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  • Category: Miscellaneous

    Understanding the pulse of the customer is so important for success

    Enter into any branch of the superb Saravana Stores in Chennai. You will find cheaper alternatives for things like suit cases, rain coats, belts, textiles and what have you. The branded items like the soaps and detergents, soups, the ready-to-cook items and so on, are sold at hugely discounted prices, perhaps made possible by manufacturers, who give them a huge margin.

    There have been any number of studies on this phenomenon called Saravana Stores, but its recipe is very simple: very low margins, but very huge volumes. Not a single customer will leave the shop without buying something.

    Every second, an estimated 1550 people are seen doing some shopping or the other, according to some studies. Every family gets a discount of almost ten per cent. The cheaper substitutes sell so well, as the target customers are those with incomes not exceeding Rs.12000 per month,at 2018 prices. The rain coats for instance, serve the customer at Rs.150 a piece. The customer knows very well that it will last only one season. Yet, millions just lap them up, because of the affordability factor.

    Ditto for what we call the "kaiyendhi bhavans" in Tamil. These are very small mobile eateries, that are dime a dozen in every nook and corner of Tamil Nadu and elsewhere too. Their specialty is to sell the south Indian dishes at a huge discount. Volumes count and the prices are one tenth of what is sold in the branded hotels.

    Those branded outfits like Saravana Bhavan, A2B and so on, also make their money, as they have hugely standardized food items, where the quality is superb, and the ambiance is excellent.

    We always observe that the customer is at the center of all success. Customer satisfaction is always the key to success. This is not only true of the service businesses but also in consumer durable industry. For instance, Voltas has come out with a new range of ACs, backed by some superb advertising, and this has already caught on the attention of the customer like never before.

    The list is endless. What is most important is the perfect understanding of the end customer. Members may have a huge number of other examples as well.
  • #637758
    It is said that if you understand your customer, you understand your business. Mahatma Gandhi had rightly said that the customer is the most important person in our premises because we need him, he does not need us.

    The fact is, if you can not give a customer an item at a price he is looking upto, he will go to other shop.

    This is the essence of the business and the author of the thread has rightly mapped it in his post.

    Knowledge is power.

  • #637794
    The customer satisfaction or customer delight is the important requirement for any business to be successful. The customer is important for any type of business, whether it services industry or manufacturing industry or another type of industry. WIthout customer, there is no business.
    In this competitive market getting a customer and keeping him as a loyalist to the product is very difficult. So many business houses are coming out with so many incentives and trying to give the products at lesser margins so that they will sell more volumes. Patanjali products are becoming very popular and they are doing very good business these days. Similarly, D Mart's are giving the items cheap when compared to other malls. So many people are going to this Mart for their requirement. Mobile hotels in Hyderabad are also becoming very popular these days as the rates are cheap and the quality they are able to maintain.

    drrao
    always confident


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