27. Sales Clerk :- “May I help you?”,
Consumer :- “I’m looking for a slender dress, ideally in a lighter
color,
just above the knee, not too revealing, not too conservative, under
28. 1. Change what it offers
2. Consumer data in CRM database
32. Group Members
Erandika Lakmali – IM/ 2014/036
Thilini Weerasinghe – IM/ 2014/026
Anushika Fernando – IM/ 2014/029
Chapa Karunanayake – IM/ 2014/054
Editor's Notes
Store wide
ENABLE TO GROUP AND PRAMOTE PRODUCTS
ONE OUT OF FOUR PRAMOTIONS ARE INEFFICIENT
INCREASED BASKET SIZES AND HAPPIER CUSTOMERS
Demographic, Geographic, Behavioural, Life cycle or customer journey based
Can consider parameters such as age, generation, gender, education, occupation, income, marital status, or ethnicity to create customer segments
NIVEA Sun grew their portfolio to 40 different product variations to meet the needs of their customers.
For example, men chose convenience when it comes to sun care products while women chose luxury. The choice of a product also depends on people’s occupation because that decides how long they spend in the sun. Using an effective segmentation strategy, NIVEA Sun was able to provide more value to their customers.
Geographic segmentation involves grouping customers by country, state, region, climate, or market size.
Chicken burger instead of beef burger.
Target local markets with customized menus.
Behavioral segmentation involves segmenting customers based on the way they interact with your brand.
Amazon has mastered the art of targeting their customers based on their recent purchases and recently viewed products.
Social Care is the New Customer Care
Social care is a way for companies to provide regular customer service through social media platforms. The study revealed that one in three social media users prefers social care to contacting a company by phone.
Consumers use a variety of channels for social care. For example, they are most likely to comment or ask a question about a company’s products or services on the company’s Facebook page (29%), on their own personal Facebook profile (28%), on official company blogs (15%), on Twitter (personal handle – no mention of company, 14%) and on Twitter (company’s handle, 13%).
We tend to think of social listening as something only marketers and research analysts do. However, it’s interesting to see that consumers are also active listeners. This is an opportunity for marketers to educate consumers through compelling content, improve customer experiences (using social care) and maintain strong customer relationships to uphold a positive brand image.
Netflix has succeeded in creating a user experience that’s reflective of your Taste in movies, and Spotify’s Machine Learning system has the goal of learning and presenting songs and playlists that match your musical Taste. What about retail? Shouldn’t retailers be equally responsive to your Taste in apparel, footwear, and cosmetics? Given all the data that’s out there, shouldn’t this happen when you visit a store, when you browse online, or when you receive an email from a retailer?
McDonald's began by offering the classic combo of hamburgers and fries. They originally didn't offer salads or frappes. But, over time, their customers wanted healthier foods, so McDonald's responded and began offering healthy alternatives such as salads, fruits, wraps, and oatmeal. If McDonald's hadn't responded, they may have lost customers that wanted to eat healthier foods.
Also, many cities now have farmer's markets because residents wanted fresh locally grown foods, picked the same day, instead of grocery store foods picked weeks before. In this lesson, consumer tastes refer to the products and services that consumers consciously choose over others. An example of this is a customer choosing a salad over a hamburger. You will see just how changes in consumers' taste affect businesses.
The lifestyle of consumers also affects businesses. When consumers want to lead a healthy lifestyle, then businesses need to change to address this need if they want to grow. Because of government initiatives, more and more people are going 'green'. These people want to use less energy and use products that are safer for the environment. Some businesses have changed how they do business in terms of what supplies they use to encourage these potential customers to visit them or use their services. For example, a carpet cleaning company may advertise that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity.
Fashion is one area where consumer tastes change fairly often. What do you look for when you go shopping for clothes? Do you look for the same style each time, or do you check out the new styles? Fashion businesses change their inventory all the time to keep up to date with what their customers want. For example, the clothes and styles available in spring won't be the same ones that are available in fall. The clothes a fashion business chooses to have in stock are also determined by what their consumers want. If consumers want long dresses one year, then the businesses will change so they will offer those long dresses.
Marketing. Good advertising campaigns can alter consumer tastes; this is a major reason for advertising.
Culture. People from different cultural backgrounds will tend to have different tastes. For example, someone from a very conservative cultural background will be likely to have different tastes in women’s clothing than someone from a more liberal one.
Income and wealth. As people’s incomes change, so can their tastes. For example, a person who was once quite happy with a Toyota Camry may become rich and come to think that only a Mercedes will do.
