Groundswell Ch. 9-12 - Reading Reflection 3
In chapters 9 through 12 of Groundswell, Charlene Li and Josh Bernoff explore what happens once a company embraces the groundswell with arms wide open. As expected, the benefits are pretty vast and varied. Embracing your customer base is the gift that just keeps on giving.
For Rent the Runway, engaging the groundswell means something very different than their competitors. Rent the Runway is a company founded in 2009 that specializes in renting out high-end designer clothes to an audience who only intends on wearing them once or twice throughout a several day period.
They operate primarily via their website and mobile app, although they do have a handful of stores across America. The idea sounds counterintuitive, doesn't it? Why spend (read: waste) money on something you only get to borrow?
Well, because Rent the Runway ("RTR" for short) understands the crowd they're working with. Their rentals are priced according to what their audiences are willing to pay. RTR isn't a too-good-for-you designer brand who jacks up their prices, rarely offers sales and expects customers to follow them nonetheless. It doesn't hurt that renting clothing has seen a spike in popularity from 2015-2018.
They're here to listen to you, as their customer. They make that very clear through the "how did we do?" surveys after every purchase. Not only that, but they put forth a really engaging online platform for users to write an honest review of the clothes they receive. Item arrived at your doorstep, clearly worn and not worthy of the price you paid? Tell other customers in a scathing review; RTR isn't afraid to allow it on their website. On the other hand, was your item the best thing you've ever worn? Post that review, too. I thought of this company when I read the closing of chapter 9 of Groundswell. It states "embracing your customers takes a balance between skill and humility". Key word, humility.
The proof is in the photos. The visual above represents a certain gown's "grade" on RTR. It's determined by the customers, for the customers. You can quickly tell what fits well on most folks, what doesn't, the overall average rating, and perhaps most importantly--what the item looks like on real women, as opposed to rail-thin, photoshopped models.
Another great example of this is one of their more popular programs, RTR Unlimited. Unlimited provides shoppers the ability to pay a flat monthly fee of $139 in exchange for 3 rotating items of clothing. They came up with this idea, and tested it on their most loyal customers by offering a trial-run membership in 2015. They called "Unlimited Beta" and ultimately it was a hit. They rolled out the real-deal membership a year later.
They never stopped listening to the groundswell. As a one-time customer, I still receive email notifications from RTR. In July 2017, I received an email survey in my email inbox from them. I was actually interested by this survey, enough to take a few moments to complete it. The questions were relevant and gave me the opportunity to give valuable feedback. "What would make you more willing to be an RTR Unlimited customer?", they asked (among other questions). Ah, I realized: they are clearly on the hunt for more monthly subscribers. I'm not the only one-and-done customer, and the company obviously doesn't like that.
I remember indicating in a text field that it was about costs. I just couldn't fathom spending upwards of $100 USD per month on a measly three items of clothing, albeit on rotation. I flat-out suggested they try a membership at a lesser cost.
Interestingly enough, what did the company roll out three months later? RTR Update. It's an entirely new monthly membership which, for a substantially lesser rate, offers customers 4 clothing items per month on rotation. The catch? Update customers have a less clothing options to choose from than Unlimited customers (but, at the end of the day, they're still offering up a huge selection regardless).
RTR successfully energized their groundswell via a simple email survey, something hundreds of customers likely overlooked but their most loyal customers (or biggest fans, like myself) were eager to fill out. They took that feedback and translated it into something tangible, that showed customers RTR was listening. And in the words of Li and Bernoff, "energizing means finding people who like your products or services and amplifying their voices". I am not surprised that I wasn't the only customer to have suggested this. But I am surprised that RTR listened, and acted so quickly. I have more respect for them as a company because of this.
And although their memberships are still outside of what I consider affordable, I respect them more as a company who listens to their customers -- and acts on what they hear.
What's YOUR favorite company or brand?
Think about this brand for a moment. Do you think they are a favorite of yours because they actively listen to you, and value your feedback? Or simply because you love their product enough that the price tag doesn't matter (think: Apple)?
