Latest / Leaders in Customer Loyalty, Powered by Loyalty360 / #394: JOANN: Engaging the Next Generation of Creators and Launching the “JO-AND” Rebrand Campaign

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#394: JOANN: Engaging the Next Generation of Creators and Launching the “JO-AND” Rebrand Campaign · Leaders in Customer Loyalty, Powered by Loyalty360

• 0:02
  Speaker 1: Rebranding a corporate organization is quite a salient topic for the members of Loyalty360.
• 0:08
  Speaker 1: Marketers are focused on the opportunities to reposition their brand to engage the younger generations as part of the focus of this idea of the next generation of customer loyalty.
• 0:18
  Speaker 1: Rebranding can be difficult for newly minted companies, yet for those who've been around for 80 plus years they can face potential additional challenges.
• 0:27
  Speaker 1: There's often a fine line between the products and service that one's parents and grandparents may have used and partook in versus what millennials and Gen Z may have an interest in.
• 0:37
  Speaker 1: Oftentimes in the past brands would keep the same branding and focus but tweak the message and marketing a bit to resonate with and to younger audiences, focusing on creating the interest behaviors of the parents and grandparents.
• 0:52
  Speaker 1: Sometimes that may require a pivot.
• 0:55
  Speaker 1: The challenge when repositioning a brand is not to alienate the legacy customers who are the bread and butter of the organization, but understanding that that too rapid or significance of a change could be deleterious to their traditional interests.
• 1:09
  Speaker 1: The key is to find interest of the younger generation and consumer and work to include their attitudes and interests and through listening to their customers proactively listening to their customers.
• 1:20
  Speaker 1: The conversations focus to and versus or.
• 1:26
  Speaker 1: Today we're going to learn more about the journey of Joann Fabrics and how it's changed from Joann to Joand.
• 1:34
  Speaker 1: They are navigating the transition with aplomb.
• 1:37
  Speaker 1: With that welcome, I would like to welcome Chris Dottillo.
• 1:41
  Speaker 1: He's a Chief Customer Officer at Joann.
• 1:44
  Speaker 1: Thanks for taking the time to join the show.
• 1:46
  Speaker 1: Doing great, mark.
• 1:48
  Speaker 1: Great to see you.
• 1:49
  Speaker 1: First off, can you give us a short introduction to Joann and tell us about your role with the company and your experience in customer loyalty?
• 1:56
  Speaker 2: Sure, joann is truly an iconic 80-year-old brand that's continued to succeed over the years by being relevant to each new generation that's come along in a different way from the previous.
• 2:09
  Speaker 2: We are the number one retailer in all things fabric and sewing.
• 2:14
  Speaker 2: We also have an extremely large assortment of crafts, arts and crafts, seasonal decor for our customers.
• 2:20
  Speaker 2: What we've learned over the years is that, while many trends change over the years in our industry, what doesn't change is that millions of people are hardwired to create things with their hearts, their hands and their minds, and so it's an exciting industry to be a part of.
• 2:39
  Speaker 2: I've been at Joanne for 19 years and I've had the luxury of serving in a variety of roles.
• 2:45
  Speaker 2: I'm currently the chief customer officer here at Joanne.
• 2:49
  Speaker 2: I've got responsibility for our marketing, our brand communications, our stores and our store teams, our digital experience and our inventory management actually, which, when you think about all of those things, it's essentially everything that impacts how a customer interacts with Joanne.
• 3:09
  Speaker 2: You asked about customer loyalty as well, and my experience with customer loyalty is that it's really table stakes to have a program that's right for your business and resonates with your customer.
• 3:23
  Speaker 2: However, the way I think about it and the way we think about it at Joanne is that how you serve your customer is what makes or breaks any loyalty program, and at Joanne we focus first and foremost on delivering great customer service.
• 3:39
  Speaker 2: That is paid off with our Smiles Rewards program.
• 3:44
  Speaker 1: We've heard a lot about the Joanne Smiles Rewards program.
