Gucci's Customer Experience Strategy: Understanding and Engaging in the Customer Experience

This report provides an in-depth analysis of Gucci's customer experience strategy, including its use of social media monitoring, attention to detail, CRM tools, and other methods to build strong relationships with customers and drive brand loyalty. It also examines the impact of customer service and value on the organization, and critically analyzes the factors impacting the ability of the organization to maximize customer value. The report includes a brief background on Gucci, a critical analysis of its quality processes, and recommendations for maximizing customer value.

Understanding and engaging in the
customer experience
Gucci

Executive Summary
Globalization, growth in business technology, evolution of social media platforms are
some of the factors which have pushed business organization to have a sustained focus
on its employees and always come up with strategies to ensure high customer
experience. Gucci which was founded in the year 1921 is a well -known luxury brand,
which uses plethora of strategies to ensure higher customer experience with the brand.
The company in order to drive customer experience strategy uses plenty of techniques
such as social media monitoring, attention to detail providing in store experience to the
customer, using CRM tools, specific language and plenty of other methods. The aim of
the company is to build strong relationship with the customers and drive brand loyalty
with its activities. The report here has provide the methods and the techniques Gucci
uses in order to focus on the experience of the customers, and at the same time building
strong brand loyalty.

Table of Content
Brief Background............................................................................................................................................. 4
Impact of customer service and value on the organization............................................................6
Critical analysis of Factors impacting the ability of the organization to maximize
customer value.................................................................................................................................................. 8
Understanding the wheel of Quality.................................................................................................... 9
Training......................................................................................................................................................... 10
Focus on the customers and his requirement...............................................................................10
Variation and Processes......................................................................................................................... 10
Leadership................................................................................................................................................... 10
Seamless Communication...................................................................................................................... 11
Effective and Active Listening.............................................................................................................. 11
Accessibility................................................................................................................................................ 11
Navigation.................................................................................................................................................... 12
Page Load Speed........................................................................................................................................ 12
Language...................................................................................................................................................... 12
Memory......................................................................................................................................................... 12
Personalized................................................................................................................................................ 12
Convenience................................................................................................................................................ 13
Real Time Interactions............................................................................................................................ 13
Choice............................................................................................................................................................ 13

Community.................................................................................................................................................. 13
Critical analysis of Gucci Quality processes and its effectiveness in meeting the customer
requirements................................................................................................................................................... 14
The art of Storytelling............................................................................................................................. 14
Customer Service...................................................................................................................................... 14
Driving to Stores........................................................................................................................................ 15
Attention to Detail.................................................................................................................................... 16
Luxury Experience Online..................................................................................................................... 16
Care about the customers...................................................................................................................... 17
Customer relationship management................................................................................................ 17
Conclusion........................................................................................................................................................ 18
References........................................................................................................................................................ 19

Brief Background
Italy is one of the largest hubs of Fashion and Leather brands which have given birth to
numero Uno’s in the fashion industry. Gucci is one such brand which was founded back
in 1921 in Florence Italy by Guccio Gucci. The 97 year old brand, which is a part of the
Kering Group, has stores in over 550 locations, earned revenue of over USD 4.3 Billion
in the year 2016(Jenkins & Williamson, 2016). The present leadership is in the hands of
Marco Bizzari, who is characterized as a transformational leader. The brand Gucci has
been ranked on 49th number in the Interbrand Top Global 100 brands(Roll, 2015). Gucci
business model is a combination of directly operated stores, wholesale seller of
products through Franchisees and upscale departmental stores. The consumers of
Gucci resonate with the brand because of three main factors; Fashionable products and
accessories, high quality and trust in the brand(Tumiet, 2017).
Gucci’s brand attribute across the globe is known as an Influential, innovation and a
progressive brand, which never fails to impress its millions of customers. Under the
leadership, Gucci is on a mission to reinvent itself into a wholly modern approach
towards fashion(Ellen, 2015). The recently appointed creative director, Alessandro
Michele has redefined luxury to better adopt the growing needs of the 21st century

