-idUSWNAS581320080108.
“We became less passionate”: Andy Serwer, “Starbucks Fix: Howard Schultz Spills the Beans on His Plans to Save the Company He Founded,” Fortune, January 18, 2008, http://archive.fortune.com/2008/01/17/news/newsmakers/starbucks.fortune/index.htm?postversion=2008011805.
“Live and breathe Starbucks”: Ibid.
in February 2008 Schultz closed: Aimee Groth, “19 Amazing Ways CEO Howard Schultz Saved Starbucks,” Business Insider Australia, June 20, 2011, www.businessinsider.com.au/howard-schultz-turned-starbucks-around-2011-6#in-february-2008-starbucks-closed-7100-us-stores-for-3-12-hours-to-retrain-its-baristas-on-how-to-make-the-perfect-espresso-1.
“Your premium brand”: Erika Andersen, “23 Quotes from Warren Buffett on Life and Generosity,” Forbes, December 2, 2013, www.forbes.com/sites/erikaandersen/2013/12/02/23-quotes-from-warren-buffett-on-life-and-generosity/#11412450f891.
stock’s total return was 551 percent: Maggie McGrath, “Howard Schultz Stepping Down as Starbucks CEO,” Forbes, December 1, 2016, www.forbes.com/sites/maggiemcgrath/2016/12/01/howard-schultz-stepping-down-as-starbucks-ceo/#194e07525347.
“customer who pays the wages”: Attributed to Henry Ford. Original source unknown.
PATH 2 CUSTOMER BASE PENETRATION
Acquiring a new customer: Amy Gallo, “The Value of Keeping the Right Customers,” Harvard Business Review, October 29, 2014, https://hbr.org/2014/10/the-value-of-keeping-the-right-customers.
It costs six to seven times more: Bain & Company/Mainspring, “The Value of Online Customer Loyalty and How You Can Capture It,” Bain.com, eStrategy Brief, n.d., www.bain.com/Images/Value_online_customer_loyalty_you_capture.pdf.
Seventy percent of companies: Luke Brynley-Jones, “70% of Companies Say It’s Cheaper to Retain a Customer Than Acquire One,” OurSocialTimes.com, n.d., http://oursocialtimes.com/70-of-companies-say-its-cheaper-to-retain-a-customer-than-acquire-one.
The probability of selling: Patrick Hull, “Don’t Get Lazy About Your Client Relationships,” Forbes, December 6, 2013, www.forbes.com/sites/patrickhull/2013/12/06/tools-for-entrepreneurs-to-retain-clients/#35d40a772443.
Repeat customers, on average: Bain & Company/Mainspring, “The Value of Online Customer Loyalty.”
Loyal customers are: “ROI of Customer Experience,” Customer Experience Matters Blog, January 18, 2018, https://experiencematters.blog/category/roi-of-customer-experience.
Netflix spent more than twice: Timothy Green, “Netflix Has a Problem That No One Is Talking About,” Motley Fool, July 22, 2017, www.fool.com/investing/2017/07/22/netflix-has-a-problem-that-no-one-is-talking-about.aspx.
60–80 percent of customers: Brooks Barnes, “How Black Label Media Became Hollywood’s Hottest Indie Producers,” Town & Country, October 16, 2017, www.townandcountrymag.com/leisure/arts-and-culture/a12838536/black-label-media/.
The likelihood of success: Hull, “Don’t Get Lazy About Your Client Relationships.”
spend 67 percent more: Bain & Company/Mainspring, “The Value of Online Customer Loyalty.”
“We don’t bring the product”: Gerhard Gschwandtner, “The Powerful Sales Strategy Behind Red Bull,” SellingPower.com, March 1, 2012, www.sellingpower.com/2012/03/01/9437/the-powerful-sales-strategy-behind-red-bull.
sixty-two billion cans sold annually worldwide: “The Company Behind the Can,” RedBull.com, n.d., http://energydrink-us.redbull.com/en/company.
a market share of 1 percent: “Red Bull Company’s Market Share in the United States from 2004 to 2015,” Statista.com, n.d., www.statista.com/statistics/225452/us-market-share-of-the-red-bull-company-since-2004/.
Red Bull’s marketing and emotional branding: Craig J. Thompson, Aric Rindfleisch, and Zeynep Arsel, “Emotional Branding and the Strategic Value of the Doppelgänger Brand Image,” Journal of Marketing 70 (January 2006): 50–64, https://zeyneparsel.files.wordpress.com/2010/06/thompson-rindfleisch-arsel1.pdf.
