Livestock and Luxury

Building a First Class Customer Experience: Lessons from Tractor Supply Co. and Rosewood Hotel Group

What does an American company selling chicken feed have in common with an ultra-luxury global hotel chain run by one of Hong Kong’s wealthiest families?

At first glance, they’re polar opposites. 

Tractor Supply Company sells farm goods, like mini tractors and chicken feed. Rosewood Hotel Group pampers guests with personal butlers and breathtaking views.

While they cater to two completely different demographics, these brands use the same formula to take share from legacy players. Both niched down, focused on underserved customer segments, and crafted personalized experiences that resonate deeply with their target audiences.

The payoff? Rapid, sustainable growth in highly competitive industries.

These two companies illustrate a compelling formula for success, one that’s highly relevant for any organization today:

1. Find a niche.

2. Reinvent the experience.

3. Put humans at the center.

4. Enable with technology.

5. Reflect customers’ values.

Let’s explore how Tractor Supply Co. and Rosewood Hotel Group used this formula – and why their approach should be on your radar.

Here’s your TL;DR:

Context: How Did They Get Here?

Tractor Supply Co.

Founded in 1938, Tractor Supply Co. started as a mail-order business for tractor parts. It has grown into the largest U.S. rural lifestyle retailer with over 2,200 stores in 49 states. 

Catering to hobby farmers, rural enthusiasts, and pet owners, Tractor Supply Co.’s experience changes have driven steady growth, with 2023 revenues reaching $14.56 billion, yielding 75% percent revenue growth in just five years.

Rosewood Hotel Group

Rosewood Hotel Group, founded in 1979, has distinguished itself by offering culturally immersive luxury stays that standardized luxury hotels don’t provide.

Since its acquisition and leadership change in 2011, the brand expanded from 20 properties to 44 hotels across 20 countries – including iconic locations like The Carlyle in New York and Rosewood Hong Kong. 

With over 30 new properties in development, Rosewood Hotel Group is on track to surpass 70 locations by 2025.

A Common Formula

Both Tractor Supply Co. and Rosewood Hotel Group operate in consumer markets where customer experiences are key to business growth. 

Customer experience, in our definition, goes well beyond products and properties – it demands a deep understanding of who your customers are and what they value most. It means all interactions with the customer must be connected and consistent. People, tools, and the brand must be aligned to meet the customer wherever and whenever they are. 

1. Find a Niche

The first lesson? Segments are not monolithic. Seek out a subgroup not being served by market leaders.

Tractor Supply and Rosewood succeeded by doing so, zooming in on customer segments that weren’t being served well by larger, established competitors.

Tractor Supply Co. identified a burgeoning group of rural hobbyists, pet owners, and ex-urban enthusiasts – a mix of modern homesteaders and weekend farmers who weren’t finding what they needed at big-box retailers.

Tractor Supply changed its strategy to attract this underserved segment. Instead of competing with Home Depot or Lowe’s based on proximity to the customer, Tractor Supply moved to become a specialist retailer.

They focused on a farm-centric product assortment like chicken feed, tractor parts, and livestock supplies. They expanded their footprint, investing in growing American exurbs where the customer was most underserved. They invested in people and technologies that improve in-store guidance. 

Rosewood Hotel Group targets a different niche: affluent travelers seeking immersive, culturally authentic luxury. 

In a space dominated by standardized luxury chains, Rosewood Hotel Group differentiates itself through extreme personalization and by integrating local culture into every property, from architecture to cuisine.

Its guests don’t just get five-star service – they receive personalized attention, from custom itineraries to ‘butlers’, who truly serve as a personalized vacation concierge. This focus on creating bespoke experiences for discerning travelers has set Rosewood apart in the ultra-luxury market.

2. Reinvent the Experience

Both Tractor Supply Co. and Rosewood Hotel Group deeply understood what their niche customers were seeking and then designed an experience to deliver on that need.

Tractor Supply Co. has transformed from a rural goods store to a community hub. It learned that many of its customers were new to a rural lifestyle and needed guidance.

Many had purchased small acreage and were engaging in rural activities (read: keeping a few goats, chickens; having an expanded garden; protecting their properties from wildlife) for the first time. Big box hardware retailers did not carry the right products to assist, and traditional feed stores could be intimidating. 

To meet this need, Tractor Supply redesigned its in-store experience. Product assortments were changed to feature pets and small animal needs, and merchandising was adapted to provide guidance.  

Beyond a ‘store’, Tractor Supply locations host community events like “chicken swaps” and farmers' markets. It’s not just about the products – it’s about providing guidance and creating a hub for the community.

Rosewood Hotel Group has taken luxury hospitality to a new level with hyper-personalized guest experiences. Their customer segment presented a unique challenge – they expect an impeccable experience that’s individual to them, but also seek authenticity and social responsibility.

A stay at a Rosewood property is never “just another luxury hotel stay.” Guests are treated to a completely bespoke experience with personalization at its core.

Each property is truly unique. The company selects sites that are representative of a location. For example, a property in the Caribbean is a former Rockafeller family retreat; a site in London is the former headquarters of a prominent colonial trading company. Design is unique, local, and often understated, reflecting guests' desires.  

The experiences provided at each property reflect local culture and client desires for sustainability. For example, the Rosewood Mayakoba in Mexico has a fully self-sustaining farm and a restaurant that practices Mayan cooking practices. Resort rooms do not have televisions, reflecting guest preferences for a technology break. 

The experiences are fully individualized. Guests with children arrive at kid-ready (and age-appropriate) rooms. For example, when I arrived with a two-year-old, my room not only had a crib, but also a tiny robe, baby toiletries, a baby bathtub, a changing table, a diaper pail, and even a bottle warmer. 

