A thought paper from 22squared on brand advocacy in Apparel Retail.

1. igniting advocacy in
apparel retail
A growth strategy that fits.

2. executive summary
advocacy in a tight economy
Strong customer relationships and advocacy are increasingly important as customers tighten
their belts. Our analysis shows that retailers with more advocates have experienced more
profitable growth over the last three years. As consumers spend less, their worth should be
calculated by their recommendations as well as their purchasing habits.
an abundance of lukewarm customers
Apparel retailers have a below-average number of advocates, and by far the greatest number
of customer relationships are noncommittal, acquaintance-type relationships. Despite heavy
advertising and aggressive sales, retailers aren’t sparking the word-of-mouth conversations they
could be.
target sets the standard
With the best customer relationships and most advocates, Target enjoys the most vocal
customer base in the category. They deliver on the customer relationship from top to bottom,
performing well on the fundamentals while wowing the customer with their design, style,
and communications.
kohl’s and jcpenney have some momentum
While these retailers have above-average advocacy, they also have more customers who are
moving toward the brand versus moving away from it. We’ve identified gaps in each of their
respective customer relationships that, if addressed, could increase their advocates and their
word-of-mouth recommendations.
macy’s in need of an experience people will talk about
With its rapid expansion, Macy’s has a largely noncommittal base of customers and could greatly
benefit from more positive word-of-mouth conversations. Its Achilles heel seems to be the brand
experience as detailed by it’s customers.
sears is solid but sliding
As one of America’s most enduring icons, Sears has customer relationships that are built on a
solid foundation but, as in years past, need modernizing. While they have an average number of
advocates, they have more customers with fading relationships than with growing relationships.
wal-mart fostering love/hate relationships
Despite Wal-Mart’s continued growth, its customers feel trapped in their relationship with the
retailer, feeling obligated to get the best deals in a down economy. It will be interesting to watch
Wal-Mart’s growth as 33% of its customer base claims to be “moving away” from the brand.
kmart is quickly losing its relevance
With the lowest advocacy and momentum scores in the category, our data suggests this brand
has an insignificant and narrowing role in customers’ lives. The basics of relationships aren’t being
met and 40% of it’s customers admit they’re moving away from the brand.
growing advocacy in apparel retail
To forge relationships on which customers will act and advocate, these retailers will need to:
1) ensure more consistent customer service while integrating some unexpected surprises;
2) offer buzz-worthy experiences beyond low prices; and 3) continuously push for
relevancy as fashion trends change and other retailers innovate.
i

3. table of contents
01 about our research
02 introduction: driving growth
in a weak economy
04 advocacy: how apparel retailers measure up
06 the future direction of consumer
relationships in apparel retail
09 actions that build brand advocacy
12 target: design in everything
14 kohl’s: delivering on “great things”
16 jcpenney: adding spark to the experience and
the relationship
18 wal-mart: moving from an obligation
to a relationship
20 kmart: establishing a role in the
customer’s life
22 macy’s: in need of a brand experience worth
talking about
24 sears: modernizing a trusted brand
27 conclusion: there’s value in monitoring
consumer relationships
27 about 22squared

4. about our research
The 22squared 2008 Friendship Model Research Study is a tool that:
1) Measures advocacy levels and ratios within a brand’s
customer base
2) Evaluates the health and nature of a brand’s customer
relationships
3) Assesses brand performance on actions that drive advocacy
4) Predicts changes in advocacy levels in accordance with
changes in performance
We measure advocacy in a unique way that takes into account
both the customer’s behavior (recommendations or critiques)
and the customer’s attitude (commitment to the brand’s success or
failure). In partnership with Karl Schmidt, founder of the research
firm Consumer Insights Inc., we’ve studied more than 180 brands in
35 categories with over 20,000 customers. The research has helped
us identify a set of brand behaviors that are shown to drive advocacy
across categories. These behaviors are rooted in social psychology
and the behaviors people exhibit in developing meaningful
friendships.
We interview only customers and recent customers of the brand, via
an online methodology. For apparel retailers, we interviewed
customers who have purchased goods within the last six months and,
in many cases, more recently. There are no in-category comparisons
across attributes; instead, the research provides a detailed
assessment of the relationship between the customer and the
brand and the customer’s influence on others. We then compare
brands within its own category, along with analyzing the data
within the context of our normative database. Brands and
categories researched included durable goods, packaged goods,
retailers, and service providers.
Our research on apparel retailers was conducted in March of 2008
and included Target, Kohl’s, JCPenney, Wal-Mart, Kmart, Macy’s,
and Sears.
01

