Experience Cost Optimization

Retailers and DTC brands need to create compelling customer experiences. They also need to be laser-focused on costs and margin. Sophelle developed our proprietary Experience/Cost Optimization (E/CO) framework to help our clients achieve this difficult balance.

Experience/Cost Optimization

Sophelle incorporates the E/CO framework in our strategy development to ensure alignment at the onset.

  • E/CO metrics are determined at the project planning phase to communicate priorities.
  • E/CO calculations are included in implementation projects as a measure of project success.

Experience/Cost Optimization focuses on the factors that drive experience and cost.

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Experience Value

Experience Value
  • r :  relationship contribution
  • o:  operational omnichannel consistency
  • p:  personalized experience
  • i:  incentive to buy
  • f:  friction to buy
  • u:  unmet expectations

Enterprise Cost to Deliver

Enterprise Cost to Deliver
  • c :  total cost to deliver – technology, services, materials
  • l:  utilization of existing labor
  • a:  automation of processes
  • t:  ongoing training required
  • e:  negative employee experience
  • w:  workarounds

Experience Value

r :  relationship contribution

Developing strong relationships with customers is a primary driver in lifetime value. How does the initiative build a stronger relationship between customers and our brand?

o:  operational omnichannel consistency

Successful omnichannel retail requires providing a consistent brand at each customer touchpoint (see Sophelle’s 3600 View of the BrandTM). How does the initiative improve consistency across touchpoints?

p:  personalized experience

Tailoring shopping experiences to each customer is becoming a requirement for the type of compelling experiences many shoppers are demanding. How does the initiative make customers feel you are addressing their individual needs?

i:  incentive to buy

Pricing, promotions, recognition, rewards, and gamification are common tools to incentivize shoppers. How does the initiative provide increase incentive?

f:  friction to buy

Each point of friction in the purchase path detracts from the experience and reduces the likely of completion and repeat purchases. How does the initiative reduce impediments in the buying process?

u:  unmet expectations

Customers enter every interaction with expectations on what should happen and how it should make them feel. This can be based on your marketing, their previous experiences with your brand, and their experiences with competitive brands. How does the initiative help meet or exceeded customers’ expectations?

Enterprise Cost to Deliver

c :  total cost to deliver – technology, services, materials

Successful retailer are laser-focused on costs and margin. How does the initiative reduce or control costs?

l:  utilization of existing labor

Labor, especially store labor, is often the largest controllable expense on a retailer’s P&L. How does the initiative reduce labor costs or improve labor efficiency?

a:  automation of processes

Proper automation improves scalability and consistency of business and technology processes. How does the initiative aid in automation?

t:  ongoing training required

Changes in processes often require training and, therefore, incur training costs. How does the initiative impact training requirements?

e:  negative employee experience

Employees can be a close second to customers in importance for many retailers. How does the initiative detract or improve employee experience?

w:  workarounds

Scalability and quality in retail operations rests in the ability of processes to handle customer demands. How does the initiative reduce or increase the workarounds required to handle exceptions?

Let's Talk

Create compelling customer experiences while prioritizing costs and margin.

If you'd like to learn more about Experience Cost Optimization, or would like guidance from a Sophelle Practice Leader, please call us. 508.875.5700