3. Put Humans at the Center

Ultimately, experiences generate a feeling. It’s feelings that drive growth: how a customer’s feeling after an interaction will lead – or block – them to purchase again. 

Both companies have put people at the center of their reinvented experiences to create feelings.  

Tractor Supply Co. in-store staff provide expertise and foster community connection. 

Importantly, they’ve brought in talent with the experience and advice their customers need. They hire locals who regularly come into the store and have used the products they sell, making customer interactions authentic and helpful. 

This creates an experience that goes beyond customer service – it moves beyond product selection, solving the problems customers come in with.

Rosewood Hotel Group leverages butlers, or better-named personal concierges, to orchestrate hyper-personalized luxury experiences. The role of its butlers is to manage the end-to-end guest experience. Think of them as a customer success manager – they work directly with guests, and behind the scenes, to create seamless, perfect experiences. 

For example, the butlers orchestrate in the way a typical concierge would – organizing meal reservations, excursions, and in-room requests. But they go significantly beyond the normal.

The staff minds when rooms are occupied or open for service; learns and shares guest preferences across the hotel. At international resort locations, Rosewood maintains a butler at the airport to coordinate flight transfers, security, and customs.

Butlers learn interests and advise guests when they’ll enjoy something.

Like dessert? They’ll text you when it’s complimentary ice cream hour.

Have a kid who likes marine biology? They’ll let you know when the sea turtle rescue group is diving to count turtle populations on-site

Like golf? They’ll tune the recreation room TV to the masters and text your husband it’s on…then send in pimento cheese tea sandwiches. 

This level of attentiveness builds loyalty because it makes each guest feel amazed, not like another room number.

4. Enhance Human Touch With Technology

Both brands enable their teams with technology to deliver the desired experience. These innovations work behind the scenes enhancing service without getting in the way of authentic interactions that define the brand.

Tractor Supply Co. heavily invested in a partnership with Microsoft Azure to deploy “Gura,” an AI tool that assists employees with product recommendations and customer engagement from a smartphone. This enables quick, helpful store navigation and recommendations without breaking the connection to find another employee. 

In-store smart cameras to monitor foot traffic and identify when customers might need assistance, helping managers train staff and allowing product merchandisers improve category management, promotions, and store configurations.

Similarly, Rosewood Hotel Group has enabled butlers with technology to elevate the guest experience. 

Its partnership with Glowing deployed an AI-powered guest platform that enables real-time communication between staff and guests, right to guests’ smartphones via text or Whatsapp. This tool reaches guests in real time, breaks down language barriers, and enables behind-the-scenes handoffs between teams. 

The platform enhances the efficiency of the hotel’s operations while maintaining the personal, anticipatory service that Rosewood Hotel Group is known for.

5. Reflect The Customers’ Values

Both Tractor Supply and Rosewood understand that their customers are more likely to buy from companies that share their values.

Tractor Supply Co. is a case in point. Rooted in America’s heartland, its “Life Out Here” brand message fits with its customers’ rural identity. 

The retailer goes beyond selling farm supplies to actively supporting its customer’s lifestyles and beliefs. Through initiatives like the American Connection Project, Tractor Supply Co. has donated $1 million to expand broadband access in rural areas – a critical need for many of its customers. 

Understanding the importance of conservative politics to this group, Tractor Supply has publically made controversial decisions that align with core customer beliefs. In 2024, Tractor Supply Co. publicly eliminated its diversity, equity, and inclusion roles. 

Albeit different, Rosewood Hotel Group’s brand also aligns with the beliefs of its niche segment. Its brand statement, “A Sense of Place” reflects its customers’ desire for authentic, customized travel. Rather than seeking broad publicity, Rosewood’s understated approach makes their support visible on the property. 

For Rosewood, reflecting customer values means focusing on sustainability and social empowerment. Its “Rosewood Impacts” initiative includes support for local schools that educate the children of hotel staff, covering tuition and supplies for over 450 students.

Rosewood Hotel Group also highlights employees’ stories at its locations, emphasizing their commitment to people as much as to luxury. This approach resonates with its affluent guests, who value brands that prioritize social responsibility. 

Can You Keep Up With the Legacy Players?

For businesses hoping to challenge established market leaders, the answer is simple:

Identify a customer niche with unaddressed needs and align your experience to them, putting human connection at the core.

Other Brands That Get It

There are a handful of brands that are currently using or have successfully implemented this formula to build a first-class customer experience that wins against incumbents. You might even recognize a few if you have a niche need or interest.

These brands compete well with the legacy players in their industry:

1. Alo caters to the women of the yoga community with its high-end activewear. Moving beyond apparel, it operates gyms, publishes videos, and plans community events. This subniche strategy has successfully taken on incumbents like Lululemon.

2. Patagonia serves environmentally conscious outdoor enthusiasts who care about sustainability and environmental activism. A long-time leader in the category, Patagonia’s longevity has been supported by its commitment to causes and values.

3. Glossier is for Millennials and Gen Z audiences that value minimalism and inclusivity, believing that natural beauty should be emphasized instead of concealed. A digital native brand, it grew rapidly through hyper-targeted marketing and a fresh experience.

As new buyers emerge or technologies change, customer preferences continue to shift. Companies that understand the needs of their core customer niche and build experiences based on human connections will thrive.

Remember, the path to success is paved with continuous learning and embracing fresh perspectives.

Let's stay connected, share ideas, and elevate your consulting business.

Stay curious, friends.

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