5. introduction: in a weak
economy, strong customer
relationships and advocacy
are critical to business growth
“I LOVE Target! As a result of September’s financial crisis, the American
You can find anything economy is firmly in a recession and household incomes are
you could possibly not keeping pace with inflation. Per the U.S. Department of
Labor, the September 2008 Consumer Price Index (CPI)
need at Target, and
registers at 214.9 — its highest level to date.1 As a result,
great brand names consumers are tightening their belts, which is hitting the
too! The clothing is traditional retail sector especially hard. Revenue growth within
darling for kids, and the retail sector is anemic 2.2% in 2008, down from 6.4% in
trendy or classic for 2004.2 The surge in fuel prices is driving price increases
adults. Plus, they across everyday essentials, and inflation is forcing consumers
have great prices!!!” to become much choosier about what and where they buy.
Yelp.com Today’s technology provides consumers with real-time
access to information and myriad offers are reaching them
daily. But with the vast array of products and services
available today, consumers need help discerning which brands
and products they can trust, which reflect their values, and
which will provide the experiences that will add to their already
complicated lives. In return, consumers bestow loyalty and
praise. Social portals provide channels for consumers to
vocalize their experiences — as advocates or critic — and
magnify the viral nature of consumer feedback, influencing
their purchasing decisions of thousands of consumers who are
evaluating entering new brand relationships.
02

6. The average True Taking consumer relationships to the next level requires
Advocacy for the
TM
apparel retailers to demonstrate that they are friendship
retailer category is material. A recent IBM study explored why advocacy matters
to apparel retailers and found that “79 percent of customers
17%, slightly lower
will commit to a deeper product or service relationship after
than the multi-category a satisfying experience” and that “31 percent of customers
benchmark of 21%.4 tell multiple people of their bad experience.”3 Despite this strong
evidence, the 2008 Friendship Model Research Study, reveals
that apparel retailers have significant room for improvement
on the advocacy scale. The average True Advocacy score
(% advocates – % critics = % True Advocacy) for the retailer
category is 17%, slightly lower than the multi-category
benchmark of 21%.4
True Advocacy = % advocates – % critics
Each customer is classified into an advocacy segment based on relationship
and level of commitment to advocating the brand to others. The critics are
subtracted from the advocates, while the ambivalent buyers are left out of the
calculation, to reveal the true number of advocates effectively sharing the
brand with others.
SHAREHOLDER
EVANGELIST
RECOMMENDER
REPEAT SATISFIED
ADVOCATE BUYER CRITIC
MARGINAL
BUYER
DISSATISFIED
BUYER ACTIVELY
AGAINST
03

7. advocacy: how apparel
retailers measure up
Target holds the The 2008 Friendship Model Research Study revealed that
dominant position within the category, Target holds the dominant position as a
as a retailer with retailer with the strongest level of consumer advocacy, 47%.
“Expect More. Pay Less.” is an authentic and extremely
the strongest level of
compelling proposition for consumers who are doing just that
True Advocacy, 47%. — they are finding design in everything, purchasing cheap-chic
fashions, and obtaining good buys at this contemporary retailer
who is challenging the norms of apparel retailing. The other
big box retailers, Wal-Mart and Kmart, are suffering from a
significant number of outspoken critics who challenge their
operating practices and unappealing store experiences, this is
reflected in these retailers receiving the weakest category
True Advocacy scores, 2% and –12%, respectively. In contrast,
discount or value retailers are performing above average.
JCPenney and Kohl’s received True Advocacy scores of 27%
and 21%, respectively, indicative of their ability to stay on trend
and maintain relevancy with their customer base. Today’s
retailers have evolved beyond the traditional department store
model. While the iconic American retailers—Sears and Macy’s—
have cultivated more advocates than critics, they meet but don’t
exceed customers’ expectations, leaving their competitive
edge dull. These two retailers struggle with average advocacy
scores— 17% and 15%, respectively.
advocacy rates
true
[True Advocacy = % advocates – % critics] advocacy*
Target 51% 45% 4% 47%
JCPenney 33% 61% 6% 27%
Kohl’s 34% 53% 13% 21%
Sears 30% 57% 13% 17%
Macy’s 29% 57% 14% 15%
Wal-Mart 26% 50% 24% 2%
Kmart 15% 59% 26% –12%
advocate buyer critic
04
* Numbers may not compute exactly due to rounding.

