Gaining Double-Digit Growth Despite Economic Conditions
As turbulent as the economy has been recently, and is now, there are still customers out there with money to spend. The important question is will they spend it with you?
One place consumers are spending: Godiva. Yes, upscale chocolate.
In fact, in June the company's year-to-date sales had increased 19 percent globally and 12 percent in North America, according to Mahender Nathan,
vice president, direct, for Godiva. The reason for this growth, in my opinion: customer-driven innovation.
Godiva knows its customers well--especially its primary target customer, who it calls (not surprisingly) Lady Godiva. The chocolatier knows not only basics like customers' spending patterns (e.g., customers who purchase in one category versus several) and demographics (75 percent are over age 32,
60 percent have children, 85 percent graduated college, etc.), but also psychographics like they're "busy but content" and they "love to indulge yet are health conscious" and they "consider themselves generous and giving."
Having that depth of insight helps the company know who and what to ask when conducting new product research. Godiva taps its customers for ideas and feedback through several channels, including an invitation-only online community. Godiva asks specific questions about products, like flavor preferences and input on product ideas, as well as lifestyle-related questions about topics like entertaining. Additionally, the company gathers unsolicited feedback and listens to customers' conversations online. "For every insight we glean, customers give us one we didn't know to ask," Nathan said during his presentation at Social Customer 2011. As a result, Godiva has introduced several products with resounding success, including its Gems, limited edition truffles, and beverages.
"New products have been largely successful because we get customer input early in the development process," Nathan said. "And because we ask customers what they want."
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