customer. Eclectic, contemporary and romantic- Gucci products represent the zenith of
Italian craftsmanship and are unsurpassed for their quality and attention to detail.
Gucci’s is a Unisex brand whose product offering lies in the category of handbags, ready
to wear, shoes, accessories, wallets, belts, jackets and clothes for special occasions. Since
the inception of the company, Gucci has always focussed on its customers, and have
always created policies and practices which in the longer run would be beneficial for the
customers. Gucci’s consumer experience strategy is a combination of its social media
marketing activities, in stores activities, various quiz and contest and traditional
marketing. The company is of the opinion, that greater the engagement with the client,
higher would be the customer experience with the brand(Bruner et. al., 2017).
The learning outcome of the report or the assignment here is to develop a critical
understanding of the quality process in the workplace and analyse the customer’s
experience of Gucci. The report will also critically evaluate the benefits and challenges I
developing and maintaining good customer relationships, which will help in
understanding the factors responsible to influence the ability of the organization to
maximize the customer value. The report while illustrating how does Gucci enhances its
customer experience, will utilize concepts related to customer service, customer
centrality, buyer-seller relationship, role of CRM, managing customer expectation and
ethical consideration in buying process of the customers. Thus, the report will help in
identifying the critical success factors behind maximizing the customer experience of
the brand, whilst giving certain recommendation to Gucci in order to maximize the
value of its customers. An important role here is played by the contemporary tools of

marketing communication such as Digital and Social, and how does the brand uses these
channels to its maximum advantage with the aim of providing maximum value to its
customers.
Impact of customer service and value on the organization
Customer service can be understood as the process which ensures high customer
satisfaction by providing a product or service to the customer. Customer service is the
art and skill of handling the customers, his objections, concerns and grievances with the
objective of enhancing the value of the customers. A great customer service is one,
where the customer service agents provide a First call resolution to the customers.
Customer value on the other hand is a term which is used to define how the customers
value and weigh the benefits of the individual purchasing decision in tandem to the cost
incurred in those purchase. It is important for the business organization to really
understand who their customers are and why does these customers perceive the
organizations offering to have the highest customer value(Armitage, Roberts & Sekhon,
2017).

A customer engages with the organization only when he is satisfaction with the
company at all the possible levels, some of the levels are; Product quality, customer
service, customer experience, engagement level, trust and relationship with the brand
and ethical practices. It is a combination of all these factors which heightens the
experience of the customer. It is important to understand the reasons which make it
imperative for the business organization to focus on the customer experience and
accentuating his value with the brand. Some of the reasons are:
 Building loyalty with the clients- One of the most significant benefits a brand
derives out of excellent customer service is, creating brand loyalists for it. For
instance, Apple, which is the only Public listed company to touch the USD 1
Trillion mark, a major reason behind the success of Apple goes to its brand
loyalists. Thus, excellent customer’s service helps in building strong relationship
bonds with the customers, who then eventually start promoting the brand
among their peers(Furno & Orselli,2017).
 Treating non-sales as customers-Customers and sales is used synonymously,
however in reality this is not the case. Not every customer visiting the store leads
to sales, there are plethoras of customers who take a lot of time while finalizing
the product. Thus, it is the skill and the art of the customer service agent to
engage with the client, and try to convert the potential customer into guaranteed
sale for the brand. Thus, excellent customer service helps in creating sales for the
business organization(Merlo & Perugini, 2015).
 Preventing Negative reviews-Social media has given an easy access to the
customers to make their words reach directly the brand. Most of the post on the
social media is related to pathetic customer service, poor quality of the product,
rude behaviour of the staff and many other reasons. Thus, organization by virtue
of offering great customer service can easily prevent the outflow of negative
review in the market.
 Increase the revenue and profits-Great customer service and high customer
value is an indication that the customers are happy with the brand and its
offering. This in turn means more revenue and profits for the business
organization.

 Building strong community-Brands these days are focussing on strong
community, just like Apple, who play an important role in the success of the
brand. In order to build a strong community and not let the revenues slide even
for one bit.
 Increasing the Net Promoter Score of the brand-With the evolution and
development of social media marketing, the concept of Net promoter score has
taken a big leap. Brand these days puts efforts to retain the customers, provide
him excellent services with the intention of retaining him and increasing the net
promoter score of the brand(Straker & Wrigley, 2016).
Thus, the above points clearly define the importance of customer service and customer
value to the business organization. Excellent customer service is one of the yardsticks
along which the customer weighs the relationship with the brand.
Critical analysis of Factors impacting the ability of the organization to maximize
customer value
The section here will focus on the quality process ensured by Gucci in meeting its
customer expectation and creating a long term relationship with esteemed customers.
In our daily lives, we are always talking about quality, may it be related to a gadget,
appliance, clothes, food etc., but people are always talking about quality. However, in
practice the concept of quality is quite vast; it is extremely difficult to agree on a single
definition of quality, as it differs from person to person. However, certain dimensions of
reliability, usability, ease of use, value for money and fit for purpose are some of the
quality factors which matters to the customers. Some of the factors which have a
positive impact on the customer value are:

Understanding the wheel of Quality
(Source: Cook, 2017)
Wheel of Quality was conceptualized by Kenneth H.Rose and is one of the most
fundamental models which answers the question of why, what and how in respect to
the quality management. The model is an extension of PDCA (Plan do check action)
cycle, which helps in focussing on the quality management in the organization. The
fundamental purpose of wheel of quality is to provide a comprehensive understanding
to the organization regarding the best practices of quality management. For instance,
continuous improvement in the process, customer focus, implementing controls,
process and meeting the requirement of the customers is one of the ways of ensuring

high quality in the workplace. The wheel of quality provides a fair understanding to the
organization, on the quality parameter which needs a significant improvement.
Training
Training is the centre of the universe in excellent customer service. Organization have
to rely and focus on providing intensive training to the employees on how to deliver
excellent customer service and tackle the concerns of the customers. Training helps in
analysing the gap in the skills of the individual, which can then be improved by the
organization by virtue of providing training to the employees. Thus, training impacts
the customer satisfaction and the value immensely(Leckie, Nyadzayo & Johnson,2016).
Focus on the customers and his requirement
The industry has revolutionized in the recent past and the focus of the business
processes and quality management is inclined towards the customers. The focus on the
requirement of the customers and the experience has increased exponentially. The need
of the hour is to analyse and identify the needs and requirement of the product and
offer them the products and services which provide them with maximum value. Focus
on customers will further help in tailoring the product needs of the customers, which
can be worked upon to give them a feeling of excellent customer service.
Variation and Processes
The best way to determine the satisfaction level of the customer is by the virtue of
taking customer feedback, interviews and surveys. The analysis of customer feedback
and services helps in revisiting the process and policies of the organization, which
provides maximum value to the customers. Organization create standard process and
practices keeping in mind the customer at the centre, but these policies are consistently
monitored and reviewed to inculcate the best practices to provide excellent customer
experience(Ucok, Bendoni & Pehlivan, 2016).
Leadership
Leadership is the essence and the skill of an individual to influence, motivate and
empower the organization or the individuals to reach the organizational goals and

objectives. It is essential for the leadership to take active interest in creating policies
and procedures which will translate into excellent customer service. Leaders have a
great influence on the organization, thus if the leadership creates a culture which
promotes excellent customer service, the same will be replicated in the organization by
all the employees. Thus, leadership has a significant impact on the creating customer
value in the organization(Grassi & Wigley, 2018).
Seamless Communication
Communication is one of the pivotal factors behind the success of a business
organization. It also plays a significant role in managing the expectation of the
customers and providing them with enriched experience and service quality. The
important concept here is to ensure that a seamless communication is maintained with
the customers on all the possible platforms such as social, digital media, traditional
platforms and even in the stores. The customer loses the momentum with the
organization, if different platforms fail to provide reliability and consistency in its
information. It is thus imperative for the organization to ensure that it maintains
consistency in its communication with its esteemed customers. Once the customers are
satisfied with the reliability of the communication and the consistency, there experience
gets heightened organically(Ryding et. al., 2016).
Effective and Active Listening
Most of the successful companies in the past have excelled in their customer service
owing to high level of effective and active listening of its customers. The purpose while
listening has to be to understand the customers and develop a clear understanding of
their requirement. After effective listening one can provide the solution which meets
the requirement of the customers. Thus, effective and active customer listening helps in
delighting the customers and increasing their customer value.
Accessibility
This is a parameter which ascertains the ease with which the customer is able to find
and access the product on the preferred channel. The easier the access to the offering of
the organization more is the impact on the customer’s value.

Navigation
This is another factor which has an impact of the customer value, for instance, the easier
it is to look and browse for the products on the website, the greater the value delivery to
the customers. Thus, in order to make the navigation real smooth on the website, it is
recommended to feed in keywords which would help in easy search for the customers.
Page Load Speed
There is a simple yet very effective ruling here, faster the website page loads, happier
the customers. In the absence of a fast page loading, there are plenty of chances that the
user might shift to another website, which will impact his customer value. Therefore it
is advisable to keep the page lighter to increasing the loading speed.
Language
Language is another factor which has a significant impact over the customers, easier the
language used while interacting with the customer, higher the experience of customers.
It is also advised to not use industry specific language, as it confuses the customer,
which decreases his experience with the brand.
Memory
Customer expect from the organization that they keep their all the records intact with
them, even while they are switching channels to consume information. Customers also
expect that the brand does not show them the product to which they have already
shown disinterest. Memory also implies that the organization remembers the need and
wants of the customers and pitches them the product accordingly(Moody, 2015).
Personalized
Customers appreciate the effort of the brand while personalizing the content or the
shopping list for them. They also appreciate when the right content is shared with them
at the right time; it helps in increasing their satisfaction and experience with the brand.

