Retail Observer

DECEMBER 2015 RETAILOBSERVER.COM 33 philosophy for years. Imagine one of these premium dealerships. Even if you've never set foot on their sales floor, you probably have a good feeling about the experience, the way the salespeople dress and act, the showroom and the waiting areas. It all builds to a cohesive feeling. Companies with strong and consistent branding are more successful than those who don't have that discipline * . Now, take a hard look at your own business, walk your sales floor or talk to your customers. Does your advertising, social media, signage, store appearance, customer service and post-sale experience give you the same feeling? If not, you have some changes to make. Brand Truth #3: Every brand has a story Do your customers know your brand story? Or even more importantly, do you? It's human nature to tell a story for everything we do. It helps us make sense of our surroundings and organize our lives. The consumer experience is no different. Your brand should tell your story at every turn. The story should be memorable, consistent and set you apart from the competition. Inconsistencies in your brand's story create confusion with your customers. This can discourage repeat visits or even drive them away from the start. One company that exemplifies this brand truth is CVS Pharmacy. CVS Pharmacy's core story was centered around a single concept: Health and wellness. However, their stores were gaining $2 billion in revenue from tobacco sales, a product that was inconsistent with their message. Believing in the power of their story and in the best interest of their brand, CVS Pharmacy made the decision to remove tobacco products from their stores and implement CVS Minute Clinics across the country. Despite conventional thinking about the loss of this revenue, stock prices soared .** As you can see, making a decision to commit to a story can be difficult, even painful, but it can also pay big dividends for your brand and your business. The Full Picture: The Importance of Loyal Customers While building a brand is important for many obvious reasons, there's another powerful effect that is frequently ignored. Too often, the focus on building a brand is to draw customers to your business, but neglects to consider how that brand can draw customers back to your store. Creating loyal customers through your brand is pivotal to your success. New customers are certainly important, but they're also six to seven times as expensive as retaining an existing customer † . Existing or returning customers are more likely to make a purchase †† and are likely to spend more when they do ††† . For these reasons, a customer retention strategy should be a major part of your brand building. When considering how the brand truths apply to your business, you should be sure to dedicate time to extend your brand through the sale on social media, with surveys and through targeted promotions. Building Your Brand in the Future At Whirlpool Corporation, we have worked tirelessly to develop and grow our brand. As you continue to move forward with your efforts, please remember the following steps that we believe are necessary to build or improve your brand: • Connect with your customers emotionally. • Provide brand consistency across your entire business at every touchpoint. • Know your brand story and tell it. • Create and plan to retain your loyal customers. Understanding how to build your brand is essential to your success and the success of our industry as a whole. We hope you've found this information to be valuable and that you're able to capitalize on Whirlpool Corporation's years of experience to help attract more consumers to your store. Finally, we wish you the best of luck as you work to optimize your brand and your business. * MicKinsey ** Forbes, February 6, 2014 † Bain and Company †† Laura Lake; CMO Adobe, "Customer Retention Should Outweigh Customer Acquisition" ††† Gartner Group and "Leading on the Edge of Chaos", Emmett C. Murphy and Mark A. Murphy RO Sam Abdelnour, Vice President of Sales, Whirlpool Corporation

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