“Taste is a barrier”: Bruce Horovitz, “Red Bull Targets Taste with Three New Flavors,” USA Today, October 7, 2012, www.usatoday.com/story/money/business/2012/10/07/red-bull-energy-drinks-taste/1615351.
$84.8 billion by 2025: “Energy Drinks Market Report 2017: Key Vendors Are Red Bull GmbH, Monster Energy & Rockstar,” Markets Insider, press release, August 22, 2017, http://markets.businessinsider.com/news/stocks/Energy-Drinks-Market-Report-2017-Key-Vendors-are-Red-Bull-GmbH-Monster-Energy-Rockstar-1002276239.
Red Bull Stratos Jump: “Felix Baumgartner’s Supersonic Freefall from 128k—Mission Highlights,” October 14, 2012, https://youtu.be/FHtvDA0W34I.
McDonald’s sells more than: Jana Kasperkevic, “How Many Burgers Has McDonald’s Actually Sold?,” Marketplace.org, May 26, 2017, www.marketplace.org/2017/05/26/business/ive-always-wondered/how-many-burgers-has-mcdonalds-actually-sold.
McDonald’s menu swelled: Luke Lango, “McDonald’s Corporation (MCD) Stock Thrives in the Intersection of Health & Price,” InvestorPlace, July 25, 2017, https://investorplace.com/2017/07/mcdonalds-corporation-mcd-stock-health-price/#.WoI0VahKuUk.
lost more than 500 million visits: Sarah Whitten, “McDonald’s shares soar as menu price increases fuel earnings be
at,” CNBC, May 2, 2018, www.cnbc.com/2018/04/30/mcdonalds-reports-first-quarter-earnings-2018.html.
“something like All-Day Breakfast”: Daniel B. Kline, “The 1 Simple Thing That Saved McDonald’s,” Motley Fool, June 5, 2017, www.fool.com/investing/2017/06/05/the-1-simple-thing-that-saved-mcdonalds.aspx.
“decisions being made today”: Stephanie Strom, “McDonald’s C.E.O. on All Day Breakfast, Hourly Wages and Wall Street,” New York Times, November 12, 2015, www.nytimes.com/2015/11/13/business/a-conversation-with-steve-easterbrook-of-mcdonalds.html?mtrref=www.google.com&gwh=094EA02D1CDDE3798DF5676F95D7E609&gwt=pay.
“We continued to build”: Sarah Whitten, “McDonald’s shares soar as menu price increases fuel earnings beat,” CNBC, May 2, 2018, www.cnbc.com/2018/04/30/mcdonalds-reports-first-quarter-earnings-2018.html.
“We don’t need more customers”: Matt Egan, “Sears CEO: ‘We Don’t Need More Customers,’” CNN Money, May 11, 2017, http://money.cnn.com/2017/05/11/investing/sears-lampert-dont-need-more-customers/index.html.
Sears even started Prodigy: Tom Shea, “Big firms team up on videotex project,” Infoworld, March 12, 1984, https://books.google.com/books?id=li4EAAAAMBAJ&pg=PA13#v=onepage&q&f=false.
The once-iconic brand: Lauren Thomas, “Sears shares jump after company reports a profit for holiday quarter, CNBC, March 14, 2018, www.sears-soars-after-reporting-lower-than-expected-full-in-comp-sales.html.
“changed the game”: Ibid.
“Skate to where the puck”: Jason Kirby, “CEOs: Stop Debasing Wayne Gretzky’s ‘I Skate to Where the Puck Is Going’ Quote,” CanadianBusiness.com, October 3, 2014, www.canadianbusiness.com/blogs-and-comment/stop-using-gretzky-where-the-puck-is-quote.
Shop Your Way loyalty program: Jim Tierney, “Can Sears’ Shop Your Way Loyalty Program Keep Venerable Retailer Afloat in the Future?,” Loyalty360, March 24, 2017, www.loyalty360.org/content-gallery/daily-news/can-sears-shop-your-way-loyalty-program-keep-vene.
