-By Scott Kohno

Knowing that today's customers are jaded by focus groups and exit surveys, it is our job to understand what customers really want. We start this process by understanding who our customer really is. Marketing 101 has created typical demographics such as:

"Female, 25-35, young professional, moderate income."

In our retail world, this is meaningless. We need to start by telling a true story about our customer, so we can target our product assortment to her needs, create a store environment that entices, and develop strategies that increase sales:

"Mari is a 34-year-old single mother, working on her feet as a nurse to support her daughter; likes to spoil her daughter, but does not like to spend much on herself. She is a great cook and is into style and design for her house. She is skeptical about pushy sales people. She listens to jazz music, has a dog and loves to work out at the gym each day…etc."

By clearly identifying our top customers, we will get clues as to what the customer really wants.

As we lay out our 'sequence of service,' where we identify each and every customer touch point from the front of the store to the checkout, we can start to understand the real opportunities to create the 360 Brand that all stores should achieve.

For example, at the point that Mari comes to our Facial Soap and Lotion Counter -- in a store called "Lather" that we recently created in Pasadena, Calif., -- we realized that the environment should be very contemporary, with soft jazz music, and with inviting opportunities to 'touch the merchandise' as Mari is skeptical about all sales gimmicks.

In the Lather store, we have created merchandise islands with built-in contemporary sinks to truly sample, use and test each product. Each merchandise island comes complete with mirrors and luxurious cotton hand towels with a chute to put the towels in once the customer is finished. We have a 'blending bar' where customers can experiment with creating their own hypo-allergenic soap and lotions with their preferred scent. The entire store is about 'touching the merchandise.'

360 Branding is the process of identifying key marketing, merchandising and customer service strategies, and then building the entire experience around that strategy. In the case of the Lather store, one of our key strategies was 'touching the merchandise to educate.' The entire store was based on this principle; well-thought-out lighting, fixture design, graphics, sound, smell, customer interaction and packaging fulfill this key strategy -- this process really reflects a 360-Branding experience.

Editor's Note: Kohno is President and CEO of L.A.-based Retail Element. With over 20 years of experience, he has worked with clients including Macy's, Federated, May's Department Stores, NASDAQ Times Square, MGM Grand, Disney and Geary's Beverly Hills, and is known for creating distinctive, brand-building retail environments. Kohno is also one of the three gia expert jurors serving on the International Housewares Association's panel reviewing excellence in international retailing. This year's U.S. national gia winner is Cook's Warehouse in Atlanta, Ga. The Gourmet Retailer Magazine is currently seeking nominations for the 2009 gia program. The Global Innovator Award program honors housewares retailing excellence in close to 25 countries around the world. Its global sponsor is the International Home & Housewares Show which honors this year's gia winners at its fair, March 22–24, 2009. For more information, visit www.housewares.org./gia or contact mmoran@gourmetretailer.com.

To continue reading this three-part series, click one of the following links below:
Part I | Part II | Part III