Thread by @digitallynativ

(1/9) On the #DNVB value proposition: I suffered a broken zipper pull on my beloved @away luggage during a recent flight. I brought it to the Away B&M location at The Domain in ATX and was greeted instantly by a polite and empathetic sales associate

(2/9) She pulled up my account in a matter of seconds (the original purchase was made at their Soho location in NYC) and noted that my purchase was under warranty so I would be able to replace the item at no cost. Moments later she emerged from the back room with a brand new bag

(3/9) She handed me the bag, emailed me my exchange receipt, thanked me for being a great customer, and sent me on my way. The entire exchange lasted no more than 4 minutes. First-class customer service that solved a "high class" problem.

(4/9) It occurred to me that this interaction was a realization of THE founding principle behind #DNVB's: to bundle GREAT product with GREAT customer service under the umbrella of a Brand that resonates strongly with a core or niche customer base

(5/9) The early wave of Digitally Native Brands were built in the image of fantastic and customer-centric catalog brands like Lands End and LL Bean. These brands built their business around service, as this was their only opportunity to interact directly with the customer

(6/9) GREAT of service (along with great product) was the founding principle for Bonobos. Superior customer service is a cost center, but yields major benefits: Away lost margin from my original purchase in giving me a new bag, but converted a casual customer to an evangelist

(7/9) DNVB must compete on service to be successful, so in order to sustain that commitment over time and at scale, they must build the margin into their products to do so. This requires careful consideration of the Value Chain from concept to execution

(8/9) Brands that compete on price or run excessive markdown/promo strategies will be unable to sustain this costly level of service, thereby losing their competitive edge. Legacy brands also cannot compete this way because their Value Chain is architected differently

(9/9) Service must also be the guiding principle behind selecting third-party distribution (if any). The brand, product and service experience for the customer must be omni-channel, particularly given the margin trade-off the brand is making for wider distribution