Researching your consumer and understanding their needs is vital to staying relevant in an uncertain market. This isn’t news, but it’s advice that often goes unheeded if it means changing things that are perceived to define the brand.
Emily Byron interviewed Fabrizio Fredo, CEO of Estee Lauder for The Wall Street Journal. Fredo explained his effort to remake the iconic Estee Lauder brands beginning with consumer research and understanding the shopping experience from the shopper perspective. One of the biggest insights to come out of their research is that communicating prices to consumers through signage boosts sales. This is very different for beauty counters which are typically a full-service, luxury experience. Estee Lauder’s beauty brands like Clinique are synonymous with personal service. However, Fredo has found a more hands-off approach to be a successful departure.
“It allowed the consumer to make up her mind without having to ask the price,” said Freda. “This takes embarrassment away. Surprisingly, most consumers said, ‘I didn’t know it was so affordable.’”
Going forward, the company is investing heavily in consumer research as part of his initiative to remake the brands and expand the customer base. The company is already reaping the benefits of customizing their store experience to consider the various trip missions and shopping styles of their customer.
“At Bloomingdale’s new Clinique counter in New York, you can have full service from a consultant, analysis from a computer or browse on your own. A corner called Clinique Express provides product replenishment. So far the counter is doing well.”
Byron reports that sales in the most recent quarter are up 11%.
