The five pit falls for body shop as identified are
1.) Inconsistency of Personalized customer service : as service standard provided by different service staff form body shop differ from time to time, there will be times whereby customer service towards platinum customer exceed customer expectation wherelse there are times where poor service is administrated by body shop ‘working staff members to customers such as low efficiency-eg not able to find product code, not knowing where product are placed both which would cost customer’s time. This would negatively impact the imagine of body shop.
2 Poor Product knowledge of staff :Product knowledge is important to customers of body shop as body shop is skin care product brand whereby consumers make decisions based on the benefits the product posses for example a person with oily skin would purchase the set of seaweed series to combat their oily skin complexion, thus Staff would need to effectively communicate the benefit in order to convince customer and bring in the sales. Wrong recommendations could sometimes lead to customers purchasing the wrong product that are not suitable for their skin type , in worst case it would result in allergy reactions,
3 Attractiveness of loyalty program Love Your Body™ card :Loyalty program is not point based and does not reward frequent purchases and also does not motivate customers to make frequent purchases
4 Notification of promotions: Although body shop run frequent promotions for its product, the duration and range of product on promotions, such information are mostly not available to people who do not subscribe to the newsletters online.
5 Brick and mortar retailing format :Body shop in Singapore does not offer online shopping ,customers could only view updates on new products and also the price list of products, however they would have to make their way down to the physical store to make their purchases which could be inconvenient to some customers who do not frequent malls where the skin care retailer are located. However an interesting aspect would be that this arrangement would forces the customers to come and visit the physical store, and also increases the possibility of customers purchasing more than they had originally wanted to.
Effects of pitfalls on the different group of customers in the customer pyramid
Platinum customer
Typically body shop’s platinum customers are the most loyal user, they are the least price sensitive group of customers and are the heaviest users of the product, they would also be more willing to try new items introduced by body shop due to faith in the brand itself, Thus platinum customer concerns most with value and quality of merchandise that they purchase
Inconsistency of Personalized customer service :When a platinum customer receives poor customer service, they would be more willing to put out with it ,due to long standing ties with body shop and they would also bother to provide valuable feedback back to the management.
Notification of promotions : not important to platinum customers as they are less price sensitive.
Poor product knowledge: As platinum customers are long time customers of body shop, they would had by then formalize themselves with the product they are using and thus know what works for them therefore in the event where the need to make repeat purchasese,they do not need additional product knowledge about the product they are familiarize with anymore, However they still require new product knowledge, updating to new skin care formulated by body shop
Attractiveness of loyalty program :As the love your body program introduced by body shop is not a point based system, platinum customers would not be able to accumulate points , while they could still enjoy discounts, price is less of an Issus among loyal customers, platinum customers of body shop would like to feel valued by the retailer, Retailer could foster such feelings by organizing product events, events and talks about usage of skin care for this group of customer. Thus the loyalty program would need to recognize the loyalty of these customers in non tangible form rather than monetary form
Brick and mortar retailing format: Would cause inconvience to platinum customers as they would most likely purchase the product that they used before thus an online retailing platform with delivery would be most beneficial to platinum customers,
Gold customer
Gold customer compared to platinum customer are firstly not as loyal, secondly are more price sensitive and thirdly do not purchase as much as compared to platinum customers. However they are the group of customers that are most likely to be converted to platinum customers. The bulk of bodyshop’customers would be Gold customers, as firstly it is difficult to convert a gold customer to a platinum one in the skin care industry due to large number of choices and difference in pricing.
Inconsistency of Personalized customer service : When a gold customer receives poor customer service from a body shop’s staff this could have an impact on whether they will make the purchase in the store or not , due to the lower loyalty value a gold customer have with bodyshop,any bad experiences encountered such as rudness and bad attitude towards them would tip the balance and turn them away from making a purchase.
Poor product knowledge: Product knowledge is important to gold customers because firstly they do not purchase as much or as frequently as platinum customers thus product knowledge on the varies range would be lacking and also they take pricing of product into consideration therefore staff must have the ability to communicate the benefits of the skin care range offered by body shop as this would allow gold customers to weight the benefits to cost as they attempt to justify the price ($18.90-$22.90) they will be paying for a product of body shop. Poor product knowledge could lead to reduce sales from gold customers.
Brick and mortar retailing format: Lack of online platform could also give inconvience to this group of customer however the impact would not be as big as it had on the platinum group of customers due to lower frequency of purchase and also other choices available.
Attractiveness of loyalty program : As gold customers are price sensitive customers, body shop’s love your body would be attractive to gold customers as it provides immediate discount but does not accumulate credit for future redemption therefore , the program benefit non frequent buyers in the short term as discounts are given out instantly while on the other hand it does not reward long term purchases due to the inability to accumulate redemption points. This program would appeal most to Gold and Iron customers as both these 2 groups are not frequent purchasers compared to platinum customers.
