At the beginning of 2019, Crabtree & Evelyn—known for luxury body, fragrance, and home care products — announced they were shuttering their bricks-and-mortar stores around the world. Moving forward, they’ll be operating as an (almost) digital-only company, serving customers in just one lonely London ‘concept’ branch, according to reports.

But while some outlets have questioned “what went wrong” for Crabtree & Evelyn, is it possible that this is actually a savvy business move? (We hesitate to call it a ‘business decision’, given that industry insiders had been chalking up Crabtree & Evelyn’s bankruptcies and store closures for months.)

After all, we are living in the digital age, when beauty brands are able to hold their own online, and Crabtree & Evelyn is a big-name brand with an internationally recognised concept.

But can Crabtree & Evelyn thrive (almost) online-only?
It’s key to consider that Crabtree & Evelyn’s customers mainly consist of Gen X and Baby Boomer consumers. Can they rely on their name-brand, luxury legacy alone, if they abruptly shift focus from the high street?

It’s possible, but considering their target markets skews older and more affluent, they may find their profits taking a hit. After all, while some studies show that Baby Boomers spend more online than Millennials, it’s generally understood that online shopping is a young person’s game.

However, from my experience in this market, it can be done, especially in a world where direct-to-consumer sales are dominating, and other companies have successfully made the move online. Take Lego — a brand selling an ostensibly physical, tangible product—which suffered a steady decline through the 90s, before reinventing itself in the early 2000s via films, games, and applications.

Even so, looking at the FMCG sphere, in particular, we must recognise that many newer companies launch with eCommerce factored into their business plans from Day 1. This makes it particularly hard for established retailers (like Crabtree & Evelyn) to shift their focus to eCommerce and thrive–there’s just too much-established competition. Not only is a huge investment needed, but there’s also a ton of risk involved too. It’s not just as simple as adding an online shopping option to your current set-up.

(Related: See what exciting eCom and Digital opportunities we have at Vertical Advantage now)

Debenhams and House of Fraser know this only too well. Despite both being big-name department stores, their lack of eCommerce strategy has proved to be a real Achilles Heel. The result? Store closures left, right, and centre across the country.

On the other hand, Ugly Drink is an especially good example of a company that hit the ground running with eCommerce built-in and they’re now branching out into subscription services which is great for offices. However, imagine if Coke tried to make such a move! They might have (metaphorical) money to burn, but even so, it would be a risky decision to suddenly shift focus to eCommerce.

Yet Unilever is (sort of) doing just that, aiming to double their direct-to-consumer sales which currently account for just 5% of revenue. And they’re taking inspiration from existing, established subscription models to do so. Time will tell whether their move pays off, but it certainly has for both Dove and Maille, two big companies that have successfully segued into the eCommerce market. Maille, in particular, has taken the whole ‘sell the experience’ aspect of eCommerce to heart, leading with gifting ideas and recipe suggestions for the curious consumer.

But for a flagging Crabtree & Evelyn to survive and thrive in the digital sphere, specialising may be the way to go. Some have suggested they should follow the L’Occitane business model, hyping up product provenance, while data indicates they might need to hone in on beauty or skincare, rather than trying to do it all (who buys fragrance online, anyway?). Most of all, they’ll need to shift focus onto Millennials and Gen Z consumers, who tend to shop online more than their older counterparts.

They’ll also have to ensure their logistics are seamless. In a world where Amazon dominates, uh, pretty much every market, Prime delivery and next-day postage options which cost almost nothing, customers are no longer willing to wait 3-5 working days for their deliveries. (Customers have already complained about Crabtree & Evelyn’s poor online delivery logistics.)

In short: Crabtree & Evelyn need to rebrand and reposition themselves as a brand for Generation Z and Millennial consumers alike, steering away from their Baby Boomer past.

Could concept stores help bridge the physical-digital gap?
Crabtree & Evelyn’s decision to forge ahead with a concept store in Islington, London could be the silver lining of this entire debacle though.

And they’re not the only ones to go big or go home about the concept of, well… concept stores in recent months. Big-name British drugstore Boots has also announced plans for a London concept store, which will include Instagram zones and YouTube studios.

By allowing customers to interact with products in person, in a new and revitalised way, concept stores could prove the gap-bridger that retailers, especially a brand like Crabtree & Evelyn, need as they migrate their business online-only. The saviours of bricks-and-mortar retail?

So is digital-only retail the future?
Signs point to possibly, but only if you’re selling something customers have bought before and are familiar with (a.k.a. repeat purchases). However, hooking the customer with your brand still depends on a high street presence. So, for companies looking to rid themselves of high street overheads, a combination of physical concept stores and a strong online presence may be the way forward. Only time will tell.

