To say Not Socks is a business driven by the needs of their customers, would be understating how integral a customer first approach is to their success. They see themselves not as seller of product but as a service entrusted by gift givers to express the language of care to the gift’s receiver. This embedded philosophy has seen them grow to new heights even in the face of a tough economy and increased competition.
Key lessons in this case study
- Understand the customers’ needs, physical and emotional, and make addressing them the key driver in designing every aspect of your customer experience – from website to delivery.
- Actively work with, and support, your supply partners to ultimately deliver better outcomes for your customers.
- In the face of stiff competition, focus on your strengths, your points of difference and finding ways to do what you do even better.
- Invest in building long term value in your brand that aligns with what your customers care about
Not Socks is the number one gift giving store in New Zealand. The single-minded focus on the needs of their customers started even before the business began trading 13 years ago. An extensive research study into Kiwis’ gift-giving and receiving attitudes and behaviours, allowed them to build a deep understanding of what makes a good gift.
It turns out that ‘it’s the thought that counts’ is more than a cliché and receivers really do value the thought put into a gift. Not Socks co-founder, Jude Burnside, puts it best “To resonate with a receiver, a gift must show a level of understanding of them”. It must send a clear intention to deliver something that is just right for them.” And that’s where the name Not Socks came from. Socks were deemed the least thoughtful gift, requiring minimal effort.
Customer-led experience
Not Socks is an online only business, so the website experience sets the expectations for the relationship customers have with the business. Beyond the pre-requisite of being easy to use and to navigate, what makes the Not Socks web approach unique is the structure. Rather than being based around products, the Not Socks site is designed from the customer point of view and the gift giving occasion they are buying for. “Customers are asking things like ‘what do I buy a man who has everything?’ or ‘what do I get for someone who’s lost a loved one?” remarks Burnside. “By structuring the site around the audience and occasion, we solve the customer’s real problem and make the path to purchase as short as possible.”
The sending experience
Delivering a great experience extends to every bit of the journey, from online until the gift is in the hands of the receiver. The dedicated Not Socks team of 15 go all out to ensure the gift is beautifully wrapped, to add a personalised note from the sender, and to get it dispatched as soon as possible. And while this hands-on high-level of care becomes harder as the business grows, it’s at the heart of what they do and that’s why they keep doing it. “Gift giving is a time-bound exercise so getting it delivered on time is critical” explains Burnside. “It must get there on or before the day of the occasion. We offer a variety of delivery options to ensure that happens."
Since the beginning, Not Socks have partnered with NZ Post for delivery. “We chose NZ Post because they deliver on time, almost every time. It’s that reliability that’s important to us and our customers.” The second consideration is getting gifts delivered in a good condition. Burnside adds “If the parcel arrives all scuffed up or damaged, the gift’s care message is diminished.” The third part of the experience that makes NZ Post the preferred delivery partner is communications. “Tracking is really important”, says Burnside. “The investment NZ Post have made to keep customers informed has enhanced our service experience. Our customers don’t stress about whether the gift will get there on time.”
A customer-first business model
Around half the range is from a variety of large Australasian suppliers, with an emphasis on New Zealand. “One of the things we love is finding small businesses that are just getting going. We’ll do what we can to make it work for them and us. For example, we might pay for the order up front so they have enough to fill it”, explains Burnside. “It’s important to us to use our platform to lift other businesses up.” The business model has evolved as they’ve gotten more sophisticated in understanding what customers are looking for. More and more they are designing and producing their own private label products, direct from factory. “Not only does it allow us to deliver unique products, it provides margin and volume, and that enables us to support the businesses we work with.”
Tough times and increased competition
While over the last year the business has conducted a number of themed sales, to reinforce their customer proposition. “We knew it was going to be a tough year so we actively looked at things we could do better.” Burnside describes it as a year of trying new things and learning from them, to keep adding value to customers.Asked about low-cost competition from the likes of Temu and Shein, Burnside responds by highlighting the point of difference they offer customers.
“There’ll always be customers who compare us to others. What differentiates us is our service, our quality, our personal experience and the greater certainty of having the gift delivered on time. We’re focused on always improving what we do, rather than what others may be doing.”
Building brand value
Burnside describes Not Socks as a love brand, which customers have an emotional connection to. “I feel proud when I hear our customers say things like ‘I love Not Socks.’” The loyal community plays an active role in promoting the brand and are even involved in testing new product ideas and categories.
While connecting with customers matters, ultimately, it’s the reaction of those receiving a Not Socks gift that really matters. Burnside ends by saying “the best response is hearing receivers say something like ‘Oh you went to Not Socks’. That tells us we’ve built value into the brand that adds to a higher perceived level of thoughtfulness by receivers.”