Notification of promotions :Would be popular with gold customers due to higher price sensitivity as It would attract them to make a trip down to physical store.
Iron customers
Iron customers of body shop are the second bottom tier of quality of customers, they are not likely to develop loyalty due to high price sensitivity, have the habit of comparing retailers(body shop) against other retailers(face shop), choosing the product base on their price tag. Therefore they are not likely to spend much in body shop alone, purchasing power is spread over a range of retailers. Only minimum attention is to be given to this group.
Inconsistency of Personalized customer service :Would not have significant bearing on group due to emphasis on price rather than other factors such as customer service
Poor product knowledge: Product knowledge Would still be important to a certain extent to customers in this segment, however benefits would be strongly compared against its price, expectations of benefit to price ratio is higher compared to gold customer group ,even more so than gold customers, customers in this segment are willing to settle for skin face with lesser benefits promised but with a much lower price tag.
Brick and mortar retailing format: Matter little to customers from this segment as they would only purchase when price is ideal, and there is a high possibility that customers would be more willing to put in extra effort to obtain a lower price product , therefore convenience matters little to customer from this segment.
Attractiveness of loyalty program: Loyalty program would be quite attractive to this segment due to its structure of instantly rewarding short term purchasers , thus is view favorably by price sensitive iron customers.
Notification of promotions :Is attractive towards this segment as it inform them when is the “right” time to come down to body shop to make their purchases
Lead segment of customer
Lead segment of body shop’s customer base are the lowest quality of customer profile, they are the least profitable group, and demands the most attention from retailer itself, This segment is highly price sensitive and overall tend to produce a negative lifetime value if they are retained.
Inconsistency of Personalized customer service :Would have significant bearing on group due to group’s demanding nature for service and attention, customer from this group could make a complain and perhaps obtain some retail vouchers in the process
Poor product knowledge: Product knowledge be important as customer from this group tend to demand attention from service staff, service staff are require to inform about the benefit but usually no sales are conducted.
Brick and mortar retailing format: Does not matter as it is uncommon for people in this segment to become frequent purchaser thus maintaining an online platform would not benefit them much.
Attractiveness of loyalty program: Is attractive to group as it allows instant discounts and also entry to events and talks organized by body shop with a small fee of $10 per annul.
Notification of promotion :Attractive to group as it informs them when is the time whereby they could stretch their dollar to the maximum
by heeyuan
Thursday, July 29, 2010
Week 14- Retail Communication Mix
The Body Shop has different kinds of services that are being provided to their customers. They are customer reviews, deep selection, display of merchandise, personal assistance in selecting merchandise and signage to locate and identify merchandise. For customer reviews, the customers of The Body Shop can give feedbacks to the staff immediately. There is an alternative way, which is by phone calls or even emails. The email address is located at the URL: http://www.thebodyshop.com.sg/en/contact_us.aspx. They always welcome suggestions or any form of feedbacks. Secondly, it is deep selection. For the products available, each category has a deep selection, from make-up, skincare, men’s products, fragrance and hair. An example for make-up, there are different types of products that can be chosen. They are different types of selection that customers can choose for lip, eye, face and lips products. Each category is available in deep selection. Example for eye products, there are different tones of eye shadows, different colours of eye brow pencils and eye liners to be sold to customers.
Thirdly, The Body Shop displays their merchandise easily for customers to identify according to their categories. New arrivals and products on demand are usually highlighted in the store. This can trigger the customers’ interests to look around and purchase even if they do not really need them. The merchandise is displayed nicely in the store, according to their categories. Signages are placed to let the customers know what promotions they are having in the store. Other than that, items on discounts are notified by the customers too. Signages will attract them, even when they are just passing by the store, not intending to enter them. Lastly, personal assistance is provided to the customers. The staffs are always ready to help them when it is needed. According to experience, they will ask questions to know more about what the customers are finding. After that, recommendations are given to which selection is better according to the smell or result of the products.
They provide service whereby customers can get faster information, like which one is more popular or better for them by the staff. Customers will feel welcome as well and do not feel lost in the store, as the choices are being narrowed down to certain types of products by the staff. Every staff has the same type of approach to customers as they are trained before starting on the job. This will not differentiate customers. However, it will only meet but not exceed expectations.
A good customer service provides clear definitions to the employees. The description
of the service must be clear so a standardized service will be given to the customers of The Body Shop. Mystery shoppers will grade the outlets. This is according to how the service is being rendered in the store to customers.
