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'We were needing a transformation': Express CMO Sara Tervo on evolving the mall brand

Modern Retail Podcast · with Sara Tervo · August 25, 2022 · 31 min

Summary

Express CMO Sara Tervo discusses the brand's pivot from a mall-dependent retailer to a digitally-focused, customer-centric apparel company. Learn how Express revitalized its image, reduced reliance on discounting, and strategically grew its e-commerce presence, offering valuable insights for any ecommerce operator looking to transform their brand and customer acquisition strategy.

Key takeaways

Themes

brand transformationcustomer acquisitiondigital marketingomnichannel retail

Topics covered

bopisbrand refreshcontent strategycustomer engagementdiscounting strategye-commerce growthomnichannel experiencesocial media marketing

Episode description

Express was a ubiquitous mall retailer, but it's now trying to become much more than that. CMO Sara Tervo gave some insight into this brand. This week, on the Modern Retail Podcast, Tervo spoke about the Express's evolution. The apparel retailer first began in 1980, and was known as a mall mainstay. Now, Tervo has spent the last three years trying to refresh the retailer's image. "When I joined the brand, we were needing a transformation," she said. Slowly but surely, that change has started to happen. "What we really had to do was rebuild our approach to content, understand what was most relevant and connected across all the different platforms, rebuild our budgets and constantly iterate, learn and generate more content -- in an effort to connect and create conversation [as well as] to create a more relevant brand," Tervo said. Much of this focus was about livening up the company's social presence, as well as figuring out the types of inventory that worked best with Express's customers. Additionally, Tervo realized the company couldn't be considered a retailer dependent on promotions. "We needed to pull back and drive value in different ways than just discounting," she said. So far, said Tervo, things have been going well. At its second-quarter earnings released last May, net sales increased 30% year-over-year to $450.8 million and e-commerce revenue grew 21%. Right now, said Tervo, the company is focused on growing its e-commerce revenue to over $1 billion. "We have bold goals for that channel," she said. Beyond that, Tervo is laser-focused on figuring out customer acquisition in this wonky marketing environment. The big thing she's learned over the last few years is to be authentic -- even tapping store associates -- and to try out everything. "We're always curious about beta partnerships and different ways to test and try new ways to connect with customers," she said. In the end, Tervo has unveiled a new Express -- one that's focused on digital and resonating wi

Frequently asked about this episode

What does this episode say about brand transformation?
Rebuild your content approach: Continuously iterate, learn, and generate new content across all platforms to create a relevant brand narrative and connect with customers.
What does this episode say about customer acquisition?
Reduce reliance on promotions: Drive value through differentiated strategies beyond discounting to establish a stronger brand identity and customer perception.
What does this episode say about digital marketing?
Prioritize product quality and fashion quotient: For apparel and similar categories, ensure your product assortment is strong and reflects current fashion trends to drive sales and mitigate commoditization.
What does this episode say about omnichannel retail?
Optimize digital marketing with a balanced approach: Invest in both top-of-funnel brand building (awareness and consideration) and lower-funnel performance marketing (optimizing CPCs), constantly testing and learning with partner platforms like TikTok and Meta.
What does this episode say about brand transformation?
Embrace the omnichannel experience: Integrate online browsing, BOPIS (Buy Online, Pick Up In Store), and other expedited options to cater to customer preferences for speed and convenience, recognizing the enduring value of in-person experiences (when done well).

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