Convenience
Convenience is another essential element which helps in increasing the experience of
the customers. The convenience is in deciding what to buy, from where to buy,
convenience of transaction and the post benefit convenience. All these convenience
factors help in increasing customer value.
Real Time Interactions
Real time interactions are the new big thing which has a significant impact on the
experience of customers. With the evolution of technology more and more devices are
coming in the market, such as the chatbots. Chatbots helps in capturing the real
attention of the customers and also provides them with the feeling that the brand is
there for its customers.
Choice
More the choice the brand gives to its customers; more they will be engaged in the
offering of the organization. This helps in increasing their experience and satisfaction
with the brand.
Community
With the evolution of digital technology, customers get an option and a platform to
research for the product before making a purchase. Thus, in order to provide the
customers with the relevant feedback, brands are building strong community who can
act as influencers for the customers. This community building exercise helps in
providing the real feedback to the customers which helps in increasing their customer
experience(Ozuem & Azemi, 2018).
There are plenty of other factors which have a significant impact over the customer
value and their experience; it though depends entirely on the brand to pick out the best
practices suitable for their brand. However, the most important thing which heightens
the experience and the value of customers over time with the brand is paying closer
attention to the details and builds relationship on the pillars of trust, respect and care.
Thus, these are some of the factors which impact the ability of the organization to

maximize customer value and earn their brand loyalty. It is the virtue by which the
organization influences the customers and builds a long term relationship with them,
which in turn impacts the customer value.
Critical analysis of Gucci Quality processes and its effectiveness in meeting the
customer requirements
The section here will focus on the specific policies related to quality with Gucci, which
ensures a good engagement with the customers while meeting his innate requirements.
One of the major identified factors behind the success of Gucci is its strong association
with its customers; the company uses an engagement communication strategy in the
process. The company uses both the social media platform and traditional platforms to
meet the requirements of the customers which ultimately drive increased customer
value, experience and satisfaction for the customers.
The art of Storytelling
Gone are the days when the customers used to visit the store, search for the products
with the help of a salesperson and stands in a long queue for making the payments. The
mortar model has been effectively tweaked with the click and mortar model for
increasing the experience of the customers and giving him convenience while shopping.
Storytelling becomes all the more important when it comes to luxury e-commerce
experience. Luxury brands are strong defined and characterized by a fine and rich
history of absolute craftsmanship and design; hence it is extremely important to
communicate the same. Luxury brand, such as Gucci focuses on Storytelling in order to
differentiate the brand and communicate its value to the customers. Gucci uses
storytelling to communicate how it creates exclusive products for its customers and also
explains them the rich history of the brand, and testimonials of the client. All these
factors help the brand in building brand loyalty and most definitely add to the value of
the customers(Amatulli et. al.,2017).
Customer Service
This is one area, where Gucci outsmarts all its competition, May it be Burberry, Emporio
Armani or any other brand, Gucci is impeccable with its customer service strategy. The

brand employs people who have rich experience in fashion and lifestyle, or are keenly
interested in the trends in lifestyle and fashion products. Salespersons are integral to
the success of the stores, the brand thus employs people who are filled with knowledge
and are willing to share their knowledge with the customers. Knowledge sharing is one
of the most important aspects of customer service strategy. The salesperson employed
at the store guide the customers, pamper them and provide them with the best
customer experience. This experience has to definitely be translated on the website,
thus Gucci on every page of its website, gives a popup to the customers if they would
like to get further help and get in touch with the salesperson. The company offers
customer service options on every product page, which prompts an overlay with
multiple options to speak with the salesperson. This customer service strategy settles
down well with the customers, as they are assured that if they get stuck somewhere,
they have a person with whom they can talk to and get their query resolved. Thus,
customer service is one feature which accentuates the experience of the customer with
the brand(Keller, 2017).
Driving to Stores
Luxury brands have to focus on providing a great in-store experience to its customers.
Gucci here uses the e-commerce website design as a means to promoting their stores
and boutiques. Luxury brands know that customers might search for the product online,

