Ron Johnson: Why Startups Lead the Future of Retail in 2016
PSFK speaks with the ex-Apple Store and Target designer, and current CEO of technology marketplace ENJOY, about his vision to disrupt the industry and build value and boost customer loyalty
In the past year, most big box retailers have focused on improving their service from a convenience perspective, competing with ubiquitous ordering and delivery speed. However, today’s most innovative retailers understand that while consumers expect convenience, they are also delighted by their personalized experiences with brands. InPSFK Labs’ research for the Future of Retail 2016 report, our team identified new tools and services being used by retailers big and small to help customers discover new products for their lifestyle and needs.
By immersing customers in a product or using one-to-one guidance, retailers are positioning themselves as trusted allies along the purchase path.
Few people understand product immersion like retail strategist Ron Johnson; during his career Johnson designed the Apple Store as a technology playground (today’s most lucrative stores by square foot), rejuvenated Target as a style hub and shook up JCPenney’s retail model. Johnson left big box retailers to pursue consumer service at a niche level—he is the founder and CEO of startup ENJOY, an online technology marketplace that delivers the newest gadgets along with dedicated expert support.
By eliminating the overhead of physical locations, ENJOY is able to include customer support calls, visits and follow ups to each customer at no additional cost. Merchandise is sold at similar prices as Best Buy or Amazon, and expert help is included for free.
In conjunction with the Future of Retail 2016 report, PSFK conducted an exclusive interview with Johnson to to learn how his vision for ENJOY disrupts the retail industry to build value and boost consumer loyalty.
PSFK: What do you feel is noteworthy about ENJOY’s new service model, and how is it important or useful for companies to engage in this personalized support and messaging?
Ron Johnson: Traditional retailers typically do not have the means to impact customers where it matters most: at home. At ENJOY, we combine online shopping and delivery with live, face-to-face personal support at each point of the shopping experience. Right from the start, experts are available via online chat to provide product recommendations or answer questions. Once an order is complete, an ENJOY Expert reaches out to conduct a phone screening to understand the customer’s specific needs and goals for the visit. Following the one hour personal visit, Experts connect with customers to make sure everything’s running smoothly, and are available any time after.
These touchpoints ensure customers deeply connect with their products and realize the full value of their purchase, providing companies (our partners) a unique and personal way to strengthen relationships with their customers.
PSFK: How do niche companies like ENJOY have an advantage over larger retailers in evolving the customer experience?
Our business model is our key advantage—we operate in the same retail margins as traditional retailers, but rather than having to invest in large overhead, like retail space, we invest in people—our Experts. It’s because of this that we can deliver a level of service not found anywhere else, without adding cost to our customers.
PSFK: Why is it important to connect with customers in new ways, with services that add value to their experience?
There’s a few reasons a service like ENJOY should exist. Devices have gotten arguably more intertwined or connected and complex, with phones really taking a role as the remote control for your life, and whole industries like smart home and personalized health becoming real forces. At the same time, we’re busier than ever, making our time and money more valuable. ENJOY ensures that customers are able to make the most of their products, right from the start, by providing them with personal Expert help versus the alternative of having to figure out how to get the most out of technologically complex products.
PSFK: Looking ahead, what impact do you feel ENJOY’s type of shopper experience will have on the retail industry?
We believe customers will come to expect more from their shopping experiences. When they’ve experienced how great shopping this way can be, why would they tolerate anything less? In turn, we expect other industries, beyond technology, to look for ways to engage with their customers in a more personal, direct way.
PSFK: What is the key to the unique or exclusive experience ENJOY offers to shoppers?
The human connection between ENJOY Experts and our customers is what truly sets our service apart. No two customers are the same, and their visits should be no exception. We’ve heard many stories about Experts and customers bonding over shared interests, a favorite shop, local hometown, etc.
ENJOY visits are memorable, and special. That’s the hallmark of a great experience, and a great brand.
PSFK: Do you see more customers engage with the brand for this reason?
Absolutely. From the first intake call, through scheduling, delivery and setup, customers have personalized attention with a real person. All these touchpoints combine to make our version of retail a truly integrated, meaningful experience, and ensure customers realize the full value of their purchases. We get daily survey feedback from customers, and the number one thing they say is, “I can’t wait to tell my friends.” For ENJOY, experiencing is believing.
PSFK: In terms of brand loyalty, what trends are moving the customer experience forward?
For the past few years, good customer experiences have been about speed and convenience, but we believe that loyalty lies in quality, and a consistently great experience. To that end, I think we’ll start to see more curated, VIP-centric services, where recommendations, scheduling, etc. are personalized. These types of features will help new services become ingrained into everyday life and effectively become an expectation, rather than one-off occurrence.
PSFK: How has e-commerce changed in the past year? What can we expect one year from now?
In mobile commerce we saw a surge in price wars and delivery speed, but that race to the finish line sacrifices a certain level of customer service. I think, one year from now, products will continue to be even easier to buy, but customers will demand a higher level of quality, whether it be service, product or transparency.
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