Francesca’s VP of marketing Traci Graziani shares what she thinks the future of retail will be, Taylor Swift and Beyoncé’s effect on sales, and how a Dolly Parton quote influences her perspective. Episode Transcript Francesca's, Traci Graziani Please note, this transcript  may contain minor inconsistencies compared to the episode audio.Damian Fowler: (00:01)I'm Damian Fowler.Ilyse Liffreing: (00:02)And I'm Ilyse LiffreingDamian Fowler: (00:03)And welcome to this edition of the current podcast.Ilyse Liffreing: (00:10)This week we sit down with Traci Graziani, the VP of Marketing and Brand Partnerships at Francesca's, the fashion retailer specializing in women's jewelry and apparel.Damian Fowler: (00:21)Founded in 1999 in Houston, Francesca has grown into a household name with stores across the U.S. But like many mall-based retailers, the company faced serious challenges during the pandemic when foot traffic stopped.Ilyse Liffreing: (00:34)But since 2020, the company has turned its fortunes around becoming a successful omnichannel business.Damian Fowler: (00:41)Tracy joined the company in 2021 after a more than 15 year career in marketing where she specialized in helping brands identify their purpose, craft their story, and deliver successful campaigns.Traci Graziani: (00:58)I grew up in marketing, I grew up in digital advertising and it was a, I was there with a digital marketing firm called Resource for 11 years in my career. They were an independent women owned agency who was talking about being customer obsessed before anyone else. But I started by answering the phones and getting the flowers and just like learning and absorbing. And so I just fell in love from the beginning. I, I worked with a handful of clients over the years. You name a client or an industry, I've probably worked on that account from a communications or a marketing standpoint and ultimately that's what got me brand side. Damian Fowler: (01:39)I love that it's very entrepreneurial view from the very beginning, from the get go as you would say. And you know, one of your sort of specialties as a marketer is that ability to help brands identify their purpose and craft their story. What's your sort of dynamic when you start that whole process?Traci Graziani: (01:55)Can I quote Dolly Parton who's behind me here on the wall? Damian Fowler: (01:59)Oh yes. Please.Ilyse Liffreing:Yes you can.Traci Graziani: (01:59)Okay. She says Find out who you are and do it on purpose. And I believe that as a human and I believe that as a marketer. And so I think that's really what's carried me through and I think that one of my biggest beliefs is that one of the key KPIs that we all need to be looking at and continue to look at is trust. I mean I think it is more prevalent now than ever is trust with our customer in every interaction. Knowing that why and knowing that trust is so critical. Without it you have nothing that becomes your compass. Damian Fowler: (02:33)Yeah. Now, you joined Francesca's in 2021, you know, let me ask you about their story. What is Francesca's story? Yeah,Traci Graziani: (02:42)Francesca's actually started as one single boutique in Houston, Texas. And our girl Fran has been around since 1999. I think what's really neat and differentiating about it is that it has always been a place of discovery in this one boutique. It started as a collection of different, you know, products that service a very, you know, woman from 18 to 30 as like the core demographic and someone who's always looking for that like kind of something special. We know that we have an occasion shopper and so we cater to that and so that heritage of the brand from the late nineties all the way through has maintained and that is really the platform that we operate now that has turned into our free to Be You platform, which is this idea that our customer and our brand are always looking to discover new things. I mean, Elise, you love the store you go in, you kind of can't walk outta there without something. Um, but you never know what you're gonna find and I think that that has really been a core differentiator for the brand.Ilyse Liffreing: (03:44)Yeah, I mean there's no doubt I fall into that core consumer that 18 to 35, not gonna say my exact age, but yeah, every time I go home, you know, I, I have to go to Francesca's, definitely a fan. It's true, I can't hide that. But can you share any like insights into your target audience? Beyond me of course and how the brand actually like works to like reach and engage them?Traci Graziani: (04:08)We recently, within the last year, really did our homework and we surveyed current customers, non-customers and we have really utilized that in a massive way across the organization because I think a differentiator for us too is our ability to move so quickly with our product. And so being able to understand what the customer is looking for and what she's doing in her life, we really look at it as a psychographic more so even than a demographic. We know the sweet spot in terms of the 24 year old, but we know we scaled down our earrings are a great entryway into the brand and we know our gift selection also allows us to scale up in demo. I keep mentioning occasion because it matters, but she's finding small things to be occasion, whether it's you know, a barbecue or a trip or even just going to a friend's house. She's always looking for like that something special and new. And so we really create our marketing and our product to make sure that we're serving that across the yearIlyse Liffreing: (05:05)Now. So Francesca's also has a real culture of inclusivity. You guys have the whole Free To Be You campaign. When did that come about and was it under CEO Andrew Clark?Traci Graziani: (05:16)Yes, it was, you know, when he joined I, I joined pretty shortly after that and we really were working as a full leadership team on defining, you know, our mission vision values and developing that brand house and what was that greater why and we really did come to that purpose of inspiring Discovery and through that uniting everyone in individuality which comes