Nordstrom’s ten million: Glenn Taylor, “Can Department Stores Save Themselves in 2018?,” RetailTouchPoints.com, January 4, 2018, www.retailtouchpoints.com/features/trend-watch/can-department-stores-save-themselves-in-2018.
following a pricing dispute: Abha Bhattarai and Aaron Gregg, “Why Sears Ended a Century-Old Partnership with Whirlpool,” Washington Post, October 24, 2017, www.washingtonpost.com/news/business/wp/2017/10/24/why-sears-ended-a-century-old-partnership-with-whirlpool/?utm_term=.e6b16580a7f8.
the company is still #3: Adam Levine-Weinberg, “Sears Just Stopped Carrying the No. 1 Appliance Brand,” October 25, 2017, Motley Fool, www.fool.com/investing/2017/10/25/sears-just-stopped-carrying-no-1-appliance-brand.aspx.
Sears struck a deal with Amazon: Natalie Waters, “Sears and Amazon: the Best and Worst Retailers Team Up for a Second Time,” The Motley Fool, December 30, 2017, www.fool.com/investing/2017/12/30/sears-and-amazon-the-best-and-worst-retailers-team.aspx.
Apple Watch wearers: David Reid, “Apple Watch to Be Able to Control Whirlpool Appliances This Year,” CNBC, January 8, 2018, cnbc.com/2018/01/08/apple-watch-to-be-able-to-control-whirlpool-appliances-this-year.html.
its 2018 range of appliances: Ibid.
“We can’t afford”: “History of the Search Catalog,” Sears Archives, www.searsarchives.com/catalogs/history.htm.
Target claims as much as 70 percent: Debbie Hauss, “1:1 with CIO McNamara: How Target Achieved 25% Digital Growth in 2017,” RetailTouchPoints.com, January 12, 2018, www.retailtouchpoints.com/features/retail-success-stories/1-1-with-cio-mcnamara-how-target-achieved-25-digital-growth-in-2017.
additional in-store purchase of $50: “2018 Customer Engagement Awards,” RetailTouchPoints.com, n.d., p. 6, www.retailtouchpoints.com/features/special-reports/2018-customer-engagement-awards.
PATH 3 MARKET ACCELERATION
“China is going to be”: Krystal Hu, “One Quote from Jack Ma Sums Up a Huge Shift in China’s Economy,” Yahoo! Finance, June 22, 2017, https://finance.yahoo.com/news/one-quote-jack-ma-sums-huge-shift-chinas-economy-203255351.html.
Global growth is projected: Global Economic Prospects: Broad-Based Upturn, but for How Long? (Washington, DC: World Bank, 2018), www.worldbank.org/en/publication/global-economic-prospects.
fastest-growing industries: “The 10 Fastest-Growing Industries in the U.S.,” SageWorks.com, July 24, 2017, www.sageworks.com/the-10-fastest/.
All twenty-three economies: Craig Turp, “Emerging Europe to Record Positive Growth Across the Board in 2018,” EmergingEurope.com, November 7, 2017, http://emerging-europe.com/regions/emerging-europe-record-positive-growth-across-board-2018/.
China now accounts for: McKinsey Global Institute, “Digital China: Powering the Economy to Global Competitiveness,” McKinsey & Company, December 2017, www.mckinsey.com/~/media/McKinsey/Global%20Themes/China/Digital%20China%20Powering%20the%20economy%20to%20global%20competitiveness/MGI-Digital-China-Report-December-20-2017.ashx.
63 percent of respondents: “Geographic Expansion,” Frost & Sullivan, n.d., ww2.frost.com/consulting/growth-processes/geographic-expansion/.
By 2020, cross-border commerce: “The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity,” DHL, December 2016, www.dhl.com/content/dam/downloads/g0/press/publication/g0_dhl_express_cross_border_ecommerce_21st_century_spice_trade.pdf.
In 2020, one out of five: Ibid.
China will continue: “China Eclipses the US to Become the World’s Largest Retail Market,” eMarketer.com, August 18, 2016, www.emarketer.com/Article/China-Eclipses-US-Become-Worlds-Largest-Retail-Market/1014364.
“Competition should not be for a share of the market”: The W. Edwards Deming Institute Blog, n.d., https://blog.deming.org/w-edwards-deming-quotes/large-list-of-quotes-by-w-edwards-deming/.
“Surround your disruptive core product”: Geoffrey A. Moore, Crossing the Chasm (New York: HarperBusiness, 2016).
The global sports apparel market: Priyanka Bisht, “Sports Apparel Market Is Estimated to Garner $184.6 Billion, Globally, by 2020,” AlliedMarketResearch.com, press release, n.d., www.alliedmarketresearch.com/press-release/sports-apparel-market.html.