Brand Managers are essential for companies nowadays.

If they do their job right, they help your business (and brand) stand out.

They develop a unique concept for the company, which then drives the marketing and promotion efforts.

They liaise with both media and clients, keeping everyone happy simultaneously.

They must be, on some levels, extroverted, keen to work both independently and as part of a team.

And yet, at the same time as having a creative vision, a good brand manager must also be an excellent analyst, capable of consuming and applying data to their designs.

In short, it’s no mean feat. And neither is hiring a good one.

So, the next time you’re interviewing for your latest multitasking, multitalented Brand Manager, here are some atypical red flags to watch out for.

1. They can’t explain their ROI
Anyone who’s hired a Brand Manager before will tell you that they love to talk about their impressive ROI figures.

“Oh, you increased sales of your last brand by 10%? Nice.”

However, don’t just skirt past the fact and take it for granted. Ask them exactly how they did it.

If they’re a competent Brand Manager (who’s not fudging the numbers, that is) they should be able to tell you.

However, if they’re bluffing, getting them to explain exactly how they managed to bump those sales by 10% will leave them flustered.

2. They’re safer than a Trojan condom
The last thing you want is a Brand Manager who plays by the rules. Of course, you want someone who can follow the rules. But you still want them to toe the line every once in a while when it comes to innovative campaigns and ideas.

If you interview a potential candidate who’s worked for big-name brands but hasn’t done a single thing to innovate their strategy or make a difference at the company, then they might not bring too much to your team either.

3. They rely too much on their team
Teamwork is a CV staple and with good reason.

However, when you’re looking to hire a Brand Manager, you want someone who can take initiative, not someone who relies on their team to do all the heavy lifting.

Similarly, if they seem afraid to take charge or work autonomously, that’s a huge red flag.

Your Brand Manager isn’t there to be babied.

(Related: See what exciting Brand Manager roles we have at Vertical Advantage now)

4. They’re trapped ‘inside the box’
When you hire a Brand Manager, you’re looking for a person with a demonstrable ability to do more than just sail along and manage a brand. They need to surpass their title and develop and build.

When taking a brand to the next level, innovation is essential in a world where it can sometimes look like your branding strategy was created by a cookie cutter.

Rather than just copying trends, thinking outside the box and starting their own movement is truly what makes a fantastic Brand Manager.

5. Lacking collaboration
For most positions, longevity is a virtue. It shows loyalty and probable talent (hey, they didn’t get fired!).

But for a Brand Manager, such an illustrious (but steady) career can be a sign that they lack a certain je ne sais quoi.

Maybe they’re not quite as collaborative as they need to be, or perhaps they only look out for number one.

Maybe they simply play it safe or are more focused on preserving and protecting their own career than considering the needs of the business and the team.

While loyalty to a role isn’t a bad thing, then, you should be wary of the why.

6. They’re blacklisted by agencies
I mean…this one speaks for itself but let me elaborate. If your Brand Manager is blacklisted from other agencies, it tells you several things:

a) They’re probably not that good at their job.
b) They’ve pushed their luck one too many times… and not in a cute way.
c) Associating yourself with them probably won’t be a good look for your company.

Even if the candidate you’re considering hasn’t quite been blacklisted, but still has a bad relationship with other agencies, consider why that is. Maybe make some phone calls if you’re still interested in hiring them.

Basically, get to the bottom of the story, because you certainly won’t be hearing the full version from just one of the parties involved.

(Related: See what exiting Brand Manager roles we have at Vertical Advantage)

7. They always go with their gut
Having an opinionated Brand Manager can be a good thing. You want someone who will take initiative and risks in order to push your brand and company forward. But you want those risks to be very carefully calculated and well thought through.

What you don’t want is someone incapable of looking at things logically and taking the data into account. Being a good Brand Manager means using consumer-driven insight when and where possible.

So, make sure you hire someone who knows how to strike the right balance between Don Draper-esque genius and Iron Man analysis.

Have you hired a Brand Manager before? Are there any red flags we missed? If you want to discuss further get in contact via siobhan@vertical-advantage.com

The way we shop is constantly evolving.

And, as it happens, Amazon is the original influencer.

When it comes to commerce, no company has had quite the seismic impact as the Bezos-owned behemoth.

For shoppers and retailers alike, it can sometimes feel like it’s Amazon’s world and we’re just living in it especially when it accounts for 43% of all US online retail sales.