8. True Advocacy is a predictor
of sustainable business growth
Insights from 22squared’s quantitative study on brand advocacy,
the 2008 Friendship Model Research Study, reveals that brands
perceived to act on the customers’ behalf have 32% more
advocates.4 The study’s True Advocacy scores—the metric that
predicts the number of consumers actively endorsing a brand
in the marketplace—demonstrate a positive correlation between
business growth and customer advocacy.
True Advocacy is a predictor of customer endorsement beyond
repeat buyers or satisfied customers. It is a measure of the
commitment level of high-involvement customer types—
shareholders, evangelists, and recommenders— and is, therefore,
a good forecaster of financial growth. To measure the impact of
advocacy on retailers’ financial performance, we took changes
in operating income and revenue over a three-year period, along
with average growth margin rates (from 2005–2007) and
created a growth index for each retailer in our study. The growth
index is highly correlated with True Advocacy scores (r = .762),
suggesting that higher advocacy fuels better financial
performance and growth.
True Advocacy and financial growth
Kohl’s
160
140
Target
three-year growth index*
120
JCPenney
Wal-Mart
100 Macy’s
Sears
80 2
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True Advocacy
* Growth Index combines Revenue Growth, Gross Profit Margins, and Operating
Income Growth over a three-year period from 2005–2007. 05

9. True Momentum: the future
TM
direction of consumer relationships
Macy’s True Momentum While an unpleasant shopping experience handicaps Kmart,
score of 5% is below the the continuing drumbeat of consumer activism has plagued
multi-category average Wal-Mart. Consumers have been outraged by Wal-Mart’s
operating practices, yet they find themselves shopping with the
of 7%, reflective of a
retailer, suggestive of a relationship in which they are trapped.
brand whose customer Not surprisingly, Wal-Mart received a negative True Momentum
relationships are score -14%. The True Momentum score indicates the future
not improving. direction of a brand’s relationship with its customers by
measuring whether consumers are growing closer, pulling
away or maintaining that relationship. Kmart is the only other
retailer in our study with a worse True Momentum score, –28%.
Yet, unlike Kmart, whose revenue is down an average of 4.5%
over the past three years, Wal-Mart is generating revenue. Wal-
Mart claims to save the average household $2,500 annually, and
today’s contracting economy is fueling Wal-Mart’s growth as
consumers seek to “Save Money and Live Better.”5 Macy’s True
Momentum score is below average, 5%, (multi-category average
being 7%), reflective of an indifferent consumer base, neither
growing closer nor pulling away. Sears is losing momentum, –
5%, as consumers grow closer to the more innovative, fashion-
forward big box and discount retailers. JCPenney’s and Kohl’s
efforts at cultivating deeper relationships are paying off,
rewarding them with customer relationships that seem to be
headed in a positive direction, with True Momentum scores of
6% and 8%, respectively. Target is the clear leader shaping the
new retail model and experience. This hip, innovative retailer
surpasses the others with a 28% True Momentum score,
indicating that consumers continue to grow closer to this brand.
True Momentum
true
[True Momentum = % moving toward – % moving away] momentum*
target 33% 61% 6% 28%
Kohl’s 24% 61% 15% 8%
JCPenney 20% 66% 14% 6%
Macy’s 26% 53% 21% 5%
Sears 18% 60% 22% –5%
Wal-Mart 19% 48% 33% –14%
06
Kmart 13% 47% 40% –28%
moving toward stable moving away
* Numbers may not compute exactly due to rounding.

