With the anticipated John Lewis Christmas ad having been recently released, we at XPotential thought we would take a look at this beloved retailer, and what has made them one of Britain's favourites.

1. Ethics &
Emotion

2. Ethics and Emotion
Case Study
Katie Mason

3. Introduction
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John Lewis has succeeded in creating an enduring and
valued brand in the UK over nearly 100 years
The department store (which sells home-ware,
electricals, beauty, clothing, toys and sports
equipment) was voted Britain’s Favourite Retailer for
2010 and 2011
There are 35 John Lewis stores across the UK (not
including partner supermarket, Waitrose)
Gross sales for John Lewis reached £3.33bn in 2011
This quintessentially English, well-loved brand seems
to be infallible in most people’s eyes, this presentation
examines three key features that have contributed to
this prestige and what we can learn from them:
– Compelling brand values
– Emotional connection
– Living the brand
http://www.smarta.com/advice/sales-and-marketing/sales/fivelessons-in-customer-service-from-john-lewis
©XPotential 2012
Contents
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Compelling brand values
6
Emotional connection
8
Living the brand
11
In summary
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4. Compelling brand values
Since its early years, John Lewis’ values of ethics and fairness have
been the foundation of the organisation and a compelling point of
difference to other retailers.
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Success in their strategy relies on 3 pillars:
– “Partners (employees) should gain personal satisfaction by being
members of a co-owned enterprise in which they have worthwhile,
secure and fulfilling employment and confidence in the way the
Partnership conducts its business”
– Customers; “John Lewis should recruit and retain loyal customers
through their continued trust and confidence in our reputation for
value, choice, service and honesty and for behaving as good citizens”
– Profit: “John Lewis should make sufficient profit to sustain our
commercial vitality and distinctive character, allow continued
development and distribute a share of profits each year consistent
with Partners' reasonable”
Fairness to staff
 The values of John Lewis are traditional and ethical – they can be seen
throughout the business, but are especially highlighted in the renowned
co-operative model that the company uses
 All John Lewis employees are referred to as “partners”, and the business
is owned by them – not shareholders
 Annual bonuses, based on the company’s performance are calculated as a
percentage of employees’ wages – in the same ratio for everybody
 John Lewis’ emphasis on the happiness of their partners, through their
worthwhile, satisfying employment in a successful business has lead to
John Lewis being hailed as an outstanding retailer and example of
employee ownership
www.johnlewispartnership.co.uk
http://www.reputationconsultancy.co.uk/Blog/(offset)/10
©XPotential 2012
What we can learn
 Ethics matter in
business; even more
now that transparency
is increasing through
social media, so
conducting the
business according to
a code of ethics is a
vital start point
 Starting with the staff,
treating them well and
keeping them satisfied
will radiate good
service and positivity
for the brand
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5. Compelling brand values
Fairness to customers
 Since their early days John Lewis have kept a promise; “Never
Knowingly Undersold” – a price-matching policy to deliver honest
value to shoppers, but without making low price the centre-point
of their positioning
 Even in the financial crisis, with competing retailers cutting prices,
John Lewis maintained the promise despite this denting its
operating profits by 55% in the first half year of 2011 (although
like for like sales increased 1%)
 Chairman, Charlie Mayfield, said that although the promise cost
them in the short term “It is really important that we stick to it”
 Maintaining the promise is one reason why John Lewis enjoys such
a good reputation; they remain authentic and consistent
What we can learn
 Regardless of what the
promise you make to
customers is, it is vital
that you stick to it, to
prove reliability and
build up trust, as well as
reinforcing your
message and improving
its memorability (by
remaining true to it in
the long term)
www.johnlewispartnership.co.uk
www.reputationconsultancy.co.uk/Blog/(offset)/10
©XPotential 2012
5

6. Emotional connection
Emotionality has become a defining feature of John Lewis’
advertising and marketing – building a strong emotional
connection with consumers over the years.
