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Posted by Paul Hagen on October 20, 2010
I came across a recent Fortune article describing the activities behind Trader Joe’s experience, which illustrate well many aspects I talk about for Cost Leaders in my latest customer experience strategy report. One aspect I found interesting was Trader Joe’s general absence of self-service that I pointed to for low-cost leaders. Rather, the company focuses more on simplicity and layers over it a distinct culture embedded in employees. It pays employees well — meaning it can be more selective in finding individuals who embody its culture — while keeping prices low through other means, such as limiting its selection. The company makes tradeoffs to deliver on low-cost expectations.
My take: There’s no single customer experience strategy, just as there is no single company strategy. The point for both is to find the mix of aligned activities that provide a company with competitive advantage.
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