Consulting with 800-store Ratner Companies (Hair Cuttery, Bubbles, etc.) on optimizing the mix between traditional (TV, radio) and digital (CRM using emails, outbound calls and texts) included positioning the brand to fight lower priced competitors and developing an app to allow customers to see themselves pre-cut in dozens of different hairstyles
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Executive Summary
Client Challenge
- Like most major retailers Hair Cuttery had a large base of occasional customers, and the economic downturn meant revenues and repeat business were challenged by price cutting brands
- Customers at mall stores didn’t like impatiently waiting in salon lobbies, plus choosing the right hairstyle was a high-risk decision for them
- Fostering positive price perceptions and incentivizing loyalty with new process improvements were the keys—so value pricing positioning and added-value features were recommended
Strategy
- Convey a competitive prices proposition in high fashion, stylish advertisements
- Position the brand as a smarter choice with better processes and outcomes
- Introduce new technology to cut down on perceived wait times and help people make better hairstyle decisions
Solution: Blend Value pricing into advertising and messaging and use apps to allow digital check-in and help each customer envision how alternate hairstyles would look on their face
- New app would allow lets customer “see yourself in dozens of different hairstyles”
- Another app reduced customer wait times with mobile phone check-in (Shop at the other mall stores instead of waiting in our lobby)
- Wireless POS devices could expedite checkout while customers are still in chair, easily calculate gratuity and program into calendar estimated return date when customers are due back in
Business Impact
- Solid growth sustained during difficult economic environment
- Customer traffic and loyalty surged
For more information contact: Jim McDonald at 210-213-4114 or at jmcdonald@chiefoutsiders.com