The benefits of making a positive emotional connection
 A key strong point for John Lewis is the brand’s ability to
connect with people’s emotions
 Over the years, particularly through advertising, John Lewis
has succeeded in appealing to emotions – deepening the
strength of consumers’ connection with the brand and
making it more memorable for them, as well as more of a
talking point. E.g. the John Lewis Christmas ads are
frequently discussed and shared on Facebook etc. each year
Building emotional connection through association
 It’s home-ware heritage gives John Lewis a strong footing for
building emotional connection, with “home” being an emotive
and positive concept for most people
 John Lewis has also built up emotionality around the brand
by making it integral to especially heart-warming and
memorable life events like Christmas and weddings
 The John Lewis wedding list service is the most popular in
the UK
 Being a British brand operating only in the UK, John Lewis
also has the opportunity to connect with customers on a
patriotic, inclusive level
www.marketingsociety.co.uk/the-gym/top-tips-craig-inglis
www.brandrepublic.com/features/1119348/
©XPotential 2012
What we can learn
 Emotional connection is a
valuable advantage that
cannot be stolen by
competitors as easily as lowest
price, for example
 John Lewis have used their
product offering and found
emotional events that it
naturally links with to build
positive feeling
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7. Emotional connection
Building emotional connection through great advertising
 John Lewis’ emotive, understated and heart-warming
Christmas adverts are now an anticipated part of the
season, with the 2012 ad even having “teasers” before its
“premier”
 The impactful 2011 John Lewis Christmas Advert featured a
young boy wishing the days away to Christmas, when he
could give a gift to his parents – the advert was so
endearing that John Lewis received many messages to say it
had been used to demonstrate the importance of giving at
various school assemblies
 Through great advertising, John Lewis succeeds in making
people excited enough to speak about it, without being
shocking or losing its dependable image
 ‘There is often talk about not over-promoting ourselves, and
we are naturally a conservative business. What we have
done is demonstrate to the partners that you can market
yourselves without being boastful, but (we must) root what
we say in truths about the business.‘ Craig Inglis, Marketing
Director
 Feeding into the emotional atmosphere of the adverts is
John Lewis’ use of music; its careful choices have included
covers of various favourites performed by up and coming
artists (who enjoy a huge resulting record sales boost).
They have even gone to far as to release a charity album
featuring the music from their ads, and sponsoring Kew
Garden’s musical event, “Kew the Music”
www.marketingsociety.co.uk/the-gym/top-tips-craig-inglis
www.brandrepublic.com/features/1119348/
©XPotential 2012
What we can learn
 John Lewis’ advertising style is
cinematic – catching attention
by not looking like other
adverts, but more interesting
 Emotion and story are central,
creating a positive, compelling
feeling and portraying the brand
not as a number of products
(subject to change every
season), but as a world the
viewer would like to be part of
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8. Living the brand
People warm to the John Lewis brand through its fair and ethical
brand promise and business model, along with its emotional but
not controversial advertising. However, it is the living proof and
experience of the brand that cement its positive reputation.
Service preparation
 The service at John Lewis is held in high esteem against competitors
as a clear point of difference and advantage – in 2011 the company
was even approached for service skills training by the police!
 In order to deliver the brand-building service John Lewis is known for,
staff need to be engaged and motivated. John Lewis employees have
more reason than most to care about the service they deliver to
customers, as part owners of the company; they are invested and
involved in it
 Taking care of employees is John Lewis’ first step in delivering
outstanding customer service, creating a positive “emotional climate”
in the organisation
– "We're based on the notion that if we treat our partners well, it
will lead to good customer service.“ Executive Chairman, Charlie
Mayfield
– Sense of ownership, pride and being valued leads to happy
employees
– Their value is shown by annual bonuses reflecting performance
of the business
 John Lewis employees are trained in customer service before their first
day, and regularly thereafter, instilling 6 founding principles; "Be
honest; give respect; recognise others; show enterprise; work
together; achieve more."
www.marketingweek.co.uk/news/
www.brandwatch.com/wp-content/
www.marketingmagazine.co.uk www.cca-global.com/
©XPotential 2012
What we can learn
 A customer’s service
experience is a loaded
moment of truth for brands
(especially retailers), so it is
worth prioritising and
investing in (with every
employee – they all
represent the brand to
customers)
 John Lewis customer service
success comes not just from
training staff, but leading by
example with the way they
treat them – building service
principles (like respect,
honesty and working
together) into the whole
organisational culture
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9. Living the brand
Service in action
 John Lewis’ “Show enterprise” principle is particularly strong.