• 3:47
  Speaker 1: Can you briefly give us an overview of how the program works, how customers engage with the program and what the benefits are for the customer?
• 3:55
  Speaker 2: Joanne Smiles really is a very simple program.
• 3:57
  Speaker 2: It doesn't require the customer to do any math or to figure out points and that sort of thing.
• 4:05
  Speaker 2: We incent you with discounts to shop and the program rewards shopping frequency with additional transaction discounts as you go.
• 4:14
  Speaker 2: So it's essentially a shop more, save more type of program.
• 4:20
  Speaker 2: What we've done is embedded it in our mobile app, of which we have more than 15 million downloads, and it's become a very sticky app for customers to keep on their phone, which is great.
• 4:33
  Speaker 2: It's very easy to join and the customer just scans their app at our POS for their rewards.
• 4:40
  Speaker 2: They get their transaction discounts and then they can also attach any other coupons or promotions that we have in our ecosystem to that same program.
• 4:51
  Speaker 1: Joanne recently announced the decision to rebrand.
• 4:55
  Speaker 1: As Joanne, can you tell us a little bit more about the rebrand and the message the rebrand campaign conveys?
• 5:02
  Speaker 2: Sure, and you know Jo-Anne is certainly a little bit tongue in cheek, but really it stems from the fact that and we've done a lot of research on this millions of customers know us as Jo-Anne Fabrics, and that certainly was our legacy as a retailer being in the space as long as we've been, and many of our store signs out in retail still say fabrics on the outside.
• 5:27
  Speaker 2: But this campaign is designed to raise awareness that, while we do have all of the fabric and sewing supplies that you may need, we also have yarn and we have paint supplies and we have floral and we have food crafting, et cetera, and so it can really take you through as we continue to roll this campaign out.
• 5:49
  Speaker 2: It takes the customer through the fact that we are a one-stop shop for all creative makers, not just sellers.
• 5:56
  Speaker 2: So that's the main part of it.
• 6:00
  Speaker 2: Additionally, though, it's targeted, distorted, towards the under 35 demographic.
• 6:06
  Speaker 2: The under 35 demographic is a very engaged customer in the creative space, and so what we're seeing is that we need to extend ourselves to them to reinforce that we have those supplies and then, in particular, distort our spend in messaging and social media various platforms, tiktok, instagram, etc.
• 6:32
  Speaker 2: Beyond just TV and other more traditional digital outlets.
• 6:37
  Speaker 1: How do you see Joanne, the rebrand Joanne, supporting your overall customer loyalty strategies, enhancing customer engagement and customer experience?
• 6:47
  Speaker 2: Yeah, even within sewing, your grandmother or your mother may have done reupholstery or may have made your prom dress or something like that, but the younger customer excuse me is interested in more personalization.
• 7:02
  Speaker 2: So what they're looking to do is take maybe they've gone thrift shopping and they want to embellish their jeans or their jacket or the top with something new that makes it unique to them.
• 7:14
  Speaker 2: And at Jo-Ann we have all of those options and so, again, the campaign of Jo-Ann is helping to send that message that you may sew differently than your mother did, but we still can help you with your project.
• 7:28
  Speaker 2: So really, the possibilities are endless with the campaign.
• 7:35
  Speaker 1: The rebranding campaign includes leveraging social media, creating commercial spots and influencers, and is hyper-focused on inspiring the next generation of creators.
• 7:45
  Speaker 1: We recently released our 2024 Next Generation Customer Loyalty research paper, which examined what brands think about the future of customer loyalty.
• 7:56
  Speaker 1: Since your brand is so focused and committed to inspiring the next wave of creators, what does next generation customer loyalty mean to Joanne?
• 8:05
  Speaker 2: Yeah, I think that next generation loyalty to me means staying relevant with that emerging customer base without alienating or leaving behind your current customers.
• 8:18
  Speaker 2: So, to go a little bit deeper, it means being great at the things that you're known for and that you're currently great at, but also then layering on what's most important to the new generation.
