CUSTOMER RELATIONSHIPS AND SATISFACTION 8
GNC Store in Bakersfield deals with various products that are aimedat promoting the health of the clients. The products that the storesells are vitamins, energy products, herbs, minerals, sportsnutrition, supplements and weight loss products. It is clear that thefollowing products cannot be sold to the mass market, but the storemust segment the market according to the demands of the particularclients. A market segment can be viewed as a section of the marketthat comprises of people with similar characteristics that makes themhave a popular demand for a particular product.
GNC store can segment the market in Bakersfield based on variousaspects such as gender, age, psychographics, demographics and thebenefits accrued from the products. The store can start byidentifying the sportsmen and women in the area and market the sportsnutrition products to them. It is critical to note that the sportsnutrition products cannot be purchased by other clients in the areawho have no interest in sports. Another segmentation that the storewould focus on could be based on age. The elderly people would be inmore need of vitamins and energy supplements due to their weak bones.It is, therefore, prudent to market the vitamin products and energyproducts to the elderly people.
The demographics of the city according to the 2010 census showedthat the population of the whites in the region is 56.8%. Researchhas indicated that the white population is likely to be affected byweight gain conditions such as obesity. Therefore, it would be vitalfor the store to segment the target market based on ethniccomposition. The weight loss products should be sold to the whitepopulation since they are likely to purchase such products than otherethnic groups. The black Americans are also affected by the sameproblem of overweight and therefore it is essential to target the8.2% of the Bakersfield black population. All the people of the cityis over 330,000 hence offers a huge market which cannot be viewed asa one uniform mass.
The store could also perform a market segmentation based on thelifestyle of the people. Individuals who work from offices, do alittle exercise, and have little time for playing will develop weightgain problems. This lifestyle demands that such people use productsthat will avoid weight gain. Notable is the fact that the peopleleading bachelor’s lifestyles will hardly make healthy foods athome, and they rely primarily on fast foods such as fries and porkproducts. There is no doubt that such people will develop overweightproblems and therefore, it is critical to segment such younggeneration and market the weight loss products to them. Marketing ofweight loss products should be done in places such as gyms and duringhealthy foods shows on the television.
The segment of the market that seems to have numerous people is theportion that constitutes the overweight people. Various strategiescan be used to attract the target audience to the business. It iscritical for the store to market the weight loss products to theesteemed clients in the specific areas that they are likely to visit.For example, selling the products in gyms would be an excellent ideasince most of the overweight people will be visiting the gymsfrequently (Baran, Galka & Strunk, 2013). Inside the store, it isessential for the management to have clearly labeled sections for thedifferent products. To reach the young generation suffering fromoverweight problems, it is essential to do thorough marketing of theweight loss products in the colleges and schools. Social mediacampaigns are extremely useful in instances where a firm seeks tomarket its products, especially to the young generation. Social mediaplatforms such as Facebook and Twitter are useful marketing tools,and they are cheap.
Strategies for building long term relationships
To maintain an efficient customer relation with the business,it is essential for the store to develop various strategies that willcreate high customer loyalty. Customer relationship management callsfor different elements and practices that are aimed at improving thelevel of interaction between the business and the buyers. It isimportant for the store to have quantity discount for clients whopurchase goods worth a certain amount. Additionally, it is paramountfor the warehouse to have voucher cards for regular customers.Another new strategy that the firm could use to improve its customerrelations is to ensure that you remember special occasions for theclients such as their birthdays. Increasing customer loyalty willrequire that the firm develops a rewards program where regularcustomers can be provided with gifts. This will encourage thecustomers to return to the store many times in the future. The storecould use customer relationship strategy of collecting the customers’data and information through social media and or their emails. Thiswill make sure that the firm can know the specific needs ofparticular clients, and this would be critical in maintaining afruitful customer interaction (Campanelli, 2006). The salesrepresentatives can use customer data in determining the buyingpreferences, buying history, and the concerns that a client mighthave with regards to a particular product. Lastly, another efficientstrategy that the store can apply to improve the customer relationsis following up with the clients. The sales representatives must usethe customer contacts that they have to reach clients and to find outabout the benefits of the products that they bought from the store.More often than not, such follow-up calls have resulted in referralswhere the firm gains new customers.