10. retailers hold “acquaintance”
level friendships
While over half of the Just as consumers shop for apparel that provides the best
retail brands tested fashion, fit, and function, so too do they look for these things
in their brand relationships. But current consumer sentiment
have low involvement,
toward apparel retailers is superficial and hints at an ambivalence
acquaintance-type representative of a noncommittal relationship. Successful
relationships, Target’s brands aspire to be within consumers’ inner circles of friends.
customers view the Residing in such a place are consumer advocates who endorse
brand as a soul mate. and evangelize the brands they admire and forgive them
their missteps.
Contrary to the negative sentiments consumers have about
their relationships with retail banks—relationships they often
report feeling “trapped” in — many consumers hold more
positive feelings toward retailers, including big box, discount,
and department stores. Unfortunately, these relationships
skew toward “weaker” relationships filled with the ambivalence
and indifference associated with acquaintances. Our research
found that fewer than half of the seven apparel retailers we
studied —Target, Wal-Mart, Kmart, Kohl’s, Sears, JCPenney,
and Macy’s— are nurturing strong and potentially lucrative
customer relationships.
relationship types
soul mate unique connection, can’t live without
close friend inner circle, depend on, always there
niche friend familiar in a narrow context
new friend on the road to becoming closer
acquaintance ambivalent, no expectations
family friend by association or inheritance
default lack of options, proximity, avoidance
fling short-time experiment
forced no choice, feel trapped, wish to escape
07

11. Over half of the retail brands in the 2008 Friendship Model
Research Study have relationships of the low-involvement,
acquaintance type, and few have nurtured deep friendships.
The notable exception is Target, which has penetrated the inner
circle, prompting customers to perceive their relationship with
the retailer as a “soul mate.” Kohl’s and Macy’s relationships are
more aligned with the earlier stage, acquaintance-type of
friendship, but with some evidence of deeper bonds associated
with “close friends.” Consumers’ stated relationships with
Wal-Mart and Kmart are analogous to the “default” and
“acquaintance” types reflecting the tendency among extremely
value-conscious consumers to prioritize price over the shopping
experience, creating feelings of a relationship in which they are
trapped or obligated. Broad opportunity exists for retailers to
move the needle toward deeper customer relationships and
the generating of revenue from them. For retailers whose
competitiveadvantage does not lie in the race to rock-bottom
pricing, consumer advocacy is the asset that will help them
achieve positive business growth, even in a sagging economy.
relationship roles in apparel retail category
Indicates the most prevalent relationship roles, out of 9 potential roles.
(-) Role Acquaintance (+) Role
24% 45% Target
Soul Mate
28% 20% Kohl’s
Close Friend
23% 30% Macy’s
JCPenney 26% 33% Close Friend
Niche
Sears 25% 26%
Niche
Default
Wal-Mart 26% 22%
Kmart 28% 32%
Niche
08

12. actions that build
brand advocacy
These ten tenets of Consumers are people. They look for experiences from brands
friendship depict how that add to their lives, exceed their expectations, help when
they need it, and reflect their values, beliefs, and lifestyles. We
friends behave toward one
believe every point of contact that a brand has with a customer
another, quantifying the is an opportunity to deepen or ruin the relationship and, in
contribution to positive order for apparel retailers to deepen their relationships with
customer experiences. consumers, they need to understand their current performance.
The 2008 Friendship Model Research Study assessed apparel
retailers across ten actions. These ten tenets of friendship
depict how friends behave toward one another, quantifying the
contribution to positive customer experiences. We believe
these actions transform the role a brand plays in a customer’s
life, affording it the significance necessary to gain advocacy.
actions that drive advocacy:
the 10 tenets of friendship
be authentic | original, real, and distinctly meaningful
be honest | transparent, make intentions clear
be empathetic | understand their needs, desires, and lives
support them | be helpful, act on their behalf
spend qt | provide positive, immersive experiences
share a pov | common lifestyle, belief system, or attitude
be exciting | create a visceral spark or gut reaction
give more | provide value beyond the purchase
stay in touch | build anticipation, add value, communicate
keep it fresh | surprise and delight
09

