Understanding the pulse of the customer is so important for successEnter 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.