5 non-premium brands with exceptional CX
Sometimes it’s hard for CX leaders of “regular” companies to recognize themselves in the customer philoqophy and successes of top and premium brands like Netflix, Disney, Apple, Starbucks, Ritz-Carlton, Patagonia, IKEA or Tesla. I still do believe these types of examples are very useful, because they exemplify an ideal, something to strive for, that can offer several great pieces of inspiration. But I also recognize the pain of those companies, and so this time, I wanted to offer some more relatable examples, of brands that are somewhat lesser known, less international, less hi-tech and more commodity-driven but are still known for their exceptional CX and customer cultures. Enjoy!
REI: offer the best and most frictionless service
If you’re not from the US, you’ll probably never have heard of REI (Recreational Equipment), an American retail and outdoor recreation services corporation that was one of the early pioneers in the e-commerce industry, launching its first website in 1996. In many ways, it’s like a smaller, more local version of Patagonia. And DEI, too, is known for its commitment to sustainability and customer satisfaction. They offer a generous return policy, free shipping, and a variety of payment options. REI also has a strong community focus, with a loyalty program that supports local outdoor initiatives.
My favorite part, though, is that they are so completely intent in removing all friction from the buying and returning process. Just to give a few examples: REI has a 100% satisfaction guarantee and one of the most generous return policies in retail. Defective products can be returned at anytime for repair or replacement. But even products that are not defective can be returned for any reason within one year, receiving a full refund. A customer that brought a jacket back after two months because it didn’t fit right (he bought it online) and wasn’t warm enough, received a refund and bought another jacket. When a customer ordered a couple of shirts and one turned out to be the wrong colour, customer service agreed to send the right colour – which is totally normal – but also allowed to keep the other shirt: “It’s not worth your effort to return that shirt to us, so go ahead and keep it or give it as a gift to someone if you’d like.”
But it’s not just about removing friction, REI is also very adamant about expanding it’s circle of influence, and from very early on, before most companies were speaking about ESG, footprint and the cost of capitalism. In 2015, it closed all of its stores on Black Friday, one of the busiest shopping days of the year, that can make or break a retail chain’s fortunes. REI gave all of its employees a paid day off and encouraged its customers to reconnect with each other outdoors. You couldn’t even order on the REI website.
The #OptOutside campaign was definitely part marketing, even winning awards for the advertising. But it was also much deeper than that. It was a reflection of REI’s core focus on enjoying the outdoors.
Chick-fil-A: hire and train the right people
Chick-fil-A is an American fast food restaurant chain specializing in chicken sandwiches. For many years, it has been occupying a top spot on the American Customer Satisfaction Index, through a combination of high-quality food, a clean, welcoming environment and employees who are consistently polite, friendly, and eager to help. I absolutely love their founding philosophy – dating from the 1960s – which simply states “to have a positive influence on all who come in contact with Chick-fil-A”.
The brand understands like no other that small details can make a big difference. Associates at Chick-fil-A are for instance trained to say ‘my pleasure’ instead of ‘you’re welcome’ or ‘no problem.’ Or, pretty unique for a fast-food franchise, they say “yes” when someone asks if they can order from the lunch menu at breakfast time.
The reason why their employees are so incredible at satisfying customers is because of their close attention to leadership. Operators (franchise owners) are specifically hired to fit a customer-obsessed culture. In fact, the company accepts just 0.4% of people who apply to open Chick-fil-A locations, one of the most selective chains in the industry. And when they are accepted, they receive a personalized training program bring those characteristics further to the surface. These leaders, in turn, create a culture of empowerment and engagement which makes all of the other pieces possible.
It’s also really interesting how their learning and continuous improvement culture is equally shared across franchises. Rather than pit stores against each other to encourage competition, Chick-fil-A wants its franchisees to feel as though they are all on the same team and can learn from each other. For example, if a store in one part of the country is struggling with breakfast sales and unsure of how to turn the tide, Chick-fil-A will gladly fly one of its top breakfast performers out to that location to allow them to coach each other. They’ll invest in these mentor/mentee relationships because they know they’ll see a return.
Casper: making a commodity exciting
I always tell people that commodities are a matter of choice. It is completely up to you if you want to sell a commodity or a product with an amazing experience. Casper is a fantastic example of that. Before Casper very few people were excited about mattresses. But when they launched about 10 years ago, they became an overnight social media phenomenon, with YouTube influencers posting “unboxing” videos where they excitedly pull a new Casper mattress out of a cardboard box after it arrived on their doorsteps.
Customer may be excited about the quality of their products, but one of the most magical characteristics of the brand is how they are able to merge great marketing with extreme usefulness. Their campaign at South by Southwest Festival was the perfect example, where one of the biggest challenges is finding a place to sleep as rooms are often sold out months in advance. Casper partnered with the Standard Hotel’s One:Night app for a promotion, where very day at 3 p.m., the app released 20 hotel rooms for $99 each, far below the going rate of $250–$1,200 a night. Of course, the rooms were outfitted with Casper mattresses and pillows, slippers and even car service from Tesla. There were unofficial SXSW events at the property, virtual reality experiences, cocktails and you could even call the front desk to request a “mom” to come read you a bedtime story and tuck you in. On top of that, Casper also hosted free 45-minute “refresh rooms,” complete with its mattresses, milk and cookies, a place to charge your devices and a warm shower.
