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* How personalised? See examples Very personalised service. Very boots you go to, you can expect the same high standard service. ? Create AN UNIGUE differentiating factor, sustainable competitive edge vs competitor ? no need to compete on Price at all. * Research shows that it is easier to do business with existing customers then try to increase sales by looking for new customers. ? we should thrive to create a group of customers we can claim our own. From there, personalise service so as to make them ours forever. * Create loyal customer base. Just like going to the dentist. You pay 10 bucks more, but better service, safer, Create an unique edge vs competitor. In service industry, customer service helps keep customers for a long long time. * What are the learnings from Boots? Price is not the only thing you can compete with others. That’s what it is happening now. No end. List egs. From Shenyang and Chengdu. Now no drug store is making money, and many cannot survive anymore. But you may say, not within your control. Management decision。 What can you do at store? ? Customer service. Customer Profile. Some stores at Shanghai doing this. Not HQ Decision, own initiative. Give discounts, organise small events for loyal customers. In Hangzhou, HQ is consolidating data. They have a loyalty card * WhY? To better your customer service To create a differentiating factor from your competitor Boots ? Working Professionals, educated. Demand more in terms of service. Busy, want to buy medicine fast. So if Boots have their medical records, make purchase of drugs easier and safer and faster for target customers. From there, create strategy Just like McDonalds, Target customer = Children. Location = near children shopping malls, playgrounds etc Promotion items = toys Special events = Birthday Party for KIDS * Watson’s = Target customer ? Young women, professionals A completely different strategy from Boots, but equally successful and profitable. * Cheap, Mass products Why? Be
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