What Marketers Can Learn From Starbucks’ Stores in Beijing
Know who your audience is and what their needs are
By knowing who your consumers are and what problems they have, you can cater your products or services seamlessly to their needs. Similar to how Starbucks has made its stores more sociable for young Chinese adults to meet new friends, you can add new product features, enhance customer service, or remove shipping fees to meet your consumer demand. As Jeff Bezos of Amazon once said, “we see our customers as invited guests to a party, and we are the hosts. It's our job every day to make every important aspect of the customer experience a little bit better.
Study local culture before expanding overseas
Our culture can affect how we think, behave, and interact with each other. Just like how Chinese young adults have a immense desire for companionship due to their lack of siblings growing up, people of other nations may also have specific needs because of the culture and environment they faced as children. For marketers, this means that you have to study each country’s culture carefully before you start launching new retail stores overseas or offering your products or services in other markets. Without detailed marketing research on your target market’s culture, you’ll miss out on valuable information regarding your consumers’ problems and needs. This will subsequently deter you from effectively cater your unique selling proposition to your consumers.
Convert your consumers into loyal customers
According to Forbes, it’s 50% easier to sell to an existing customer than to a new customer. Hence, customer retention is key to a company success. By continuously nurturing positive relationship with your current customers, you’ll be able to maximize their longtime values. This can help you generate steady revenue to sustain your company while continuously to explore new markets. Starbucks has done so by enhancing it in-store experience and encourage its consumers to frequently visit its stores. Without effectively retaining its customers, Starbucks will be forced to keep on advertising and marketing its brand, causing them to increase its costs and hurt its profit margin. For other businesses or marketers, you also have to consider the importance of customer retention because without an effective customer retention program, you’ll fall into a vicious cycle of continuously finding new prospective and converting them into customers – a process that’s extremely costly and mentally-draining.