When SXSW was over, and therefor Casper’s campaign as well, and people were ready to go home, many flights were cancelled because of bad weather. But Casper decided to extend the event, even throwing a party Tuesday night party for stranded attendees. The One:Night app campaign was also reactivated, allowing in two taps I to find a room for $99. Was there a lot of gimmick in this campaign? Obviously, but Casper also put the experience first and offered real solutions to the real problems experienced by SXSW attendees.
I also love their “Partner in Life” approach where they keep guiding customers through their journey, even long after they might have made a purchase. Their blog ‘Pillow Talk’ offers advice about all things sleep-related, their newsletter ‘snoozeletter’ offers additional digital content and a free chatbot “Insomnobot3000” designed for insomniacs that’s super-easy to use. The approach shows that Casper is not just a brand that cares about a one-off sale but takes the time to invest in quality, valuable, and entertaining digital content to delight consumers pre, during, and post-purchase.
In-N-Out Burger: never compromise on quality
In-N-Out has consistently ranked among the top fast food chains in customer satisfaction. Though it only has locations in a handful of states, people all over the country and even outside the United States have become fans, with some devoted followers even planning a business trip or vacation itinerary around a visit to an In-N-Out. In fact, when In-N-Out opened its first restaurant in Colorado in 2020, there were mile-long queues, at one point amount to a waiting time of up to 12 hours![1]
A big reason is that In-N-Out has always been 100% committed to top-quality products. In fact, its basic business philosophy – dating from its start as the first drive-through restaurant in LA – reads “Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment.”
At first sight, there seems nothing unique to its basic menu of burgers, fries and shakes, which customers have enjoyed since the doors first opened. But, contrary to most other fast food restaurants, everything is still made fresh to order and there are no microwaves or freezers. French fries are made from hand-diced, fresh, whole potatoes. And the shakes are handcrafted from real ice cream.
The employees are known to be friendly and really go the extra mile for customers, sometimes even saying “yes” to pretty crazy questions. There is also a specific lingo for ordering. For instance, if you want 2 pieces of meat and 6 pieces of cheese tell them you want a “2-by-6.” There’s a wonderful anecdote about that when a group of four – including the late Zappos CEO Tony Hsieh – were celebrating Halloween in Las Vegas and ordered a 100-by-100. The cashier seems somewhat taken aback at first, but the team decides to say “yes” and they deliver what the customer asks for:
Trader Joe’s: a culture of deep positivity
In a world where CX culture is becoming increasingly crucial, Trader Joe’s emerges as a beacon of positivity, always striving towards an unforgettable customer journey by paying attention to multiple dimensions simultaneously: incredibly friendly and positive employees, great EX (employee experience) that translates into great CX and an obsession with positivity.
First of all, it pays an enormous amount of attention to hiring the right people so they’ll fit their customer obsessed culture. For instance, fun fact: to make sure it hires the right people, its job applications include 3 very concrete questions: ‘Do you possess a sense of adventure?’, ‘Do you like to make people smile?’ and ‘Do you like to eat?’. In order to keep the right people on board, it pays its staff competitively, gives them health benefits as well as fosters a culture of empowerment and appreciation.
Employees are empowered with the freedom and resources to transform a regular day into an extraordinary experience for customers. Whether it’s an employee presenting a heartbroken girl with ice cream and a spoon to soothe her sorrows or another offering a flower bouquet to a grieving widow, these acts of kindness are not exceptions but reflections of a deep-seated culture of enthusiasm, compassion and helpfulness.
The brand is so committed to the human experience, company culture and employee relationships that it follows a low-tech approach and does not offer self-checkout. First of all, because they believe self-checkout could potentially detract from the personal touch and friendly interaction they strive for. The CEO has referred to self-checkout as “not fun”. He also believes that “self-checkout is work … I don’t want that” for the customer. But also because they view cashiers as an integral part of the customer experience: “We believe in people, and we’re not trying to get rid of our crew members for efficiency’s sake.” (CEO, Bryan Palbaum).
But probably my favorite part is how Trader Joe’s is committed to creating a positive atmosphere in many different layers of the experience. This positivity and optimism is reflected in the Hawaiian themed dress code of employees, wearing Hawaiian shirts or leis. It also translates into quirky playful product names like Trader Jose (Mexican food), Hold the Cone! (Ice Cream Cones) and Trader Jacque’s (French food). I love how they are incredibly consistent about offering a fun experience, because it’s just embedded throughout their entire culture and it’s not just a one-off project. Sometimes great CX is just about offering a great, fun and warm human experience. It really does not have to be complicated, or expensive.