“Great entrepreneurs take one product”: “Sailing into a Big, Blue Ocean of Opportunity,” BNBranding.com, n.d., http://bnbranding.com/brandinsightblog/under-armour-marketing/.
“For the first five years”: Ibid.
international segment grew 47 percent: “Under Armour (UAA) down 9.5% since earnings report: Can It Rebound?,” Zacks Equity Research, March 15, 2018, www.zacks.com/stock/news/295762/under-armour-uaa-down-95-since-earnings-report-can-it-rebound.
Retail partnerships were key: Avi Salzman, “Under Armour’s New Retail Strategy Is Winning Fans,” Barrons.com, Barron’s Next, May 31, 2017, www.barrons.com/articles/under-armours-new-retail-strategy-is-winning-fans-1496271018.
“Make it electric”: David Pierce, “How Under Armour Plans to Turn Your Clothes into Gadgets,” Wired, Gear, January 5, 2016, www.wired.com/2016/01/under-armour-healthbox/.
“Forty-two percent of global respondents”: “Deeper Than Dollars: Global Perceptions About Premium Products,” Nielsen.com, Insights, December 15, 2016, www.nielsen.com/us/en/insights/news/2016/deeper-than-dollars-global-perceptions-about-premium-products.html.
“organic in nature”: Baby Personal Care Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies, and Forecasts, 2016 to 2024, Grand View Research, Market Research Report, October 2016, www.grandviewresearch.com/industry-analysis/baby-personal-care-market.
parents have been spurning: David Crow, “Shift to Organics Gives Johnson & Johnson the Babycare Blues,” Financial Times, July 28, 2016, www.ft.com/content/f919110e-5379-11e6-9664-e0bdc13c3bef.
losing market share: Neil Howe, “Nothing’s Too Good for My Baby,” Forbes, Opinion, November 30, 2016, www.forbes.com/sites/neilhowe/2016/11/30/nothings-too-good-for-my-
baby/#6bac86fa1ab6.
in 2017 it experienced a flat year: Serena Ng, “No Longer a Unicorn, Jessica Alba’s Honest Co. Struggles to Grow,” Wall Street Journal, January 5, 2018.
Nick Vlahos, CEO of Honest: John Kell, “Jessica Alba’s Honest Co. to Sell Goods on Amazon.com,” Fortune, June 15, 2017, http://fortune.com/2017/06/15/honest-co-jessica-alba-amazon/.
For more than fifty million: Gretchen Livingston, “More Than a Million Millennials Are Becoming Moms Each Year,” Pew Research Center, FactTank, January 3, 2017, www.pewresearch.org/fact-tank/2017/01/03/more-than-a-million-millennials-are-becoming-moms-each-year/.
“Our vision is to inspire”: “Mattel Unveils Plan to Reinvent Company and Deliver Enhanced and Sustainable Growth,” Mattel Newsroom, June 14, 2017, https://news.mattel.com/news/mattel-unveils-plan-to-reinvent-company-and-deliver-enhanced-and-sustainable-growth.
U.S. toy sales grew: “Global and U.S. Toy Industry Sales Increase 1 percent in 2017,” NPD.com, press release, January 25, 2018, www.npd.com/wps/portal/npd/us/news/press-releases/2018/toy-sales-globally-and-in-the-US-both-grow-by-1-percent-in-2017-reports-the-NPD-group/.
The global market for toys: Global Industry Analysts, Inc., “Innovation and New Product Launches Drive the Global Toys and Games Market,” Strategyr.com, October 2017, www.strategyr.com/MarketResearch/Toys_and_Games_Market_Trends.asp.
Specifically, the toy maker’s: “Mattel Unveils Plan to Reinvent Company and Deliver Enhanced and Sustainable Growth.”
have owned a Barbie: Eliana Dockterman, “Barbie’s Got a New Body,” Time, January 28, 2016, http://time.com/barbie-new-body-cover-story/.
the loss of that contract: John Kell, “Can Mattel Fill Gaping Hole Left by Loss of Disney Princesses?,” Fortune, February 2, 2016, http://fortune.com/2016/02/02/mattel-disney-princesses-sales/.
PATH 4 PRODUCT EXPANSION
“When we buy a product”: Clayton M. Christensen, Taddy Hall, Karen Dillon, and David S. Duncan, “Know Your Customers’ ‘Jobs to Be Done,’” Harvard Business Review, September 2016, https://hbr.org/2016/09/know-your-customers-jobs-to-be-done.