13. beyond the basics: keeping it
fresh, attractive, and exciting
Across the industries included in the 2008 Friendship Model
Research Study — wireless, airlines, retailers, electronics,
personal care, and retail banks — five tenets represent the
fundamental behaviors inherent in successful apparel retailer
brands: Honest and true, Authentic, Supports me, Quality time,
and Understands me. While these are the platform from which
advocacy is built, brand momentum is generated, and from
which business growth is propelled, two additional tenets are
critical within the trend-driven nature of the apparel business:
Keeping it fresh and Attractive and exciting.
In friendships, Keeping it fresh means integrating delight and
surprise into the relationship and being consistent without total
predictability. For the retailer, it is about differentiating through
merchandising strategies, and we believe this is paramount
for attracting consumer advocates. The Attractive and exciting
side of friendship is the visceral spark and inspiration that friends
bring to one another, creating a connection.
path to advocacy for apparel retailers
KEEP Much like Maslow’s hierarchy
tenets that are critical within the IT FRESH
of needs, apparel retailers must
trend–driven apparel sector.
deliver on the foundational
BE EXCITING
needs of a relationship in
order to effectively excite
their customers and earn
BE EMPATHETIC
their advocacy.
SPEND QUALITY TIME
fundamental behaviors
inherent in successful
SUPPORT THEM
apparel retail brands.
BE AUTHENTIC
BE HONEST
10

14. The research found that apparel retailers as a category scored
Apparel retailers as a below the multi-category average on all ten tenets. Only one
retailer really hits the mark with consumers on experience:
category scored below
Target, sets a new standard for product innovation and customer
the multi-category experience— in-store and online—against which the other
average on all 10 tenets. retailers need to recalibrate their experiences to effectively
compete. This is best described by one of Target’s advocates:
“I decided to stop into Target. I found the shopping experience
relaxing. Their store was clean and their employees were very
helpful. There were three people in the [checkout] line, but they
immediately called for back-up cashiers. It is a friendly, clean
atmosphere, and pleasant place to shop.”6
Apparel Retail Category Mean
apparel retail tenet performance apparel retail mean
target
140
Tenet Score
130 Index
(Avg. = 100)
120
110
100 Multi-category Average
Multi-Category Average
90 94 93 95 Category R
Apparel M
93 92 93
91 90 Target
88
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15. True Advocacy Target: design in everything
47% exclusive design partnerships keep
apparel fresh and relevant
Target
We believe that Target, which has even earned a bourgeois-
21% sounding nickname “Tar-jae” bestowed on it by fond customers,
Multi-Category Mean is designing the higher standard by which retailers compete.
Target has been at the forefront within the category for
17% democratizing apparel, and this has been a key point of
Apparel Retail Mean
differentiation for them, with designer partnerships such as
Proenza Schouler, Liz Lange, and Isaac Mizrahi. Across the
store environment, Target’s customer service experience shines
relationship roles through with clean, well-lit stores and friendly, knowledgeable
employees. The retailer’s cheap-chic and design-centric
merchandise selection contributes to its high score on Keeping
it fresh, 127, its best-perceived attribute. Target’s Club Wedd®
has one of the highest usage rates among online wedding
SOUL MATE registries. And, taking innovation with online offerings a step
45% further, TargetLists® is a dynamic, multi-occasion gift-giving
and shopping list that allows gift buyers to purchase, wrap,
and ship to the recipient either online or from the store.
design extends into nonapparel merchandise
Inherent in their brand DNA and core to their communications
True Momentum is Target’s delighting customers by infusing design into everyday
products. Design is found in the most unexpected of items,
28% including (redesigned) prescription drug bottles, surprising
consumers with shape, color, and integrated color bands to
Target
help family members easily distinguish ownership. The Archer
Farms product line, a Target private label brand, has designed
7% resealable chip bags and cereal boxes. These seemingly discreet
Multi-Category Mean
package redesigns differentiate the retailer, but also provide
0% value to the consumer without asking for much in return. They
Apparel Retail Mean also influence consumer perceptions about everything this hip
retailer carries and demonstrate the authentic nature the brand.
Plus, they are buzz-worthy.
12

