Chris Politakis, Director of Marketing and Communications for Goodwill in the Olympics and Rainier regions in the state of Washington, oversees all marketing, media relations, and corporate communications for the organization, which includes 30 big box stores, three outlet stores, and three boutique stores.
Although the Goodwill stores in these regions have been ranked among the Top 10 nationally, Politakis explained to attendees during a session, CX Retail Revolution: How Goodwill Transformed Retail in Six Months, at last week’s Engagement & Experience Expo, hosted by Loyalty360, that the business had grown stagnant.
“The challenge was to change the way we do business,” Politakis explained. “We’ve been in the Top 10 Goodwills by ranking in the U.S. and have grown same-store sales in the 6%-8% range. But we can’t build any more big box stores. We’re maxed out in growth that way. Our customer was aging. Growth rates declined in the past two years. We wanted to redesign our retail business. How do we appeal to a younger demographic?”
Politakis said that Goodwill hired Lenati, which is a marketing and sales strategy consultancy that helps companies acquire, grow, and retain customers.
Liam O’Connor, Principal, Lenati, outlined the approach:
Research and Segmentation:
Digital experience audit
Current state digital experience competitive analysis
Retail experience audit
Store observations
Management interviews
Competitor observations
Quantitative research
Survey design and fielding segmentation
Analysis and data interpretation
CX & RETAIL BENCHMARKING:
Retail and design trends in the thrift business
Reference search
Thrift trends
Customer acquisition strategy:
Retail CX design strategy
“It’s been an incredible process,” Politakis said. “It got us to think about our retail business in a totally different way.”
In an attempt to have Goodwill appeal more to the younger demographic, Lenati focused on two segments: Vintage Hip Super Shoppers (“They love to shop and spend a lot of time in the store,” O’Connor said.); and Young Utilitarians “They don’t like to shop,” he said.
O’Connnor noted that Millennial segments spend more in an average month than older segments across most value retailer types.
“We had to make it relevant for Millennials,” he said. “The new store concepts that emphasize value and deal finding were among the most popular.”
Paul Conder, Principal, Lenati, said the Goodwill stores in these two Washington state regions were well managed, “but they were dated. The look and feel was dank and dark. But it is not a large set of problems that needed to be overcome. They needed a refresh.”
Among the key store design recommendations were: new signage, wall fixtures, and a messaging strategy.
“We looked at other retailers,” Conder explained. Lenati came up with the following:
Digital Marketing Strategy:
1. Define Goodwill’s voice (What should we talk about? Where should we be present? How do we keep it relevant?
2. Develop “always on” content strategy
3. Connect inventory in store with social (Primary ways to execute: Allowing customers reserve product in-store via social channels. At the very least, enable dialogue about product in-store. Bring social into the store: Have the items at the front of the store that are “as seen on Instagram.”
4. Stage promotions with relevant events (Music festivals; Halloween)
5. Explore third-party ecommerce e.g. eBay
6. Implement test and learn approach
7. Develop editorial calendar (Provides a monthly overview of the relevant content themes divided into seasonal, campaign, and always-on).
“We opened the first store with this new design a few weeks ago,” Politakis said. “It has been enormously successful. It has a completely different look and feel and gives people a new experience.”
A big launch with several new store openings is set for January.
“It’s been a big investment for the organization,” Politakis said. “For us to be around in 10 years, we needed to do something radical and this is our best shot.”