How innovating around customer engagement creates upside for 1-800-Flowers
The floral and gourmet foods gift retailer is focusing on improving the customer experience and becoming more innovative, which could strengthen its competitive position.
The stock's valuation and earnings forecasts suggest that it has further capital growth potential after its 25% rise in the last year.
Improving customer experience
The company's focus on improving the customer experience could widen its economic moat. For example, it launched a digital self-service portal in the last fiscal year that enables its customers to have greater control over their orders. They are able to make changes to their delivery dates, addresses and gift messages, which has led to an increase in the company's customer satisfaction metrics.
In addition, the company's SmartGift gifting application provides greater product differentiation versus its sector peers. It allows the company's customers to send a gift even when they do not have their recipient's address, with the recipient having flexibility in terms of their choice of gift and its delivery date. This not only provides the company's customers with a greater degree of convenience, it also involves recipients of 1-800-Flowers' products in the gifting experience. This is expected to widen its customer base, as well as providing the business with additional data and insights into its recipients that can be used to increase its customer engagement levels.
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