Customer Relations and Satisfaction Plan for Natural Food Store - Case Study Example

Customer Relations and Satisfaction Plan for Natural Food Store

A plan for improving customer relationship and increasing satisfaction finds basis from the extent to which the modern business environment provides diverse options for customers, especially in the age of e-commerce. For any business entity, it becomes imperative to devise the best ways for influencing customers such that they can stick with the organization and the same applies to maintaining new clients (Vivek, Beatty & Morgan, 2012). As such, for a company to ensure that the customers remain loyal to the brand, all that needs to be done is focusing on building strong as well as unbreakable relationships as this will determine the level of customer satisfaction. More so, the modern consumer is diverse concerning the amount and level of satisfaction expected from the esteem brands, even cutting across food stores that also have to keep up with the competition or the shift towards maintaining customer relationships. Mainly, the emphasis of this plan will be to outline the best way through which a natural food store can increase the level of customer relationship engagement as well as the best approaches to increasing satisfaction. All the recommendations in this plan are subject to marketing frameworks and models as they concern customer relationship management and satisfaction as the basis for the justification of the best or the most suitable strategies.

Natural Food Store

Geographic segmentation is the simplest to undertake as it entails subdividing the markets based on the geographical locations (Wedel & Kamakura, 2012). However, being a local food store, the segmentation will be based on the different localities, communities or even going further to the regions within the locality. As such, for this type of segmentation, much attention will not be paid because the market is rather concentrated whereby all the customers have easy accessibility to the food store.

Behavioral segmentation should be given much attention because it entails considering the behavioral characteristics of the consumers (Wedel & Kamakura, 2012). In this case, the company can divide the market into various subunits based on their attitudes, knowledge, response to the services and knowledge about the healthy and natural foods. For instance, the market can be divided into those that have positive attitudes towards healthy and delicious meals, because their behaviors depend on the familiar foods that they enjoy (Consumer Fatcor, 2016). Others may be selected based on their preference towards colorful but balanced and nourishing meals yet indulgent.

The market can also be segmented based on the lifestyle of the local market t(Wedel & Kamakura, 2012). For instance, there is the health realists segment as shoppers who are interesting in maintaining fit and slim bodies as well as staying healthy. Their goal is to maintain their body, and natural foods are the best option. Demographically, they are at the age of around 39 years, with a median income averaging at $65 (Consumer Fatcor, 2016). The lifestyle segmentation can also divide the market into indifferent traditionalists as shoppers with least concern for natural foods, can try the foods sometimes but always sticking to the traditional foods, leading a simple life. The segment has attained high school education, earning around $46 as the median income and demographically, at 65 years of age (Rudarakanchana, 2013).

Again a psychographic segmentation, based on lifestyle, also has the true believers, wanting to keep healthy bodies (Rudarakanchana, 2013). More so, the market can be segmented based on the product benefits because they believe that there are positive implications for natural and healthy foods, both to their lives and the environment. The type of segment contain individuals who always strive to try new things, envisaging becoming role models to their children and demographically, have a college education, at an average of 40 years and earning a median income of $65, 000 (Consumer Fatcor, 2016).

Enlightened Environmentalists fall under behavioral and psychographic segmentation, because they have a positive attitude towards supporting the environment, and as such, will strive to buy products that have least impacts on the environment (Rudarakanchana, 2013). In fact, for a natural food store, this is the main segment to target. The demographic characteristics reveal that the segment has average 57 years, with a college degree and earning a median income of around $57, 000 (Consumer Fatcor, 2016).

Strategies for attracting the customers

Although it is widely known that a natural food store in a locality may be a good investment opportunity, the company might be competing with other natural food stores; hence it has to be robust with its marketing strategies for attracting customers. For a local business, one of the best approaches to attracting customers is direct marketing, putting posters on strategic meeting points and to some extent, using transit media like bus trams whereby the company attaches stickers advertising itself to the potential customers. In this regard, the company will be engaging in traditional marketing to attract customers since Hadi (2015) suggests that it is effective with local customers, especially in business-to-business scenarios like the natural food store. Word of mouth marketing may be a good strategy, but other ways to attract the customers include engaging in business partnerships with the locals, press releases through the local media as well as local sponsorship, especially community programs aimed at preserving and protecting the environment since such is the focus of a natural food store (Vivek, Beatty & Morgan, 2012).