across in our boutiques in the merchandise assortment that we have, the way that we buy. And I think that that whole idea of Free to Be You, he is definitely a champion for, and I think that has really set us apart in the space. Francesca's also actually means free one the word the name defined. And so there was something core back to that history of who the brand was and where they started that really felt synergistic across everything we're, I think it's 97% of the organization is women and the bulk of that is the field who is our customer and they are just incredible. And so they're another great place in terms of how we define free to be you listening to them, what's happening in their local markets and really utilizing the field and those great associates as a whole nother way to gather customer insights.Ilyse Liffreing: (06:32)That comes with like a lot of learnings. As you mentioned, you've recently even launched a tween collection called Frankie. How is that perceived by the Francesca's audienceTraci Graziani: (06:42)That brand was conceived just a couple years ago and really as an opportunity in a white space in the market? I ironically when Justice sold to Walmart and I actually came from Justice as my previous role and so you know, we had a lot of great leadership on the team that was familiar with that demographic and knowing that that tween demo is shopper is just shy of our Francesca's shopper. So we really saw the opportunity to utilize what we have, right? The customer told us that we needed to shift, that they needed something unique for themselves, that they wanted a little bit more comfortable and cool. And so we have pivoted and it's really exciting. We've just rebranded and launched as Hello Frankie and really excited to create that conversation and that dialogue with the customer.Ilyse Liffreing: (07:28)How does Francesca's leverage those customer data and insights to then enhance its campaigns? From what I hear, it's pretty quick turnarounds.Traci Graziani: (07:38)First. I think listening to the customer reading and reacting to the product that's working and product that's not too right and testing and learning is a big philosophy. This idea of speed and how quickly can we react? Like a lot of other retailers, we saw the Taylor Swift effect happening very quickly, literally everywhere she was traveling, the weeks leading up to that concert we would see a lift in sales in our boutiques. The same actually happened with Beyonce. And so the team was able to pivot really quickly, pull together what we called the B edit. We did that from pulling together a host of existing items but also chasing into product. And then the other is in just marketing, right? Like our Fran Club that is has been a wealth of data for us, increasing the lifetime value of those customers. They shop more often when they buy, they buy more. That is a new program, newer program for the brand that really has been instrumental in, you know, helping us even understand where we show up in the media and marketing space in terms of those are the best customers and we want more of 'em. Damian Fowler: (08:44)Tell me a little bit more about the Fran Club. When did you create that? And I mean I know a lot of retailers have loyalty programs, but what's the sort of unique spin on that loyalty program with the Fran Club.Traci Graziani: (08:55)We knew we needed the program, right? We needed the first party data, we needed to make sure that we were capturing that, you know, we have 460 boutiques across the nation and the ability to capture that information, be able to reward our customers and really increase their visits and their purchase through that communication was key. So that has been tremendous. It's a points program so the more you shop, the more you're rewarded. But there's, you know, other perks like early access being the first to know about things like the B edit . After we had those first learnings in the early fall holiday season, you know, we knew we needed to come back around and expand that program, right? We needed to create more awareness around that program. It was giving us the signs and performing in terms of financial and feedback that was so positive.Traci Graziani: (09:41)So we actually launched a campaign via CTV, uh, campaign as the hero kind of tent pole piece. And what we did is the campaign was about joining the Fran club and being whoever you are, right, free to be you is this idea of exclusive but inclusive. And so what we did is we actually had a party, we threw a Fran Club event on a rooftop in one of our best markets in Miami and we invited Fran Club members and creators and so we were rewarding them through in real life, but then we actually filmed it and turned that into the spot that then really showcases and plays back, this is the customer and we, we want you to come like be part of this club. And that campaign was incredibly successful and we actually have another friend club event coming up in Austin in a new store in a few weeks. So,Ilyse Liffreing: (10:29)And am I wrong in thinking that that was your first time leveraging CTV?Traci Graziani: (10:34)We had done a test um, once before, but not to the scale that we did for the spring.Ilyse Liffreing: (10:39)Is that channel also strategic due to the fact that Francesca's has a lot of locations sprinkled across the U.S.?Traci Graziani: (10:48)Absolutely, yeah. I mean, driving store traffic is a huge lever for our business. We need to do that and we have to do that in creative ways. And so CTV is certainly one of those more top funnel, but that is fueling both boutique traffic as well as digital.Damian Fowler: (11:03)What I'm sort of hearing from you a little bit is, you know, there's a very democratic process here to this sort of circuit as it were of marketing. It's not like you are coming up with these big campaigns. It's like you're using your customer's insights and sharing everything back and it is a sort of virtuous circle or virtuous cycle of kind of marketing that that's interesting.Traci Graziani: (11:24)I love that you gathered that from that. Yeah, I