California Closets: Organising the customer Experience

1.) What is the value proposition offered by California Closets?

California Closets sold custom storage solutions to their customers. Some of the solutions
were bedroom closets, playroom storage, garage storage, home office storage, wine storage
and pantry storage. The solutions competed heavily on price and is considered a premium
product. California Closets’ value proposition is to provide quality custom storage solutions
that would help people become a better version of themselves. The storage solutions provide
more time and space to the customers to concentrate on what matters the most. Their
credo is “Designing better lives”, which highlights the premium service offered. The
solutions are all custom made according to the taste and preference of the customer. It is all
about facilitating what the clients want. The customers love being part of the project. The
designers work with the customers closely to ensure the needs of the customer are fulfilled.

The customer had three ways to experience the products: visiting the physical store, visiting
the website or called up the California Closets outpost. Bill Barton, CEO of California
Closets wanted to standardise the customer experience across all of its locations. Designers
provided unrivalled customer experience. Playbooks were drafted to highlight the
significance of ideal experiences for customers. Bringing happiness to customers through
expert design and organisation was their priority.

2.) Would you recommend NPS as an effective measure to loyalty?

Yes, I would recommend using NPS to investigate customer loyalty. This is mainly because,
it is simple, easy to administer, economical and user-friendly. NPS would greatly assist in
understating the customer needs and their perception about our brand. It is valuable as it
provides an enormous amount of scope for the organisation to improve based on the feedback
it receives. Negative NPS will pave the way to trace the issue and get to the root cause.

Even if the products our expensive for the potential lead, a positive word of mouth or referral
(possible through high NPS) would generate sufficient business for the organisation. Positive
NPS can be used to motivate and encourage employees to continue providing the exceptional
service. This will reinforce positive behaviours with the clients. The positive behaviours are
trigger point for repeated service and loyalty. It is also a significant measure in tracing the
performance of the organisation over time.

3.) Among the listed options, which one would you suggest?

Among the listed NPS, I would recommend using the Lost Prospect or Future Customer NPS.
Because this measure will give us information that are usually not available for the sellers.
This measure can assist the firm in foraying into new market or customer segment. The
negative feedback received would help in improving the performance and service of the firm.

If someone has a bad experience with a company, they will tell around 9-15 people (Exhibit
6a). If these people were potential buyers, there could be possible loss in sales. It is essential
to retain the prospective buyers. If not now, we can come up with products sometime in the
future that would cater to their taste and preference. Hence Lost Prospect NPS is also known
as Future Customer NPS.