7.2 RETENTION STRATEGY
A very important part of the business is to retain customers. There are several statistics which show that many customers switch from brands because they do not feel they are important anymore (Millard, 2000). Keeping customers pleased and keeping them buying is a great way to grow, because then the company can focus on acquiring new customers.
Loyalty programs are one of the best ways to keep customers. For instance, Yue Sai could implement a program where, for instance, customers could take back to the stores ten empty containers of skincare products and they get one new. Birthday rewards are also a way of making the customers feel special, thus when it is their birthday they could receive a facial done at the stores…show more content… QUALITATIVE AND QUANTITATIVE GOALS
In order to measure the performance of the business, it is important to have objectives. For the next two years, Yue Sai should not expect to see any growth, because the company will increase expenses in order to refresh and reinforce the positioning of the brand, by constant advertising and by increasing their online visibility.
Expanding the men’s skincare line is a strategic objective for Yue Sai because the saturation on this market is very low, that is why there is a tremendous potential in this segment. Yue Sai should also do advertising for men’s skincare line. Besides, in order to refresh the brand, we suggest Yue Sai to launch a new basic line with products linked to a new proposal packaging. By this way, the objective will be to attract new customers by proposing compelling offers.
After adapting their new offers to the Chinese market, we would expect that Yue Sai should be able to see a growth of 3% in increasing sales for the next four years and then adjust the rate to 4.5 % for the following years. We also consider that expenses should increase not more than around 1.5% per…show more content… The retention rate would be a good measure to check the performance of the sales force of the company. Another tool that Yue Sai should use is the “mystery customers”, who perform a specific role in purchasing process. Indeed, mystery customers measure the service level of the customer service of a company and compare it with competitors, in order to create a benchmarking.
The ultimate objective of Yue Sai will be to extend their market share. According to Ibergloba (Group, 2014), the share market in the Chinese market was distributed as follow: Procter & Gamble (15,1%), L’Oréal (11,1%), Shiseido (5,4%) and Unilever (4.6%). As Procter & Gamble is the leader company in the Chinese cosmetics industry, it is important that Yue Sai follow their actions and adapt theirs to equal or overtake Procter & Gamble in the future