Amazon has impacted our shopping habits at seemingly every turn. Here’s why… and, more importantly, this is how you can join them instead of failing miserably at trying to beat them.

1. Step up your logistics game

Obviously, the bigger Amazon gets, the more they can capitalise on economies of scale.

This means making excellent profit margins on every item you sell isn’t such a big deal when you’re selling a bucket load of stuff at the speed Amazon does.

It’s driven by a phenomenally efficient operations and logistics process that other businesses have struggled to keep up with, although Ocado is an exception to the rule.

Ocado is one company managing to go toe-to-toe with Amazon where logistics are concerned. According to Peel Hunt analysts, Ocado’s warehouse robots perform far more efficiently than those at Amazon.

So how long before Amazon tries to buy Ocado?

2. Follow Amazon’s shipping time lead

In the face of Amazon’s impressive market dominance and scale of infrastructure, any and all efforts to compete can quickly seem futile. No one can match their sheer size and scale.

And yet, competing, at least on some level, is necessary.

Look at the arrival of Aldi on British high streets. It was their unassuming and limited range of products sparked a slow-burn doom for profit margins at Tesco and Sainsburys in the early-aughts.

The easiest place to start is on shipping. Thanks to the Amazon influence, customers want faster shipping. And by faster shipping, 96% reportedly means ‘same day delivery’.

So, if you’re still offering 3-5 day shipping for £4.99, customers probably won’t be flocking to your online store.

In short, follow Amazon’s lead and speed up your shipping.

3. Offer an experience

This may well be one of the key advantages of operating as a bricks-and-mortar, independent retailer in an Amazon world. Shopping isn’t just about the price anymore, it’s about the experience (especially if Millennials are your target market).

Why? Because Amazon’s abundance of online products has made some shoppers more discerning. When we can buy practically anything we want online, at the swipe of a thumb or click of a mouse, the experience of shopping in-store becomes something of a luxury.

But what about online retailers? Do they stand a cat’s chance in hell of competing against Amazon?

Long story short: yes.

Amazon’s infrastructure may be impressive, and its ease of use is undeniable, but it remains a faceless, corporate entity. If you want to beat Amazon at its own game in the online-only sphere, you have to go above and beyond when it comes to service. Give consumers that experiential vibe they crave from bricks-and-mortar stores.

Simple things like personalised (but not pushy) emails, handwritten notes sent along with orders, speedy customer service, and a willingness to own up to and correct mistakes will go a long way.

And, I cannot stress this enough, make sure your website is as seamless and slick as possible. Invest in excellent copywriters to jazz up your product descriptions (an Amazon weak point) and link between products pages and informative blog posts.

Basically, make sure the buyer has everything they need at their fingertips.

(Related: See what exciting eCommerce, Digital, Marketing & Sales opportunities we have at Vertical Advantage now)

4. Build an actually useful brand

As Instagram influencers can attest to, brand is everything. And brands-as-a-culture is also a major trend for 2019.

So, while Amazon’s brand is, uh… everything, make your brand ‘one thing’. In short, do one thing well–while offering high quality and a cohesive brand strategy–instead of many things poorly.

Take a look at Baudoin and Lange. This niche loafer company has successfully tapped into the premium side of the market and they’ve done so without the tangible presence of a bricks-and-mortar retail space.

Follow in the footsteps (ha!) of Baudoin and Lange, then.

Invest in clever advertising and marketing, you can build your brand authentically, and watch your business flourish.

And remember: you’re a business, not an everything bagel.

5. Tap into Big (and Small) Data

Amazon is all about that Big Data. And you can be too.

As Jeremy Goldman at Inc. writes, “at this point, all brands need a strong data strategy.”

But tapping into data and making it work for your business doesn’t mean you need to invest in costly AI software. Even something as commonplace as Google Analytics can be of use.

Once you’ve decided what kind of data will be of most use to your business, you should start setting Google Analytics goals.

For example, do you want to know about newsletter signups or are you more interested in seeing who’s visiting what page and for how long?

The information generated by doing so can then inform your long-term decisions. What did you find out about the people signing up for your newsletters? Tailor your copy to them or diversify and personalise your newsletter delivery system based on which page they signed up from. The options are limitless.

Tap into social media too with software like Twilert which helps track mentions of your brand or search terms related to your business. From there, you can boost engagement, nip any emerging problems in the bud, and use the comments you’re generating to inform further business decisions.

Just remember that the data game can be heavily dependent on trial and error though, especially for smaller businesses with limited resources.

While making a data generation and utilisation strategy can be incredibly useful to begin with, be prepared to deviate from the plan if things aren’t working out.