16. While design and innovation infused into products and their
marketing communications contribute to the positive
experience, in February 2007 Target reached a new milestone
in community leadership, contributing $3 million per week to
arts, education, and social service programs — 5% of its annual
income.7 Awarding the brand the highest scores on all tenets
—Honest and true, 109; Authentic, 101; Supports me, 112; Quality
time, 116; Understands me, 111; and Attractive and exciting, 113 —
today’s consumers feel good about shopping at Target and
are evangelizing it, generating an above-average three-year
growth index of 127.
Target: design in everything
140
Apparel Retail Mean Target
130
120
110
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17. Kohl’s: delivering on “great things”
True Advocacy kohl’s exhibits mediocre friendship behaviors
Kohl’s performs ahead of the competition, and is one of only two
21% retailers other than Target that have above-average advocacy and
Kohl’s momentum scores. Kohl’s is the retailer where one can “Expect
Great Things®,” and is best described by an advocate: “Kohl’s is
21% a great place to shop. The atmosphere is nice, the deals are great,
Multi-Category Mean and the people are always helpful. The stores are always clean, and
you can count on finding something new and different that you
17% have to have — for yourself or as a gift for someone else. I am not
Apparel Retail Mean
always happy about having to shop, but I always enjoy shopping
at Kohl’s.”4 Kohl’s ranks ahead of Kmart, Wal-Mart and Macy’s on
performing the basics, yet receives only average scores on
relationship roles
exhibiting foundational brand behaviors: Honest and true, 95;
Authentic, 91; Supports me, 96; Quality time, 84; and Understands
me, 93. Kohl’s demonstrates authenticity and customer support
ACQUAINTANCE
through its Kohl’s Cares for Kids® initiative, to which the company
28% donates hours and merchandise to improve children’s lives —
a total of $85 million in 2007. Kohl’s excels as a corporate citizen.
The Environmental Protection Agency (EPA) has recognized Kohl’s
CLOSE FRIEND as the leading user of green power within the retail category.
20%
being a bit more remarkable
Continuing to deliver great things and creating excitement, the
retailer’s 2008 back-to-school campaign, “Designed by celebrities,
True Momentum worn by you,” is modern and smart, with enough edge to be relevant
and on trend across generations. This retailer claims to be “not a
8% destination, but an opportunity to discover” and consumers are
taking notice.8 Kohl’s is one of the category leaders in the areas of
Kohl’s
Keeping it fresh and creating an Attractive and exciting environment.
This extends to the company’s leadership in the democratizing of
7%
Multi-Category Mean fashion by contracting with exclusive designers, such as Vera Wang
for the Simply Vera label. Consistent with this direction and reflecting
0% consumers’ desires, management has taken strides to improve the
Apparel Retail Mean store experience, making it more visually exciting. While sales growth
has been meager at 1.4%, the retailer has experienced soaring sales
from its online channel—a surge of 29.5%.9 These combined efforts
have contributed to their positive advocacy, momentum, and three-
year growth index of 153.
14

