Michael Kors

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Case Study: Saving the Sale with an Endless Aisle

Company Overview

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Established in 1981, Michael Kors is a designer label that owns and markets designer jewelry, accessories, fragrances, watches, footwear, apparel, and many other products. The company has stores and boutiques around the globe and ended 2017 with 960 stores, annual revenue of $4.49 billion and 12,700 employees.

Challenges

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Lost customers and missed sales are both a challenge and an opportunity for most retail businesses. Michael Kors was facing a serious issue in its European stores with customers who would visit their stores and leave without buying something because they could not find it or it was out of stock. When people entered the store looking for a specific product, at times, the particular item seemed to be unavailable at the store. In some cases, the right size of the desired product wasn’t available, while in others, the specific item was simply not there. Store associates had no way to order the item online for the customers and ship it to them, so the associates tried to solve this problem by directing the customers to the nearest store with the desired product potentially in stock. In other cases, the customers were requested to login to the company website and order the same products online on their own. Not surprisingly, these suggestions did not prove to be helpful in the long-run and the brand realized that they were losing sales.

The company knew they needed to salvage this situation by giving their associates mobile access to online and store inventory, a truly endless aisle, and a mobile app for the associates to capture online orders, check out and process payment. Michael Kors approached Tulip for a long-term mobile Assisted Selling and Checkout solution for their store associates.

The Kors Connect Solution

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Store associates are not only the face of Michael Kors and brand ambassadors, they are the key drivers of sales and customer loyalty. Tulip, being a leading player in revolutionizing the in-store experience, understood this and collaborated with Michael Kors to deliver a mobile solution that empowered store associates with the information and tools they needed.

Michael Kors introduced a Tulip-based mobile app called “Kors Connect” to connect their associates to all inventory and assist customers with shopping. This new app would help save potential lost out-of-stock sales by accessing the online catalog and inventory. When a customer came into a store looking for a specific item and if the item was not housed in that particular store (or the particular size was not available), through the Tulip App, store associates were able to order the item online or from another Michael Kors store and ship it to the customer’s home. This meant that customers did not leave the store without completing a purchase, even if that meant checking online or other stores of the brand to find what they were looking for. The Kors Connect App, extended the legacy commerce system that Michael Kors had and offered customers an endless aisle experience that allowed them to purchase the products across all their stores and get it delivered right at their doorstep.

Search inventory with the Tulip Retail Assisted Selling App

Results

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In terms of objective results, Kors Connect initially generated incremental sales growth of 6% in their lifestyle stores in France and 4% sales growth in the UK stores in the first two months of its launch. This evidence of new revenue from “missed sales” that Michael Kors was losing prior to implementing Kors Connect was enough proof to expedite the roll-out of Tulip in all stores. Today, the Kors Connect App has been implemented in 108 stores across 18 countries in Europe. The App is credited with increasing overall in-store sales by over 2%. Michael Kors is not stopping there. With the Tulip foundation mobile platform in place, Michael Kors is planning to roll-out other Tulip apps including Clienteling to elevate service and further increase in-store sales.

Keys to Success

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An important reason why the Kors Connect App was so successful was that it catered to a wide variety of customers in Europe dealing with many languages, currencies and local regulations. The solution allowed for a seamless shopping experience, irrespective of the language barrier as the app was translated in 14 different languages and add access to multi-language catalogs.

The following Kors Connect App business objectives were achieved:

Increase in store traffic

Increase in sales conversion rates

Decrease in missed sales from out-of-stock items

Increase average order sizes

Growth in the Customer Lifetime Values

Increase in customer retention & brand loyalty

Improved and more unified omnichannel customer shopping experience

Conclusion

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In the digital, customer-centric world today, shoppers are hyper-connected and expect the convenience and personalized experiences they have online to be similar when shopping in stores. With the rise of mobile devices and online shopping, shoppers are engaging, researching, and buying across multiple channels, but retailers are struggling to connect online with the store and are not eliminating that digital divide between workers and shoppers who visit their stores. In order for the brick & mortar retail industry to thrive, workers will need mobile technology with access to the information and tools they need to service the customer to the level they expect.

Tulip is laser-focused on providing a mobile solution for stores, specifically apps for store associates. With the Tulip platform and apps, retailers can empower store associates to provide a seamless shopping experience to their customers. When standing shoulder-to-shoulder with a customer, store associates can use a beautiful tool they can trust, that is helpful and easy-to-use. Tulip’s innovative apps offer a way for the store associate to access the right information and right tools when it matters the most–when the customer is in the store and engaged.

Michael Kors’ secret to success through its 35+ years lies in its ability to understand and adaptability to rapidly increasing shopping trends. They have consistently outdone various competitors with their business strategy of leveraging popularity, market understanding, and technology partnerships to accelerate the company’s market growth. In this case, the company worked closely with Tulip and their technology partners to develop a best-in-class solution for a unified omnichannel shopping experience, a connected experience that consumers expected.

The company was experiencing customer turn-offs when shoppers could not locate products of their choice inside stores. Partnering with Tulip, Michael Kors’ store associates gained real-time access to the omnichannel product catalog, product details, inventory, checkout and payment tools, allowing them to elevate service, improve the customer experience, and drive more sales in the store. The company is expecting to see a steady market growth as it innovates and expands, and the collaboration with Tulip will continue to extend store associate mobile tools, deliver new apps and improve the shopping experience across all their stores.

Schedule a Demo

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Book a demo with Tulip expert and determine how to get started in empowering your store associates.