think that's where it's going. That's what we're seeing. I mean I think as marketers it's like the hardest job, right? I mean it's always changing. I think if we think we know something , um, we should guess again and stay curious and learn. And I do think that the world today with digital and social allows us to do that. As long as we are going back to who we are and the trust and that we're building that trust with our customer, I, I want them in the conversation. Without the customer we're nothing. And so how we can work with them, pull them into the campaigns, get the feedback, showcase their content, that's where I think we're seeing success and I hope we can build more of that.Ilyse Liffreing: (12:08)Speaking of fandom, you also have a pretty unique ambassador program. Could you explain how that works a little bit?Traci Graziani: (12:15)Again, back to our best customer, it's a longer term relationship with more micro creators. It's this idea of, I can't claim this quote, but I leverage it a lot, the riches in the niches. And I really believe that, I think that's where fandom starts is in these unique communities. And if you can tap into those audiences and then find more, that's where you win. And that's really what the ambassador program has done for us. It started with about 30 creators and you know, it is more of a white glove where we're really creating direct one-on-one relationships with them, understanding what's going on in their life, if, if they have a bridal shower or whatnot, right? How are we there for them? And then they're creating content with us and for us and then we're sharing that back and celebrating that relationship. We have seen fantastic results. That program and the content that they're creating and posting on their own channels is certainly delivering. And so we are on the move to expand that program in some exciting new ways through some affiliate and different models. SoIlyse Liffreing: (13:16)You also lean into your employees for that program? Traci Graziani: (13:20)We do. Like I mentioned, our field is, is our customer. And so the more we listen to them, they're amazing. They're already doing it. They're already loving the brand and they should be rewarded for that. They're some of our best loyal customers as well. SoDamian Fowler: (13:33)You mentioned at the very beginning the importance of trust around a brand. And one of the issues that comes up in the, in the world of digital media is trust and people sharing their data clearly, you know, you have an audience of people who trust the brand. How do you keep that trust going? How is it maintained every day?Traci Graziani: (13:51)That is a constant, constantly working on that takes the entire organization, it takes the great leadership that we have across the board. It takes constantly looking at the customer experience and every touch point. And we still have work to do. I, I think any brand that says that it was done would be would be lying. Um, and the world is changing so quickly and technology is changing so quickly and social is changing, making changes in that and the customer is making changes in that. It's just coming back to that and asking yourself those questions. Where might we be falling down and how can we find solutions that are making it better for our customer? Because if we disappoint them at any touchpoint in the funnel or in the experience, that's where the trust is last. They have so many other options, you know, they can go other places. And so it's that combination of trust with our differentiated product that I think will continue to set us apart.Damian Fowler: (14:49)You know, the company faced like many retail companies during the pandemic tough times and even faced chapter 11 proceedings, but since then it's turned its fortunes around under the leadership of CEO Andrew Clark and definitely changed its model to become much more successful omni-channel businessTraci Graziani: (15:08)I think. Absolutely. You know, there was, there's tough times. There's a real straight strategy at play there and you know, he came in and I think he was in the seat for 10 days and then Covid hit.Damian Fowler: (15:18)Yeah, poor guyTraci Graziani: (15:20)On top of that . And so it's been a pretty, it's been a pretty incredible story just in terms of, you know, the success over the last couple of years. Our ability to come back to listen to the customer and to really lean omnichannel.Ilyse Liffreing: (15:35)Last question. So Francesca's has become more and more omnichannel basically through the years. How do you see the future of retail evolving and what strategies are in place to adapt to these upcoming changes?Traci Graziani: (15:49)I think I'm gonna be a broken record for this podcast, . I think the future of retail is the customer, the work of the work of marketer and of a brand is trying to influence people's attention and their behaviors. And I think that that there is no certainty in that. It is not a sure thing. And so you have to always be listening and be curious and be willing to test and learn. And that means being obsessed with the customer and pivoting when they're telling you to pivot. Yeah, for me, well I'll go back to Dolly, you know, be who you are and do it on purpose. We've got a really awesome team here and I think that as long as we listen and move fast and stay curious, then we'll be set up for the future of what retail looks like because we're listening to what the customer has to say.Ilyse Liffreing: (16:43)And that's it for The Current. Stay tuned because next time we'll be speaking with John Cook, the global CEO of VMLY&R.Damian Fowler: (17:08)The Current is produced by Wonder Media Network. Our theme is by loving caliber and the current team includes Chris Brooklier and Kat Vesce.Ilyse Liffreing: (17:16)And remember,Traci Graziani: (17:17)As marketers, if we think we know something , um, we should guess again and stay curious.Ilyse Liffreing: (17:23)I'm IlyseDamian Fowler: (17:24)And I'm DamianIlyse Liffreing: (17:25)And we'll see you next time. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.