Posted: February 19th, 2022

Customer Needs and Solutions

HSN is a well-known retailer of interactive entertainment and lifestyle products. Customers can choose from a carefully chosen selection of unique products and well-known brands. HSN combines entertainment, inspiration, personalities, and experts in their fields to make shopping unique. As CEO of HSN in 2006, Mindy Grossman aggressively rebuilt and redesigned the company. Boosting staff morale, understanding the business, and fixing what was broken are all factors she attributes to turning around the company. This paper investigates how the Home Shopping Network has evolved to provide a better shopping experience for its customers through its marketing techniques.

The following three things are attributed to the continued success of HSN in the field of retail broadcasting. To begin with, HSN customized its online experience. HSN’s goal has been to make each customer’s experience unique. For instance, based on the customer’s browsing history and previous purchases, the company tailor’s product offerings. Even marketing is tuned to the customer’s previous responses. 

Secondly, HSN made it their business to offer their customer base exclusive products. It is reported that more than 70% of the things the company sells are one-of-a-kind. This approach is believed to help the retailer avoid the promotional strategy that many retailers have to deal with. Offering exclusive products creates a new value proposition for the company, which can, in turn, inspire customers to purchase what the company is selling.

Last is that HSN has invested significant efforts in revamping its website. For instance, HSN has developed specialist web stores for vitamins and closet organization products. HSN also includes personalities, such as Colleen Lopez, who curate products for online customers.

HSN evaluates its performance in three ways. To begin, it assesses the proportion of money in the wallet. This implies that HSN customers are spending more money with them and are spending more frequently (Wijayanti,2020). Customers are also watching HSN for an extended period, and finally, HSN is bringing in younger customers into the company’s fold. 

To diversify its customer base, HSN employed the following marketing strategies. The first thing that HSN considered was their target client profile, which they found to be rather interesting. It is estimated that more than 90 percent of their consumer base comprises women over the age of 35. With this in mind, HSN changed its programming strategy from one focused on products to content. HSN decided to shift its programming to a more lifestyle-oriented format. Because women were interacting with their televisions through lifestyle programming, they decided to broadcast lifestyle programming. For example, whether it comes to a beauty program or a makeover show, the products were excellent; nevertheless, HSN ensured that an exciting story accompanied the product and a storyteller to breathe life into it (Hu & Hui, 2021). This move proved successful because women love lifestyle programming, and HSN did put their products in a context women will use in their lives. 

HSN expanded on its lifestyle model by adding event programming in the mix. Event programming entails special shows that create excitement for their viewers. For instance, through fashion week events, HSN also incorporated celebrities in their programs, such as Serena Williams and the wolfpack gang pack. HSN also works with established designers to bring viewers the latest trends and fashion jewelry and accessories.

When to watch email programs is an excellent example of a marketing strategy. Customers can request email reminders of their forthcoming favorite shows on HSN TV, thanks to a unique shopping alert developed by Mr. Siegel. The weekly product review, which allows HSN TV viewers to see all of the products featured on the shopping network during the previous seven days in one handy area, was also redesigned. Mr. Kapplow, however. It is credited with the invention customer review program called Customer Picks. This program enabled the firm to consider customer feedback, which is essential in customer satisfaction and customer retention. HSN also works with the latest designers to bring viewers the latest fashion jewelry and accessories trends.

HSN is investing heavily in mobile apps to increase sales and reach shoppers with targeted offers based on the company’s products and services. HSN is focusing on email and sponsored search as important traffic sources to the brand to increase sales. The mobile strategy is the most critical growth channel for HSN in terms of business. Time spent, click-throughs, and conversions are the measures that are utilized to evaluate HSN’s mobile marketing success.

HSN has achieved its growth objectives as a result of these marketing methods. Customers’ calls to HSN, their comments on HSN blogs, and their participation in the daily customer review demonstrate this. The strategy of the HSN program has occasionally proven to be overly successful. For example, a recent presentation that featured a fragrance line by Sean Combs was initially slated for two airings; however, because the products were all sold out in the first hour, the second show had to be canceled due to low demand. Increased customer spending, customer perspectives, increased involvement, and the recruitment of young people into the HSN fold were positive outcomes for the company (Sahai, 2020).

In Conclusion, customer profile, shift from product-oriented program to content-oriented program, shift to lifestyle program, event program, incorporation of celebrities in their events are just some of the strategies HSN initiated to influence and grow its customer base. This, in return, had a positive yield in that HSN got an increase in customer engagements, time customers spend on their programs doubled significantly, and most importantly, the money customer designated to them increased too. 

Reference

Hu, Y., Wang, K., Chen, M., & Hui, S. (2021). Herding among retail shoppers: the case of a television shopping network. Customer Needs and Solutions, 8(1), 27-40.

Sahai, P., Sharma, M., & Singh, V. K. (2020). Effect of Perceived Quality, Convenience, and Product Variety on Customer Satisfaction in Teleshopping. Manag Econ Res J, 6(3), 16680.

Wijayanti, T. P. (2020). The style of persuasive in Home Shopping Network (HSN) of the United States (Doctoral dissertation, UIN Sunan Ampel Surabaya).

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