18. “This store came to our Kohl’s performs well in creating excitement and maintaining
neighborhood only relevancy, and it has less room for improvement than its
competitors. This retailer needs to focus on the consumer
recently. I tried it out and
experience along with enhancing foundational brand behaviors,
liked the quality and as evidenced by the following testimonial we captured:
selection. It’s not “This store came to our neighborhood only recently. I tried it
remarkable, but I’d go on out and liked the quality and selection. It’s not remarkable,
another date without but I’d go on another date without reservations.”4 We project
reservations.”4 that a clearer emphasis on exhibiting the core behaviors of
friendship—including authenticity, transparency, support,
understanding, and quality time—would yield a 3% increase in
advocacy and contribute to increasing top-line revenue growth.
closing gaps in the relationship
Closing the Gap = 3% increase in advocacy
140
Kohl's Apparel Retail Mean Target
130
120
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Multi-Category Mean 100
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19. True Advocacy JCPenney: adding spark to the
experience and the relationship
27%
JCPenney outperforming on the basics
JCPenney outperforms the competition — particularly in
21% performing the basics — and is one of two retailers other than
Multi-Category Mean
Target that holds average advocacy and momentum scores.
17% Consumer sentiment is best summed up by the following
Apparel Retail Mean customer testimonial: “It [JCPenney] isn’t necessarily my first
choice, but I know that it has quality merchandise. It may not
have the most fashion-forward merchandise, but I can count
relationship roles on it for basics.”4
Throughout the years, JCPenney has performed exceptionally
ACQUAINTANCE well in its core ability to meet customer expectations, allowing
33% the retailer to uphold a higher True Advocacy score, 27%, and
a positive True Momentum score, 6%. Recognizing the need
to increase relevancy with its consumer base and to act with
more authenticity, JCPenney has proceeded with both store
NICHE FRIEND
and merchandise upgrades, along with a message change
26% to “Everyday Matters®” from “It’s all inside®.” The data from
the research indicates that JCPenney will continue to gain
momentum. The company’s latest back-to-school marketing
True Momentum campaign, “Get that look”, inspired by The Breakfast Club, is
sure to renew consumer interest. The campaign showcases
“lifestyle brands that deliver style and quality at a smart price,”
6% and it deploys ads, online games, and text messaging to
JCPenney communicate with and engage teens while helping them
develop and express their style—whatever it may be.10 As an
7% older retailer, moving into the digital space with communications
Multi-Category Mean that are highly relevant to today’s youth should raise the
retailer’s below-average Attractive and exciting score of 87.
0%
Apparel Retail Mean
16

20. moving toward a better fit
“It [JCPenney] isn’t JCPenney performs well on the basics; however, bringing
necessarily my first a higher level of excitement, freshness, authenticity, and quality
choice, but I know that it time comparable to Target would jump-start the experience
and potentially increase advocacy by 3%. Deepening their
has quality merchandise.
consumer relationships, moving them from the status of
It may not have the
“acquaintance” and “niche” types of friendships into higher
most fashion-forward involvement would further contribute to an already positive
merchandise, but I can three-year growth index of 125.
count on it for basics.” 4
closing gaps in the relationship
Closing the Gap = 3% increase in advocacy
140
JCPenney Apparel Retail Mean Target
130
120
110
Multi-Category Mean 100
90
80
70
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21. True Advocacy Wal-Mart: moving from an
obligation to a relationship
21%
Multi-Category Mean
Wal-Mart received the lowest of the True Advocacy and
17% True Momentum scores following Kmart, indicating more
Apparel Retail Mean consumers are pulling away from the brand than growing
closer to it. Consumers perceive their relationship as one
2% of “default” predicated by an obligation to shop with this
retailing giant in order to take advantage of the best prices
Wal-Mart
and convenience—a purposeful relationship, but one that
is not meaningful.
relationship roles
The sentiment is best captured by a patron: “I am fascinated by
Wal-Mart and always find plenty to spend my money on there.
ACQUAINTANCE In my area, there is only one I will go to because the others
are unkempt and dirty. But, I like their prices and vast array of
22% products. I don’t want a Wal-Mart in my neighborhood and
I don’t always like their business practices…but, dang it, they
have some really cool stuff.”4
DEFAULT FRIEND
26% Critics have weighed in on the unappealing atmosphere of
Wal-Mart, and we can infer these complaints have led to
Wal-Mart’s significantly below-average scores on the core
tenets attributed to a positive customer experience: Honest
True Momentum
and true, 73; Authentic, 76; Supports me, 80; Quality time, 69;
and Understands me, 78. We do admire that Wal-Mart cares
7% about the environment, and the company’s “Sustainability 360”
Multi-Category Mean
initiatives are forcing change by requiring the companies they
do business with to implement environmentally conscious
0% practices, which is helping to mute some of the criticism.
Apparel Retail Mean
-14%
Wal-Mart
18