The first communication method that is being used by this retailer is paid and impersonal. This can be by advertising. The advertisements for this retailer would usually be seen at bill boards or on the internet. Sales promotions will be held if they care clearing the stocks. The items would be much cheaper and it is usually conducted in the open space near the outlet in that shopping centre. Secondly, it is unpaid personal. The customers will spread the news through word of mouth, negative or positive. It will reflect on the retailer whether the customers are happy with what that is being provided, such as service or information given.
Thirdly, The Body Shop displays their merchandise easily for customers to identify according to their categories. New arrivals and products on demand are usually highlighted in the store. This can trigger the customers’ interests to look around and purchase even if they do not really need them. The merchandise is displayed nicely in the store, according to their categories. Signages are placed to let the customers know what promotions they are having in the store. Other than that, items on discounts are notified by the customers too. Signages will attract them, even when they are just passing by the store, not intending to enter them. Lastly, personal assistance is provided to the customers. The staffs are always ready to help them when it is needed. According to experience, they will ask questions to know more about what the customers are finding. After that, recommendations are given to which selection is better according to the smell or result of the products.
They provide service whereby customers can get faster information, like which one is more popular or better for them by the staff. Customers will feel welcome as well and do not feel lost in the store, as the choices are being narrowed down to certain types of products by the staff. Every staff has the same type of approach to customers as they are trained before starting on the job. This will not differentiate customers. However, it will only meet but not exceed expectations.
A good customer service provides clear definitions to the employees. The description
of the service must be clear so a standardized service will be given to the customers of The Body Shop. Mystery shoppers will grade the outlets. This is according to how the service is being rendered in the store to customers.
The first communication method that is being used by this retailer is paid and impersonal. This can be by advertising. The advertisements for this retailer would usually be seen at bill boards or on the internet. Sales promotions will be held if they care clearing the stocks. The items would be much cheaper and it is usually conducted in the open space near the outlet in that shopping centre. Secondly, it is unpaid personal. The customers will spread the news through word of mouth, negative or positive. It will reflect on the retailer whether the customers are happy with what that is being provided, such as service or information given.
Done by: Farisa.
Tuesday, July 20, 2010
Customer Service (Part 1)
Personalized Approach
The following are some value-added services offered by The Body Shop:
Similar to most of the specialty stores, The Body Shop adopts personalized approach to provide high quality service level and expertise to the customers. It is also the company’s main priority to serve the customers according to their needs and preferences. Over the years, The Body Shop has invested a substantial amount of resources and efforts into quality hiring to build an excellent group of service-oriented employees.
Unlike standardized approach, the employees at The Body Shop are encouraged to be creative and innovative in their service while continuously having a first-customer mindset and take initiative and ownership by providing “service from the heart” during interactions with customers so as to exceed expectations and foster customer loyalty. By treating customers as “friends”, the store staffs are able to gather meaningful information about individual unspoken needs and strategize effective personalized service offerings to satisfy customers.
The following are some value-added services offered by The Body Shop:
- Product demonstration
The staffs are encouraged to demonstrate and explain the proper product usage to the customer so as to interact and pass on product knowledge to customers. Free samples are given to customers to let them experience the product and its benefits. - Exclusive membership
The Body Shop Love Your Body™ provides more than just a loyalty card, it rewards customers with discounts, free gifts and special promotional privileges for members. Through this membership program, The Body Shop is able to gather customers information and monitor their buying behaviour in order to come up with attractive customized offerings. - Return privileges
Customers vary in skin condition and may be allergic to a particular skin care product. Hence, The Body Shop allows the customers to return the product and re-consult the employees to obtain suitable skin care products. - Personal shopper/Make-up artist
A personal shopper will be present in every store to assist and provide recommendations to help customers in their purchase decision. This experienced staff is also a professionally trained make-up artist to provide customers with enriching experience through complimentary “mini make-up” for customers who purchase a make-up set.
What does good customer service mean?
The Body Shop may encounter shortcomings such as high cost and inconsistency as it implements personalized approach in order to satisfy the customers. Below are what good customer service means to the company:
The Body Shop may encounter shortcomings such as high cost and inconsistency as it implements personalized approach in order to satisfy the customers. Below are what good customer service means to the company:
- Common service goals and objectives throughout the organization
In order to ensure good quality service, The Body Shop has to incur high cost for training the employees. In fact, it takes 3 days of training to equip employees with the product knowledge and emphasize on the service approach. The company finds it necessary for the employees to participate in training to better understand the company’s objectives and expectations for implementing such a specific customer service strategy. Employees can also clear their doubts and raise their concerns during training to lead to greater acceptance of the goals. Since it is more costly to acquire new customers through advertising and promotions than to retain the existing ones, The Body Shop is against the idea of heavy promotions with its long-term value on protecting the environment and instead prefers to gain a competitive advantage through quality customer service.
