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The best strategy of retail by managing the customer relationship over time eventually results in a...
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Retail Marketing
Riccardo Banella - Genoa - Italy - Workshop GDO
Why are we here?
Riccardo Banella - Genoa - Italy - Workshop GDO
Because the world is changing
Our work of retail manager is always more competitive
The customer is more and more aware of the value of its
choice
Operating profit, for each finished good, is decreasing
So, what can we do today?
Riccardo Banella - Genoa - Italy - Workshop GDO
We can speak about us and our
C u s t o m e r s
How are the customers changing?
Riccardo Banella - Genoa - Italy - Workshop GDO
• The expectations of service for thecustomers are risen continuously
• The Customers have more knowledgeon own rights to the quality
• The customers have the right and thepossibility to choose the store andtherefore, this chosen may cause theeconomic growth of a store and thefailure of an other.
Look at the next slides and then think it over!
Riccardo Banella - Genoa - Italy - Workshop GDO
DEVELOPMENT POINTS OF SALE
1996 2004 2005 2006
Traditional retail 615186 648000 654000 664000
No food 408513 467000 475000 487000
Food 206673 181000 179000 177000
Pedlar 107144 121000 126000 128000
No food 72798 90000 95000 98000
Food 34346 31000 31000 30000
Large-scale retail trade 15469 19957 20368 21136
No food 1659 2228 2339 2656
Department Store 980 732 746 710
Large Specialist Store 679 1496 1593 1946
Food 13810 17729 18029 18480
Hypermarket (> 2500 m²) 173 297 334 355
Supermarket (400-2500 m²) 6126 8012 8171 8410
Superettes (200-400 m²) 5500 6585 6587 6495
Hard Discount (< 1000 m²) 2011 2835 2937 3220
Sources: Istat, Ministero Attività Produttive Italia, other
Riccardo Banella - Genoa - Italy - Workshop GDO
Competitors development in No Food Retail - Italy
Riccardo Banella - Genoa - Italy - Workshop GDO
More competitors in the market but with the same (or smaller) number of
customers and an extraordinary variety of the demand : this is the situation in Italy but also in other industrial Countries in the world.
What is the magic “word” for exceed this difficulty, for increase our
customers portfolio?
We must improve the quality.
Riccardo Banella - Genoa - Italy - Workshop GDO
What do we mean for Quality?
We want that our customers are happy, delighted, to buy our
product or service because one happy customer makes large gains
to the our company!
And the customer can reach the happiness with the high quality of the organization, service, people of
the retail company.
Riccardo Banella - Genoa - Italy - Workshop GDO
Quality is the customer loyalty.
Because “only one” loyal customer is worth a lot of “not loyal” customers, according to different international
customer research.
On average, the purchases of a loyal customer can be 70-80% on total turnover of the retail company!*
So we understand because we “must” have loyal customers!
Sources: International Research Company, 2006Riccardo Banella - Genoa - Italy - Workshop GDO
To development a customer loyaltywe must consider four essentialaspects:
1. the service which we offer is arelation
2. it is an activity, not an object
3. supplying and use of the servicecarry out at the same time
4. the customer is involvepersonally
Riccardo Banella - Genoa - Italy - Workshop GDO
The manager must plan four phasesto realize a quality project:
1. expected service: it is therequirements list of the expectedquality from the customer;
2. perceived service: it is themeasurement of the perceivedquality vs. customer
3. supplied service: it is thesupplying, really, of the service
4. projected service: it is the projectof a new service on the grounds ofthe previous measurements
Riccardo Banella - Genoa - Italy - Workshop GDO
These phases represent the plan for Customer Management and must be
developed in different timing.
The measurement must include the comparison with other competitors so that
the cost of quality is coherent with competitive environment.
The retail company, infact, must satisfy the highest level of quality, but it can have a “tolerance zone” in which the customer accepts a certain level of dissatisfaction
before to change the supplier.
Riccardo Banella - Genoa - Italy - Workshop GDO
Customer
Competitors
Retail Company
Customer Management
Customer management
planning
Benchmarking
Performance supplied tothe customer
Customer expectations
Customer perceptions
Riccardo Banella - Genoa - Italy - Workshop GDO
Customer Satisfaction Level
Satisfied customer “tolerance zone"
Customer more satisfied
Desired level
Unsatisfied customerInsufficient level
Right level
Right level
Riccardo Banella - Genoa - Italy - Workshop GDO
But what do the manager make to
realize a Quality Plan?
Riccardo Banella - Genoa - Italy - Workshop GDO
The manager must be taken as a “model” of communication,
relationship and professionalism for all the members of his team: there is not quality without a manager who makes
quality himself.
The manager serves the customers between the staff.
So in the quality plan we must consider also “the people satisfaction” where the manager must measure the one’s
quality towards the staff.
Riccardo Banella - Genoa - Italy - Workshop GDO
But remember: to have a happy customer (external or internal) we
must also communicate that
we “can” smile
In this actual world the information is global and we think, really, by
internet, that to make friends with the people is easy
Instead, a lot of people is alone and only one smile, in our store,can be an important giftto give with our service
Riccardo Banella - Genoa - Italy - Workshop GDO
I hope that this brief conversationis been useful or, at least, curiousfor you.
I thank you for your attention but Iwant to give you a last suggestion
Riccardo Banella - Genoa - Italy - Workshop GDO
S M I L E!
Riccardo Banella - Genoa - Italy - Workshop GDO
Riccardo Banella - Genoa - Italy - Workshop GDO
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