To get this gift, however, companies need to understand customer engagement. Just get your customers talking and start listening. It doesn't matter if you target your most technically knowledgeable customer base (think: SalesForce's idea exchange) or keep it simple like Credit Mutuel did with their Si J'etais Banquier campaign. The groundswell likes to talk, especially about your business. Li and Bernoff challenge us to think uniquely -- how can our businesses tap into these voices in a meaningful way, that is as unique as the services we provide?
For Rent the Runway, engaging the groundswell means something very different than their competitors. Rent the Runway is a company founded in 2009 that specializes in renting out high-end designer clothes to an audience who only intends on wearing them once or twice throughout a several day period. They operate primarily via their website and mobile app, although they do have a handful of stores across America. The idea sounds counterintuitive, doesn't it? Why spend (read: waste) money on something you only get to borrow?
Well, because Rent the Runway ("RTR" for short) understands the crowd they're working with. Their rentals are priced according to what their audiences are willing to pay. RTR isn't a too-good-for-you designer brand who jacks up their prices, rarely offers sales and expects customers to follow them nonetheless. It doesn't hurt that renting clothing has seen a spike in popularity from 2015-2018.
They're here to listen to you, as their customer. They make that very clear through the "how did we do?" surveys after every purchase. Not only that, but they put forth a really engaging online platform for users to write an honest review of the clothes they receive. Item arrived at your doorstep, clearly worn and not worthy of the price you paid? Tell other customers in a scathing review; RTR isn't afraid to allow it on their website. On the other hand, was your item the best thing you've ever worn? Post that review, too. I thought of this company when I read the closing of chapter 9 of Groundswell. It states "embracing your customers takes a balance between skill and humility". Key word, humility.
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| Curious? This great rating belongs to a Monique Lhuillier Green Floral Lace Gown. |
The proof is in the photos. The visual above represents a certain gown's "grade" on RTR. It's determined by the customers, for the customers. You can quickly tell what fits well on most folks, what doesn't, the overall average rating, and perhaps most importantly--what the item looks like on real women, as opposed to rail-thin, photoshopped models.
Another great example of this is one of their more popular programs, RTR Unlimited. Unlimited provides shoppers the ability to pay a flat monthly fee of $139 in exchange for 3 rotating items of clothing. They came up with this idea, and tested it on their most loyal customers by offering a trial-run membership in 2015. They called "Unlimited Beta" and ultimately it was a hit. They rolled out the real-deal membership a year later.
They never stopped listening to the groundswell. As a one-time customer, I still receive email notifications from RTR. In July 2017, I received an email survey in my email inbox from them. I was actually interested by this survey, enough to take a few moments to complete it. The questions were relevant and gave me the opportunity to give valuable feedback. "What would make you more willing to be an RTR Unlimited customer?", they asked (among other questions). Ah, I realized: they are clearly on the hunt for more monthly subscribers. I'm not the only one-and-done customer, and the company obviously doesn't like that.I remember indicating in a text field that it was about costs. I just couldn't fathom spending upwards of $100 USD per month on a measly three items of clothing, albeit on rotation. I flat-out suggested they try a membership at a lesser cost.
Interestingly enough, what did the company roll out three months later? RTR Update. It's an entirely new monthly membership which, for a substantially lesser rate, offers customers 4 clothing items per month on rotation. The catch? Update customers have a less clothing options to choose from than Unlimited customers (but, at the end of the day, they're still offering up a huge selection regardless).
RTR successfully energized their groundswell via a simple email survey, something hundreds of customers likely overlooked but their most loyal customers (or biggest fans, like myself) were eager to fill out. They took that feedback and translated it into something tangible, that showed customers RTR was listening. And in the words of Li and Bernoff, "energizing means finding people who like your products or services and amplifying their voices". I am not surprised that I wasn't the only customer to have suggested this. But I am surprised that RTR listened, and acted so quickly. I have more respect for them as a company because of this.
And although their memberships are still outside of what I consider affordable, I respect them more as a company who listens to their customers -- and acts on what they hear.
What's YOUR favorite company or brand?
Think about this brand for a moment. Do you think they are a favorite of yours because they actively listen to you, and value your feedback? Or simply because you love their product enough that the price tag doesn't matter (think: Apple)?
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