but there are strong chances that he will ultimately go to the store to make the
purchase. Thus, Gucci here tries to provide the closest in store experience on the
website to its customers. Gucci thus uses this strategy where it builds the desire for
customers to go and visit the store. This is another strategy of Gucci which helps in
increasing the experience of the customers by providing them a real time experience on
the website. In all fairness, this strategy of Gucci attracts a lot of footfall at its
stores(Sondhi, Sharma & Kalla,2017).
Attention to Detail
Luxury e-commerce site gives a lot of attention to its detail, so that those details pertain
in translating the brands personality in the digital space. Brands like Gucci do not
sacrifice with their web usability in favour of providing unique aesthetics. Gucci here
finds different ways to differentiate themselves online as well as offline. This is ensured
by using high end visuals and specific language. For instance, Gucci uses
Complementary shipping in lieu of free shipping. All these features help in creating a
different image of the brand in the mind-set of customer which finally leads to added
customer experience. Attention to detail helps in scoring brownie points for Gucci, and
its customers appreciate the efforts of the brand. This then eventually turns in higher
customer satisfaction and value for the customers(Verissimo & Loureiro,2018).

Luxury Experience Online
Industry experts in the earlier days wrote down luxury e-commerce to be a pipe dream,
however, the acceptability of the luxury e-commerce has grown manifold in the present
day organizational context. Moreover, e-commerce is another successful channel in
delivering value to the customers. Luxury brand such as Gucci works really hard
towards all its elements in order to communicate through heritage with its customers.
Gucci provides the customer a call to action on all its pages so that the customers not
only get an easy access but their experience on the website increases significantly(Helal
& Ozuem, 2018).
Care about the customers
Gucci at present operates in over 540 locations and its business model is a combination
of wholesaler, franchise model, retail stores and e-commerce. The strategy of the
company remains the same in all of its channels of product offering. Gucci has
repositioned the brand in order to appeal to a wider audience and has tailored its
product line to better suit the needs of its customers. The company delves into
extensive marketing research on the products, taste of customers, current and future
marketing trends, which further help them in coming up with the products customer
desire the most. The company always aims to match and meet the aspiration of its
customers, and customers in turn resonate with the brand by giving good feedback on
the social media platforms and other channels. Thus, caring about customers is another
strategy of Gucci which helps in delivering high customer experience and value for
them(Gabriel et. al.,2016).
Customer relationship management
Increasing competition , growth of business and e-commerce technology are some of
the major factors which has pushed the brands to woo the customers and drive them to
the stores or push them to shop online. Gucci focus lies on retaining its existing
customers and acquiring new customers at the lowest cost possible, in such a situation
the role of Customer relationship management comes in the picture. CRM is the set of
practices, strategies and the technologies used by the company with the intention of
managing its growth strategy while building relationship with its clients. Gucci uses

CRM tool to build strong loyalty with its clients. The company ensures the same by
remembering important days of the customers and making them feel special by
providing them exclusive deals on their special days. The customer feels delighted
knowing that the brand cares for them, this directly impact their experience with the
brand(Berguson, 2002). Gucci uses CRM tool in the organization for the following
purpose:
 Collecting primary and critical information about the customers and create a
database for the marketing activities.
 Using data analytics or business intelligence to break the collected information
and use the result to drive customer experience.
 Collection of data to monitor the effectiveness and the efficiency of customer
service and marketing strategy(Gummesson, 2002)
 Using the tool to touch the customer pain points and to identify the customers
with stable relationship with the brand(Epstein, 2018).
It can be thus easily said that Gucci’s doing extremely well in managing its customers
and providing them with a great customer experience while providing them with
satisfaction and increasing the customer value in the organization. The company does
not use too many elements to increase the customer value, but it researches and uses
the option which will have the maximum impact on the customers.
Conclusion
Gucci is a world renowned fashionable luxury brand which was founded in Italy back in
1921. The company which started off its journey as a retail store has now graduated and
moved to click and mortar model in order to leverage the opportunities created for the
e-commerce industry. The luxury brand ensures a high level of engagement with its
customers through the entire possible communication channel, this helps in
relationship building with the clients. The company in order to enhance its in-store
experience for the customers, employees salespeople with rich experience in luxury
brands or who have a knack of spotting the current trends in fashion and lifestyle. The
company uses these people to help the customers in exploring their options and help
them in making the right choice. The company also tries to provide the real time in store

experience on the website. Thus, Gucci’s ensures that it keeps its customer happy,
satisfied which ultimately increases the customer value for the organization.

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