6. If you really can’t beat Amazon… join them.

That’s what mega-brand Nike decided to do, despite initially thinking Amazon would devalue their carefully crafted brand. However, they quickly realised they were missing out on massive sales, and, in the process, being undercut by not-so-reputable third-party sellers.

Besides, Amazon is currently pushing for vendors to sign up with Brand Registry. As Digiday reports, this is “a program that lets brand owners and licensees submit proof that they are authorized sellers of a brand’s products”. So, it seems the time is ripe to take control over your company’s Amazon presence.

In reality, beating Amazon would be a long and impressive journey. If you’re there already don’t need to worry about this blog! (And cheers to you!)

But if you’re not quite there yet, my advice is to learn from Amazon’s journey and use their powerful reach to your advantage. After all, if it’s good enough for Nike, then why shouldn’t it be good enough for you?

And remember, I’m always keen to talk to people about this stuff, especially as a lot of you know far more than I do! So, give me a shout on LinkedIn or on andy@vertical-advantage.com if you want to chat.

In my role as a Manager at marketing specialist recruitment firm, Vertical Advantage, I’m always on the look out for outstanding talent in CRM and loyalty for our blue chip client base.

But it’s not always easy.

This means I constantly need rich customer data which can be difficult with rapid ever-changing industry trends that are at the heart of daily discussions.

This got me thinking about how the industry has drastically evolved.

Today almost 46.5 million people, (92% of the adult population) are registered with at least one card-based loyalty programme, and the average shopper is signed up to at least three.

Acquiring new customers is way more expensive than retaining them, so loyalty is an area that should be well developed by companies interested in return business.

This all sounds inspiring, but in reality, is customer loyalty all it’s cracked up to be?

My answer … not right now – but with a little work, it could be!

Loyalty schemes have become the norm – There’s so much choice out there!

The loyalty card itself has become a commodity, younger consumers these days rarely stick with just a handful of providers.

Instead, they go towards the lowest prices, the best service, and the easiest ride – in that exact order.

It is easier than ever for consumers to be disloyal: price comparison sites, social media reviews, and higher levels of price competition thanks to online retailers, are all factors that challenge the concept of loyalty.

Why?

It takes too long to reap real rewards

It’s not that loyalty schemes can’t work – it’ just that most provide so little value.

For example:

You’re loyal to a supermarket for a year, racking up the points.

The just before Christmas you’re rewarded with a voucher worth £6.45.

So, you’re undoubtedly going to ask yourself: is it worth the effort?

Of course not!

So next year you don’t bother, right?

You won’t be the only one!

Almost £6bn-worth of points have gone unclaimed from the top 10 mainstream loyalty schemes out there, with over 20% of loyalty programme users never having redeemed their rewards.

Poor targeting is a turn-off!

To be valuable, loyalty schemes need to be both better-targeted and worth something tangible to the consumer.

Points don’t cut it anymore. People want things, not points. But the thing has to be relevant and personalised.

Case-in-point: As a dog owner I have a Pets at Home loyalty card. I signed up as the owner of a small chihuahua, only to then receive on-going promotions targeting products aimed at larger breeds of dog.

The best loyalty schemes know their customers wants and needs and use this information to target them with relevant deals.

Is Mobile being ignored?

Loyalty schemes offered by your favourite high street retailers are likely to be card based.

How often have you forgotten your loyalty card and missed out on points when shopping in your favourite retailer?

You’re not alone – a third of customers do this.

And if you do want the points you’ll need to go through the hassle of keeping the receipt and then remembering to take it back to customer services (with your card) to get them added on at a later date!

Compare this with the number of times you’ve been shopping and forgotten your mobile phone.

Point taken?

So back to the original question, Is loyalty all it’s cracked up to be!!!

We’re humans, and our shopping habits cannot be analysed by algorithms alone! I believe people are at the heart of how we solve these challenges.

Loyalty schemes manipulate and analyse transactional data on shopping habits to reveal exciting insights into buying habits and motivations.

If, as a business, you really want to make this work, you’ll need professionals who can extrapolate this data to draw out qualitative research insights like customer motivation.

What kind of loyalty professionals does your business need?

If they want to attract the right talent who understand the nation’s loyalty behaviour, recruitment services have to aim for individuals with track records in driving change and innovation in loyalty programmes.

For me, that means professionals who can really dig deep into the data when shaping loyalty campaigns.

Find how where each candidate is within the cycle: how effective have they been? How do they measure that? What was their last great innovation, and why?

Most of all, ask how they believe we should approach the loyalty space because lateral, data-driven thinking is crucial to how well they will succeed in the current climate.