The best market to concentrate on is the environmental enthusiast segment (Consumer Fatcor, 2016). The implication is that the goal of a natural food store company tends to be aligned with the goals of this market segment. For instance, the environmentalists believe in the health and well-being of the public and such is provided by the natural food store products or organic foods. On the other hand, the market believes that for the sake of the environment, there is the need to change attitude, especially the nature of food consumption such that foods bought and consumed are not harmful to the environment. A natural food store serves this purpose, all foods packed as organic and their production process is less detrimental to the environment. Therefore, it will be easier to meet the needs and expectations of the environmentalist segment than other market segments. Besides, the market segment has a higher spending power compared to other sectors, because on average, they earn $56 as an implication of surplus to be spent on food (Rudarakanchana, 2013). Therefore, the market has a greater potential concerning their satisfaction, aligning with the goals of the company and providing prospects for business growth through high spending power.

Strategy for building long-term relationship

Customer relationship management

The company should use the Customer Relationship Management (CRM) approach in devising strategies, technologies, and practices for managing as well as analyzing customer interactions (Hollensen, 2015). In this case, CRM should be integrated into the customer relationship management goals and objectives to help evaluate the entire lifecycle. The purpose of the strategy should be to improve the relationships with the customers, assist with customer retention as well as driving the sales growth. The approach is suitable, as it will help analyze the interactions with the customers through company websites, live chat, social media and even telephone conversations (Hadi, 2015).

Personal communication/direct marketing

Direct marketing entails engaging directly with the customers done by sending emails, phone contacts and even door to door marketing because this is a local business. For this strategy, the goal should be to generate leads for the company, increase its market share and most important, improving customer loyalty as well as client retention (Hollensen, 2015).

Social media/social networking

Social media marketing is one of the ways through which customer relationships can be improved as it entails direct engagement with the customers (Hollensen, 2015). For this case, the company has a myriad of social networking options, including Facebook, Twitter, and Instagram among others to interact with the customers. Frequent updates on the product offerings, creating live sessions for answering the customer's questions is the best way to improve customer relationship and increase satisfaction. The primary goal of this strategy should be increasing customer loyalty, but it will also help in increasing brand awareness or strengthening the brand, and engaging with their clients (Vivek, Beatty & Morgan, 2012).

Public relations

Public relation marketing is an equally important strategy for this case, will involve the direct spread of information between the company and the public (Hollensen, 2015). In this regard, some of the best approaches to public relations will include incentives like engaging in community services or supporting initiatives aimed at improving the welfare of the community. The goal of public relationship should focus on reputation and relationship management as the main elements for maintaining a good relationship and improving customer satisfaction.

Tactics to for strategy implementation

One of the best tactics for implementing the strategy is rewarding employees, especially the marketing and sales force for adopting the recommendations (Kumar & Reinartz, 2012). For instance, good commission for leads from a sales or marketing team can encourage greater commitment towards adoption. The rationale for this tactic is that a strategy will never work without the dedication of the people within the organization. Since all the strategies will be dependent on technology, the mobile phone is the best tactic for the implementation because all the customers use it. For instance, an app about the company should be developed, as this will aid with the implementation of other strategies. Finally, the best way to implement the strategy, especially in the age of technology, is through an integrated approach to information management (Hollensen, 2015). All the strategies and activities can be combined in a system that will make it easy to monitor their implementation.

Methods for measuring customer satisfaction and loyalty

The first and easy to use method is surveys carried out on the customers after purchasing the goods (Hollensen, 2015). For convenience, the company can use tools such as Survey Monkey and Floq for carrying out the surveys. On the other hand, objective measurement approach is best for this purpose, as a framework for analyzing the historical records within systems like the CRM. For instance, the information to consider includes online behavior and purchase scores. For direct engagement, repeat purchase behavior can be used as an indicator of the level of loyalty and satisfaction (Kumar & Reinartz, 2012). Being a local business, interviews can be utilized, asking such questions as the satisfaction with the service, the client’s perception of the company in relation to competitors, why they choose the company, what the company is doing good and wrong and if they would purchase again from the store.

Messages for attracting audience

“At our store, we pay attention to your health and wellness needs, providing organic foods with health benefits at affordable prices."

“For health and environmental integrity, we believe that our products are the best solution. We have a duty to serve you healthy food and help protect the environment at affordable prices”.