Question

Topic: Student Questions

Creating A Marketing Plan To Improve Service

Posted by Anonymous on 11/15/2012 at 9:02 AM ET 250 Points
Hi Guys

For an assignment I have been asked to create, with the intention of implementing, a plan to enhance the service standards of a grocery retail store so as to increase customer retention.

My initial thoughts on this were to introduce a free card for our customers to pick up instore which they could use to create an identity on a company social media platform on the web, something similar to facebook in a sense. This card would provide the user with a unique identity code so that we as a company know who is who. The main idea behind the introduction of the card is to involve the customer in our operations by providing feedback that would be rewarded with instore vouchers. As a result of this the customer would feel a part of the companies decision making process aswell as receiving rewards.

As far as ideas go how would you suggest that this process could be improved or do you think it would simply not work?

Many Thanks

Wesley Williams
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RESPONSES

  • Posted by mgoodman on 11/19/2012 at 8:49 PM Accepted
    My guess is that customers won't have any interest in becoming involved with your operations. They might do it if the reward is big enough, but mostly they just want to buy their groceries and have some confidence they are getting what they want at a fair price, at a convenient location, from people who are helpful and friendly.

    They are not looking to have management input or to commit to another social [media] engagement.

    My opinion only, of course. Maybe I'm in the target audience for this, and maybe I'm not. Best if you can talk to some real customers to get their input.
  • Posted by Moriarty on 11/19/2012 at 8:56 PM Accepted
    Hi

    I only picked up on this because Mr Goodman commented just now.

    Customer loyalty cards have been around for a long time. Especially in Europe.

    my question is this: why not just have a Facebook page like my local supermarket does? If used carefully, you can do as these friends of mine have done, and almost established their business on Facebook/Twitter - and providing quality when you get there.

    https://www.facebook.com/Restaurantdekleinebaron?fref=ts&rf=39979985672...

    Any thoughts?

    Moriarty xx
  • Posted on 11/20/2012 at 3:59 AM Author
    Thank You very much to responding to my question and both answers give great thought to my project.

    Initially the idea is similar in effect to what Tesco already do with their clubcard scheme but instead of offering just only rewards, I was trying to find a way of introducing an effective tangible purpose for the scheme both for company and customer which centres around a self managing TQM operation.

    The facebook page would be a great start but as I have forgot to mention who the company are (ASDA) I feel there is large enough scope to introduce a new social media platform and get one up on our market competitors.

    Is this something you both could see as a service in the market? Or am I being an idealist?

    Thank you very much for your time on this one, and yes I am very impressed by your friends Facebook page, let them know they have done a really good job on that one.
  • Posted by peg on 11/20/2012 at 4:20 PM Accepted
    My local grocery store -- a large brand -- issues its customers an identity card, and the number of the card is the same as the customer's phone number. A shopper can swipe the card at check-out or, if they don't have the card with them, can punch in their phone number. No customer has to visit any website.

    By recording an individual's purchases, the store knows what each customer buys. When coupons are issued for those products by the store or by the manufacturer, coupon discounts are automatically associated with the shopper's card and applied to those products on their next visit. This saves shoppers time and money, so it works.

    The card also entitles customers to a hefty discount on gasoline at the gas station next door.

    Use these concepts to design a smart, easy-to-use identity card and if possible, include meaningful benefits beyond the grocery store. Above all, do not ask the customer to give you additional time outside of the store -- because generally, they won't.

    Good luck with your project.

  • Posted by Gary Bloomer on 11/21/2012 at 8:40 AM Accepted
    If you're going to introduce a loyalty card the key to success is ease.

    Ease of use.

    Ease of redemption.

    Ease of savings.

    By making people sign up on a social media platform you're adding an extra layer of complexity where none is needed, and you're alienating up to 30 percent of your customer base who may want to save money but who may not have Internet access.

    Keep your proposed system super simple, get people to sign up in store with their name, mailing address, and telephone number, and collect e-mail addresses as an optional extra, but don't push the computer side of things too heavily.

    In terms of the store knowing who's who, well, as long
    as people are spending money and acting as repeat customers, frankly, it's none of ASDA's business who's who.
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