• 8:32
  Speaker 2: And for us, it means continuing to provide great service in our stores while employing team members that can answer questions and provide help.
• 8:42
  Speaker 2: But now, with the new generation, it means thinking about inspiration and education differently.
• 8:48
  Speaker 2: There needs to be more of a digital emphasis on how we bring our products and inspiration to life for the younger generation, how we bring our products and inspiration to life for the younger generation.
• 9:00
  Speaker 2: So, again, it means really about meeting your customers where they are, and for us, it means engaging more in influencer content, more in social media emphasis, but still bringing that customer back to our core, which is having great service in our stores and being able to supply all of your sewing and crafting and decorating needs.
• 9:20
  Speaker 1: Emotional loyalty is another topic that's very relevant to the members of Loyalty360.
• 9:25
  Speaker 1: It can be quite challenging to drive that deeper level of engagement with a consumer.
• 9:31
  Speaker 1: Creating an emotional experience and engaging emotional experience can be quite challenging.
• 9:37
  Speaker 1: How does Joanne spark and cultivate emotional loyalty with its customers and how do you see the rebrand as supporting overall emotional loyalty efforts?
• 9:47
  Speaker 2: Yeah, that emotional connection is really one of the main reasons why I've been at Joanne for 19 years.
• 9:54
  Speaker 2: One of the main reasons why I've been at Joanne for 19 years it's, I find, that we have in this industry has some of the most amazing connections and stories that you have in retail.
• 10:04
  Speaker 2: And one of the things that we found at Joanne is when we've done surveys and asked customers their opinion of us, the phrase that comes up the most is happy place, which is really kind of cool when you think about it and that reinforces that you don't say happy place if you haven't had an emotional connection.
• 10:24
  Speaker 2: And so you know customers, their happy place means that our team members are helping them create, they're helping them solve problems.
• 10:34
  Speaker 2: They're coming in to maybe personalize a nursery for a child that's about to come into their life, or they're making blankets for those in need, or they're making gifts for their family.
• 10:48
  Speaker 2: These are all emotional projects that the customer is doing.
• 10:53
  Speaker 2: So we have focused and absolutely forged deep connections in our communities by providing that personalized service and again kind of tying it back to the Joanne campaign that was intended to reinforce that not only do we have all of these supplies, but we can help you solve your problems, complete your project and really take care of your community and your family.
• 11:22
  Speaker 1: Another area of interest is personalization.
• 11:23
  Speaker 1: Brands are looking to be able to understand customers, their interests being a leverage first, zero party data to create personalization at scale for their customers.
• 11:35
  Speaker 1: So when you look at Joanne's vision for personalization and the role it plays as part of your overall customer loyalty and customer engagement efforts, can you tell us a little bit about how they fit together?
• 11:46
  Speaker 1: What personalization means to Joanne?
• 11:49
  Speaker 2: Sure, and you've heard me talk a lot during our discussion about the role that our team members and our stores play in that personalized experience, but it has to be more than that, and, you know, from a marketing standpoint, it's how do we continue to improve the content that we're serving up to you as a customer, in your shopping journey and in your creative journey.
• 12:16
  Speaker 2: So, whether it's You've signed up for email from us, are we providing you with, you know, personalized offers that are tailored to your shopping history, which is one of the things that we do do at Joanne.
• 12:29
  Speaker 2: So, if you are more of a crafter, we're serving you crafting offers more than selling offers, that sort of thing.
• 12:36
  Speaker 2: What I think is important and critical for retailers to go forward is expanding that personalized experience to the website and to the mobile app.
• 12:48
  Speaker 2: So, as you're looking at the site and the app, it too is personalized as well, and that, for us, is the next generation of personalization at Joann.
• 12:58
  Speaker 1: One of the questions we'd love to ask is when you look at other customer loyalty or customer experience programs, are there programs that you admire, that you find yourself loyal to from a customer loyalty perspective, and, if so, what do you like about their offerings, and are there any elements of those offerings that you would like to incorporate into the Joann program?
