Store Manager's Job: Customer Management Part 1 - The Basics

In this installment of the Store Manager's Job series, I would like to cover customer management (though it may sometimes be handled by someone other than the store manager).
I will break this down into four parts—"Basics," "Data Collection," "Analysis," and "Utilization"—and discuss the key points you need to grasp for each.

First, let's start with the basics of customer management.

It is often abbreviated as CRM, which stands for:
C: Customer,
R: Relationship,
M: Management.
It involves collecting, organizing, and utilizing various pieces of information to maintain and strengthen long-term, positive relationships with customers.

In other words, by collecting information such as customer names, contact details, purchase history, and preferences, you get to know your customers. By organizing and analyzing this data for each customer, you can identify actions that lead to increased sales. Using this information for promotional activities and customer service helps increase repeat business and referrals, further boosting your sales.

The goal of customer management is not simply to create a list or record numbers.

The goal is to increase the number of loyal customers who visit repeatedly, to inspire customers who wander in to make a purchase, to make them feel glad they bought something and want to return, and to encourage them to buy related items in addition to their intended purchase. Ultimately, it is about increasing customer satisfaction, generating positive word-of-mouth, and encouraging them to introduce their friends—in short,“making them fans of your store.”

Methods for achieving this have been written in previous articles, so please check the URL below.

As for methods of customer management:

1. The manual method using paper ledgers.
The key here is to use a card format that allows you to extract or add customer data, and to ensure everything is done using a unified format.

2. The method of entering data into Excel, Access, or similar software.
The advantages are that it is free to use, data entry is relatively easy, and there are many tutorials online for creating tables and spreadsheets.

3. The method of using dedicated CRM software or sales support systems.
These are paid services with varying price points.

In any case, it is important to unify your process into one method.
Aside from stepping up gradually, using multiple files or notebooks at once will prevent you from making comprehensive judgments.

The collected data is classified by recent purchase date, purchase frequency, and purchase amount to determine whether a customer is a high-value customer.

This is a technique called RFM analysis.
It takes its name from the initials of:
R: Recency (recent purchase),
F: Frequency,M: Monetary (amount).

Recently, analysis using AI has also begun in earnest.

You must also implement robust security measures to prevent data leaks.

Furthermore, appropriate compliance with legal requirements, such as the Act on the Protection of Personal Information, is essential.

Then, based on the analysis results obtained:
Provide special services like VIP benefits to high-value customers,
Offer coupons for next time to new customers or those who have visited only a few times,
Send direct mail with special offers to those who haven't visited recently to remind them of your store and uncover their needs,
And use point cards for general customers to encourage repeat visits and build loyalty.

By implementing measures tailored to each customer in this way, you can make your promotions much more effective.

Next time, I will talk about specific ways to collect data.

Thank you for reading.
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I look forward to your continued support.

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