Strategies and their goals
Quantity discount strategy
This strategy has the goal of ensuring that the clients areencouraged to buy products in bulk or large quantities. Another goalfor this strategy will be to improve the sales for the store sincethe more products are purchased, the higher the sales value (Shaw &Reed, 2014). The strategy will also ensure that the clients areappreciated for their decision of buying at the store.
Rewards program strategy
This is a strategy that has a goal of appreciating the loyalcustomers. The awards are awarded to the clients who buy from thestore numerous times and its other goal are to ensure that thecustomers return to the warehouse severally (Banjo, 2016).Additionally, clients who refer new clients are also rewarded andtherefore, the strategy has the goal of attracting new customers.
Collecting customer data and information
This approach has the goal of meeting the specific needs of theclients. Subsequently, the method makes sure that the firm canunderstand the concerns of the customer and resolve them, as well asmeet the client preferences.
Follow up calls
The sales representatives follow up customers in a bid to find outthe level of satisfaction with the product. Besides, the clientscould also provide referrals to other potential buyers through thefollow-up phone calls.
Tactics for implementing the strategies
The quantity discount policy could be carried out by calculating thevalue of the goods bought that warrant a discount of a particularpercentage. It is vital to ensure that the amount of discount offeredis small and does not affect the profit margin with significantvalue.
The tactic that can be used to implement the rewards programstrategy is one that ensures that only the loyal customers areappreciated. The store must set some visits resulting into purchasesthat qualify a client for a reward (Shaw & Reed, 2014). Theawards should be issued once per year to ensure that their cost isminimized.
Concerning the collecting of customer’s data, it is essential touse the social media to collect the data. Additionally, theenterprise could use the name of the client to find out otherspecifics about the customer such as residence and age.
Lastly, the follow-up strategy could be implemented well throughensuring that the customers are aware of the calls, as well as thequestions they might be asked. Calls should be made during the dayand at a time when the client is convenient. Additionally, the salesrepresentatives from the store must stick to the topic of customersatisfaction.
Methods of measuring customer loyalty and satisfaction
There are many ways that the store can use to measure customersatisfaction and loyalty. One of the most common methods is the useof surveys (Peppers & Rogers, 2014). The studies could beconducted after purchases to determine the level of satisfaction fromthe buyers. A survey such as Google Forms could be used to askquestions such as whether the quality of the product met theexpectations the client had.
Another approach that can be employed is the net promoter score.Customers are asked the question on how likely they were to refersomeone else to the store for its products. The higher the NPS score,the greater the likelihood of the customer will refer someone else tothe firm. Lastly, the things gone strategy can be used to measure thelevel of complaints per unit sold (Decker, 2015). It is expected thatthe rate would be close to zero since a score of close to one wouldmean that there is a complaint about every product sold. The score istypically attained y dividing the number of units sold with thenumber of allegations received. It is, however, essential to notethat the Things Gone Wrong approach is not exclusively practicalsince some clients never file complaints, and they only avoid thestore.
Message for attracting the target audience
“For quality, healthy products for weight reduction, energyboosting, energy supplements, and minerals, welcome to the GNC Storein Bakersfield Ca. Our products not only meet your expected needs,but they have been used, tested and proven by numerous returncustomers. Welcome to our store and get the products at discountedprices Return customers are guaranteed of rewards.”
Banjo, S. (2016). GNC struggles to avoid expiration. Retrievedfrom: http://www.bloomberg.com/gadfly/articles/2016-04-28/gnc-earnings-struggling-to-avoid- expiration
Baran, R. J., Galka, R. J., & Strunk, D. P. (2013). Principlesof customer relationship management. Mason, Ohio:Thomson/South-Western.
Campanelli, M. (2006). GNC Pumps Up Marketing. DMN. Retrievedfrom: http://www.dmnews.com/dataanalytics/gnc-pumps-up-marketing/article/91596/
Decker, D. S. (2015). Customer satisfaction: Practical toolsfor building important relationships. Menlo Park, Calif: CrispPublications.
Peppers, D., & Rogers, M. (2014). Managing customerrelationships: A strategic framework. Hoboken, N.J: John Wiley &Sons.
Shaw, R. & Reed, D. (2014). Measuring and valuingcustomer relationships: How to develop the measuresthat drive profitable CRM strategies. London:Business Intelligence.