• 13:17
  Speaker 2: Yeah, I mean, you know, look, whether it's myself or whether it's our other marketing leaders here we absolutely pay close attention to trends in the market, how programs work that we're engaged in in our daily lives, whether it's food, whether it's grocery, whether it's others in specialty retail.
• 13:35
  Speaker 2: There's something to take and learn from, I think, in any of those verticals beyond just what we do, any of those verticals beyond just what we do, and so what we like overall, and really where we're going, is continuing to build out an experience and personalization that's tied into the mobile app, because the phone is so critical, you know, to everyone's daily lives and with a relentless focus on keeping it simple.
• 14:02
  Speaker 2: And so that's the thing is the programs that we observe that are easy are the ones that we use a lot.
• 14:10
  Speaker 2: The ones that take more effort are the ones that I think aren't as sticky.
• 14:15
  Speaker 1: The last question I have is what can Loyalty360 do to help you and your team at Joann with your customer loyalty efforts?
• 14:21
  Speaker 2: I think that's certainly helping to keep us abreast of trends out in the marketplace.
• 14:27
  Speaker 2: What you're seeing is working with others others that are having success with and then what's new, what's new on the horizon that maybe people aren't doing yet but should consider.
• 14:40
  Speaker 2: So I think it's probably a little bit of both trend spotting for the future and also what's working today.
• 14:47
  Speaker 1: Chris, now it's time for the quick fire question round.
• 14:51
  Speaker 1: We'd like to keep these to a one word or a short phrase response, or I get in trouble with the content team, so I don't like being in trouble.
• 14:58
  Speaker 1: So first question we have is what is your favorite word?
• 15:02
  Speaker 1: Favorite word is happy.
• 15:03
  Speaker 1: What's your least favorite word, ant?
• 15:06
  Speaker 1: What excites you?
• 15:07
  Speaker 2: High energy, certainly in people.
• 15:09
  Speaker 1: What do you find tiresome Excuses?
• 15:11
  Speaker 1: Is there a book that you've read that you'd like to recommend to business colleagues or to friends?
• 15:22
  Speaker 2: I've found my best sources of work.
• 15:23
  Speaker 2: Inspiration actually have come from reading things that have nothing to do with business or work, but it sparks an idea.
• 15:26
  Speaker 1: What profession, other than the one you currently are in, may you like to try?
• 15:30
  Speaker 1: I love to cook, so, chef, and what do you enjoy doing that you often don't get the time to do?
• 15:37
  Speaker 1: Personal travel.
• 15:38
  Speaker 1: Who inspired you to become the person that you are today?
• 15:41
  Speaker 2: My grandfather, self-made man.
• 15:43
  Speaker 1: What do you typically think about at the end of the day?
• 15:45
  Speaker 2: My family.
• 15:46
  Speaker 1: And final question how do you want to be remembered by your friends and family?
• 15:50
  Speaker 2: That I gave all of myself to them and to others.
• 15:53
  Speaker 1: Well, thank you, chris, for taking the time to speak with us today.
• 15:55
  Speaker 1: It was great getting to know you a little bit better but also about the Joanne Loyalty Program and the new Joanne Marketing Approach and Repositioning.
• 16:03
  Speaker 1: You seem to be doing a great job managing it.
• 16:06
  Speaker 1: Looking forward to hearing more from you and your team coming up.
• 16:09
  Speaker 1: So thank you very much for taking the time.
• 16:11
  Speaker 2: Thanks, Mark.
• 16:11
  Speaker 2: It was great to meet you and join you for this time as well.
• 16:16
  Speaker 1: Appreciate it Also wanted to thank everyone else for taking the time to listen today.
• 16:18
  Speaker 1: Make sure you check back for additional episodes of our Leaders in Customology series soon.
• 16:22
  Speaker 1: Until then, have a wonderful day.