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XKD: Brand and Customer Experience Redesign

PROJECT

CLIENT

XKD

SERVICE

  • CX+

INDUSTRY

  • Consumer

XKD worked with Continuum to create a new brand and store design, explore ways to offer a holistic omnichannel experience, and create new revenue sources.

Challenge

Xing Ke Duo (星客多) or XKD, is a no-fuss haircutting service founded in 2015. A series A-funded startup with close to 50 stores in Shanghai and Beijing, XKD relied on its quality service, rapid expansion capabilities, and agile back-end development as a successful business model to grow the company.

However, as XKD expanded its footprint, its brand image and experience remained stagnant. XKD partnered with Continuum to develop a new brand and store design, explore ways to offer a holistic omnichannel experience, and create new revenue sources that would not disrupt its core service experience.

        RESEARCH & INSIGHTS

        Immersed in the XKD Experience

        By embarking on a rapid immersion field study of XKD’s stores in Shanghai and Beijing, the Continuum team uncovered, observed, and explored XKD’s core customers, current service gaps, and existing employee pain points. They then formulated a clear picture of XKD’s brand perception from a consumer’s perspective and completed a customer journey-mapping exercise to identify potential areas ripest for new signature experiential opportunities.

        RESEARCH & INSIGHTS

        Efficiency Over Speed

        Since XKD operates a no-fuss service model, hair washing or styling is not provided. The notion of speed was an original core value. However, our research revealed that customers are not simply seeking rapidity, but rather a good result. XKD’s emphasis on speed caused a deterioration of customer trust and confidence in their stylists’ ability.

        We helped XKD rethink the notion of “speed” and recommended reframing this as “efficiency.” We suggested that XKD would win by providing an efficient service that helped customers do more in their busy day, without sacrificing service quality. This would, in turn, build their confidence in the quality of XKD’s stylists.

        RESEARCH & INSIGHTS

        Be Better

        We all get haircuts for a purpose: an important interview, a date in the evening, or a desire to refresh our looks. All point to a universal core value: the need to look and feel at our best. We helped XKD realize this concept and embed it into their main brand value, ultimately translating it into key features of their experience. For example, we suggested XKD implement a self-service bar, where they could reinforce this consumer goal and easily sell hair-care products, increasing profits.

        RESEARCH & INSIGHTS

        How Short Is Short?

        There is no one definition of a good haircut. In the highly personal, sensitive, and perception-driven space of personal care, one of the few proven ways to ensure customer satisfaction is through communication. Clear communication. Our research suggested that stylists have difficulty deciphering customer wants and needs, resulting in miscommunication and customer dissatisfaction. It’s common, for example, for a stylist to cut hair too short, or misinterpret other consumer requests. To improve XKD’s communication, we recommended the addition of a new brand touchpoint: a contextually relevant hair style selection guide, which provides consumers with relevant styles that can be easily updated according to season, trends, functions, and occasions.

        01 / 04

        Solution

        With new findings and potential opportunities identified, Continuum facilitated multiple workshops and discussions with XKD’s leadership to hone in on the “be better” brand strategy. This direction helped influence XKD’s organizational values and new service strategy. New touchpoints include the hair style selection guide, a hair style diary, and a self-serve styling bar to increase product sales. Together, these service features all help XKD differentiate its offering from competitors and increase the value for its customers.

        To bring the experience to life, the Continuum team led the execution of a new brand strategy and translated it into implementable guidelines and criteria, which set forth a new direction for the retail space design, visual identity design, and new service protocol.

        16%

        SINCE OPENING THE 3.0 STORES, CUSTOMER RETENTION HAD INCREASED BY 16%, MEANING TWO OUT OF THREE CUSTOMERS RETURN TO EXPERIENCE THE SERVICE.

        Results

        The first new concept store opened its doors on August 2016 in Shanghai, and at the end of 2016, 16 new stores launched in both Shanghai and Beijing, with 20 more planned for the beginning of 2017. Since opening the 3.0 stores, customer retention had increased by 16%, meaning two out of three customers return to experience the service. The reception of and excitement for the new brand experience have been remarkable, the 3.0 stores and brand was also able to capture a larger female customers base, from 36% to 44% and rising. This signals the brand perception of XKD is moving toward a more beauty driven and sophisticated clientele.

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