In Part 1, I wrote about how Netgrocer tends to its customers so well. In this follow-up, I'll give you an example of how Netgrocer.com has taken what it has learned, and now, as Nexpansion, is "expanding commerce boundaries for manufacturers and retailers" to further customer service.
It almost sounds like a nonprofit mission the way Nexpansion developed programs to help other companies build and sustain customer loyalty the way that they have for the past six years. Yet, the moral of the story may be that focusing on relationships, be they with customers or business affiliations, doesn't have to be to the detriment of a company's bottom line. Rather, all this "feel good" stuff can actually be good business.
The fact that Lisa Kent, President and CEO of Nexpansion, refers to their manufacturer and retailer relationships as "partnerships" speaks volumes. Once they got their own online application and fulfillment down, Nexpansion was inspired to forge even more mutually beneficial business relationships while serving their own customers better in the process.
Grocery Aisle-O-Rama
While the newly expanded company service repertoire includes many great manufacturer programs, it was Lisa's mention of the "Endless Aisle" retailer program that caught my ear during our conversation a few weeks back. The true "endlessness" seems emblematic of Nexpansion's dedication to customers, as you'll soon see.
The "Endless Aisle" program for retailers evolved from Nexpansion's existing Web site hosting and fulfillment solutions for companies like Parmalat (a $6 billion multinational dairy and food company that is one of Nexpansion's largest shareholders), Kraft and Johnson & Johnson. This is how it works: Suzy Jones of Nowhere, MN, calls the Kraft customer service line looking desperately for some cheese spread she could get when she lived in Canada. Rather than make her buy a case in order to send her the product or send her to a store 300 miles away, the helpful Kraft employee could go online to Netgrocer.com and place a small order for the customer in real time. FedEx would bring it to Suzy's door a few days later. (Remember: Netgrocer only carries non-perishable goods.)
Crowd Pleaser
Today "Endless Aisle," Nexpansion's new customized online application and fulfillment program, provides manufacturers, brick-and-mortar stores (starting with New England's Stop & Shop Supermarket Co.), and consumers alike with a new level of service. Stores and manufacturers will never again have to turn away a customer looking for that hard-to-find item, nor will they have to discontinue items that sell less quickly and wouldn't otherwise earn shelf space. Customers, on the other hand, will no longer have a problem finding the "Johnson's Kids Harry Potter Foaming Kiwi-Melon Hair Detangler" their kids demand or the salsa they discovered on their last trip to Mexico. They can simply buy that product in small to large quantities via Netgrocer.com from their home computer, or through a Web-enabled kiosk at a participating local market.
Here's an example of how this expanded service will work: Suzy Jones asks her grocer about additional nutritional products from the Atkins line. The store can only afford to carry the five most popular items on their shelves, but Suzy really likes the "Atkins Advantage Creamy Berry Cheesecake Bar." Nexpansion saves the day, giving the grocer the opportunity to say, "Certainly, Ms. Jones. Let me order for you online. It will be at your door in a few days and you can pay by cash, check or credit card at the checkout as usual." The customer isn't disappointed and the retailer is selling a product they don't even display.
The Friendly Face Factor
While dot-com era Web grocers like Webvan and Kozmo may have crashed, a "brick-and-click" business model like Nexpansion's "Endless Aisle" might just be a secret weapon. It offers the advantage of the friendly face, or existing local grocer relationship, to keep customers comfortable with the entire experience.
According to a mid-2001 University of Georgia report on the results of two surveys they took 18 months apart, there was a "dramatic change" in the number of experienced online grocery shoppers and the number of people who were willing to buy all of their groceries online. Further, the percentage willing to buy all of their groceries online grew from 48 percent in the first survey to 79 percent in the second.
Studies like UGA's, and the increasing overall numbers of consumers who are buying all sorts of things on the Web, present evidence that consumers might well be primed to conduct e-grocery shopping, en masse. Still, grocery shoppers are not yet flocking online - possibly because of security concerns, shipping fears or site usability issues.
Existing relationships with welcoming characters like "Sam the Butcher" (of Brady Bunch fame) or your usual Monday night checkout clerk can be key for helping consumers try out the efficiencies of online shopping. If their "friend at the store" suggests the service or uses an online tool to get them what they need, a customer might enjoy that continued arrangement forever, or learn to visit the endless aisle on her own.
Customers will always have need for their local brick-and-mortar store, but they will greatly appreciate the extra service of a program like "Endless Aisle." And, the local grocer retains the relationship and loyalty of the customer while leading them down that limitless aisle.
Do I hear "win-win?"
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