- Consistency and measurability
Since it is very difficult for employees to perform similar standard in their service, personalized service may lead to even more inconsistency than standardized service as a changing approach used by the sales associate may not be as effective as in the previous dealings to exceed customers’ expectations. Hence, The Body Shop regularly conducts surveys to its loyal customers (mainly Love Your Body™ card members) so as to measure its service goals, find out about their concerns and improvements that they expect to see in the service standard of The Body Shop. This effort proves to be an effective method to communicate with the customers as 3,615 customers participated in the survey conducted in 2009
Done by Fickey & Hee Yuan
Tuesday, July 13, 2010
Week 11- Merchandise presentation and store design
Store layout
The Body Shop Singapore uses free-form (boutique) layout. With this layout, customers could roam around the store freely not having to worry about whether is there sufficient space for them to pass through from one corner to another. From the floor plan (attached below), cluster of fixtures could be seen in certain corners to promote the flow of human traffic. The advantages of using such layout were it provides an intimate and relaxing environment through the wide walking spaces between fixtures and wall displays, so that consumer can browse through the products without having the need to squeeze in between people. Also, it helps to facilitates shopping and browsing. Only with a calm and relaxed mind, one could then be more interested in shopping, by making shopping with The Body Shop a relaxing one, it makes customer feel more refreshed and rejuvenated. Lastly, it also makes shopping in there an experiential one. As all stores differ with other in certain ways, it makes each individual store exclusive, thus, impossible to have an exactly similar one.
The fixtures and aisles are placed symmetrically. This is to let the consumers browse the products freely, at their own time. The varieties of products are placed accordingly, from the ranges of make ups to skin care and fragrance. New products as well as items that are on promotions are placed near the entrance of the store to capture the attention of the customers. Attention of curious souls will lead them into the store, causing them to browse the products available. The new store at Ion Orchard has a new concept which is different from the rest of the stores in Singapore. It emphasizes on recycling. The floor is made out of Sadlerstone, by filtering the water after recycling the concrete and paper waste. Armourcoat is used instead of painting. It is made out of marble powder left over of the industry of quarry.
The fixtures and aisles are placed symmetrically. This is to let the consumers browse the products freely, at their own time. The varieties of products are placed accordingly, from the ranges of make ups to skin care and fragrance. New products as well as items that are on promotions are placed near the entrance of the store to capture the attention of the customers. Attention of curious souls will lead them into the store, causing them to browse the products available. The new store at Ion Orchard has a new concept which is different from the rest of the stores in Singapore. It emphasizes on recycling. The floor is made out of Sadlerstone, by filtering the water after recycling the concrete and paper waste. Armourcoat is used instead of painting. It is made out of marble powder left over of the industry of quarry.
Signages and graphics of retailers
Signages are used as visual communication to display information to the customers. The Body Shop adopted the 3 different types of signage which are Department markers, End of Sale (EOS) and A6 signages.
Department markers
It is used to indicate the department/category found in the store. The picture displayed the category name at the top of the products with a brief description. With reference to the Figure 2, the two categories taken are Daily Body Care (Shower, Scrub, moisturize in all your favourite ingredient) and Body Favourites (Can’t-live-without-them body care).
End of Sale (EOS)
It is used to highlight discounts and special offers. Signages are used to inform customers about promotion. In order to attract customers, The Body uses red signage that is an eye-catching colour, ‘before and after pricing’ and the enlarged font for discount to make it more visible.
A6 Signages
Feature areas
End caps
Display located at the end of the aisle. It has high visibility and accessibility, thus increasing sales. The products which are placed on that space are on promotion. Referring to attached picture, The Body Shop has placed their top third best seller on the end caps, leading to impulse purchase from customers.
Promotional table/area
Space used for displaying merchandise that is being promoted. It would bring in good traffic and generating area into hot spots. With reference to pictures attached below, the promotion is located at the entrance. Being situated at the entrance, it is crucial as it sets the first impression to the customers and it has to be attractive to create traffic and pull in the crowd.
VM fixtures
Shelves are used in the stores. They are nicely divided, giving each type of product space to be displayed. The items are placed according to their heights respectively in the product categories. They are clear and easy to be located by customers. The height of the shelvings is within reach of the customers. This enables them to touch and see the products before purchasing. The display tables are placed near the entrance, usually for the new arrivals or promotional items. There are no racks available as they are not needed. This is due to the product type that is being sold.
Shelvings in The Body Shop
Merchandise presentation techniques
The Body Shop is brightly lit, emphasizing on the products. It brings out the colour of every individual item that is available. It captures the mood for the customers to browse further. The colours used are mostly green, as to remind the customers about their campaigns. Green is a cool colour to make the customers feel calm and to let them browse slowly. The scent is mild, which draws the attention of the customers. It is neither too strong nor scentless as this will affect the attraction.
Done by: Farisa
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