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08.2019 Cover Story

Deepening Segment marketing to Provide considerate Service

/ Pacific SOGO Department Store
        Looking back to 2018, the growth of global retail sales tends to be flat. eMarketer, a market research institute, predicts that Taiwan's retail industry will grow by less than 1% a year by 2022. The overall retail industry is facing a severe challenge in the era of small profits for Department stores. In response to the dramatic changes in the consumer market, the Pacific SOGO Department Store not only develops new retail models, develops new industries and pursues commodity characteristics, but also invests more in innovation to enhance the level of service and seize the position in the consumers’ hearts through the experience of segment marketing and customization.

Faced with the change of market consumption pattern and the advent of the era of small profits of Department stores, SOGO not only focuses on creating a high-quality, novel, comfortable and international shopping environment, but also believes that in the protocol routine of department stores, the only way to improve customer loyalty and attract new customers is to provide considerate service, that is, to provide customers with unique experience and value by deepening the segment marketing.

In order to provide more segmented and practical services, SOGO has integrated the membership information accumulated over the past years since 2018 and planned six membership systems for different customers and different stages of life.
1. VVIP Club: Like the "first class" on an airplane, it provides honorable service to top members, inviting them to participate in more than 60 special experience activities and shopping services such as art and fine art appreciation every year.
2. VIP Club: Established to give back to the main customers, with the concept of "business class", members enjoy 21 experience activities such as courteous reception and wine tasting parties, hand-brewed coffee, tea tasting, flower art, beauty, and provide warm services through VIP Lounge.
3. Premium Club: Premium Club, which began recruiting members in the first quarter of 2019, positioned itself as a "luxury economy class" on an aircraft, giving potential customers who had not yet become VIPs the opportunity to experience the courtesy enjoyed by main customers in advance.
4. Wedding Club: The origin of the Department Stores in Taiwan. It provides the latest and most practical wedding related information for the new couples who are about to enter another stage of their lives, including nearly 200 brands, such as gold jewelry, boutiques, clothes, wedding cakes, restaurants, banks, wedding consultant... experience, concessions and customized services are provided. Members can join in the other clubs according to different life planning in the future.
5. ThanQ Club: Founded for parent-child consumers, members can receive exclusive preferential e-newsletters, exclusive activity calendar and gift for people come to the store every month. They can take part in such experience trips as "Small Customer Service Experience Camp" and "Low Carbon Education Trip".
6. Fresh Club: New in 2019, members enjoy the admission gift, doubled points on Wednesday, 300 points of Happy Go points can be exchanged for 100 yuan of supermarket shopping coupon at the 30th of every month, special commodity concessions, and members will be regularly invited to participate in various gourmet exhibitions, small agriculture exhibitions, tasting and purchasing delicacies, healthy organic, local food materials.
        In addition, SOGO subdivides customers into 22 levels, and caters to their pleasure to plan experiential marketing activities, so when customers come to SOGO, they can not only participate in customized experience, but also bring moving home. For example, SOGO invites customers who like hand-made gifts to make "immortal flowers" before Mother's Day, so that customers can feel the joy and achievement of hand-made gifts on the spot, and to continue their emotional connection as Mother's Day gifts after returning home. For the top customers of the pyramid with artistic appreciation, SOGO joined hands with Japan's largest art group "Whitestone Gallery" to hold "International Contemporary Art Auction Exhibition" at Taipei Fuxing. The exhibits includes such works of internationally renowned artists as Kusama, Nara Yoshitomo, KAWS, Марк шагал, Murakami Takashi, Zhao Wuji, Andy Warhol..., perfectly combining art with retail services.

Boutique consumer group can also not be neglected. SOGO provides customized services exclusively for customers through its exclusive cooperation with top brands to tailor-made exclusive products with personal style. In addition to the first-class international boutique customization services, last year SOGO cooperated with the United States boutique Kate Spade, and invited international master painters to Taiwan, if customers buy the basic items, they can ask the painter to draw the designated pictures, this bag with personal taste and personality becomes the deepest link among customers, SOGO and the brand.

At the same time, SOGO combines the image of "department store CSR model" to design various activities so that customers can realize that SOGO not only provides services, but also extends to the care of customers' welfare and fulfills social responsibilities in the process of experience and consumption. For example, in order to make people be more aware of climate change and environmental issues, SOGO Taipei Fuxing, in collaboration with GREENPEACE, a global environmental protection organization, launched “Blue Sky and White Cloud Manufacturing” around The World Earth Day. Customers were invited to ride bicycles to generate electricity and "play" environmental education through the environment and atmosphere of edutainment which makes customers pay attention to the great impact of climate change on human beings; in the summer vacation, SOGO cooperates with Greenpeace once again, inviting consumers to generate electricity for two minutes with their feet in exchange for delicious ice cream, and also letting more people know the infinite possibilities of renewable energy.
        In order to promote low-carbon diet, SOGO has invited the champion of Far Eastern culinary talent competition this year to teach customers how to cook low-carbon diet in addition to conducting a tour of low-carbon packed lunch teaching. Taipei Shop also held a "Taiwan Local Small Agricultural Exhibition" which lasted for 4 days and covered an area of 200 square meters last year. 70 shops and 1000 products from Taiwan were invited to participate in the exhibition. It is the largest and best small agricultural exhibition in Taiwan's retail channels. In addition to creating a market for agricultural products with the cultural and creative concept, Taiwan Local Small Agricultural Exhibition enables customers to feel the professional spirit and the story of careful cultivation behind each small agricultural product. It also combines the delicate dietary creativity of chef table and invites "Peninsula Table" and "Hero Restaurant" from south central Taiwan to fully present the food through cooking techniques, leading customers to know Taiwan's local food materials and providing consumers with a new "FOOD" consumption experience, so that low-carbon diet becomes a fashionable attitude towards life! This is an original and experimental event, which includes market, lectures, chef's table and takeaway from famous stores. For customers, they can buy high-quality products from all over Taiwan without running around. For farmers, the crops in the field have never been expected to be sold as high-quality goods in Department stores. They not only get practical benefits, but also gain confidence and achievement. For SOGO, it successfully combines CSR with operational performance by means of special activities.
        In response to the "slumping" economy, SOGO focused on digital golden triangle in key strategy, including "electronic payment" and "APP upgrade", and further integrated digital marketing into "SOGO Channel". For example, in cooperation with the well-known Web celebrity, by creating a digital environment through SOGO Channel can increase the ambience of cloud consumers and stimulate their desire to buy, and then with electronic payment and APP, convenient shopping process is offered; marketing attracts consumers in the form of digital points, virtual treasure capture. Combination of several measures drive the generalization and concretization between marketing and sales by meticulous digital experience,

Providing warm service and experience is an innovative profit model for enterprises and a service for customers to deepen their special needs. SOGO won the first prize in the best popular brand category of "National Yushan Brand Award" for its service. Every glory comes from the affirmation of customers. In the era of rapid change, SOGO will use Big Data of CRM to conduct more detailed and deepened segment marketing, with the addition of precise and unique experience design and activation of the functions of various digital tools to create an omni-directional consumer shopping experience with "Fun SOGO".
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