Feedback from customers is undeniably valuable, but crowdsourcing efforts often appear disorganized or involve a single initiative, such that their contributions can be limited. Target is attempting to change that by establishing an invitation-only, ongoing, dedicated app that encourages regular customers to comment on designs and products, to inform its choices for future offerings.
The customers who participate in the Studio Connect app often receive discounts as compensation for their time and effort. But these invited members also have already exhibited their interest in and loyalty toward shopping at Target. They have provided the retailer with personal data, so that it can segment them accurately. In turn, it solicits their opinions on products that they are highly likely to purchase.
For example, a recent survey asked women with children about whether they liked a particular designer’s Mother’s Day t-shirt line and what slogans they would like to see on the shirts instead. Using their feedback, the designer already has planned its line for next year, anticipating heightened sales by matching these consumers’ preferences.
Due to the exclusive feeling of the app and the targeted queries, consumers tend to respond readily and quickly. Thus, Target offers its suppliers valuable, relevant, and timely data that they can use throughout their design process. Beyond these benefits, Target itself gains insights into location-based preferences, such as realizing that app participants on the East Coast might express greater interest in a particular item than those elsewhere in the country. With these data, it can devise more detailed allocations to stores in various locations.
Discussion Questions:
- How does Target’s new app garner customer loyalty?
- Might Target’s new app be useful for developing new private-label products?
Source: Tom Ryan, Retail Wire, July 18, 2018