As employees (co-owners) are invested in doing well for John
Lewis, they are given the motivating trust, responsibility and
opportunity to find ways to meet and exceed customers’ service
expectation
– E.g. in winter 2009 over 100 shoppers became stranded at
the High Wycombe store by heavy snow. Rather than turn
them out into the impossible weather, the JL employees
hosted an impromptu sleepover, making up beds,
providing food and opening toys for children of those
snowed in. The result was not only happy customers, but
great PR and word of mouth in the community
 Ability to move outside the process is critical for the “heroic
recovery” secret weapon of customer service – being able to
turn a crisis into a loyalty-affirming moment
 Training in knowledge as well as manner is essential in
delivering a service that customers value; being able to
communicate a broad understanding of the products helps
demonstrate authority and earn the trust and confidence of
shoppers – adding value over other retailers
 With expertise and education, John Lewis has set itself above
others in value-adding service, e.g. through helpful in-store
events such as a Men’s Perfume Class in 2010 to help men
choose the right gift, and a Cashmere Care Clinic for Christmas
2012 – as many customers felt uncertain of how to look after
Cashmere items (holding them back from purchase)
www.marketingweek.co.uk/news/
www.brandwatch.com/wp-content/
www.marketingmagazine.co.uk www.cca-global.com/
©XPotential 2012
What we can learn
 Giving staff the freedom from
bureaucratic procedures to
find the right solution for each
customer is often held up as
the key to good service – if
staff are trained and treated
well, their instant actions will
be far more valuable to the
customer than a delayed
standardised response
 Creating insight-driven
opportunities to connect with
customers and help them
through sharing of expertise
is a great way to build
relationships and foster trust
and service-oriented image
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10. Living the brand
Consistent service through different channels
 Living the brand and delivering service is a challenge
online that John Lewis rise to; maintaining customer
service levels and the personal touch
 Online now accounts for 24% of total John Lewis sales
while the Click and Collect (buy online, collect from local
store) service has grown 114% over the last year (Sep
2012)
 The website is user-friendly and reflects the style of the
physical stores, but contact details like phone numbers
are made clear to maintain the personal element – it was
voted Britain’s Best Online Retailer by Which? In 2010
 Online podcasts, videos and advice guides also help to
deliver the John Lewis service in the online media
 John Lewis also has one of the fastest responses to
twitter posts, with the average time taken to respond
being 3h 23min (median average 16 min)
 On facebook, reply posts from John Lewis always provide
a name, “Hi this is Miriam, sorry to hear about….”
keeping the personal touch that stops customers from
feeling distanced from faceless corporations
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With customer service being so integral to the John Lewis
brand, when they chose to collaborate with a travel
agency, they partnered with luxury travel company Kuoni
for their customer service focus and expert advice,
creating shop-in-shops at a number of John Lewis stores
www.marketingweek.co.uk/news/
www.brandwatch.com/wp-content/
www.marketingmagazine.co.uk www.cca-global.com/
©XPotential 2012
What we can learn
 Online is an un-ignorable channel
for retail but requires a creative
approach to delivering quality
service; e.g. online tutorial videos
integrated into the site (that are
easy to find)
 The online world can remove
personal touch, so fast response to
social media queries, live chat and
telephone contact-ability help to
restore it and retain customers who
could otherwise easily click away to
competitor sites
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11. In Summary
The lessons we can learn from John Lewis:
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The inclusivity and fairness that John Lewis is built on
helps to avoid the us-and-them attitude that can lead to
conflict between employees vs. employers, and staff vs.
customers, allowing for a more positive atmosphere,
better service and a stronger brand
John Lewis invest in service, paying attention to detail and
finding innovative ways to bring value through service to
customers (e.g. insight-driven tutorials that address
customers needs)
They allow staff to think on their feet, placing trust in their
ability to find the right solution for customers (which will
keep them satisfied and build loyalty)
The theme of John Lewis adverts is inviting, rather than
selling – finding ways to connect emotionally with consumers
(particularly using emotive tools like music), building affection
for the brand rather than hard-selling a product
Creating an emotional connection requires understanding
of consumer’s emotions and life surrounding a product /
purchase (e.g. Cashmere Care Class; cashmere is not just a
glamorous treat buy, but something special that you want to
protect and keep using)
One of the most important success factors of John Lewis is its
trust-worthy consistency; keeping promises and not being
fickle in style, message or tone
©XPotential 2012
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12. Who are XPotential?
XPotential is a brand focused strategy consultancy
that helps to align individuals, functions and
organisations throughout the world to create and
deliver Brand Value.
We work with some of the world’s biggest brands to
deliver outstanding results. We orientate individuals and
teams in the organisations to focus their responsibilities
to deliver value to their most important asset - their
brand. We are proud to have worked with over 30
companies in over 50 countries and touched tens of
thousands of individuals, delivering some of their most
impressive business results.
We do this through working closely with the leadership of
organisations to develop Brand Centric Vision and
Strategy through a deep understand of the challenges
and opportunities for the Brands and the Company, the
Brand Vision and the key audience for change.
We then design and implement a programme of brand
centric change including communication, engagement,
training and follow up. We have worked both cross
functionally and also through specific areas including
sales, supply chain, innovation, marketing, R&D, finance
and HR.
©XPotential 2012
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13. “We align individuals, functions and organisations,
throughout the world, to create and deliver brand
equity”
Take a look at our website
to find out more about us:
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